Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | L | |
Entity Registrant Name | LOEWS CORP | |
Entity Central Index Key | 60,086 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 354,342,618 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Fixed maturities, amortized cost of $37,690 and $37,469 | $ 40,301 | $ 40,885 |
Equity securities, cost of $978 and $733 | 885 | 728 |
Limited partnership investments | 3,495 | 3,674 |
Other invested assets, primarily mortgage loans | 787 | 731 |
Short term investments | 5,082 | 6,014 |
Total investments | 50,550 | 52,032 |
Cash | 328 | 364 |
Receivables | 8,079 | 7,770 |
Property, plant and equipment | 15,902 | 15,611 |
Goodwill | 352 | 374 |
Other assets | 1,715 | 1,616 |
Deferred acquisition costs of insurance subsidiaries | 606 | 600 |
Total assets | 77,532 | 78,367 |
Liabilities and Equity: | ||
Claim and claim adjustment expense | 22,867 | 23,271 |
Future policy benefits | 9,520 | 9,490 |
Unearned premiums | 3,706 | 3,592 |
Policyholders' funds | 27 | |
Total insurance reserves | 36,093 | 36,380 |
Payable to brokers | 733 | 673 |
Short term debt | 1,278 | 335 |
Long term debt | 9,492 | 10,333 |
Deferred income taxes | 796 | 893 |
Other liabilities | 4,987 | 5,103 |
Total liabilities | $ 53,379 | $ 53,717 |
Commitments and contingent liabilities | ||
Preferred stock, $0.10 par value: Authorized - 100,000,000 shares | ||
Common stock, $0.01 par value: Authorized - 1,800,000,000 shares Issued - 373,211,389 and 372,934,540 shares | $ 4 | $ 4 |
Additional paid-in capital | 3,490 | 3,481 |
Retained earnings | 15,906 | 15,515 |
Accumulated other comprehensive income (loss) | (23) | 280 |
Shareholders Equity Before Treasury Stock, Total | 19,377 | 19,280 |
Less treasury stock, at cost (16,319,020 shares) | (633) | |
Total shareholders' equity | 18,744 | 19,280 |
Noncontrolling interests | 5,409 | 5,370 |
Total equity | 24,153 | 24,650 |
Total liabilities and equity | $ 77,532 | $ 78,367 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 37,690 | $ 37,469 |
Equity securities, cost | $ 978 | $ 733 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued | 373,211,389 | 372,934,540 |
Treasury stock, shares | 16,319,020 | 0 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Insurance premiums | $ 1,751 | $ 1,810 | $ 5,173 | $ 5,427 |
Net investment income | 321 | 451 | 1,419 | 1,625 |
Investment gains (losses): | ||||
Other-than-temporary impairment losses | (56) | (10) | (99) | (17) |
Portion of other-than-temporary impairment losses recognized in Other comprehensive income | 0 | 0 | 0 | 0 |
Net impairment losses recognized in earnings | (56) | (10) | (99) | (17) |
Other net investment gains | 6 | 47 | 57 | 82 |
Total investment gains (losses) | (50) | 37 | (42) | 65 |
Contract drilling revenues | 599 | 728 | 1,816 | 2,063 |
Other revenues | 548 | 497 | 1,716 | 1,624 |
Total | 3,169 | 3,523 | 10,082 | 10,804 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,200 | 1,354 | 4,008 | 4,241 |
Amortization of deferred acquisition costs | 319 | 332 | 936 | 996 |
Contract drilling expenses | 276 | 400 | 971 | 1,165 |
Other operating expenses (Note 4) | 898 | 977 | 3,026 | 2,634 |
Interest | 128 | 121 | 393 | 369 |
Total | 2,821 | 3,184 | 9,334 | 9,405 |
Income (loss) before income tax | 348 | 339 | 748 | 1,399 |
Income tax expense | (66) | (99) | (170) | (347) |
Income from continuing operations | 282 | 240 | 578 | 1,052 |
Discontinued operations, net | 29 | (384) | ||
Net income | 282 | 269 | 578 | 668 |
Amounts attributable to noncontrolling interests | (100) | (61) | (117) | (285) |
Net income | 182 | 208 | 461 | 383 |
Net income attributable to Loews Corporation: | ||||
Income from continuing operations | 182 | 179 | 461 | 747 |
Discontinued operations, net | 29 | (364) | ||
Net income | $ 182 | $ 208 | $ 461 | $ 383 |
Basic and diluted net income per share: | ||||
Income from continuing operations | $ 0.50 | $ 0.47 | $ 1.25 | $ 1.94 |
Discontinued operations, net | 0.08 | (0.94) | ||
Net income | 0.50 | 0.55 | 1.25 | 1 |
Dividends per share | $ 0.0625 | $ 0.0625 | $ 0.1875 | $ 0.1875 |
Weighted average shares outstanding: | ||||
Shares of common stock | 360,910 | 380,590 | 367,740 | 384,530 |
Dilutive potential shares of common stock | 190 | 600 | 290 | 660 |
Total weighted average shares outstanding assuming dilution | 361,100 | 381,190 | 368,030 | 385,190 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract] | ||||
Net income | $ 282 | $ 269 | $ 578 | $ 668 |
Other comprehensive income (loss), after tax Changes in: | ||||
Net unrealized gains (losses) on investments with other-than-temporary impairments | 2 | 1 | (3) | 15 |
Net other unrealized gains (losses) on investments | (39) | (83) | (292) | 424 |
Total unrealized gains (losses) on available-for-sale investments | (37) | (82) | (295) | 439 |
Discontinued operations | (34) | (19) | ||
Unrealized gains (losses) on cash flow hedges | 1 | (4) | 5 | (1) |
Pension liability | 4 | 2 | 51 | (52) |
Foreign currency | (53) | (73) | (100) | (37) |
Other comprehensive income (loss) | (85) | (191) | (339) | 330 |
Comprehensive income | 197 | 78 | 239 | 998 |
Amounts attributable to noncontrolling interests | (91) | (39) | (82) | (316) |
Total comprehensive income attributable to Loews Corporation | $ 106 | $ 39 | $ 157 | $ 682 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Common Stock Held in Treasury [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2013 | $ 24,906 | $ 4 | $ 3,607 | $ 15,508 | $ 339 | $ 5,448 | |
Net income | 668 | 383 | 285 | ||||
Other comprehensive income (loss) | 330 | 299 | 31 | ||||
Dividends paid | (333) | (72) | |||||
Dividends paid | (261) | ||||||
Purchases of subsidiary stock from noncontrolling interests | (83) | (8) | (75) | ||||
Purchases of Loews treasury stock | (415) | $ (415) | |||||
Issuance of Loews common stock | 5 | 5 | |||||
Stock-based compensation | 19 | 9 | 10 | ||||
Other | 19 | (2) | 21 | ||||
Ending Balance at Sep. 30, 2014 | 25,116 | 4 | 3,613 | 15,817 | 638 | (415) | 5,459 |
Beginning Balance at Dec. 31, 2014 | 24,650 | 4 | 3,481 | 15,515 | 280 | 5,370 | |
Net income | 578 | 461 | 117 | ||||
Other comprehensive income (loss) | (339) | (304) | (35) | ||||
Dividends paid | (207) | (69) | |||||
Dividends paid | (138) | ||||||
Issuance of equity securities by subsidiary | 115 | (2) | 1 | 116 | |||
Purchases of subsidiary stock from noncontrolling interests | (31) | 5 | (36) | ||||
Purchases of Loews treasury stock | (633) | (633) | |||||
Issuance of Loews common stock | 7 | 7 | |||||
Stock-based compensation | 19 | 17 | 2 | ||||
Other | (6) | (18) | (1) | 13 | |||
Ending Balance at Sep. 30, 2015 | $ 24,153 | $ 4 | $ 3,490 | $ 15,906 | $ (23) | $ (633) | $ 5,409 |
Consolidated Condensed Stateme7
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities: | ||
Net income | $ 578 | $ 668 |
Adjustments to reconcile net income to net cash provided (used) by operating activities, net | 1,370 | 1,491 |
Changes in operating assets and liabilities, net: | ||
Receivables | 31 | 571 |
Deferred acquisition costs | 11 | 14 |
Insurance reserves | 195 | (222) |
Other assets | (81) | (127) |
Other liabilities | (108) | (152) |
Trading securities | 199 | (147) |
Net cash flow operating activities | 2,195 | 2,096 |
Investing Activities: | ||
Purchases of fixed maturities | (7,055) | (7,457) |
Proceeds from sales of fixed maturities | 3,590 | 4,005 |
Proceeds from maturities of fixed maturities | 3,101 | 2,901 |
Purchases of equity securities | (60) | (44) |
Proceeds from sales of equity securities | 43 | 23 |
Purchases of limited partnership investments | (120) | (218) |
Proceeds from sales of limited partnership investments | 156 | 133 |
Purchases of property, plant and equipment | (1,447) | (1,775) |
Dispositions | 28 | 1,030 |
Change in short term investments | 298 | 489 |
Other, net | (121) | (52) |
Net cash flow investing activities | (1,587) | (965) |
Financing Activities: | ||
Dividends paid | (69) | (72) |
Dividends paid to noncontrolling interests | (138) | (261) |
Purchases of subsidiary stock from noncontrolling interests | (29) | (88) |
Purchases of Loews treasury stock | (617) | (396) |
Issuance of Loews common stock | 7 | 5 |
Proceeds from sale of subsidiary stock | 114 | 4 |
Principal payments on debt | (1,761) | (1,250) |
Issuance of debt | 1,851 | 1,259 |
Other, net | 4 | 14 |
Net cash flow financing activities | (638) | (785) |
Effect of foreign exchange rate on cash | (6) | (3) |
Net change in cash | (36) | 343 |
Cash, beginning of period | 364 | 294 |
Cash, end of period | $ 328 | $ 637 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Loews Corporation is a holding company. Its subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), a 90% owned subsidiary); the operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc. (“Diamond Offshore”), a 53% owned subsidiary); transportation and storage of natural gas and natural gas liquids and gathering and processing of natural gas (Boardwalk Pipeline Partners, LP (“Boardwalk Pipeline”), a 51% owned subsidiary); and the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels”), a wholly owned subsidiary). Unless the context otherwise requires, the terms “Company,” “Loews” and “Registrant” as used herein mean Loews Corporation excluding its subsidiaries and the term “Net income (loss) attributable to Loews Corporation” as used herein means Net income (loss) attributable to Loews Corporation shareholders. Loews segments are CNA Financial, including Specialty, Commercial, International and Other Non-Core; Diamond Offshore; Boardwalk Pipeline; Loews Hotels; and Corporate and other. See Note 9 for additional information on segments. In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of September 30, 2015 and December 31, 2014, the results of operations and comprehensive income for the three and nine months ended September 30, 2015 and 2014 and changes in shareholders’ equity and cash flows for the nine months ended September 30, 2015 and 2014. Net income for the third quarter and first nine months of each of the years is not necessarily indicative of net income for that entire year. Reference is made to the Notes to Consolidated Financial Statements in the 2014 Annual Report on Form 10-K which should be read in conjunction with these Consolidated Condensed Financial Statements. The Company presents basic and diluted net income per share on the Consolidated Condensed Statements of Income. Basic net income per share excludes dilution and is computed by dividing net income 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. Stock appreciation rights (“SARs”) of 5.8 million, 2.6 million, 4.5 million and 2.2 million shares were not included in the diluted weighted average shares amounts for the three and nine months ended September 30, 2015 and 2014 due to the exercise price being greater than the average stock price. As a result of the continued deterioration of the market fundamentals in the oil and gas industry, the Company assessed the carrying value of goodwill related to its investment in Diamond Offshore. An impairment charge of $20 million was recorded in Other operating expenses in the third quarter of 2015 to write-off all goodwill attributable to Diamond Offshore. On August 1, 2014, CNA completed the sale of Continental Assurance Company (“CAC”), its former life insurance subsidiary and on September 30, 2014, the Company sold HighMount Exploration & Production LLC (“HighMount”), its natural gas and oil exploration and production subsidiary. The results of these sold businesses are reflected as discontinued operations in the Consolidated Condensed Statements of Income as further discussed in Note 12. In connection with the sale of CAC, CNA entered into a 100% coinsurance agreement on a separate small block of annuity business outside of CAC. As a result of the coinsurance agreement, the $31 million (after tax and noncontrolling interests) difference between market value and book value of the funds withheld assets at the coinsurance contract’s inception was recognized as a loss in Other operating expenses in the third quarter of 2014. Updated accounting guidance not yet adopted – In May of 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of the new accounting guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new accounting guidance provides a five-step analysis of transactions to determine when and how revenue is recognized and requires enhanced disclosures about revenue. In August of 2015, the FASB formally amended the effective date of this update to annual reporting periods beginning after December 15, 2017, including interim periods, and it can be adopted either retrospectively or with a cumulative effect adjustment at the date of adoption. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Investments | 2. Investments Net investment income is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In millions) Fixed maturity securities $ 449 $ 453 $ 1,344 $ 1,356 Short term investments 4 1 7 3 Limited partnership investments (122 ) 26 88 229 Equity securities 3 2 9 7 Income (loss) from trading portfolio (a) (5 ) (24 ) (9 ) 46 Other 9 7 26 25 Total investment income 338 465 1,465 1,666 Investment expenses (17 ) (14 ) (46 ) (41) Net investment income $ 321 $ 451 $ 1,419 $ 1,625 (a) Includes net unrealized gains (losses) related to changes in fair value on trading securities still held of $(59), $(19), $(71) and $46 for the three and nine months ended September 30, 2015 and 2014. Investment gains (losses) are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In millions) Fixed maturity securities $ (29 ) $ 39 $ (29 ) $ 58 Equity securities (18 ) (3 ) (19 ) 2 Derivative instruments (1 ) 9 1 Short term investments and other (2 ) 1 (3 ) 4 Investment gains (losses) (a) $ (50 ) $ 37 $ (42 ) $ 65 (a) Includes gross realized gains of $23, $52, $93 and $130 and gross realized losses of $70, $16, $141 and $70 on available-for-sale securities for the three and nine months ended September 30, 2015 and 2014. The components of net other-than-temporary impairment (“OTTI”) losses recognized in earnings by asset type are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 36 $ 6 $ 52 $ 9 States, municipalities and political subdivisions 18 Asset-backed: Residential mortgage-backed 1 2 7 4 Other asset-backed 1 1 Total asset-backed 1 2 8 5 Total fixed maturities available-for-sale 37 8 78 14 Equity securities available-for-sale: Common stock 19 2 20 3 Short term investments 1 Net OTTI losses recognized in earnings $ 56 $ 10 $ 99 $ 17 The amortized cost and fair values of securities are as follows: Unrealized Cost or Gross Gross OTTI Amortized Unrealized Unrealized Estimated Losses September 30, 2015 Cost Gains Losses Fair Value (Gains) (In millions) Fixed maturity securities: Corporate and other bonds $ 17,172 $1,237 $ 210 $ 18,199 States, municipalities and political subdivisions 11,978 1,336 17 13,297 $ (5) Asset-backed: Residential mortgage-backed 4,850 204 13 5,041 (46) Commercial mortgage-backed 2,183 77 9 2,251 Other asset-backed 1,009 11 4 1,016 Total asset-backed 8,042 292 26 8,308 (46) U.S. Treasury and obligations of government-sponsored enterprises 24 5 29 Foreign government 333 12 1 344 Redeemable preferred stock 33 2 35 Fixed maturities available-for-sale 37,582 2,884 254 40,212 (51) Fixed maturities trading 108 19 89 Total fixed maturities 37,690 2,884 273 40,301 (51) Equity securities: Common stock 62 3 65 Preferred stock 145 4 2 147 Equity securities available-for-sale 207 7 2 212 - Equity securities trading 771 51 149 673 Total equity securities 978 58 151 885 - Total $ 38,668 $2,942 $ 424 $ 41,186 $ (51) Cost or Gross Gross Unrealized Amortized Unrealized Unrealized Estimated OTTI Losses December 31, 2014 Cost Gains Losses Fair Value (Gains) (In millions) Fixed maturity securities: Corporate and other bonds $ 17,226 $1,721 $ 61 $ 18,886 States, municipalities and political subdivisions 11,285 1,463 8 12,740 Asset-backed: Residential mortgage-backed 5,028 218 13 5,233 $ (53) Commercial mortgage-backed 2,056 93 5 2,144 (2) Other asset-backed 1,234 11 10 1,235 Total asset-backed 8,318 322 28 8,612 (55) U.S. Treasury and obligations of government-sponsored enterprises 26 5 31 Foreign government 438 16 454 Redeemable preferred stock 39 3 42 Fixed maturities available-for-sale 37,332 3,530 97 40,765 (55) Fixed maturities trading 137 17 120 Total fixed maturities 37,469 3,530 114 40,885 (55) Equity securities: Common stock 38 9 47 Preferred stock 172 5 2 175 Equity securities available-for-sale 210 14 2 222 - Equity securities trading 523 96 113 506 Total equity securities 733 110 115 728 - Total $ 38,202 $3,640 $ 229 $ 41,613 $ (55) The net unrealized gains on investments included in the tables above are recorded as a component of Accumulated other comprehensive income (“AOCI”). When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments. As of September 30, 2015 and December 31, 2014, the net unrealized gains on investments included in AOCI were net of Shadow Adjustments of $938 million and $1.2 billion. To the extent that unrealized gains on fixed income securities supporting certain products within CNA’s Life & Group Non-Core business would result in a premium deficiency if realized, a related decrease in Deferred acquisition costs, and/or increase in Insurance reserves are recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (“Shadow Adjustments”). The available-for-sale securities in a gross unrealized loss position are as follows: Less than 12 Months 12 Months or Longer Total Gross Gross Gross Estimated Unrealized Estimated Unrealized Estimated Unrealized September 30, 2015 Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Fixed maturity securities: Corporate and other bonds $ 3,758 $ 180 $ 188 $ 30 $ 3,946 $ 210 States, municipalities and political subdivisions 655 11 131 6 786 17 Asset-backed: Residential mortgage-backed 308 3 211 10 519 13 Commercial mortgage-backed 479 6 81 3 560 9 Other asset-backed 354 4 9 363 4 Total asset-backed 1,141 13 301 13 1,442 26 U.S. Treasury and obligations of government-sponsored enterprises 1 1 Foreign government 23 3 1 26 1 Redeemable preferred stock 3 3 Total fixed maturity securities 5,581 204 623 50 6,204 254 Preferred stock 3 14 2 17 2 Total $ 5,584 $ 204 $ 637 $ 52 $ 6,221 $ 256 December 31, 2014 (In millions) Fixed maturity securities: Corporate and other bonds $ 1,330 $ 46 $ 277 $ 15 $ 1,607 $ 61 States, municipalities and political subdivisions 335 5 127 3 462 8 Asset-backed: Residential mortgage-backed 293 5 189 8 482 13 Commercial mortgage-backed 264 2 99 3 363 5 Other asset-backed 607 10 7 614 10 Total asset-backed 1,164 17 295 11 1,459 28 U.S. Treasury and obligations of government-sponsored enterprises 3 4 7 Foreign government 3 3 6 Redeemable preferred stock 3 3 Total fixed maturity securities 2,838 68 706 29 3,544 97 Preferred stock 17 2 1 18 2 Total $ 2,855 $ 70 $ 707 $ 29 $ 3,562 $ 99 Based on current facts and circumstances, the Company believes the unrealized losses presented in the table above are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in interest rates and credit spreads and other factors. The Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional OTTI losses to be recorded as of September 30, 2015. The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of September 30, 2015 and 2014 for which a portion of an OTTI loss was recognized in Other comprehensive income. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In millions) Beginning balance of credit losses on fixed maturity securities $ 59 $ 66 $ 62 $ 74 Reductions for securities sold during the period (2 ) (2 ) (5 ) (7) Reductions for securities the Company intends to sell or more likely than not will be required to sell (3) Ending balance of credit losses on fixed maturity securities $ 57 $ 64 $ 57 $ 64 Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid with or without call or prepayment penalties. Securities not due at a single date are allocated based on weighted average life. September 30, 2015 December 31, 2014 Cost or Estimated Cost or Estimated Amortized Fair Amortized Fair Cost Value Cost Value (In millions) Due in one year or less $ 1,406 $ 1,425 $ 2,479 $ 2,511 Due after one year through five years 7,789 8,200 9,070 9,621 Due after five years through ten years 14,149 14,577 12,055 12,584 Due after ten years 14,238 16,010 13,728 16,049 Total $ 37,582 $ 40,212 $ 37,332 $ 40,765 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 the 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. September 30, 2015 December 31, 2014 Contractual/ Contractual/ Notional Estimated Fair Value Notional Estimated Fair Value Amount Asset (Liability) Amount Asset (Liability) (In millions) With hedge designation: Foreign exchange: Currency forwards – short $ 70 $ (5) Without hedge designation: Equity markets: Options – purchased $ 1,619 $ 50 544 $ 24 – written 1,256 $ (29) 292 (21) Equity swaps and warrants – long 10 1 10 2 Futures – long 70 1 Futures – short 95 (1) 130 2 Foreign exchange: Currency forwards – long 358 (52) 109 (3) – short 435 53 88 2 Currency options – long 100 1 151 7 – short 50 (1) Embedded derivative on funds withheld liability 182 5 184 (3) Investment Commitments As of September 30, 2015, the Company had committed approximately $414 million to future capital calls from various third party limited partnership investments in exchange for an ownership interest in the related partnerships. The Company invests in various privately placed debt securities, including bank loans, as part of its overall investment strategy and has committed to additional future purchases, sales and funding. As of September 30, 2015, the Company had commitments to purchase or fund additional amounts of $81 million and sell $43 million under the terms of such securities. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 3. Fair Value Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable: ● Level 1 – Quoted prices for identical instruments in active markets. ● Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. ● Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are not observable. Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, the Company seeks to price securities using third party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs the Company believes market participants would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted by the Company. The Company performs control procedures over information obtained from pricing services and brokers to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. Procedures include: (i) the review of pricing service or broker pricing methodologies, (ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, (iii) exception reporting, where period-over-period changes in price are reviewed and challenged with the pricing service or broker based on exception criteria, (iv) detailed analysis, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities and (v) pricing validation, where prices received are compared to prices independently estimated by the Company. The fair values of CNA’s life settlement contracts are included in Other assets on the Consolidated Condensed Balance Sheets. Equity options purchased are included in Equity securities, and all other derivative assets are included in Receivables. Derivative liabilities are included in Payable to brokers. Assets and liabilities measured at fair value on a recurring basis are presented in the following tables: September 30, 2015 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 28 $ 18,018 $ 153 $ 18,199 States, municipalities and political subdivisions 13,236 61 13,297 Asset-backed: Residential mortgage-backed 4,837 204 5,041 Commercial mortgage-backed 2,180 71 2,251 Other asset-backed 545 471 1,016 Total asset-backed 7,562 746 8,308 U.S. Treasury and obligations of government-sponsored enterprises 28 1 29 Foreign government 28 316 344 Redeemable preferred stock 24 11 35 Fixed maturities available-for-sale 108 39,144 960 40,212 Fixed maturities trading 3 86 89 Total fixed maturities $ 108 $ 39,147 $ 1,046 $ 40,301 Equity securities available-for-sale $ 154 $ 43 $ 15 $ 212 Equity securities trading 673 673 Total equity securities $ 827 $ 43 $ 15 $ 885 Short term investments $ 4,225 $ 773 $ 4,998 Other invested assets 102 45 147 Receivables 56 56 Life settlement contracts $ 74 74 Payable to brokers (430 ) (54 ) (484) December 31, 2014 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 32 $ 18,692 $ 162 $ 18,886 States, municipalities and political subdivisions 12,646 94 12,740 Asset-backed: Residential mortgage-backed 5,044 189 5,233 Commercial mortgage-backed 2,061 83 2,144 Other asset-backed 580 655 1,235 Total asset-backed 7,685 927 8,612 U.S. Treasury and obligations of government-sponsored enterprises 28 3 31 Foreign government 41 413 454 Redeemable preferred stock 30 12 42 Fixed maturities available-for-sale 131 39,451 1,183 40,765 Fixed maturities trading 30 90 120 Total fixed maturities $ 131 $ 39,481 $ 1,273 $ 40,885 Equity securities available-for-sale $ 145 $ 61 $ 16 $ 222 Equity securities trading 505 1 506 Total equity securities $ 650 $ 61 $ 17 $ 728 Short term investments $ 4,989 $ 963 $ 5,952 Other invested assets 102 41 143 Receivables 2 7 9 Life settlement contracts $ 82 82 Payable to brokers (546 ) (6 ) (552) 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 nine months ended September 30, 2015 and 2014: Unrealized Gains (Losses) Recognized in Net Realized Gains Net Income (Losses) and Net Change on Level in Unrealized Gains 3 Assets and (Losses) Transfers Transfers Liabilities Balance, Included in Included in into out of Balance, Held at 2015 July 1 Net Income OCI Purchases Sales Settlements Level 3 Level 3 September 30 September 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 141 $ 27 $ (1) $ (11) $ (3) $ 153 States, municipalities and political subdivisions 85 (24) 61 Asset-backed: Residential mortgage-backed 207 $ 2 $ (2) 4 (7) 204 Commercial mortgage-backed 87 5 (4) 8 (15) (10) 71 Other asset-backed 490 (6) 43 (20) (32) (4) 471 Total asset-backed 784 7 (12) 55 (20) (54) $ - (14) 746 $ - Fixed maturities available-for-sale 1,010 7 (12) 82 (21) (65) (41) 960 Fixed maturities trading 89 (2) (1) 86 $ (2) Total fixed maturities $ 1,099 $ 5 $ (12) $ 82 $ (22) $ (65) $ - $ (41) $ 1,046 $ (2) Equity securities available-for-sale $ 16 $ (1) $ 15 Equity securities trading 1 $ 1 $ (2) - $ 1 Total equity securities $ 17 $ 1 $ (1) $ - $ (2) $ - $ - $ - $ 15 $ 1 Life settlement contracts $ 75 $ 5 $ (6) $ 74 $ 2 Unrealized Gains (Losses) Recognized in Net Realized Gains Net Income (Losses) and Net Change on Level in Unrealized Gains 3 Assets and (Losses) Transfers Transfers Liabilities Balance, Included in Included in into out of Balance, Held at 2014 July 1 Net Income OCI Purchases Sales Settlements Level 3 Level 3 September 30 September 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 194 $ (1) $ 4 $ (3) $ (21) $ 173 States, municipalities and political subdivisions 79 1 80 Asset-backed: Residential mortgage-backed 185 $ 1 (17) $ 11 (20) 160 Commercial mortgage-backed 59 2 (2) 28 (21) 31 97 Other asset-backed 626 1 (4) 80 (25) (36) 642 Total asset-backed 870 4 (6) 108 $ - (63) 42 (56) 899 $ - Fixed maturities available-for-sale 1,143 4 (6) 112 (66) 42 (77) 1,152 Fixed maturities trading 91 91 Total fixed maturities $ 1,234 $ 4 $ (6) $ 112 $ - $ (66) $ 42 $ (77) $ 1,243 $ - Equity securities available-for-sale $ 2 $ (1) $ 16 $ 17 Equity securities trading 4 (1) 3 Total equity securities $ 6 $ - $ (1) $ 15 $ - $ - $ - $ - $ 20 $ - Life settlement contracts $ 86 $ 1 $ (1) $ 86 $ 1 Derivative financial instruments, net - - (1) Unrealized Gains (Losses) Recognized in Net Realized Gains Net Income (Losses) and Net Change on Level in Unrealized Gains 3 Assets and (Losses) Transfers Transfers Liabilities Balance, Included in Included in into out of Balance, Held at 2015 January 1 Net Income OCI Purchases Sales Settlements Level 3 Level 3 September 30 September 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 162 $ (1) $ (1) $ 39 $ (13) $ (32) $ 37 $ (38) $ 153 States, municipalities and political subdivisions 94 1 (10) (24) 61 Asset-backed: Residential mortgage-backed 189 4 (4) 76 (28) (33) 204 Commercial mortgage- backed 83 7 (4) 23 (17) 17 (38) 71 Other asset-backed 655 3 4 125 (254) (52) (10) 471 $ (1) Total asset-backed 927 14 (4) 224 (254) (97) 17 (81) 746 (1) Fixed maturities available-for-sale 1,183 14 (5) 263 (267) (139) 54 (143) 960 (1) Fixed maturities trading 90 (2) (2) 86 (2) Total fixed maturities $ 1,273 $ 12 $ (5) $ 263 $ (269) $ (139) $ 54 $ (143) $ 1,046 $ (3) Equity securities available-for-sale $ 16 $ (1) $ 15 Equity securities trading 1 $ 1 $ (2) - $ 1 Total equity securities $ 17 $ 1 $ (1) $ - $ (2) $ - $ - $ - $ 15 $ 1 Life settlement contracts $ 82 $ 22 $ (30) $ 74 $ 1 Net Realized Gains Transfers Transfers Unrealized (Losses) Recognized in on Level 3 Assets and 2014 Balance, Included in Included in Purchases Sales Settlements into out of Balance, Held at (In millions) Fixed maturity securities: Corporate and other bonds $ 204 $ 2 $ 30 $ (10) $ (13) $ 8 $ (48) $ 173 States, municipalities and political subdivisions 71 1 $ 3 1 (10) 14 80 Asset-backed: Residential mortgage-backed 331 (22) 62 47 (174) (57) 32 (59) 160 Commercial mortgage-backed 151 4 (2) 28 (60) (23) 43 (44) 97 Other asset-backed 446 2 457 (111) (115) (37) 642 $ (1) Total asset-backed 928 (16) 60 532 (345) (195) 75 (140) 899 (1) Fixed maturities available-for-sale 1,203 (13) 63 563 (365) (208) 97 (188) 1,152 (1) Fixed maturities trading 80 11 91 11 Total fixed maturities $ 1,283 $ (2) $ 63 $ 563 $ (365 ) $ (208) $ 97 $ (188) $ 1,243 $ 10 Equity securities available-for-sale $ 11 $ 3 $ (5) $ 16 $ (8) $ 17 Equity securities trading 8 1 (6) 3 Total equity securities $ 19 $ 3 $ (5) $ 17 $ (14) $ - $ - $ - $ 20 $ - Life settlement contracts $ 88 $ 23 $ (25) $ 86 $ 3 Separate account business 1 $ (1) - Derivative financial instruments, net (3) 1 $ (2) $ 2 2 - 1 Net realized and unrealized gains and losses are reported in Net income as follows: Major Category of Assets and Liabilities Consolidated Condensed Statements of Income Line Items Fixed maturity securities available-for-sale Investment gains (losses) Fixed maturity securities, trading Net investment income Equity securities available-for-sale Investment gains (losses) Equity securities, trading 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 Other revenues Life settlement contracts Other revenues Securities may be transferred in or out of levels within the fair value hierarchy based on the availability of observable market information and quoted prices used to determine the fair value of the security. The availability of observable market information and quoted prices varies based on market conditions and trading volume. During the three and nine months ended September 30, 2015 there were $10 million of transfers from Level 2 to Level 1 and no transfers from Level 1 to Level 2. During the three months ended September 30, 2014 there were no transfers between Level 1 and Level 2. During the nine months ended September 30, 2014 there were $24 million of transfers from Level 2 to Level 1 and $1 million of transfers from Level 1 to Level 2. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. Valuation Methodologies and Inputs The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified. Fixed Maturity Securities Level 1 securities include exchange traded bonds, highly liquid U.S. and foreign government bonds and redeemable preferred stock, valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. All classes of Level 2 fixed maturity securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology or a combination of both when necessary. Common inputs for all classes of fixed maturity securities include prices from recently executed transactions of similar securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. Specifically for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Fixed maturity securities are generally assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with inputs that are not market observable. Equity Securities Level 1 equity securities include publicly traded securities valued using quoted market prices. Level 2 securities are primarily non-redeemable preferred stocks and common stocks valued using pricing for similar securities, recently executed transactions and other pricing models utilizing market observable inputs. Level 3 securities are priced using internal models with inputs that are not market observable. Derivative Financial Instruments Exchange traded derivatives are valued using quoted market prices and are classified within Level 1 of the fair value hierarchy. Level 2 derivatives primarily include currency forwards valued using observable market forward rates. Over-the-counter derivatives, principally interest rate swaps, total return swaps, commodity swaps, equity warrants and options, are valued using inputs including broker/dealer quotes and are classified within Level 2 or Level 3 of the valuation hierarchy, depending on the amount of transparency as to whether these quotes are based on information that is observable in the marketplace. Short Term Investments Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds and treasury bills. Level 2 primarily includes commercial paper, for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are classified consistent with fixed maturity securities discussed above. Short term investments as presented in the tables above differ from the amounts presented in the Consolidated Condensed Balance Sheets because certain short term investments, such as time deposits, are not measured at fair value. Other Invested Assets Level 1 securities include exchange traded open-end funds valued using quoted market prices. Level 2 securities include overseas deposits which can be redeemed at net asset value in 90 days or less. Life Settlement Contracts The fair values of life settlement contracts are determined as the present value of the anticipated death benefits less anticipated premium payments based on contract terms that are distinct for each insured, as well as CNA’s own assumptions for mortality, premium expense, and the rate of return that a buyer would require on the contracts, as no comparable market pricing data is available. Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the table below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company. September 30, 2015 Estimated Valuation Techniques Unobservable Inputs Range (Weighted Average) (In millions) Fixed maturity securities $ 121 Discounted cash flow Credit spread 2% – 31% (3%) Life settlement contracts 74 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% – 1,676% (164%) December 31, 2014 Fixed maturity securities $ 101 Discounted cash flow Credit spread 2% – 13% (3%) Equity securities 16 Market approach Private offering price $12 – $4,391 per share ($600 per share) Life settlement contracts 82 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% – 1,676% (163%) For fixed maturity securities, an increase to the credit spread assumptions would result in a lower fair value measurement. For equity securities, an increase in the private offering price would result in a higher fair value measurement. For life settlement contracts, an increase in the discount rate risk premium or decrease in the mortality assumption would result in a lower fair value measurement. Financial Assets and Liabilities Not Measured at Fair Value The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s 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 capital 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 September 30, 2015 Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 640 $ 660 $ 660 Liabilities: Short term debt 1,277 $ 1,267 35 1,302 Long term debt 9,479 8,811 555 9,366 December 31, 2014 Assets: Other invested assets, primarily mortgage loans $ 588 $ 608 $ 608 Liabilities: Short term debt 334 $ 255 84 339 Long term debt 10,320 10,299 420 10,719 The following methods and assumptions were used in estimating the fair value of these financial assets and liabilities. The fair values of mortgage loans, included in Other invested assets, were based on the present value of the expected future cash flows discounted at the current interest rate for similar financial instruments, adjusted for specific loan risk. Fair value of debt was based on observable market prices when available. When observable market prices were not available, the fair value of debt was based on observable market prices of comparable instruments adjusted for differences between the observed instruments and the instruments being valued or is estimated using discounted cash flow analyses, based on current incremental borrowing rates for similar types of borrowing arrangements. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Diamond Offshore Asset Impairment During the first quarter of 2015, in response to pending regulatory requirements in the U.S. Gulf of Mexico, as well as the continued deterioration of the market fundamentals in the oil and gas industry, including the dramatic decline in oil prices, significant cutbacks in customer capital spending plans and contract cancellations by customers, Diamond Offshore evaluated all drilling rigs with indications that their carrying amounts may not be recoverable. Diamond Offshore utilizes an undiscounted probability-weighted cash flow analysis in testing an asset for potential impairment. A matrix of assumptions is developed for each rig under evaluation using multiple utilization/dayrate scenarios, to each of which Diamond Offshore assigns a probability of occurrence. Diamond Offshore arrives at a projected probability weighted cash flow for each rig based on the respective matrix and compares such amount to the carrying value of the asset to assess recoverability. The underlying assumptions and assigned probabilities of occurrence for utilization and dayrate scenarios are developed using a methodology that examines historical data for each rig, which considers the rig’s age, rated water depth and other attributes and then assesses its future marketability in light of the current and projected market environment at the time of assessment. Other assumptions, such as operating, maintenance and inspection costs, are estimated using historical data adjusted for known developments and future events that are anticipated by management at the time of the assessment. Based on this evaluation, Diamond Offshore determined that seven mid-water semisubmersibles and one drillship were impaired and an impairment loss was recognized aggregating $359 million ($158 million after tax and noncontrolling interests) during the first quarter of 2015. The fair value of five of the impaired rigs was determined utilizing a market approach, which utilized the most recent contracted sales price for another of Diamond Offshore’s previously impaired mid-water semisubmersible rigs. The fair value of Diamond Offshore’s three remaining rigs (which were under contract with a customer at that time) was determined using an income approach, which utilized significant unobservable inputs, including assumptions related to estimated dayrate revenue, rig utilization and anticipated costs for the remainder of the current contract, as well as estimated proceeds that may be received on disposition of each rig, representative of a Level 3 fair value measurement. During the third quarter of 2015, Diamond Offshore evaluated 13 drilling rigs with indications that their carrying amounts may not be recoverable and determined that further impairment of its fleet had not occurred. In October 2015, offers were received for three drilling rigs, consisting of one semisubmersible rig and one drillship, both of which were previously impaired, and one cold stacked jack-up rig. Diamond Offshore recorded an aggregate impairment loss of $2 million ($1 million after tax and noncontrolling interests) during the third quarter of 2015 to write down the carrying value of each of these rigs to their expected selling price. Impairment losses for the nine months ended September 30, 2015 were $361 million ($159 million after tax and noncontrolling interests). Of the rigs impaired during 2015, four semisubmersible rigs have been sold for scrap and another three rigs are currently cold stacked. The two remaining rigs in the impairment group are under contract with customers and are expected to be sold for scrap at the end of their respective contracts. The aggregate fair value of the rigs in the impairment group was $9 million as of September 30, 2015. During the three and nine months ended September 30, 2014, Diamond Offshore recognized an impairment loss aggregating $109 million ($55 million after tax and noncontrolling interests) related to semisubmersible rigs for which a plan had been initiated to retire and scrap. All of these rigs were subsequently sold for scrap. Diamond Offshore’s assumptions are necessarily subjective and are an inherent part of the asset impairment evaluation. The use of different assumptions could produce results that differ from those reported. The actual amount realized upon disposition of the drilling rigs may vary if, or when, such rigs are sold. Loews Hotels In 2015, Loews Hotels has paid a total of approximately $330 million to acquire two hotels, funded with capital contributions from the Company. |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves | 9 Months Ended |
Sep. 30, 2015 | |
Insurance [Abstract] | |
Claim and Claim Adjustment Expense Reserves | 5. Claim and Claim Adjustment Expense Reserves CNA’s property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including claims that are incurred but not reported (“IBNR”) as of the reporting date. CNA’s reserve projections are based primarily on detailed analysis of the facts in each case, CNA’s experience with similar cases and various historical development patterns. Consideration is given to such historical patterns as field reserving trends and claims settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions, economic conditions including inflation and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves. Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can all affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers’ compensation, general liability and professional liability claims. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that CNA’s ultimate cost for insurance losses will not exceed current estimates. Catastrophes are an inherent risk of the property and casualty insurance business and can contribute to material period-to-period fluctuations in CNA’s results of operations and/or equity. CNA reported catastrophe losses, net of reinsurance, of $14 million and $17 million for the three months ended September 30, 2015 and 2014 and $103 million and $147 million for the nine months ended September 30, 2015 and 2014. Catastrophe losses in 2015 related primarily to U.S. weather-related events. Net Prior Year Development The following tables and discussion present net prior year development recorded for Specialty, Commercial, International and Other. Three Months Ended September 30, 2015 Specialty Commercial International Other Total (In millions) Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (130 ) $ (11) $ (34) $ (175) Pretax (favorable) unfavorable premium development (2 ) (5) 2 (5) Total pretax (favorable) unfavorable net prior year development $ (132 ) $ (16) $ (32) $ - $ (180) Three Months Ended September 30, 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (79 ) $ 71 $ (17) $ (1) $ (26) Pretax (favorable) unfavorable premium development (4 ) 7 3 Total pretax (favorable) unfavorable net prior year development $ (83 ) $ 71 $ (10) $ (1) $ (23) Nine Months Ended September 30, 2015 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (141 ) $ (46) $ (187) Pretax (favorable) unfavorable premium development (10 ) $ (17) 16 (11) Total pretax (favorable) unfavorable net prior year development $ (151 ) $ (17) $ (30) $ - $ (198) Nine Months Ended September 30, 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (123 ) $ 179 $ (32) $ (1 ) $ 23 Pretax (favorable) unfavorable premium development (12 ) (24) 6 (30) Total pretax (favorable) unfavorable net prior year development $ (135 ) $ 155 $ (26) $ (1 ) $ (7) Specialty The following table and discussion provide further detail of the net prior year claim and allocated claim adjustment expense reserve development (“development”) recorded for the Specialty segment: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Medical professional liability $ (19 ) $ 16 $ (11 ) $ 17 Other professional liability and management liability (37 ) (9 ) (41 ) (59) Surety (70 ) (79 ) (69 ) (78) Warranty 1 Other (4 ) (7 ) (21 ) (3) Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (130 ) $ (79 ) $ (141 ) $ (123) Three Months 2015 Favorable development in medical professional liability was related to lower than expected severity in accident years 2008 through 2013. Favorable development in other professional liability and management liability related to better than expected large loss emergence in financial institutions in accident years 2012 and prior. Additional favorable development related to lower than expected severity in accident years 2009 through 2013 for directors and officers liability. Favorable development for surety coverages was primarily due to lower than expected frequency of large losses in accident years 2013 and prior. 2014 Unfavorable development for medical professional liability was primarily related to increased frequency of large medical products liability class action lawsuits in accident years 2012 and prior. Favorable development for surety coverages was primarily due to lower than expected frequency of large losses in accident years 2012 and prior. Nine Months 2015 Overall, favorable development for medical professional liability was related to lower than expected severity in accident years 2008 through 2013. Unfavorable development was recorded related to increased claim frequency in the aging services business for accident years 2013 and 2014. Overall, favorable development in other professional liability and management liability related to better than expected large loss emergence in financial institutions in accident years 2012 and prior. Additional favorable development related to lower than expected severity in accident years 2009 through 2013 for directors and officers liability and lower than expected severity in accident years 2010 and prior for professional services. Unfavorable development was related to increased claim frequency on public company management liability in accident years 2012 through 2014. Favorable development for surety coverages was primarily due to lower than expected frequency of large losses in accident years 2013 and prior. Favorable development for other coverages was due to better than expected claim frequency in property coverages provided to Specialty customers in accident year 2014. 2014 Unfavorable development for medical professional liability was primarily related to increased frequency of large medical products liability class action lawsuits in accident years 2012 and prior. Favorable development for other professional liability and management liability was primarily related to favorable outcomes on individual large claims in accident years 2009 and prior, which contributed to a lower estimate of ultimate severity. Additionally, there was better than expected severity in accident years 2008 through 2011. Favorable development for surety coverages was primarily due to lower than expected frequency of large losses in accident years 2012 and prior. Commercial The following table and discussion provide further detail of the development recorded for the Commercial segment. A significant amount of the unfavorable development for the nine months ended September 30, 2014 relates to business classes which CNA has exited, but also includes Small Business where CNA has taken underwriting actions in an effort to improve profitability. Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Commercial auto $ 13 $ 7 $ 52 General liability $ 3 44 8 76 Workers’ compensation (1 ) 25 22 75 Property and other (13 ) (11 ) (37 ) (24) Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (11 ) $ 71 $ - $ 179 Three Months 2015 Favorable development for property and other was primarily due to better than expected loss emergence on catastrophe events in accident year 2014. 2014 Overall, unfavorable development for general liability coverages was primarily related to higher than expected severity in accident years 2010, 2011 and 2013. Favorable development was recorded primarily related to lower than expected frequency of large losses in accident years 2005 through 2008. Overall, unfavorable development for workers’ compensation was primarily related to increased medical severity in accident years 2010 and prior and higher than expected severity related to Defense Base Act (“DBA”) contractors in accident years 2010 through 2013. Favorable development of $26 million was recorded in accident years 1996 and prior related to the commutation of a workers’ compensation reinsurance pool. Favorable development for property and other first-party coverages was recorded in accident years 2010 and prior, primarily related to lower than expected frequency and favorable individual claim settlements. Nine Months 2015 Unfavorable development for workers’ compensation was primarily due to higher than expected severity related to Defense Base Act contractors in accident years 2008 through 2013. Favorable development for property and other was primarily due to better than expected loss emergence from 2012 and 2014 catastrophe events and better than expected frequency of large claims in accident year 2014. The nine months also included unfavorable loss development related to an extra contractual obligation loss and losses associated with premium development. 2014 Unfavorable development for commercial auto was primarily related to increased claim frequency of large losses in accident years 2010 through 2013. Overall, unfavorable development for general liability was primarily related to higher than expected severity in accident years 2009 through 2011. In addition, there was higher than expected severity in accident year 2013 related to Small Business. Favorable development was recorded primarily related to lower than expected frequency of large losses in accident years 2005 through 2008. Overall, unfavorable development for workers’ compensation was primarily due to increased medical severity in accident years 2010 and prior, higher than expected severity related to DBA contractors in accident years 2010 through 2013 and the recognition of losses related to favorable premium development in accident year 2013. Favorable development of $26 million was recorded in accident years 1996 and prior related to the commutation of a workers’ compensation reinsurance pool. Overall, favorable development for property and other coverages in accident years 2011 and prior primarily related to lower than expected frequency and favorable individual claim settlements. Additionally, there was favorable development due to better than expected loss emergence in catastrophe losses in accident year 2013. Unfavorable development was recorded in accident year 2012 primarily related to higher than expected loss emergence in catastrophe losses. International The following table and discussion provide further detail of the development recorded for the International segment: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Medical professional liability $ (8 ) $ (3 ) $ (8 ) $ (2) Other professional liability (11 ) 1 (16 ) (14) Liability (5 ) (3 ) (12 ) (9) Property & marine (5 ) (11 ) (19 ) (10) Other (5 ) (1 ) 9 (7) Commutations 10 Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (34 ) $ (17 ) $ (46 ) $ (32) Three Months 2015 Favorable development in medical professional liability was due to better than expected loss emergence on accident years 2011 to 2013. Favorable development in other professional liability was due to better than expected large loss emergence in accident years 2011 and prior. Favorable development in liability was due to better than expected large loss emergence in accident years 2012 and prior. Favorable development in property and marine was due to better than expected individual large loss emergence and favorable settlements on large claims in accident years 2013 and 2014. 2014 Favorable development for property and marine coverages was primarily related to better than expected severity in accident year 2013. Nine Months 2015 Favorable development in medical professional liability was due to better than expected loss emergence on accident years 2011 to 2013. Favorable development in other professional liability was due to better than expected large loss emergence in accident years 2011 and prior. Favorable development in liability was due to better than expected large loss emergence in accident years 2012 and prior. Favorable development in property and marine was due to better than expected individual large loss emergence and favorable settlements on large claims in accident years 2013 and 2014. Unfavorable development in other is due to higher than expected large losses in financial institutions and political risk, primarily in accident year 2014. 2014 Favorable development for other professional liability was primarily related to lower than expected severity in accident years 2011 and prior. Favorable development for property and marine coverages was primarily related to better than expected severity in accident year 2013. Reinsurance commutations in the first quarter of 2014 reduced ceded losses from prior years. Overall the commutations increased net operating income because of the release of the related allowance for doubtful accounts on reinsurance receivables. Asbestos and Environmental Pollution Reserves In 2010, Continental Casualty Company (“CCC”) together with several of CNA’s insurance subsidiaries completed a transaction with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc., under which substantially all of CNA’s legacy asbestos and environmental pollution (“A&EP”) liabilities were ceded to NICO (loss portfolio transfer or “LPT”). At the transaction effective date, CNA ceded approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $4.0 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 aggregate reinsurance limit also covers credit risk on the existing third party reinsurance related to these liabilities. CNA paid NICO a reinsurance premium of $2.0 billion and transferred to NICO billed third party reinsurance receivables related to A&EP claims with a net book value of $215 million, resulting in total consideration of $2.2 billion. Through December 31, 2013, CNA recorded $0.9 billion of additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the loss portfolio transfer exceeded the $2.2 billion consideration paid, resulting in a deferred retroactive reinsurance gain. This deferred gain is recognized in earnings in proportion to actual recoveries under the loss portfolio transfer. Over the life of the contract, there is no economic impact as long as any additional losses are within the limit under the contract. In a period in which the estimate of ceded losses is changed, the required change to the deferred gain is cumulatively recognized in earnings as if the revised estimate was available at the inception of the LPT. The following table displays the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income. Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Net A&EP adverse development before consideration of LPT $ 150 Provision for uncollectible third party reinsurance on A&EP Additional amounts ceded under LPT 150 Retroactive reinsurance benefit recognized $ (4 ) $ (4 ) (75 ) $ (9) Pretax impact of deferred retroactive reinsurance benefit $ (4 ) $ (4 ) $ 75 $ (9) The fourth quarter of 2014 A&EP reserve review was not completed in 2014 because additional information and analysis on inuring third party reinsurance recoveries were needed to finalize the review. The review was finalized in the second quarter of 2015. Unfavorable development was due to a decrease in anticipated future reinsurance recoveries related to asbestos claims and higher than expected severity on pollution claims. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders’ benefits in the Consolidated Condensed Statements of Income. As of September 30, 2015 and December 31, 2014, the cumulative amounts ceded under the LPT were $2.6 billion and $2.5 billion. The unrecognized deferred retroactive reinsurance benefit was $251 million and $176 million as of September 30, 2015 and December 31, 2014. NICO established a collateral trust account as security for its obligations to CNA. The fair value of the collateral trust account was $2.8 billion and $3.4 billion at September 30, 2015 and December 31, 2014. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the full aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third party reinsurers related to CNA’s A&EP claims. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt CNA Financial During the third quarter of 2015, CNA entered into a new credit agreement with a syndicate of banks and simultaneously terminated the previous credit agreement. The new credit agreement established a five-year $250 million senior unsecured revolving credit facility which may be used for general corporate purposes. At CNA’s election, the commitments under the new credit agreement may be increased from time to time up to an additional aggregate amount of $100 million and the new credit agreement includes two optional one-year extensions prior to the first and second anniversary of the closing date, subject to applicable consents. Diamond Offshore Diamond Offshore has a $1.5 billion senior unsecured revolving credit facility. In October 2015, Diamond Offshore entered into an extension agreement of the revolving credit facility, which, among other things, provides for a one-year extension of the maturity date. The extended revolving credit facility matures in October 2020, except for $40 million of commitments that mature in March 2019 and $60 million of commitments that mature in October 2019. In addition, Diamond Offshore also has the option to increase the revolving commitments under the revolving credit facility by up to an additional $500 million from time to time, upon receipt of additional commitments from new or existing lenders, and to request one additional one-year extension of the maturity date. Up to $250 million of the facility may be used for the issuance of performance or other standby letters of credit and up to $100 million may be used for swingline loans. As of September 30, 2015, Diamond Offshore had $493 million outstanding of commercial paper supported by its existing $1.5 billion revolving credit facility. As of September 30, 2015, the commercial paper notes had a weighted average interest rate of 0.4% and a weighted average remaining term of two days. Diamond Offshore repaid $250 million aggregate principal amount of its 4.9% senior notes due July 1, 2015, primarily with funds obtained through the issuance of additional commercial paper. Boardwalk Pipeline In the first quarter of 2015, Boardwalk Pipeline completed a public offering of an additional $250 million aggregate principal amount of its 5.0% senior notes due December 15, 2024. Boardwalk Pipeline originally issued $350 million aggregate principal amount of its 5.0% senior notes due December 15, 2024 in November of 2014. During 2015, Boardwalk Pipeline used the net proceeds from this offering to retire all of the outstanding $250 million aggregate principal amount of 4.6% notes that matured on June 1, 2015 and repaid at maturity the entire $275 million aggregate principal amount of its 5.1% senior notes. During 2015, Boardwalk Pipeline repaid the $200 million of outstanding borrowings and terminated all related commitments of their variable-rate term loan. In May of 2015, Boardwalk Pipeline entered into an amended revolving credit agreement having aggregate lending commitments of $1.5 billion and a maturity date of May 2020. As of September 30, 2015, Boardwalk Pipeline had $365 million of loans outstanding under its revolving credit facility with a weighted-average interest rate on the borrowings of 1.4%. Loews Hotels In the third quarter of 2015, Loews Hotels entered into an $87 million mortgage loan agreement which bears interest at London Interbank Offered Rate (“LIBOR”) plus an applicable margin. The mortgage loan agreement is due October 1, 2018 and includes two optional one-year extensions, subject to applicable conditions. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Accumulated other comprehensive income The tables below display the changes in Accumulated other comprehensive income (“AOCI”) by component for the three and nine months ended September 30, 2014 and 2015: OTTI Unrealized Discontinued Cash Flow Pension Foreign Total (In millions) Balance, July 1, 2014 $ 30 $ 1,062 $ 30 $ (3) $ (478) $ 166 $ 807 Other comprehensive income (loss) before reclassifications, after tax of $(1), $52, $2, $2, $1 and $0 1 (59) (3) (4) (2) (73) (140) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $12, $21, $0, $(2) and $0 (24) (31) 4 (51) Other comprehensive income (loss) 1 (83) (34) (4) 2 (73) (191) Amounts attributable to noncontrolling interests 1 8 4 2 7 22 Balance, September 30, 2014 $ 32 $ 987 $ - $ (5) $ (476) $ 100 $ 638 Balance, July 1, 2015 $ 28 $ 619 $ - $ (3) $ (598) $ 7 $ 53 Other comprehensive income (loss) before reclassifications, after tax of $(1), $38, $0, $0, $(1) and $0 2 (70) (1) (53) (122) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $(17), $0, $0, $(2) and $0 31 1 5 37 Other comprehensive income (loss) 2 (39) - 1 4 (53) (85) Amounts attributable to noncontrolling interests 4 (1) 1 5 9 Balance, September 30, 2015 $ 30 $ 584 $ - $ (3) $ (593) $ (41) $ (23) OTTI Unrealized Discontinued Cash Flow Pension Foreign Total (In millions) Balance, January 1, 2014 $ 23 $ 622 $ (3) $ (4) $ (432) $ 133 $ 339 Transfer to net assets of discontinued operations (5) (15) 20 - Other comprehensive income (loss) before reclassifications, after tax of $(8), $(229), $(3), $(1), $1 and $0 15 462 2 1 (2) (37) 441 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $20, $16, $1, $24 and $0 (38) (21) (2) (50) (111) Other comprehensive income (loss) 15 424 (19) (1) (52) (37) 330 Amounts attributable to noncontrolling interests (1) (44) 2 8 4 (31) Balance, September 30, 2014 $ 32 $ 987 $ - $ (5) $ (476) $ 100 $ 638 Balance, January 1, 2015 $ 32 $ 846 $ - $ (6) $ (641) $ 49 $ 280 Other comprehensive income (loss) before reclassifications, after tax of $1, $162, $0, $1, $(19) and $0 (3) (321) (2) 36 (100) (390) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $(22), $0, $(2), $(9) and $0 29 7 15 51 Other comprehensive income (loss) (3) (292) - 5 51 (100) (339) Issuance of equity securities by subsidiary 1 1 Amounts attributable to noncontrolling interests 1 30 (2) (4) 10 35 Balance, September 30, 2015 $ 30 $ 584 $ - $ (3) $ (593) $ (41) $ (23) Amounts reclassified from AOCI shown above are reported in Net income as follows: Major Category of AOCI Affected Line Item OTTI gains (losses) Investment gains (losses) Unrealized gains (losses) on investments Investment gains (losses) Unrealized gains (losses) and cash flow hedges related to discontinued operations Discontinued operations, net Cash flow hedges Other revenues and Contract drilling expenses Pension liability Other operating expenses Subsidiary Equity Transactions Loews purchased 1.1 million shares of Diamond Offshore common stock at an aggregate cost of $29 million during the nine months ended September 30, 2015. The Company’s percentage ownership interest in Diamond Offshore increased as a result of these transactions, from 52% to 53%. The Company’s carrying value exceeded the purchase price of the shares, resulting in an increase to Additional paid-in capital (“APIC”) of $5 million. During the nine months ended September 30, 2015, Boardwalk Pipeline sold 7.1 million common units under an equity distribution agreement with certain broker-dealers and received net proceeds of $115 million, including a $2 million contribution from the Company to maintain its 2% general partner interest. The Company’s percentage ownership interest in Boardwalk Pipeline declined as a result of this transaction, from 53% to 51%. The Company’s carrying value exceeded the issuance price of the common units, resulting in a decrease to APIC of $2 million and an increase to AOCI of $1 million. Treasury Stock The Company repurchased 16.3 million and 9.6 million shares of Loews common stock at aggregate costs of $633 million and $415 million during the nine months ended September 30, 2015 and 2014. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | 8. Benefit Plans Pension Plans - The Company has several non-contributory defined benefit plans for eligible employees. Benefits for certain plans are determined annually based on a specified percentage of annual earnings (based on the participant’s age or years of service) and a specified interest rate (which is established annually for all participants) applied to accrued balances. The benefits for another plan which covers salaried employees are based on formulas which include, among others, years of service and average pay. The Company’s funding policy is to make contributions in accordance with applicable governmental regulatory requirements. Other Postretirement Benefit Plans - The Company has several postretirement benefit plans covering eligible employees and retirees. Participants generally become eligible after reaching age 55 with required years of service. Actual requirements for coverage vary by plan. Benefits for retirees who were covered by bargaining units vary by each unit and contract. Benefits for certain retirees are in the form of a Company health care account. Benefits for retirees reaching age 65 are generally integrated with Medicare. Other retirees, based on plan provisions, must use Medicare as their primary coverage, with the Company reimbursing a portion of the unpaid amount; or are reimbursed for the Medicare Part B premium or have no Company coverage. The benefits provided by the Company are basically health and, for certain retirees, life insurance type benefits. The Company funds certain of these benefit plans, and accrues postretirement benefits during the active service of those employees who would become eligible for such benefits when they retire. The components of net periodic benefit cost are as follows: Pension Benefits Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Service cost $ 2 $ 5 $ 10 $ 13 Interest cost 31 37 95 111 Expected return on plan assets (48) (52) (145) (157) Amortization of unrecognized net loss 9 7 32 22 Regulatory asset decrease 1 Settlement charge 2 2 Net periodic benefit cost $ (4) $ (3) $ (6) $ (10) Other Postretirement Benefits Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Service cost $ 1 $ 1 Interest cost 1 $ 1 2 $ 3 Expected return on plan assets (1) (1) (3) (3) Amortization of unrecognized prior service benefit (3) (2) (8) (15) Amortization of unrecognized net loss 1 Curtailment gain (86) Net periodic benefit cost $ (2) $ (2) $ (7) $ (101) In the second quarter of 2015, CNA eliminated future benefit accruals associated with the CNA Retirement Plan effective June 30, 2015. This amendment resulted in a $55 million curtailment which is a decrease in the plan benefit obligation liability and a reduction of the unrecognized actuarial losses included in AOCI. In connection with the curtailment, CNA remeasured the plan benefit obligation which resulted in an increase in the discount rate used to determine the benefit obligation from 3.9% to 4.0%. In the second quarter of 2014, CNA eliminated certain postretirement medical benefits associated with the CNA Health and Group Benefits Program. This change is a negative plan amendment that resulted in an $86 million curtailment gain which is included in Other operating expenses in the Consolidated Condensed Statements of Income. In connection with the plan amendment, CNA remeasured the plan benefit obligation which resulted in a decrease to the discount rate used to determine the benefit obligation from 3.6% to 3.1%. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | 9. Business Segments The Company’s reportable segments are primarily based on its individual operating subsidiaries. Each of the principal 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. Investment gains (losses) and the related income taxes, excluding those of CNA, are included in the Corporate and other segment. CNA’s results are reported in four business segments: Specialty, Commercial, International and Other Non-Core. Specialty provides a broad array of professional, financial and specialty property and casualty products and services, through a network of independent agents, brokers and managing general underwriters. Commercial includes property and casualty coverages sold to small businesses and middle market entities and organizations primarily through an independent agency distribution system. Commercial also includes commercial insurance and risk management products sold to large corporations primarily through insurance brokers. International provides management and professional liability coverages as well as a broad range of other property and casualty insurance products and services abroad through a network of brokers, independent agencies and managing general underwriters, as well as the Lloyd’s marketplace. Other Non-Core primarily includes the results of CNA’s individual and group long term care businesses that are in run-off and also includes corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re and A&EP. Diamond Offshore owns and operates offshore drilling rigs that are chartered on a contract basis for fixed terms by companies engaged in exploration and production of hydrocarbons. Offshore rigs are mobile units that can be relocated based on market demand. Diamond Offshore’s fleet consists of 33 drilling rigs, including one newbuild rig which is under construction. On September 30, 2015, Diamond Offshore’s drilling rigs were located offshore of seven countries in addition to the United States. Boardwalk Pipeline is engaged in the interstate transportation and storage of natural gas and NGLs and gathering and processing of natural gas. This segment consists of interstate natural gas pipeline systems originating in the Gulf Coast region, Oklahoma and Arkansas, and extending north and east through the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, natural gas storage facilities in four states and NGL pipelines and storage facilities in Louisiana, with approximately 14,625 miles of pipeline. Loews Hotels operates a chain of 23 hotels, 22 of which are in the United States and one of which is in Canada. The Corporate and other segment consists primarily of corporate investment income, corporate interest expense and other unallocated expenses. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. In addition, CNA does not maintain a distinct investment portfolio for every insurance segment, and accordingly, allocation of assets to each segment is not performed. Therefore, a significant portion of net investment income and investment gains (losses) are allocated based on each segment’s carried insurance reserves, as adjusted. The following tables set forth the Company’s consolidated revenues and income (loss) by business segment: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Revenues (a): CNA Financial: Property and Casualty: Specialty $ 846 $ 930 $ 2,667 $ 2,776 Commercial 767 890 2,545 2,772 International 216 241 642 744 Other Non-Core 324 350 978 1,022 Total CNA Financial 2,153 2,411 6,832 7,314 Diamond Offshore 608 737 1,867 2,148 Boardwalk Pipeline 296 279 925 931 Loews Hotels 146 126 452 343 Corporate and other (34) (30) 6 68 Total $ 3,169 $ 3,523 $ 10,082 $ 10,804 Income (loss) before income tax and noncontrolling interests (a): CNA Financial: Property and Casualty: Specialty $ 248 $ 280 $ 661 $ 729 Commercial 83 83 391 267 International 23 10 71 68 Other Non-Core (120) (78) (410) (103) Total CNA Financial 234 295 713 961 Diamond Offshore 139 82 (42) 362 Boardwalk Pipeline (b) 48 28 163 105 Loews Hotels 1 25 14 Corporate and other (74) (66) (111) (43) Total $ 348 $ 339 $ 748 $ 1,399 Net income (loss) (a): CNA Financial: Property and Casualty: Specialty $ 147 $ 166 $ 394 $ 435 Commercial 49 51 231 163 International 9 4 37 37 Other Non-Core (44) (33) (167) (12) Total CNA Financial 161 188 495 623 Diamond Offshore 47 25 (34) 136 Boardwalk Pipeline (b) 18 8 55 7 Loews Hotels 2 15 8 Corporate and other (46) (42) (70) (27) Income from continuing operations 182 179 461 747 Discontinued operations, net 29 (364) Total $ 182 $ 208 $ 461 $ 383 (a) Investment gains (losses) included in Revenues, Income (loss) before income tax and noncontrolling interests and Net income (loss) are as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Revenues and Income (loss) before income tax and noncontrolling interests: CNA Financial: Property and Casualty: Specialty $ (22) $ 3 $ (18) $ 9 Commercial (29) 2 (23) 7 International (1) 1 1 1 Other Non-Core 2 31 (2) 48 Total $ (50) $ 37 $ (42) $ 65 Net income (loss): CNA Financial: Property and Casualty: Specialty $ (14) $ 2 $ (11) $ 5 Commercial (16) 4 (13) 5 International (1) 1 Other Non-Core 1 19 5 29 Total $ (29) $ 24 $ (18) $ 39 (b) As discussed in Note 2 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, a charge of $94 million ($55 million after tax and noncontrolling interests) was recorded in the first quarter of 2014 related to the terminated Bluegrass Project. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 10. Legal Proceedings The Company and its subsidiaries are parties to litigation arising in the ordinary course of business. The outcome of this litigation will not, in the opinion of management, materially affect the Company’s results of operations or equity. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies CNA Financial In the course of selling business entities and assets to third parties, CNA agreed to guarantee the performance of certain obligations of a previously owned subsidiary and to indemnify purchasers for losses arising out of breaches of representation and warranties with respect to the business entities or assets being sold, including, in certain cases, losses arising from undisclosed liabilities or certain named litigation. Such guarantee and indemnification agreements in effect for sales of business entities, assets and third party loans may include provisions that survive indefinitely. As of September 30, 2015, the aggregate amount related to quantifiable guarantees was $375 million and the aggregate amount related to indemnification agreements was $260 million. Should CNA be required to make payments under the guarantee, it would have the right to seek reimbursement in certain cases from an affiliate of the previously owned subsidiary. In addition, CNA has agreed to provide indemnification to third party purchasers for certain losses associated with sold business entities or assets that are not limited by a contractual monetary amount. As of September 30, 2015, CNA had outstanding unlimited indemnifications in connection with the sales of certain of its business entities or assets that included tax liabilities arising prior to a purchaser’s ownership of an entity or asset, defects in title at the time of sale, employee claims arising prior to closing and in some cases losses arising from certain litigation and undisclosed liabilities. Certain provisions of the indemnification agreements survive indefinitely while others survive until the applicable statutes of limitation expire, or until the agreed upon contract terms expire. In the normal course of business, CNA also provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities provided by a previously owned subsidiary, which are estimated to mature through 2120. The potential amount of future payments CNA could be required to pay under these guarantees was approximately $2.0 billion as of September 30, 2015. CNA does not believe a payable 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. Diamond Offshore Diamond Offshore is financially obligated under a contract with Hyundai Heavy Industries, Co. Ltd. for the construction of a dynamically positioned, harsh environment semisubmersible drilling rig, with expected delivery in the second quarter of 2016. The total cost of the rig including shipyard costs, capital spares, commissioning, project management and shipyard supervision is estimated to be $764 million. The remaining contractual payment of $440 million is due upon delivery of the rig. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 12. Discontinued Operations The Consolidated Condensed Statements of Income include discontinued operations of HighMount as follows: Three Months Ended Nine Months Ended (In millions) Revenues: Other revenue, primarily operating $ 49 $ 150 Total 49 150 Expenses: Other operating expenses Impairment of natural gas and oil properties 29 Operating 54 165 Interest 3 8 Total 57 202 Loss before income tax (8) (52) Income tax benefit 3 2 Results of discontinued operations, net of income tax (5) (50) Impairment loss, net of tax (expense) benefit of $(30) and $62 30 (137) Income (loss) from discontinued operations $ 25 $ (187) The Consolidated Condensed Statements of Income include discontinued operations of the CAC business as follows: (In millions) Revenues: Net investment income $ 14 $ 94 Investment gains 1 3 Total 15 97 Expenses: Insurance claims and policyholders’ benefits 12 75 Other operating expenses 2 Total 12 77 Income before income tax 3 20 Income tax expense (2) (6) Results of discontinued operations, net of income tax 1 14 Loss on sale, net of tax (expense) benefit of $(1) and $40 3 (211) Amounts attributable to noncontrolling interests 20 Income (loss) from discontinued operations $ 4 $ (177) |
Consolidating Financial Informa
Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Consolidating Financial Information | 13. Consolidating Financial Information The following schedules present the Company’s consolidating balance sheet information at September 30, 2015 and December 31, 2014, and consolidating statements of income information for the nine months ended September 30, 2015 and 2014. These schedules present the individual subsidiaries of the Company and their contribution to the Consolidated Condensed Financial Statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests. In addition, many of the Company’s subsidiaries use a classified balance sheet which also leads to differences in amounts reported for certain line items. The Corporate and other column primarily reflects the parent company’s investment in its subsidiaries, invested cash portfolio and corporate long term debt. The elimination adjustments are for intercompany assets and liabilities, interest and dividends, the parent company’s investment in capital stocks of subsidiaries, and various reclasses of debit or credit balances to the amounts in consolidation. Purchase accounting adjustments have been pushed down to the appropriate subsidiary. Loews Corporation Consolidating Balance Sheet Information September 30, 2015 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Assets: Investments $ 45,318 $ 144 $ 91 $ 4,997 $ 50,550 Cash 236 11 $ 6 16 59 328 Receivables 7,069 519 121 38 459 $ (127) 8,079 Property, plant and equipment 310 6,892 7,654 998 48 15,902 Deferred income taxes 304 2 128 (434) - Goodwill 115 237 352 Investments in capital stocks of subsidiaries 15,751 (15,751) - Other assets 832 260 334 268 8 13 1,715 Deferred acquisition costs of insurance subsidiaries 606 606 Total assets $ 54,790 $ 7,826 $ 8,352 $ 1,413 $ 21,450 $ (16,299) $ 77,532 Liabilities and Equity: Insurance reserves $ 36,093 $ 36,093 Payable to brokers 166 $ 567 733 Short term debt 350 $ 493 $ 35 400 1,278 Long term debt 2,214 1,982 $ 3,459 556 1,281 9,492 Deferred income taxes 6 402 765 42 $ (419) 796 Other liabilities 3,724 571 464 64 293 (129) 4,987 Total liabilities 42,553 3,448 4,688 697 2,541 (548) 53,379 Total shareholders’ equity 10,972 2,335 1,565 714 18,909 (15,751) 18,744 Noncontrolling interests 1,265 2,043 2,099 2 5,409 Total equity 12,237 4,378 3,664 716 18,909 (15,751) 24,153 Total liabilities and equity $ 54,790 $ 7,826 $ 8,352 $ 1,413 $ 21,450 $ (16,299) $ 77,532 Loews Corporation Consolidating Balance Sheet Information December 31, 2014 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Assets: Investments $ 46,262 $ 234 $ 75 $ 5,461 $ 52,032 Cash 190 16 $ 8 9 141 364 Receivables 7,097 490 128 29 82 $ (56) 7,770 Property, plant and equipment 280 6,949 7,649 671 62 15,611 Deferred income taxes 222 2 374 (598) - Goodwill 117 20 237 374 Investments in capital stocks of subsidiaries 15,974 (15,974) - Other assets 778 307 304 206 7 14 1,616 Deferred acquisition costs of insurance subsidiaries 600 600 Total assets $ 55,546 $ 8,016 $ 8,326 $ 992 $ 22,101 $ (16,614) $ 78,367 Liabilities and Equity: Insurance reserves $ 36,380 $ 36,380 Payable to brokers 117 $ 5 $ 551 673 Short term debt 250 $ 85 335 Long term debt 2,561 1,981 $ 3,690 421 1,680 10,333 Deferred income taxes 11 514 732 36 $ (400) 893 Other liabilities 3,713 792 400 17 421 (240) 5,103 Total liabilities 42,782 3,542 4,822 559 2,652 (640) 53,717 Total shareholders’ equity 11,457 2,359 1,558 431 19,449 (15,974) 19,280 Noncontrolling interests 1,307 2,115 1,946 2 5,370 Total equity 12,764 4,474 3,504 433 19,449 (15,974) 24,650 Total liabilities and equity $ 55,546 $ 8,016 $ 8,326 $ 992 $ 22,101 $ (16,614) $ 78,367 Loews Corporation Consolidating Statement of Income Information Nine Months Ended September 30, 2015 CNA Diamond Boardwalk Pipeline Loews Hotels Corporate Eliminations Total (In millions) Revenues: Insurance premiums $ 5,173 $ 5,173 Net investment income 1,412 $ 2 $ 1 $ 4 1,419 Intercompany interest and dividends 733 $ (733) - Investment losses (42) (42) Contract drilling revenues 1,816 1,816 Other revenues 289 49 924 $ 452 2 1,716 Total 6,832 1,867 925 452 739 (733) 10,082 Expenses: Insurance claims and policyholders’ benefits 4,008 4,008 Amortization of deferred acquisition costs 936 936 Contract drilling expenses 971 971 Other operating expenses 1,058 867 628 412 61 3,026 Interest 117 71 134 15 56 393 Total 6,119 1,909 762 427 117 - 9,334 Income (loss) before income tax 713 (42) 163 25 622 (733) 748 Income tax (expense) benefit (162) (6) (33) (10) 41 (170) Net income (loss) 551 (48) 130 15 663 (733) 578 Amounts attributable to noncontrolling interests (56) 14 (75) (117) Net income (loss) attributable to Loews Corporation $ 495 $ (34) $ 55 $ 15 $ 663 $ (733) $ 461 Loews Corporation Consolidating Statement of Income Information Nine Months Ended September 30, 2014 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Revenues: Insurance premiums $ 5,427 $ 5,427 Net investment income 1,556 $ 1 $ 68 1,625 Intercompany interest and dividends 647 $ (647) - Investment gains 65 65 Contract drilling revenues 2,063 2,063 Other revenues 266 84 $ 931 $ 343 1,624 Total 7,314 2,148 931 343 715 (647) 10,804 Expenses: Insurance claims and policyholders’ benefits 4,241 4,241 Amortization of deferred acquisition costs 996 996 Contract drilling expenses 1,165 1,165 Other operating expenses 978 575 705 320 56 2,634 Interest 138 46 121 9 55 369 Total 6,353 1,786 826 329 111 - 9,405 Income before income tax 961 362 105 14 604 (647) 1,399 Income tax (expense) benefit (268) (84) (5) (6) 16 (347) Income from continuing operations 693 278 100 8 620 (647) 1,052 Discontinued operations, net (197) (187) (384) Net income 496 278 100 8 433 (647) 668 Amounts attributable to noncontrolling interests (50) (142) (93) (285) Net income attributable to Loews Corporation $ 446 $ 136 $ 7 $ 8 $ 433 $ (647) $ 383 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Loews Corporation is a holding company. Its subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), a 90% owned subsidiary); the operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc. (“Diamond Offshore”), a 53% owned subsidiary); transportation and storage of natural gas and natural gas liquids and gathering and processing of natural gas (Boardwalk Pipeline Partners, LP (“Boardwalk Pipeline”), a 51% owned subsidiary); and the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels”), a wholly owned subsidiary). Unless the context otherwise requires, the terms “Company,” “Loews” and “Registrant” as used herein mean Loews Corporation excluding its subsidiaries and the term “Net income (loss) attributable to Loews Corporation” as used herein means Net income (loss) attributable to Loews Corporation shareholders. Loews segments are CNA Financial, including Specialty, Commercial, International and Other Non-Core; Diamond Offshore; Boardwalk Pipeline; Loews Hotels; and Corporate and other. See Note 9 for additional information on segments. In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of September 30, 2015 and December 31, 2014, the results of operations and comprehensive income for the three and nine months ended September 30, 2015 and 2014 and changes in shareholders’ equity and cash flows for the nine months ended September 30, 2015 and 2014. Net income for the third quarter and first nine months of each of the years is not necessarily indicative of net income for that entire year. Reference is made to the Notes to Consolidated Financial Statements in the 2014 Annual Report on Form 10-K which should be read in conjunction with these Consolidated Condensed Financial Statements. |
Income Per Share | The Company presents basic and diluted net income per share on the Consolidated Condensed Statements of Income. Basic net income per share excludes dilution and is computed by dividing net income 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. Stock appreciation rights (“SARs”) of 5.8 million, 2.6 million, 4.5 million and 2.2 million shares were not included in the diluted weighted average shares amounts for the three and nine months ended September 30, 2015 and 2014 due to the exercise price being greater than the average stock price. |
Goodwill | As a result of the continued deterioration of the market fundamentals in the oil and gas industry, the Company assessed the carrying value of goodwill related to its investment in Diamond Offshore. An impairment charge of $20 million was recorded in Other operating expenses in the third quarter of 2015 to write-off all goodwill attributable to Diamond Offshore. |
Recent Accounting Developments | Updated accounting guidance not yet adopted – In May of 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of the new accounting guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new accounting guidance provides a five-step analysis of transactions to determine when and how revenue is recognized and requires enhanced disclosures about revenue. In August of 2015, the FASB formally amended the effective date of this update to annual reporting periods beginning after December 15, 2017, including interim periods, and it can be adopted either retrospectively or with a cumulative effect adjustment at the date of adoption. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Net Investment Income and Investment Gains (Losses) | Net investment income is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In millions) Fixed maturity securities $ 449 $ 453 $ 1,344 $ 1,356 Short term investments 4 1 7 3 Limited partnership investments (122 ) 26 88 229 Equity securities 3 2 9 7 Income (loss) from trading portfolio (a) (5 ) (24 ) (9 ) 46 Other 9 7 26 25 Total investment income 338 465 1,465 1,666 Investment expenses (17 ) (14 ) (46 ) (41) Net investment income $ 321 $ 451 $ 1,419 $ 1,625 (a) Includes net unrealized gains (losses) related to changes in fair value on trading securities still held of $(59), $(19), $(71) and $46 for the three and nine months ended September 30, 2015 and 2014. Investment gains (losses) are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In millions) Fixed maturity securities $ (29 ) $ 39 $ (29 ) $ 58 Equity securities (18 ) (3 ) (19 ) 2 Derivative instruments (1 ) 9 1 Short term investments and other (2 ) 1 (3 ) 4 Investment gains (losses) (a) $ (50 ) $ 37 $ (42 ) $ 65 (a) Includes gross realized gains of $23, $52, $93 and $130 and gross realized losses of $70, $16, $141 and $70 on available-for-sale securities for the three and nine months ended September 30, 2015 and 2014. |
Components of Net Other-than-Temporary Impairment Losses Recognized in Earnings by Asset Type | The components of net other-than-temporary impairment (“OTTI”) losses recognized in earnings by asset type are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 36 $ 6 $ 52 $ 9 States, municipalities and political subdivisions 18 Asset-backed: Residential mortgage-backed 1 2 7 4 Other asset-backed 1 1 Total asset-backed 1 2 8 5 Total fixed maturities available-for-sale 37 8 78 14 Equity securities available-for-sale: Common stock 19 2 20 3 Short term investments 1 Net OTTI losses recognized in earnings $ 56 $ 10 $ 99 $ 17 |
Amortized Cost and Fair Values of Securities | The amortized cost and fair values of securities are as follows: Unrealized Cost or Gross Gross OTTI Amortized Unrealized Unrealized Estimated Losses September 30, 2015 Cost Gains Losses Fair Value (Gains) (In millions) Fixed maturity securities: Corporate and other bonds $ 17,172 $1,237 $ 210 $ 18,199 States, municipalities and political subdivisions 11,978 1,336 17 13,297 $ (5) Asset-backed: Residential mortgage-backed 4,850 204 13 5,041 (46) Commercial mortgage-backed 2,183 77 9 2,251 Other asset-backed 1,009 11 4 1,016 Total asset-backed 8,042 292 26 8,308 (46) U.S. Treasury and obligations of government-sponsored enterprises 24 5 29 Foreign government 333 12 1 344 Redeemable preferred stock 33 2 35 Fixed maturities available-for-sale 37,582 2,884 254 40,212 (51) Fixed maturities trading 108 19 89 Total fixed maturities 37,690 2,884 273 40,301 (51) Equity securities: Common stock 62 3 65 Preferred stock 145 4 2 147 Equity securities available-for-sale 207 7 2 212 - Equity securities trading 771 51 149 673 Total equity securities 978 58 151 885 - Total $ 38,668 $2,942 $ 424 $ 41,186 $ (51) Cost or Gross Gross Unrealized Amortized Unrealized Unrealized Estimated OTTI Losses December 31, 2014 Cost Gains Losses Fair Value (Gains) (In millions) Fixed maturity securities: Corporate and other bonds $ 17,226 $1,721 $ 61 $ 18,886 States, municipalities and political subdivisions 11,285 1,463 8 12,740 Asset-backed: Residential mortgage-backed 5,028 218 13 5,233 $ (53) Commercial mortgage-backed 2,056 93 5 2,144 (2) Other asset-backed 1,234 11 10 1,235 Total asset-backed 8,318 322 28 8,612 (55) U.S. Treasury and obligations of government-sponsored enterprises 26 5 31 Foreign government 438 16 454 Redeemable preferred stock 39 3 42 Fixed maturities available-for-sale 37,332 3,530 97 40,765 (55) Fixed maturities trading 137 17 120 Total fixed maturities 37,469 3,530 114 40,885 (55) Equity securities: Common stock 38 9 47 Preferred stock 172 5 2 175 Equity securities available-for-sale 210 14 2 222 - Equity securities trading 523 96 113 506 Total equity securities 733 110 115 728 - Total $ 38,202 $3,640 $ 229 $ 41,613 $ (55) |
Securities Available-for-Sale in Gross Unrealized Loss Position | The available-for-sale securities in a gross unrealized loss position are as follows: Less than 12 Months 12 Months or Longer Total Gross Gross Gross Estimated Unrealized Estimated Unrealized Estimated Unrealized September 30, 2015 Fair Value Losses Fair Value Losses Fair Value Losses (In millions) Fixed maturity securities: Corporate and other bonds $ 3,758 $ 180 $ 188 $ 30 $ 3,946 $ 210 States, municipalities and political subdivisions 655 11 131 6 786 17 Asset-backed: Residential mortgage-backed 308 3 211 10 519 13 Commercial mortgage-backed 479 6 81 3 560 9 Other asset-backed 354 4 9 363 4 Total asset-backed 1,141 13 301 13 1,442 26 U.S. Treasury and obligations of government-sponsored enterprises 1 1 Foreign government 23 3 1 26 1 Redeemable preferred stock 3 3 Total fixed maturity securities 5,581 204 623 50 6,204 254 Preferred stock 3 14 2 17 2 Total $ 5,584 $ 204 $ 637 $ 52 $ 6,221 $ 256 December 31, 2014 (In millions) Fixed maturity securities: Corporate and other bonds $ 1,330 $ 46 $ 277 $ 15 $ 1,607 $ 61 States, municipalities and political subdivisions 335 5 127 3 462 8 Asset-backed: Residential mortgage-backed 293 5 189 8 482 13 Commercial mortgage-backed 264 2 99 3 363 5 Other asset-backed 607 10 7 614 10 Total asset-backed 1,164 17 295 11 1,459 28 U.S. Treasury and obligations of government-sponsored enterprises 3 4 7 Foreign government 3 3 6 Redeemable preferred stock 3 3 Total fixed maturity securities 2,838 68 706 29 3,544 97 Preferred stock 17 2 1 18 2 Total $ 2,855 $ 70 $ 707 $ 29 $ 3,562 $ 99 |
Pretax Credit Loss Component Reflected in Retained Earnings on Fixed Maturity Securities | The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of September 30, 2015 and 2014 for which a portion of an OTTI loss was recognized in Other comprehensive income. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (In millions) Beginning balance of credit losses on fixed maturity securities $ 59 $ 66 $ 62 $ 74 Reductions for securities sold during the period (2 ) (2 ) (5 ) (7) Reductions for securities the Company intends to sell or more likely than not will be required to sell (3) Ending balance of credit losses on fixed maturity securities $ 57 $ 64 $ 57 $ 64 |
Available-for-Sale Fixed Maturity Securities by Contractual Maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid with or without call or prepayment penalties. Securities not due at a single date are allocated based on weighted average life. September 30, 2015 December 31, 2014 Cost or Estimated Cost or Estimated Amortized Fair Amortized Fair Cost Value Cost Value (In millions) Due in one year or less $ 1,406 $ 1,425 $ 2,479 $ 2,511 Due after one year through five years 7,789 8,200 9,070 9,621 Due after five years through ten years 14,149 14,577 12,055 12,584 Due after ten years 14,238 16,010 13,728 16,049 Total $ 37,582 $ 40,212 $ 37,332 $ 40,765 |
Summary of Aggregate Contractual or Notional Amounts and Gross 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 the 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. September 30, 2015 December 31, 2014 Contractual/ Contractual/ Notional Estimated Fair Value Notional Estimated Fair Value Amount Asset (Liability) Amount Asset (Liability) (In millions) With hedge designation: Foreign exchange: Currency forwards – short $ 70 $ (5) Without hedge designation: Equity markets: Options – purchased $ 1,619 $ 50 544 $ 24 – written 1,256 $ (29) 292 (21) Equity swaps and warrants – long 10 1 10 2 Futures – long 70 1 Futures – short 95 (1) 130 2 Foreign exchange: Currency forwards – long 358 (52) 109 (3) – short 435 53 88 2 Currency options – long 100 1 151 7 – short 50 (1) Embedded derivative on funds withheld liability 182 5 184 (3) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 presented in the following tables: September 30, 2015 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 28 $ 18,018 $ 153 $ 18,199 States, municipalities and political subdivisions 13,236 61 13,297 Asset-backed: Residential mortgage-backed 4,837 204 5,041 Commercial mortgage-backed 2,180 71 2,251 Other asset-backed 545 471 1,016 Total asset-backed 7,562 746 8,308 U.S. Treasury and obligations of government-sponsored enterprises 28 1 29 Foreign government 28 316 344 Redeemable preferred stock 24 11 35 Fixed maturities available-for-sale 108 39,144 960 40,212 Fixed maturities trading 3 86 89 Total fixed maturities $ 108 $ 39,147 $ 1,046 $ 40,301 Equity securities available-for-sale $ 154 $ 43 $ 15 $ 212 Equity securities trading 673 673 Total equity securities $ 827 $ 43 $ 15 $ 885 Short term investments $ 4,225 $ 773 $ 4,998 Other invested assets 102 45 147 Receivables 56 56 Life settlement contracts $ 74 74 Payable to brokers (430 ) (54 ) (484) December 31, 2014 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 32 $ 18,692 $ 162 $ 18,886 States, municipalities and political subdivisions 12,646 94 12,740 Asset-backed: Residential mortgage-backed 5,044 189 5,233 Commercial mortgage-backed 2,061 83 2,144 Other asset-backed 580 655 1,235 Total asset-backed 7,685 927 8,612 U.S. Treasury and obligations of government-sponsored enterprises 28 3 31 Foreign government 41 413 454 Redeemable preferred stock 30 12 42 Fixed maturities available-for-sale 131 39,451 1,183 40,765 Fixed maturities trading 30 90 120 Total fixed maturities $ 131 $ 39,481 $ 1,273 $ 40,885 Equity securities available-for-sale $ 145 $ 61 $ 16 $ 222 Equity securities trading 505 1 506 Total equity securities $ 650 $ 61 $ 17 $ 728 Short term investments $ 4,989 $ 963 $ 5,952 Other invested assets 102 41 143 Receivables 2 7 9 Life settlement contracts $ 82 82 Payable to brokers (546 ) (6 ) (552) |
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 nine months ended September 30, 2015 and 2014: Unrealized Gains (Losses) Recognized in Net Realized Gains Net Income (Losses) and Net Change on Level in Unrealized Gains 3 Assets and (Losses) Transfers Transfers Liabilities Balance, Included in Included in into out of Balance, Held at 2015 July 1 Net Income OCI Purchases Sales Settlements Level 3 Level 3 September 30 September 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 141 $ 27 $ (1) $ (11) $ (3) $ 153 States, municipalities and political subdivisions 85 (24) 61 Asset-backed: Residential mortgage-backed 207 $ 2 $ (2) 4 (7) 204 Commercial mortgage-backed 87 5 (4) 8 (15) (10) 71 Other asset-backed 490 (6) 43 (20) (32) (4) 471 Total asset-backed 784 7 (12) 55 (20) (54) $ - (14) 746 $ - Fixed maturities available-for-sale 1,010 7 (12) 82 (21) (65) (41) 960 Fixed maturities trading 89 (2) (1) 86 $ (2) Total fixed maturities $ 1,099 $ 5 $ (12) $ 82 $ (22) $ (65) $ - $ (41) $ 1,046 $ (2) Equity securities available-for-sale $ 16 $ (1) $ 15 Equity securities trading 1 $ 1 $ (2) - $ 1 Total equity securities $ 17 $ 1 $ (1) $ - $ (2) $ - $ - $ - $ 15 $ 1 Life settlement contracts $ 75 $ 5 $ (6) $ 74 $ 2 Unrealized Gains (Losses) Recognized in Net Realized Gains Net Income (Losses) and Net Change on Level in Unrealized Gains 3 Assets and (Losses) Transfers Transfers Liabilities Balance, Included in Included in into out of Balance, Held at 2014 July 1 Net Income OCI Purchases Sales Settlements Level 3 Level 3 September 30 September 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 194 $ (1) $ 4 $ (3) $ (21) $ 173 States, municipalities and political subdivisions 79 1 80 Asset-backed: Residential mortgage-backed 185 $ 1 (17) $ 11 (20) 160 Commercial mortgage-backed 59 2 (2) 28 (21) 31 97 Other asset-backed 626 1 (4) 80 (25) (36) 642 Total asset-backed 870 4 (6) 108 $ - (63) 42 (56) 899 $ - Fixed maturities available-for-sale 1,143 4 (6) 112 (66) 42 (77) 1,152 Fixed maturities trading 91 91 Total fixed maturities $ 1,234 $ 4 $ (6) $ 112 $ - $ (66) $ 42 $ (77) $ 1,243 $ - Equity securities available-for-sale $ 2 $ (1) $ 16 $ 17 Equity securities trading 4 (1) 3 Total equity securities $ 6 $ - $ (1) $ 15 $ - $ - $ - $ - $ 20 $ - Life settlement contracts $ 86 $ 1 $ (1) $ 86 $ 1 Derivative financial instruments, net - - (1) Unrealized Gains (Losses) Recognized in Net Realized Gains Net Income (Losses) and Net Change on Level in Unrealized Gains 3 Assets and (Losses) Transfers Transfers Liabilities Balance, Included in Included in into out of Balance, Held at 2015 January 1 Net Income OCI Purchases Sales Settlements Level 3 Level 3 September 30 September 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 162 $ (1) $ (1) $ 39 $ (13) $ (32) $ 37 $ (38) $ 153 States, municipalities and political subdivisions 94 1 (10) (24) 61 Asset-backed: Residential mortgage-backed 189 4 (4) 76 (28) (33) 204 Commercial mortgage- backed 83 7 (4) 23 (17) 17 (38) 71 Other asset-backed 655 3 4 125 (254) (52) (10) 471 $ (1) Total asset-backed 927 14 (4) 224 (254) (97) 17 (81) 746 (1) Fixed maturities available-for-sale 1,183 14 (5) 263 (267) (139) 54 (143) 960 (1) Fixed maturities trading 90 (2) (2) 86 (2) Total fixed maturities $ 1,273 $ 12 $ (5) $ 263 $ (269) $ (139) $ 54 $ (143) $ 1,046 $ (3) Equity securities available-for-sale $ 16 $ (1) $ 15 Equity securities trading 1 $ 1 $ (2) - $ 1 Total equity securities $ 17 $ 1 $ (1) $ - $ (2) $ - $ - $ - $ 15 $ 1 Life settlement contracts $ 82 $ 22 $ (30) $ 74 $ 1 Net Realized Gains Transfers Transfers Unrealized (Losses) Recognized in on Level 3 Assets and 2014 Balance, Included in Included in Purchases Sales Settlements into out of Balance, Held at (In millions) Fixed maturity securities: Corporate and other bonds $ 204 $ 2 $ 30 $ (10) $ (13) $ 8 $ (48) $ 173 States, municipalities and political subdivisions 71 1 $ 3 1 (10) 14 80 Asset-backed: Residential mortgage-backed 331 (22) 62 47 (174) (57) 32 (59) 160 Commercial mortgage-backed 151 4 (2) 28 (60) (23) 43 (44) 97 Other asset-backed 446 2 457 (111) (115) (37) 642 $ (1) Total asset-backed 928 (16) 60 532 (345) (195) 75 (140) 899 (1) Fixed maturities available-for-sale 1,203 (13) 63 563 (365) (208) 97 (188) 1,152 (1) Fixed maturities trading 80 11 91 11 Total fixed maturities $ 1,283 $ (2) $ 63 $ 563 $ (365 ) $ (208) $ 97 $ (188) $ 1,243 $ 10 Equity securities available-for-sale $ 11 $ 3 $ (5) $ 16 $ (8) $ 17 Equity securities trading 8 1 (6) 3 Total equity securities $ 19 $ 3 $ (5) $ 17 $ (14) $ - $ - $ - $ 20 $ - Life settlement contracts $ 88 $ 23 $ (25) $ 86 $ 3 Separate account business 1 $ (1) - Derivative financial instruments, net (3) 1 $ (2) $ 2 2 - 1 |
Quantitative Information about Significant Unobservable Inputs Utilized by Company in Fair Value Measurements of Level 3 Assets | The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the table below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company. September 30, 2015 Estimated Valuation Techniques Unobservable Inputs Range (Weighted Average) (In millions) Fixed maturity securities $ 121 Discounted cash flow Credit spread 2% – 31% (3%) Life settlement contracts 74 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% – 1,676% (164%) December 31, 2014 Fixed maturity securities $ 101 Discounted cash flow Credit spread 2% – 13% (3%) Equity securities 16 Market approach Private offering price $12 – $4,391 per share ($600 per share) Life settlement contracts 82 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% – 1,676% (163%) |
Carrying Amount, Estimated Fair Value and Level of Fair Value Hierarchy of Company's Financial Assets and Liabilities | 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 September 30, 2015 Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 640 $ 660 $ 660 Liabilities: Short term debt 1,277 $ 1,267 35 1,302 Long term debt 9,479 8,811 555 9,366 December 31, 2014 Assets: Other invested assets, primarily mortgage loans $ 588 $ 608 $ 608 Liabilities: Short term debt 334 $ 255 84 339 Long term debt 10,320 10,299 420 10,719 |
Claim and Claim Adjustment Ex24
Claim and Claim Adjustment Expense Reserves (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Net Prior Year Development | The following tables and discussion present net prior year development recorded for Specialty, Commercial, International and Other. Three Months Ended September 30, 2015 Specialty Commercial International Other Total (In millions) Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (130 ) $ (11) $ (34) $ (175) Pretax (favorable) unfavorable premium development (2 ) (5) 2 (5) Total pretax (favorable) unfavorable net prior year development $ (132 ) $ (16) $ (32) $ - $ (180) Three Months Ended September 30, 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (79 ) $ 71 $ (17) $ (1) $ (26) Pretax (favorable) unfavorable premium development (4 ) 7 3 Total pretax (favorable) unfavorable net prior year development $ (83 ) $ 71 $ (10) $ (1) $ (23) Nine Months Ended September 30, 2015 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (141 ) $ (46) $ (187) Pretax (favorable) unfavorable premium development (10 ) $ (17) 16 (11) Total pretax (favorable) unfavorable net prior year development $ (151 ) $ (17) $ (30) $ - $ (198) Nine Months Ended September 30, 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (123 ) $ 179 $ (32) $ (1 ) $ 23 Pretax (favorable) unfavorable premium development (12 ) (24) 6 (30) Total pretax (favorable) unfavorable net prior year development $ (135 ) $ 155 $ (26) $ (1 ) $ (7) |
Impact of Loss Portfolio Transfer on Consolidated Statements of Income | The following table displays the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income. Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Net A&EP adverse development before consideration of LPT $ 150 Provision for uncollectible third party reinsurance on A&EP Additional amounts ceded under LPT 150 Retroactive reinsurance benefit recognized $ (4 ) $ (4 ) (75 ) $ (9) Pretax impact of deferred retroactive reinsurance benefit $ (4 ) $ (4 ) $ 75 $ (9) |
Specialty [Member] | CNA Financial [Member] | |
Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development | The following table and discussion provide further detail of the net prior year claim and allocated claim adjustment expense reserve development (“development”) recorded for the Specialty segment: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Medical professional liability $ (19 ) $ 16 $ (11 ) $ 17 Other professional liability and management liability (37 ) (9 ) (41 ) (59) Surety (70 ) (79 ) (69 ) (78) Warranty 1 Other (4 ) (7 ) (21 ) (3) Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (130 ) $ (79 ) $ (141 ) $ (123) |
Commercial [Member] | CNA Financial [Member] | |
Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development | The following table and discussion provide further detail of the development recorded for the Commercial segment. A significant amount of the unfavorable development for the nine months ended September 30, 2014 relates to business classes which CNA has exited, but also includes Small Business where CNA has taken underwriting actions in an effort to improve profitability. Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Commercial auto $ 13 $ 7 $ 52 General liability $ 3 44 8 76 Workers’ compensation (1 ) 25 22 75 Property and other (13 ) (11 ) (37 ) (24) Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (11 ) $ 71 $ - $ 179 |
International [Member] | CNA Financial [Member] | |
Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development | The following table and discussion provide further detail of the development recorded for the International segment: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Medical professional liability $ (8 ) $ (3 ) $ (8 ) $ (2) Other professional liability (11 ) 1 (16 ) (14) Liability (5 ) (3 ) (12 ) (9) Property & marine (5 ) (11 ) (19 ) (10) Other (5 ) (1 ) 9 (7) Commutations 10 Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (34 ) $ (17 ) $ (46 ) $ (32) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | The tables below display the changes in Accumulated other comprehensive income (“AOCI”) by component for the three and nine months ended September 30, 2014 and 2015: OTTI Unrealized Discontinued Cash Flow Pension Foreign Total (In millions) Balance, July 1, 2014 $ 30 $ 1,062 $ 30 $ (3) $ (478) $ 166 $ 807 Other comprehensive income (loss) before reclassifications, after tax of $(1), $52, $2, $2, $1 and $0 1 (59) (3) (4) (2) (73) (140) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $12, $21, $0, $(2) and $0 (24) (31) 4 (51) Other comprehensive income (loss) 1 (83) (34) (4) 2 (73) (191) Amounts attributable to noncontrolling interests 1 8 4 2 7 22 Balance, September 30, 2014 $ 32 $ 987 $ - $ (5) $ (476) $ 100 $ 638 Balance, July 1, 2015 $ 28 $ 619 $ - $ (3) $ (598) $ 7 $ 53 Other comprehensive income (loss) before reclassifications, after tax of $(1), $38, $0, $0, $(1) and $0 2 (70) (1) (53) (122) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $(17), $0, $0, $(2) and $0 31 1 5 37 Other comprehensive income (loss) 2 (39) - 1 4 (53) (85) Amounts attributable to noncontrolling interests 4 (1) 1 5 9 Balance, September 30, 2015 $ 30 $ 584 $ - $ (3) $ (593) $ (41) $ (23) OTTI Unrealized Discontinued Cash Flow Pension Foreign Total (In millions) Balance, January 1, 2014 $ 23 $ 622 $ (3) $ (4) $ (432) $ 133 $ 339 Transfer to net assets of discontinued operations (5) (15) 20 - Other comprehensive income (loss) before reclassifications, after tax of $(8), $(229), $(3), $(1), $1 and $0 15 462 2 1 (2) (37) 441 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $20, $16, $1, $24 and $0 (38) (21) (2) (50) (111) Other comprehensive income (loss) 15 424 (19) (1) (52) (37) 330 Amounts attributable to noncontrolling interests (1) (44) 2 8 4 (31) Balance, September 30, 2014 $ 32 $ 987 $ - $ (5) $ (476) $ 100 $ 638 Balance, January 1, 2015 $ 32 $ 846 $ - $ (6) $ (641) $ 49 $ 280 Other comprehensive income (loss) before reclassifications, after tax of $1, $162, $0, $1, $(19) and $0 (3) (321) (2) 36 (100) (390) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $(22), $0, $(2), $(9) and $0 29 7 15 51 Other comprehensive income (loss) (3) (292) - 5 51 (100) (339) Issuance of equity securities by subsidiary 1 1 Amounts attributable to noncontrolling interests 1 30 (2) (4) 10 35 Balance, September 30, 2015 $ 30 $ 584 $ - $ (3) $ (593) $ (41) $ (23) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows: Pension Benefits Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Service cost $ 2 $ 5 $ 10 $ 13 Interest cost 31 37 95 111 Expected return on plan assets (48) (52) (145) (157) Amortization of unrecognized net loss 9 7 32 22 Regulatory asset decrease 1 Settlement charge 2 2 Net periodic benefit cost $ (4) $ (3) $ (6) $ (10) Other Postretirement Benefits Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Service cost $ 1 $ 1 Interest cost 1 $ 1 2 $ 3 Expected return on plan assets (1) (1) (3) (3) Amortization of unrecognized prior service benefit (3) (2) (8) (15) Amortization of unrecognized net loss 1 Curtailment gain (86) Net periodic benefit cost $ (2) $ (2) $ (7) $ (101) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Consolidated Revenues and Income (Loss) by Business Segment | The following tables set forth the Company’s consolidated revenues and income (loss) by business segment: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Revenues (a): CNA Financial: Property and Casualty: Specialty $ 846 $ 930 $ 2,667 $ 2,776 Commercial 767 890 2,545 2,772 International 216 241 642 744 Other Non-Core 324 350 978 1,022 Total CNA Financial 2,153 2,411 6,832 7,314 Diamond Offshore 608 737 1,867 2,148 Boardwalk Pipeline 296 279 925 931 Loews Hotels 146 126 452 343 Corporate and other (34) (30) 6 68 Total $ 3,169 $ 3,523 $ 10,082 $ 10,804 Income (loss) before income tax and noncontrolling interests (a): CNA Financial: Property and Casualty: Specialty $ 248 $ 280 $ 661 $ 729 Commercial 83 83 391 267 International 23 10 71 68 Other Non-Core (120) (78) (410) (103) Total CNA Financial 234 295 713 961 Diamond Offshore 139 82 (42) 362 Boardwalk Pipeline (b) 48 28 163 105 Loews Hotels 1 25 14 Corporate and other (74) (66) (111) (43) Total $ 348 $ 339 $ 748 $ 1,399 Net income (loss) (a): CNA Financial: Property and Casualty: Specialty $ 147 $ 166 $ 394 $ 435 Commercial 49 51 231 163 International 9 4 37 37 Other Non-Core (44) (33) (167) (12) Total CNA Financial 161 188 495 623 Diamond Offshore 47 25 (34) 136 Boardwalk Pipeline (b) 18 8 55 7 Loews Hotels 2 15 8 Corporate and other (46) (42) (70) (27) Income from continuing operations 182 179 461 747 Discontinued operations, net 29 (364) Total $ 182 $ 208 $ 461 $ 383 (a) Investment gains (losses) included in Revenues, Income (loss) before income tax and noncontrolling interests and Net income (loss) are as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Revenues and Income (loss) before income tax and noncontrolling interests: CNA Financial: Property and Casualty: Specialty $ (22) $ 3 $ (18) $ 9 Commercial (29) 2 (23) 7 International (1) 1 1 1 Other Non-Core 2 31 (2) 48 Total $ (50) $ 37 $ (42) $ 65 Net income (loss): CNA Financial: Property and Casualty: Specialty $ (14) $ 2 $ (11) $ 5 Commercial (16) 4 (13) 5 International (1) 1 Other Non-Core 1 19 5 29 Total $ (29) $ 24 $ (18) $ 39 (b) As discussed in Note 2 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, a charge of $94 million ($55 million after tax and noncontrolling interests) was recorded in the first quarter of 2014 related to the terminated Bluegrass Project. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Reflected in Consolidated Condensed Statements of Income | The Consolidated Condensed Statements of Income include discontinued operations of HighMount as follows: Three Months Ended Nine Months Ended (In millions) Revenues: Other revenue, primarily operating $ 49 $ 150 Total 49 150 Expenses: Other operating expenses Impairment of natural gas and oil properties 29 Operating 54 165 Interest 3 8 Total 57 202 Loss before income tax (8) (52) Income tax benefit 3 2 Results of discontinued operations, net of income tax (5) (50) Impairment loss, net of tax (expense) benefit of $(30) and $62 30 (137) Income (loss) from discontinued operations $ 25 $ (187) The Consolidated Condensed Statements of Income include discontinued operations of the CAC business as follows: (In millions) Revenues: Net investment income $ 14 $ 94 Investment gains 1 3 Total 15 97 Expenses: Insurance claims and policyholders’ benefits 12 75 Other operating expenses 2 Total 12 77 Income before income tax 3 20 Income tax expense (2) (6) Results of discontinued operations, net of income tax 1 14 Loss on sale, net of tax (expense) benefit of $(1) and $40 3 (211) Amounts attributable to noncontrolling interests 20 Income (loss) from discontinued operations $ 4 $ (177) |
Consolidating Financial Infor29
Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Consolidating Balance Sheet Information | Loews Corporation Consolidating Balance Sheet Information September 30, 2015 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Assets: Investments $ 45,318 $ 144 $ 91 $ 4,997 $ 50,550 Cash 236 11 $ 6 16 59 328 Receivables 7,069 519 121 38 459 $ (127) 8,079 Property, plant and equipment 310 6,892 7,654 998 48 15,902 Deferred income taxes 304 2 128 (434) - Goodwill 115 237 352 Investments in capital stocks of subsidiaries 15,751 (15,751) - Other assets 832 260 334 268 8 13 1,715 Deferred acquisition costs of insurance subsidiaries 606 606 Total assets $ 54,790 $ 7,826 $ 8,352 $ 1,413 $ 21,450 $ (16,299) $ 77,532 Liabilities and Equity: Insurance reserves $ 36,093 $ 36,093 Payable to brokers 166 $ 567 733 Short term debt 350 $ 493 $ 35 400 1,278 Long term debt 2,214 1,982 $ 3,459 556 1,281 9,492 Deferred income taxes 6 402 765 42 $ (419) 796 Other liabilities 3,724 571 464 64 293 (129) 4,987 Total liabilities 42,553 3,448 4,688 697 2,541 (548) 53,379 Total shareholders’ equity 10,972 2,335 1,565 714 18,909 (15,751) 18,744 Noncontrolling interests 1,265 2,043 2,099 2 5,409 Total equity 12,237 4,378 3,664 716 18,909 (15,751) 24,153 Total liabilities and equity $ 54,790 $ 7,826 $ 8,352 $ 1,413 $ 21,450 $ (16,299) $ 77,532 Loews Corporation Consolidating Balance Sheet Information December 31, 2014 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Assets: Investments $ 46,262 $ 234 $ 75 $ 5,461 $ 52,032 Cash 190 16 $ 8 9 141 364 Receivables 7,097 490 128 29 82 $ (56) 7,770 Property, plant and equipment 280 6,949 7,649 671 62 15,611 Deferred income taxes 222 2 374 (598) - Goodwill 117 20 237 374 Investments in capital stocks of subsidiaries 15,974 (15,974) - Other assets 778 307 304 206 7 14 1,616 Deferred acquisition costs of insurance subsidiaries 600 600 Total assets $ 55,546 $ 8,016 $ 8,326 $ 992 $ 22,101 $ (16,614) $ 78,367 Liabilities and Equity: Insurance reserves $ 36,380 $ 36,380 Payable to brokers 117 $ 5 $ 551 673 Short term debt 250 $ 85 335 Long term debt 2,561 1,981 $ 3,690 421 1,680 10,333 Deferred income taxes 11 514 732 36 $ (400) 893 Other liabilities 3,713 792 400 17 421 (240) 5,103 Total liabilities 42,782 3,542 4,822 559 2,652 (640) 53,717 Total shareholders’ equity 11,457 2,359 1,558 431 19,449 (15,974) 19,280 Noncontrolling interests 1,307 2,115 1,946 2 5,370 Total equity 12,764 4,474 3,504 433 19,449 (15,974) 24,650 Total liabilities and equity $ 55,546 $ 8,016 $ 8,326 $ 992 $ 22,101 $ (16,614) $ 78,367 |
Consolidating Statement of Income Information | Loews Corporation Consolidating Statement of Income Information Nine Months Ended September 30, 2015 CNA Diamond Boardwalk Pipeline Loews Hotels Corporate Eliminations Total (In millions) Revenues: Insurance premiums $ 5,173 $ 5,173 Net investment income 1,412 $ 2 $ 1 $ 4 1,419 Intercompany interest and dividends 733 $ (733) - Investment losses (42) (42) Contract drilling revenues 1,816 1,816 Other revenues 289 49 924 $ 452 2 1,716 Total 6,832 1,867 925 452 739 (733) 10,082 Expenses: Insurance claims and policyholders’ benefits 4,008 4,008 Amortization of deferred acquisition costs 936 936 Contract drilling expenses 971 971 Other operating expenses 1,058 867 628 412 61 3,026 Interest 117 71 134 15 56 393 Total 6,119 1,909 762 427 117 - 9,334 Income (loss) before income tax 713 (42) 163 25 622 (733) 748 Income tax (expense) benefit (162) (6) (33) (10) 41 (170) Net income (loss) 551 (48) 130 15 663 (733) 578 Amounts attributable to noncontrolling interests (56) 14 (75) (117) Net income (loss) attributable to Loews Corporation $ 495 $ (34) $ 55 $ 15 $ 663 $ (733) $ 461 Loews Corporation Consolidating Statement of Income Information Nine Months Ended September 30, 2014 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Revenues: Insurance premiums $ 5,427 $ 5,427 Net investment income 1,556 $ 1 $ 68 1,625 Intercompany interest and dividends 647 $ (647) - Investment gains 65 65 Contract drilling revenues 2,063 2,063 Other revenues 266 84 $ 931 $ 343 1,624 Total 7,314 2,148 931 343 715 (647) 10,804 Expenses: Insurance claims and policyholders’ benefits 4,241 4,241 Amortization of deferred acquisition costs 996 996 Contract drilling expenses 1,165 1,165 Other operating expenses 978 575 705 320 56 2,634 Interest 138 46 121 9 55 369 Total 6,353 1,786 826 329 111 - 9,405 Income before income tax 961 362 105 14 604 (647) 1,399 Income tax (expense) benefit (268) (84) (5) (6) 16 (347) Income from continuing operations 693 278 100 8 620 (647) 1,052 Discontinued operations, net (197) (187) (384) Net income 496 278 100 8 433 (647) 668 Amounts attributable to noncontrolling interests (50) (142) (93) (285) Net income attributable to Loews Corporation $ 446 $ 136 $ 7 $ 8 $ 433 $ (647) $ 383 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Subsidiary or Equity Method Investee [Line Items] | ||||
Shares excluded from diluted EPS calculation | 5.8 | 2.6 | 4.5 | 2.2 |
CNA Financial [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Subsidiary ownership percentage | 90.00% | |||
Diamond Offshore Drilling, Inc. [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Subsidiary ownership percentage | 53.00% | |||
Goodwill impairment charge | $ 20 | |||
Boardwalk Pipeline Partners, LP [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Subsidiary ownership percentage | 51.00% | |||
CAC [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Percentage of coinsurance agreement | 100.00% | 100.00% | ||
Recognized loss due to difference between market value and book value of funds withheld assets | $ 31 | $ 31 |
Investments - Net Investment In
Investments - Net Investment Income and Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Investment Income [Line Items] | ||||
Total investment income | $ 338 | $ 465 | $ 1,465 | $ 1,666 |
Investment expenses | (17) | (14) | (46) | (41) |
Net investment income | 321 | 451 | 1,419 | 1,625 |
Investment gains (losses) | (50) | 37 | (42) | 65 |
Fixed Maturity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 449 | 453 | 1,344 | 1,356 |
Investment gains (losses) | (29) | 39 | (29) | 58 |
Short Term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 4 | 1 | 7 | 3 |
Investment gains (losses) | (2) | 1 | (3) | 4 |
Limited Partnership Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | (122) | 26 | 88 | 229 |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 3 | 2 | 9 | 7 |
Investment gains (losses) | (18) | (3) | (19) | 2 |
Income (Loss) from Trading Portfolio [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | (5) | (24) | (9) | 46 |
Other [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 9 | $ 7 | 26 | 25 |
Derivative Instruments [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment gains (losses) | $ (1) | $ 9 | $ 1 |
Investments - Net Investment 32
Investments - Net Investment Income and Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Investment Income [Line Items] | ||||
Net unrealized gains (losses) on trading securities | $ (59) | $ (19) | $ (71) | $ 46 |
Fixed Maturity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross realized gains on available-for-sale securities | 23 | 52 | 93 | 130 |
Gross realized losses on available-for-sale securities | $ 70 | $ 16 | $ 141 | $ 70 |
Investments - Components of Net
Investments - Components of Net Other-than-Temporary Impairment Losses Recognized in Earnings by Asset Type (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | $ 56 | $ 10 | $ 99 | $ 17 |
Corporate and Other Bonds [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 36 | 6 | 52 | 9 |
States, Municipalities and Political Subdivisions [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 18 | |||
Residential Mortgage-Backed [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 1 | 2 | 7 | 4 |
Other Asset-Backed [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 1 | 1 | ||
Total Asset-Backed [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 1 | 2 | 8 | 5 |
Total Fixed Maturities Available-for-Sale [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 37 | 8 | 78 | 14 |
Common Stock [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | $ 19 | $ 2 | 20 | $ 3 |
Short Term Investments [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | $ 1 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Values of Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | $ 38,668 | $ 38,202 |
Gross Unrealized Gains | 2,942 | 3,640 |
Gross Unrealized Losses | 424 | 229 |
Estimated Fair Value | 41,186 | 41,613 |
Unrealized OTTI Losses (Gains) | (51) | (55) |
Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 37,690 | 37,469 |
Gross Unrealized Gains | 2,884 | 3,530 |
Gross Unrealized Losses | 273 | 114 |
Estimated Fair Value | 40,301 | 40,885 |
Unrealized OTTI Losses (Gains) | (51) | (55) |
Corporate and Other Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 17,172 | 17,226 |
Gross Unrealized Gains | 1,237 | 1,721 |
Gross Unrealized Losses | 210 | 61 |
Estimated Fair Value | 18,199 | 18,886 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 11,978 | 11,285 |
Gross Unrealized Gains | 1,336 | 1,463 |
Gross Unrealized Losses | 17 | 8 |
Estimated Fair Value | 13,297 | 12,740 |
Unrealized OTTI Losses (Gains) | (5) | |
Residential Mortgage-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 4,850 | 5,028 |
Gross Unrealized Gains | 204 | 218 |
Gross Unrealized Losses | 13 | 13 |
Estimated Fair Value | 5,041 | 5,233 |
Unrealized OTTI Losses (Gains) | (46) | (53) |
Commercial Mortgage-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 2,183 | 2,056 |
Gross Unrealized Gains | 77 | 93 |
Gross Unrealized Losses | 9 | 5 |
Estimated Fair Value | 2,251 | 2,144 |
Unrealized OTTI Losses (Gains) | (2) | |
Other Asset-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 1,009 | 1,234 |
Gross Unrealized Gains | 11 | 11 |
Gross Unrealized Losses | 4 | 10 |
Estimated Fair Value | 1,016 | 1,235 |
Total Asset-Backed [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 8,042 | 8,318 |
Gross Unrealized Gains | 292 | 322 |
Gross Unrealized Losses | 26 | 28 |
Estimated Fair Value | 8,308 | 8,612 |
Unrealized OTTI Losses (Gains) | (46) | (55) |
U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 24 | 26 |
Gross Unrealized Gains | 5 | 5 |
Estimated Fair Value | 29 | 31 |
Foreign Government [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 333 | 438 |
Gross Unrealized Gains | 12 | 16 |
Gross Unrealized Losses | 1 | |
Estimated Fair Value | 344 | 454 |
Redeemable Preferred Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 33 | 39 |
Gross Unrealized Gains | 2 | 3 |
Estimated Fair Value | 35 | 42 |
Total Fixed Maturities Available-for-Sale [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 37,582 | 37,332 |
Gross Unrealized Gains | 2,884 | 3,530 |
Gross Unrealized Losses | 254 | 97 |
Estimated Fair Value | 40,212 | 40,765 |
Unrealized OTTI Losses (Gains) | (51) | (55) |
Fixed Maturities Trading [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 108 | 137 |
Gross Unrealized Losses | 19 | 17 |
Estimated Fair Value | 89 | 120 |
Common Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 62 | 38 |
Gross Unrealized Gains | 3 | 9 |
Estimated Fair Value | 65 | 47 |
Preferred Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 145 | 172 |
Gross Unrealized Gains | 4 | 5 |
Gross Unrealized Losses | 2 | 2 |
Estimated Fair Value | 147 | 175 |
Total Equity Securities Available-for-Sale [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 207 | 210 |
Gross Unrealized Gains | 7 | 14 |
Gross Unrealized Losses | 2 | 2 |
Estimated Fair Value | 212 | 222 |
Equity Securities Trading [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 771 | 523 |
Gross Unrealized Gains | 51 | 96 |
Gross Unrealized Losses | 149 | 113 |
Estimated Fair Value | 673 | 506 |
Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 978 | 733 |
Gross Unrealized Gains | 58 | 110 |
Gross Unrealized Losses | 151 | 115 |
Estimated Fair Value | $ 885 | $ 728 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Net unrealized gains on investments included in "AOCI" | $ 938,000,000 | $ 1,200,000,000 |
Additional other than temporary impairment losses | 0 | |
Future capital call commitments | 414,000,000 | |
Commitments to purchase various privately placed debt securities, including bank loans | 81,000,000 | |
Commitments to sell various privately placed debt securities, including bank loans | $ 43,000,000 |
Investments - Securities Availa
Investments - Securities Available-for-Sale in Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Corporate and Other Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | $ 3,758 | $ 1,330 |
Gross Unrealized Losses, Less than 12 Months | 180 | 46 |
Estimated Fair Value, 12 Months or Longer | 188 | 277 |
Gross Unrealized Losses, 12 Months or Longer | 30 | 15 |
Total Estimated Fair Value | 3,946 | 1,607 |
Total Gross Unrealized Losses | 210 | 61 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 655 | 335 |
Gross Unrealized Losses, Less than 12 Months | 11 | 5 |
Estimated Fair Value, 12 Months or Longer | 131 | 127 |
Gross Unrealized Losses, 12 Months or Longer | 6 | 3 |
Total Estimated Fair Value | 786 | 462 |
Total Gross Unrealized Losses | 17 | 8 |
Residential Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 308 | 293 |
Gross Unrealized Losses, Less than 12 Months | 3 | 5 |
Estimated Fair Value, 12 Months or Longer | 211 | 189 |
Gross Unrealized Losses, 12 Months or Longer | 10 | 8 |
Total Estimated Fair Value | 519 | 482 |
Total Gross Unrealized Losses | 13 | 13 |
Commercial Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 479 | 264 |
Gross Unrealized Losses, Less than 12 Months | 6 | 2 |
Estimated Fair Value, 12 Months or Longer | 81 | 99 |
Gross Unrealized Losses, 12 Months or Longer | 3 | 3 |
Total Estimated Fair Value | 560 | 363 |
Total Gross Unrealized Losses | 9 | 5 |
Other Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 354 | 607 |
Gross Unrealized Losses, Less than 12 Months | 4 | 10 |
Estimated Fair Value, 12 Months or Longer | 9 | 7 |
Total Estimated Fair Value | 363 | 614 |
Total Gross Unrealized Losses | 4 | 10 |
Total Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,141 | 1,164 |
Gross Unrealized Losses, Less than 12 Months | 13 | 17 |
Estimated Fair Value, 12 Months or Longer | 301 | 295 |
Gross Unrealized Losses, 12 Months or Longer | 13 | 11 |
Total Estimated Fair Value | 1,442 | 1,459 |
Total Gross Unrealized Losses | 26 | 28 |
U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1 | 3 |
Estimated Fair Value, 12 Months or Longer | 4 | |
Total Estimated Fair Value | 1 | 7 |
Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 23 | 3 |
Estimated Fair Value, 12 Months or Longer | 3 | 3 |
Gross Unrealized Losses, 12 Months or Longer | 1 | |
Total Estimated Fair Value | 26 | 6 |
Total Gross Unrealized Losses | 1 | |
Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 3 | 3 |
Total Estimated Fair Value | 3 | 3 |
Total Fixed Maturities Available-for-Sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 5,581 | 2,838 |
Gross Unrealized Losses, Less than 12 Months | 204 | 68 |
Estimated Fair Value, 12 Months or Longer | 623 | 706 |
Gross Unrealized Losses, 12 Months or Longer | 50 | 29 |
Total Estimated Fair Value | 6,204 | 3,544 |
Total Gross Unrealized Losses | 254 | 97 |
Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 3 | 17 |
Gross Unrealized Losses, Less than 12 Months | 2 | |
Estimated Fair Value, 12 Months or Longer | 14 | 1 |
Gross Unrealized Losses, 12 Months or Longer | 2 | |
Total Estimated Fair Value | 17 | 18 |
Total Gross Unrealized Losses | 2 | 2 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 5,584 | 2,855 |
Gross Unrealized Losses, Less than 12 Months | 204 | 70 |
Estimated Fair Value, 12 Months or Longer | 637 | 707 |
Gross Unrealized Losses, 12 Months or Longer | 52 | 29 |
Total Estimated Fair Value | 6,221 | 3,562 |
Total Gross Unrealized Losses | $ 256 | $ 99 |
Investments - Pretax Credit Los
Investments - Pretax Credit Loss Component Reflected in Retained Earnings on Fixed Maturity Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Beginning balance of credit losses on fixed maturity securities | $ 59 | $ 66 | $ 62 | $ 74 |
Reductions for securities sold during the period | (2) | (2) | (5) | (7) |
Reductions for securities the Company intends to sell or more likely than not will be required to sell | (3) | |||
Ending balance of credit losses on fixed maturity securities | $ 57 | $ 64 | $ 57 | $ 64 |
Investments - Available-for-Sal
Investments - Available-for-Sale Fixed Maturity Securities by Contractual Maturity (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Cost or Amortized Cost, Due in one year or less | $ 1,406 | $ 2,479 |
Cost or Amortized Cost, Due after one year through five years | 7,789 | 9,070 |
Cost or Amortized Cost, Due after five years through ten years | 14,149 | 12,055 |
Cost or Amortized Cost, Due after ten years | 14,238 | 13,728 |
Cost or Amortized Cost, Total | 37,582 | 37,332 |
Estimated Fair Value, Due in one year or less | 1,425 | 2,511 |
Estimated Fair Value, Due after one year through five years | 8,200 | 9,621 |
Estimated Fair Value, Due after five years through ten years | 14,577 | 12,584 |
Estimated Fair Value, Due after ten years | 16,010 | 16,049 |
Estimated Fair Value, Total | $ 40,212 | $ 40,765 |
Investments - Summary of Aggreg
Investments - Summary of Aggregate Contractual or Notional Amounts and Gross Estimated Fair Values Related to Derivative Financial Instruments (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Embedded Derivative on Funds Withheld Liability [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | $ 182,000,000 | $ 184,000,000 |
Estimated Fair Value, Asset | 5,000,000 | |
Estimated Fair Value, (Liability) | (3,000,000) | |
With Hedge Designation [Member] | Foreign Exchange, Currency Forwards - Short [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 70,000,000 | |
Estimated Fair Value, (Liability) | (5,000,000) | |
Without Hedge Designation [Member] | Foreign Exchange, Currency Forwards - Short [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 435,000,000 | 88,000,000 |
Estimated Fair Value, Asset | 53,000,000 | 2,000,000 |
Without Hedge Designation [Member] | Equity Markets, Options - Purchased [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 1,619,000,000 | 544,000,000 |
Estimated Fair Value, Asset | 50,000,000 | 24,000,000 |
Without Hedge Designation [Member] | Equity Markets, Options - Written [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 1,256,000,000 | 292,000,000 |
Estimated Fair Value, (Liability) | (29,000,000) | (21,000,000) |
Without Hedge Designation [Member] | Equity Swaps and Warrants - Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 10,000,000 | 10,000,000 |
Estimated Fair Value, Asset | 1,000,000 | 2,000,000 |
Without Hedge Designation [Member] | Equity Futures - Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 70,000,000 | |
Estimated Fair Value, Asset | 1,000,000 | |
Without Hedge Designation [Member] | Equity Futures - Short [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 95,000,000 | 130,000,000 |
Estimated Fair Value, Asset | 2,000,000 | |
Estimated Fair Value, (Liability) | (1,000,000) | |
Without Hedge Designation [Member] | Foreign Exchange, Currency Forwards - Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 358,000,000 | 109,000,000 |
Estimated Fair Value, (Liability) | (52,000,000) | (3,000,000) |
Without Hedge Designation [Member] | Currency Options - Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 100,000,000 | 151,000,000 |
Estimated Fair Value, Asset | 1,000,000 | $ 7,000,000 |
Without Hedge Designation [Member] | Currency Options - Short [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 50,000,000 | |
Estimated Fair Value, (Liability) | $ (1,000,000) |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Corporate and Other Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | $ 18,199 | $ 18,886 |
States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 13,297 | 12,740 |
Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 5,041 | 5,233 |
Commercial Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 2,251 | 2,144 |
Other Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,016 | 1,235 |
Total Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 8,308 | 8,612 |
U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 29 | 31 |
Foreign Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 344 | 454 |
Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 35 | 42 |
Total Fixed Maturities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 40,212 | 40,765 |
Fixed Maturities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 89 | 120 |
Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 40,301 | 40,885 |
Total Equity Securities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 212 | 222 |
Equity Securities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 673 | 506 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 885 | 728 |
Short Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 4,998 | 5,952 |
Other Invested Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 147 | 143 |
Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 56 | 9 |
Life Settlement Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 74 | 82 |
Payable to Brokers [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | (484) | (552) |
Level 1 [Member] | Corporate and Other Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 28 | 32 |
Level 1 [Member] | U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 28 | 28 |
Level 1 [Member] | Foreign Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 28 | 41 |
Level 1 [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 24 | 30 |
Level 1 [Member] | Total Fixed Maturities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 108 | 131 |
Level 1 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 108 | 131 |
Level 1 [Member] | Total Equity Securities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 154 | 145 |
Level 1 [Member] | Equity Securities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 673 | 505 |
Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 827 | 650 |
Level 1 [Member] | Short Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 4,225 | 4,989 |
Level 1 [Member] | Other Invested Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 102 | 102 |
Level 1 [Member] | Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 2 | |
Level 1 [Member] | Payable to Brokers [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | (430) | (546) |
Level 2 [Member] | Corporate and Other Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 18,018 | 18,692 |
Level 2 [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 13,236 | 12,646 |
Level 2 [Member] | Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 4,837 | 5,044 |
Level 2 [Member] | Commercial Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 2,180 | 2,061 |
Level 2 [Member] | Other Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 545 | 580 |
Level 2 [Member] | Total Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 7,562 | 7,685 |
Level 2 [Member] | U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1 | 3 |
Level 2 [Member] | Foreign Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 316 | 413 |
Level 2 [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 11 | 12 |
Level 2 [Member] | Total Fixed Maturities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 39,144 | 39,451 |
Level 2 [Member] | Fixed Maturities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 3 | 30 |
Level 2 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 39,147 | 39,481 |
Level 2 [Member] | Total Equity Securities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 43 | 61 |
Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 43 | 61 |
Level 2 [Member] | Short Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 773 | 963 |
Level 2 [Member] | Other Invested Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 45 | 41 |
Level 2 [Member] | Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 56 | 7 |
Level 2 [Member] | Payable to Brokers [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | (54) | (6) |
Level 3 [Member] | Corporate and Other Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 153 | 162 |
Level 3 [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 61 | 94 |
Level 3 [Member] | Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 204 | 189 |
Level 3 [Member] | Commercial Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 71 | 83 |
Level 3 [Member] | Other Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 471 | 655 |
Level 3 [Member] | Total Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 746 | 927 |
Level 3 [Member] | Total Fixed Maturities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 960 | 1,183 |
Level 3 [Member] | Fixed Maturities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 86 | 90 |
Level 3 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,046 | 1,273 |
Level 3 [Member] | Total Equity Securities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 15 | 16 |
Level 3 [Member] | Equity Securities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1 | |
Level 3 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 15 | 17 |
Level 3 [Member] | Life Settlement Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | $ 74 | $ 82 |
Fair Value - Reconciliations of
Fair Value - Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Financial Instruments, Net [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ (3) | |||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 1 | |||
Purchases | (2) | |||
Sales | 2 | |||
Transfers out of Level 3 | 2 | |||
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | $ (1) | 1 | ||
Corporate and Other Bonds [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 141 | 194 | $ 162 | 204 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | (1) | 2 | ||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (1) | (1) | ||
Purchases | 27 | 4 | 39 | 30 |
Sales | (1) | (13) | (10) | |
Settlements | (11) | (3) | (32) | (13) |
Transfers into Level 3 | 37 | 8 | ||
Transfers out of Level 3 | (3) | (21) | (38) | (48) |
Ending balance | 153 | 173 | 153 | 173 |
States, Municipalities and Political Subdivisions [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 85 | 79 | 94 | 71 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 1 | 1 | ||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | 3 | ||
Purchases | 1 | |||
Sales | (10) | |||
Settlements | (10) | |||
Transfers into Level 3 | 14 | |||
Transfers out of Level 3 | (24) | (24) | ||
Ending balance | 61 | 80 | 61 | 80 |
Residential Mortgage-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 207 | 185 | 189 | 331 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 2 | 1 | 4 | (22) |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (2) | (4) | 62 | |
Purchases | 4 | 76 | 47 | |
Sales | (174) | |||
Settlements | (7) | (17) | (28) | (57) |
Transfers into Level 3 | 11 | 32 | ||
Transfers out of Level 3 | (20) | (33) | (59) | |
Ending balance | 204 | 160 | 204 | 160 |
Commercial Mortgage-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 87 | 59 | 83 | 151 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 5 | 2 | 7 | 4 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (4) | (2) | (4) | (2) |
Purchases | 8 | 28 | 23 | 28 |
Sales | (60) | |||
Settlements | (15) | (21) | (17) | (23) |
Transfers into Level 3 | 31 | 17 | 43 | |
Transfers out of Level 3 | (10) | (38) | (44) | |
Ending balance | 71 | 97 | 71 | 97 |
Other Asset-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 490 | 626 | 655 | 446 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 1 | 3 | 2 | |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (6) | (4) | 4 | |
Purchases | 43 | 80 | 125 | 457 |
Sales | (20) | (254) | (111) | |
Settlements | (32) | (25) | (52) | (115) |
Transfers out of Level 3 | (4) | (36) | (10) | (37) |
Ending balance | 471 | 642 | 471 | 642 |
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | (1) | (1) | ||
Total Asset-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 784 | 870 | 927 | 928 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 7 | 4 | 14 | (16) |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (12) | (6) | (4) | 60 |
Purchases | 55 | 108 | 224 | 532 |
Sales | (20) | (254) | (345) | |
Settlements | (54) | (63) | (97) | (195) |
Transfers into Level 3 | 42 | 17 | 75 | |
Transfers out of Level 3 | (14) | (56) | (81) | (140) |
Ending balance | 746 | 899 | 746 | 899 |
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | (1) | (1) | ||
Total Fixed Maturities Available-for-Sale [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 1,010 | 1,143 | 1,183 | 1,203 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 7 | 4 | 14 | (13) |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (12) | (6) | (5) | 63 |
Purchases | 82 | 112 | 263 | 563 |
Sales | (21) | (267) | (365) | |
Settlements | (65) | (66) | (139) | (208) |
Transfers into Level 3 | 42 | 54 | 97 | |
Transfers out of Level 3 | (41) | (77) | (143) | (188) |
Ending balance | 960 | 1,152 | 960 | 1,152 |
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | (1) | (1) | ||
Fixed Maturities Trading [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 89 | 91 | 90 | 80 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | (2) | (2) | 11 | |
Sales | (1) | (2) | ||
Ending balance | 86 | 91 | 86 | 91 |
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | (2) | (2) | 11 | |
Fixed Maturity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 1,099 | 1,234 | 1,273 | 1,283 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 5 | 4 | 12 | (2) |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (12) | (6) | (5) | 63 |
Purchases | 82 | 112 | 263 | 563 |
Sales | (22) | (269) | (365) | |
Settlements | (65) | (66) | (139) | (208) |
Transfers into Level 3 | 42 | 54 | 97 | |
Transfers out of Level 3 | (41) | (77) | (143) | (188) |
Ending balance | 1,046 | 1,243 | 1,046 | 1,243 |
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | (2) | (3) | 10 | |
Total Equity Securities Available-for-Sale [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 16 | 2 | 16 | 11 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 3 | |||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (1) | (1) | (1) | (5) |
Purchases | 16 | 16 | ||
Sales | (8) | |||
Ending balance | 15 | 17 | 15 | 17 |
Equity Securities Trading [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 1 | 4 | 1 | 8 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 1 | 1 | ||
Purchases | (1) | 1 | ||
Sales | (2) | (2) | (6) | |
Ending balance | 3 | 3 | ||
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | 1 | 1 | ||
Equity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 17 | 6 | 17 | 19 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 1 | 1 | 3 | |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (1) | (1) | (1) | (5) |
Purchases | 15 | 17 | ||
Sales | (2) | (2) | (14) | |
Ending balance | 15 | 20 | 15 | 20 |
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | 1 | 1 | ||
Life Settlement Contracts [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 75 | 86 | 82 | 88 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income | 5 | 1 | 22 | 23 |
Settlements | (6) | (1) | (30) | (25) |
Ending balance | 74 | 86 | 74 | 86 |
Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities Held at September 30 | $ 2 | $ 1 | $ 1 | 3 |
Separate Account Business [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 1 | |||
Transfers out of Level 3 | $ (1) |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ||||
Transfers out of Level 2 to Level 1, Assets | $ 10,000,000 | $ 0 | $ 10,000,000 | $ 24,000,000 |
Transfers out of Level 1 to Level 2, Assets | $ 0 | $ 0 | $ 0 | $ 1,000,000 |
Fair Value - Quantitative Infor
Fair Value - Quantitative Information about Significant Unobservable Inputs Utilized by Company in Fair Value Measurements of Level 3 Assets (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fixed Maturity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit spread adjustment | 3.00% | 3.00% |
Fixed Maturity Securities [Member] | Discounted Cash Flow [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | $ 121 | $ 101 |
Valuation Techniques | Discounted cash flow | |
Fixed Maturity Securities [Member] | Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit spread adjustment | 2.00% | 2.00% |
Fixed Maturity Securities [Member] | Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit spread adjustment | 31.00% | 13.00% |
Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Private offering price | $ 600 | |
Equity Securities [Member] | Market approach [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | $ 16 | |
Equity Securities [Member] | Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Private offering price | $ 12 | |
Equity Securities [Member] | Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Private offering price | $ 4,391 | |
Life Settlement Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate risk premium | 9.00% | 9.00% |
Mortality assumption | 164.00% | 163.00% |
Life Settlement Contracts [Member] | Discounted Cash Flow [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | $ 74 | $ 82 |
Valuation Techniques | Discounted cash flow | |
Life Settlement Contracts [Member] | Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortality assumption | 55.00% | 55.00% |
Life Settlement Contracts [Member] | Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortality assumption | 1676.00% | 1676.00% |
Fair Value - Carrying Amount, E
Fair Value - Carrying Amount, Estimated Fair Value and Level of Fair Value Hierarchy of Company's Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Estimate Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | $ 660 | $ 608 |
Short term debt | 1,302 | 339 |
Long term debt | 9,366 | 10,719 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | 640 | 588 |
Short term debt | 1,277 | 334 |
Long term debt | 9,479 | 10,320 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short term debt | 1,267 | 255 |
Long term debt | 8,811 | 10,299 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | 660 | 608 |
Short term debt | 35 | 84 |
Long term debt | $ 555 | $ 420 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) $ in Millions | Sep. 30, 2015USD ($)RigsHotel | Oct. 31, 2015RigsDrillshipDrilling_RigSemisubmersibles | Sep. 30, 2015USD ($)RigsHotelDrilling_Rig | Mar. 31, 2015USD ($)Semisubmersibles | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)RigsHotel | Sep. 30, 2014USD ($) |
Property, Plant and Equipment [Line Items] | |||||||
Aggregate fair value of impaired rigs | $ 9 | ||||||
Diamond Offshore [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of equipment evaluated for impairment | Drilling_Rig | 13 | ||||||
Asset impairment loss, before tax and noncontrolling interests | $ 2 | $ 359 | $ 361 | ||||
Asset impairment loss, net of tax and noncontrolling interests | $ 1 | $ 158 | $ 159 | ||||
Number of rigs currently cold stacked | Rigs | 3 | 3 | 3 | ||||
Number of rigs currently under contract | Rigs | 2 | 2 | 2 | ||||
Drillship [Member] | Diamond Offshore [Member] | Subsequent Event [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of equipment evaluated for impairment | Drillship | 1 | ||||||
Jack-up Rigs [Member] | Diamond Offshore [Member] | Subsequent Event [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of equipment evaluated for impairment | Rigs | 1 | ||||||
Mid-Water Semisubmersible Rigs [Member] | Diamond Offshore [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of equipment evaluated for impairment | Semisubmersibles | 7 | ||||||
Asset impairment loss, before tax and noncontrolling interests | $ 109 | $ 109 | |||||
Asset impairment loss, net of tax and noncontrolling interests | $ 55 | $ 55 | |||||
Number of property plant and equipment scrapped | Rigs | 4 | 4 | 4 | ||||
Mid-Water Semisubmersible Rigs [Member] | Diamond Offshore [Member] | Subsequent Event [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of equipment evaluated for impairment | Semisubmersibles | 1 | ||||||
Drilling Rigs [Member] | Diamond Offshore [Member] | Subsequent Event [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of equipment evaluated for impairment | Drilling_Rig | 3 | ||||||
Loews Hotels [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Amount paid for acquisition | $ 330 | ||||||
Number of hotel properties acquired | Hotel | 2 | 2 | 2 |
Claim and Claim Adjustment Ex46
Claim and Claim Adjustment Expense Reserves - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2014 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Catastrophe losses, net of reinsurance | $ 14 | $ 17 | $ 103 | $ 147 | |||
Additional amounts ceded under LPT | $ 900 | ||||||
Fair value of the collateral trust account | 2,800 | 2,800 | $ 3,400 | ||||
Commercial [Member] | CNA Financial [Member] | |||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Favorable development in accident years | (1) | 25 | 22 | 75 | |||
1996 and Prior [Member] | Commercial [Member] | CNA Financial [Member] | |||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
Favorable development in accident years | $ 26 | $ 26 | |||||
Asbestos and Environmental Pollution Reserves [Member] | |||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||||||
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 | 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 | $ 2,200 | |||||
Cumulative amounts ceded under the Loss Portfolio Transfer | 2,600 | 2,600 | 2,500 | ||||
Remaining unrecognized retroactive reinsurance benefit | $ 251 | $ 251 | $ 176 |
Claim and Claim Adjustment Ex47
Claim and Claim Adjustment Expense Reserves - Net Prior Year Development (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ (175) | $ (26) | $ (187) | $ 23 |
Pretax (favorable) unfavorable premium development | (5) | 3 | (11) | (30) |
Total pretax (favorable) unfavorable net prior year development | (180) | (23) | (198) | (7) |
CNA Financial [Member] | Specialty [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | (130) | (79) | (141) | (123) |
Pretax (favorable) unfavorable premium development | (2) | (4) | (10) | (12) |
Total pretax (favorable) unfavorable net prior year development | (132) | (83) | (151) | (135) |
CNA Financial [Member] | Commercial [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | (11) | 71 | 179 | |
Pretax (favorable) unfavorable premium development | (5) | (17) | (24) | |
Total pretax (favorable) unfavorable net prior year development | (16) | 71 | (17) | 155 |
CNA Financial [Member] | International [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | (34) | (17) | (46) | (32) |
Pretax (favorable) unfavorable premium development | 2 | 7 | 16 | 6 |
Total pretax (favorable) unfavorable net prior year development | $ (32) | (10) | $ (30) | (26) |
Other [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | (1) | (1) | ||
Total pretax (favorable) unfavorable net prior year development | $ (1) | $ (1) |
Claim and Claim Adjustment Ex48
Claim and Claim Adjustment Expense Reserves - Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ (175) | $ (26) | $ (187) | $ 23 |
CNA Financial [Member] | Specialty [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Medical professional liability | (19) | 16 | (11) | 17 |
Other professional liability and management liability | (37) | (9) | (41) | (59) |
Surety | (70) | (79) | (69) | (78) |
Warranty | 1 | |||
Other | (4) | (7) | (21) | (3) |
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | (130) | (79) | (141) | (123) |
CNA Financial [Member] | International [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Medical professional liability | (8) | (3) | (8) | (2) |
Other professional liability | (11) | 1 | (16) | (14) |
General liability | (5) | (3) | (12) | (9) |
Property & marine | (5) | (11) | (19) | (10) |
Other | (5) | (1) | 9 | (7) |
Commutations | 10 | |||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | (34) | (17) | (46) | (32) |
CNA Financial [Member] | Commercial [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Commercial auto | 13 | 7 | 52 | |
General liability | 3 | 44 | 8 | 76 |
Workers' compensation | (1) | 25 | 22 | 75 |
Property and other | (13) | (11) | $ (37) | (24) |
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ (11) | $ 71 | $ 179 |
Claim and Claim Adjustment Ex49
Claim and Claim Adjustment Expense Reserves - Impact of Loss Portfolio Transfer on Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Insurance [Abstract] | ||||
Net A&EP adverse development before consideration of LPT | $ 150 | |||
Provision for uncollectible third party reinsurance on A&EP | $ 0 | $ 0 | 0 | $ 0 |
Additional amounts ceded under LPT | 150 | |||
Retroactive reinsurance benefit recognized | (4) | (4) | (75) | (9) |
Pretax impact of deferred retroactive reinsurance benefit | $ (4) | $ (4) | $ 75 | $ (9) |
Debt - Additional Information (
Debt - Additional Information (Detail) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)Extension | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($)Extension | May. 31, 2015USD ($) | Nov. 30, 2014USD ($) |
Loews Hotels [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity date | Oct. 1, 2018 | |||||
Debt instrument principal amount | $ 87,000,000 | $ 87,000,000 | $ 87,000,000 | |||
Diamond Offshore [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |||
Additional available increase in borrowing capacity | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||
Number of one-year extensions | Extension | 1 | |||||
Diamond Offshore [Member] | 4.9% Senior Notes Due 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument principal amount repaid | $ 250,000,000 | |||||
Debt instrument interest rate | 4.90% | 4.90% | 4.90% | |||
Debt maturity date | Jul. 1, 2015 | |||||
Diamond Offshore [Member] | Commercial Paper [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of commercial paper | $ 493,000,000 | |||||
Debt instrument interest rate | 0.40% | 0.40% | 0.40% | |||
Weighted average remaining term | 2 days | |||||
Diamond Offshore [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | |||
Diamond Offshore [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Extended revolving credit facility maturity period | 2020-10 | |||||
Diamond Offshore [Member] | Senior Unsecured Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | 40,000,000 | 40,000,000 | $ 40,000,000 | |||
Diamond Offshore [Member] | Senior Unsecured Revolving Credit Facility [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | 60,000,000 | 60,000,000 | 60,000,000 | |||
Diamond Offshore [Member] | Standby Letters of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | 250,000,000 | 250,000,000 | 250,000,000 | |||
Diamond Offshore [Member] | Swing Line Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | 100,000,000 | |||
Boardwalk Pipeline [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of outstanding borrowings | 200,000,000 | |||||
Boardwalk Pipeline [Member] | 5.0% Senior Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 5.00% | 5.00% | ||||
Debt maturity date | Dec. 15, 2024 | |||||
Debt instrument principal amount | $ 250,000,000 | $ 350,000,000 | ||||
Boardwalk Pipeline [Member] | 4.6% Notes Due 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 4.60% | |||||
Debt maturity date | Jun. 1, 2015 | |||||
Debt instrument principal amount | $ 250,000,000 | |||||
Boardwalk Pipeline [Member] | 5.1% Notes Due 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument principal amount repaid | $ 275,000,000 | |||||
Debt instrument interest rate | 5.10% | 5.10% | 5.10% | |||
Boardwalk Pipeline [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | $ 1,500,000,000 | |||||
Debt instrument interest rate | 1.40% | 1.40% | 1.40% | |||
Debt maturity date | May 31, 2020 | |||||
Debt instrument principal amount | $ 365,000,000 | $ 365,000,000 | $ 365,000,000 | |||
CNA Financial [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | 250,000,000 | 250,000,000 | 250,000,000 | |||
Additional available increase in borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||
Senior unsecured revolving credit facility, term | 5 years | |||||
Number of one-year extensions | Extension | 2 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning, balance | $ 53 | $ 807 | $ 280 | $ 339 |
Other comprehensive income (loss) before reclassifications, after tax | (122) | (140) | (390) | 441 |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 37 | (51) | 51 | (111) |
Other comprehensive income (loss) | (85) | (191) | (339) | 330 |
Issuance of equity securities by subsidiary | 1 | |||
Amounts attributable to noncontrolling interests | 9 | 22 | 35 | (31) |
Ending, balance | (23) | 638 | (23) | 638 |
OTTI Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning, balance | 28 | 30 | 32 | 23 |
Transfer to net assets of discontinued operations | (5) | |||
Other comprehensive income (loss) before reclassifications, after tax | 2 | 1 | (3) | 15 |
Other comprehensive income (loss) | 2 | 1 | (3) | 15 |
Amounts attributable to noncontrolling interests | 1 | 1 | (1) | |
Ending, balance | 30 | 32 | 30 | 32 |
Unrealized Gains (Losses) on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning, balance | 619 | 1,062 | 846 | 622 |
Transfer to net assets of discontinued operations | (15) | |||
Other comprehensive income (loss) before reclassifications, after tax | (70) | (59) | (321) | 462 |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 31 | (24) | 29 | (38) |
Other comprehensive income (loss) | (39) | (83) | (292) | 424 |
Amounts attributable to noncontrolling interests | 4 | 8 | 30 | (44) |
Ending, balance | 584 | 987 | 584 | 987 |
Discontinued Operations [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning, balance | 30 | (3) | ||
Transfer to net assets of discontinued operations | 20 | |||
Other comprehensive income (loss) before reclassifications, after tax | (3) | 2 | ||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | (31) | (21) | ||
Other comprehensive income (loss) | (34) | (19) | ||
Amounts attributable to noncontrolling interests | 4 | 2 | ||
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning, balance | (3) | (3) | (6) | (4) |
Other comprehensive income (loss) before reclassifications, after tax | (4) | (2) | 1 | |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 1 | 7 | (2) | |
Other comprehensive income (loss) | 1 | (4) | 5 | (1) |
Amounts attributable to noncontrolling interests | (1) | 2 | (2) | |
Ending, balance | (3) | (5) | (3) | (5) |
Pension Liability [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning, balance | (598) | (478) | (641) | (432) |
Other comprehensive income (loss) before reclassifications, after tax | (1) | (2) | 36 | (2) |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 5 | 4 | 15 | (50) |
Other comprehensive income (loss) | 4 | 2 | 51 | (52) |
Issuance of equity securities by subsidiary | 1 | |||
Amounts attributable to noncontrolling interests | 1 | (4) | 8 | |
Ending, balance | (593) | (476) | (593) | (476) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning, balance | 7 | 166 | 49 | 133 |
Other comprehensive income (loss) before reclassifications, after tax | (53) | (73) | (100) | (37) |
Other comprehensive income (loss) | (53) | (73) | (100) | (37) |
Amounts attributable to noncontrolling interests | 5 | 7 | 10 | 4 |
Ending, balance | $ (41) | $ 100 | $ (41) | $ 100 |
Shareholders' Equity - Compon52
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
OTTI Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | $ (1) | $ (1) | $ 1 | $ (8) |
Tax on reclassification from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Unrealized Gains (Losses) on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 38 | 52 | 162 | (229) |
Tax on reclassification from accumulated other comprehensive income | (17) | 12 | (22) | 20 |
Discontinued Operations [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | 2 | 0 | (3) |
Tax on reclassification from accumulated other comprehensive income | 0 | 21 | 0 | 16 |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | 2 | 1 | (1) |
Tax on reclassification from accumulated other comprehensive income | 0 | 0 | (2) | 1 |
Pension Liability [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | (1) | 1 | (19) | 1 |
Tax on reclassification from accumulated other comprehensive income | (2) | (2) | (9) | 24 |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Tax on reclassification from accumulated other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Shareholders Equity [Line Items] | |||
Increase (decrease) in Additional paid-in capital | $ (2) | ||
Common stock, shares issued | 373,211,389 | 372,934,540 | |
Increase in accumulated other comprehensive income | $ 1 | ||
Treasury stock repurchased, shares | 16,300,000 | 9,600,000 | |
Purchase of Loews treasury stock | $ 633 | $ 415 | |
Diamond Offshore [Member] | |||
Shareholders Equity [Line Items] | |||
Purchase of common stock | 1,100,000 | ||
Common stock, aggregate cost | $ 29 | ||
Increase (decrease) in Additional paid-in capital | $ 5 | ||
Diamond Offshore [Member] | Minimum [Member] | |||
Shareholders Equity [Line Items] | |||
Subsidiary ownership percentage | 52.00% | ||
Diamond Offshore [Member] | Maximum [Member] | |||
Shareholders Equity [Line Items] | |||
Subsidiary ownership percentage | 53.00% | ||
Boardwalk Pipeline [Member] | |||
Shareholders Equity [Line Items] | |||
Common stock, shares issued | 7,100,000 | ||
Proceeds from subsidiary public offering | $ 115 | ||
Contribution from the company | $ 2 | ||
General partner interest | 2.00% | ||
Boardwalk Pipeline [Member] | Minimum [Member] | |||
Shareholders Equity [Line Items] | |||
Subsidiary ownership percentage | 51.00% | ||
Boardwalk Pipeline [Member] | Maximum [Member] | |||
Shareholders Equity [Line Items] | |||
Subsidiary ownership percentage | 53.00% |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Eligible age for several postretirement benefit plans | 55 years | ||
Eligible age for Medicare benefits | 65 years | ||
Defined benefit plan obligation, curtailment | $ 55 | ||
Gain recognized due to curtailment | $ 86 | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan obligation, discount rate | 4.00% | 3.60% | |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan obligation, discount rate | 3.90% | 3.10% |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | $ (86) | ||||
Other Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 1 | $ 1 | |||
Interest cost | 1 | $ 1 | 2 | $ 3 | |
Expected return on plan assets | (1) | (1) | (3) | (3) | |
Amortization of unrecognized prior service benefit | (3) | (2) | (8) | (15) | |
Amortization of unrecognized net loss | 1 | ||||
Curtailment gain | (86) | ||||
Net periodic benefit cost | (2) | (2) | (7) | (101) | |
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 2 | 5 | 10 | 13 | |
Interest cost | 31 | 37 | 95 | 111 | |
Expected return on plan assets | (48) | (52) | (145) | (157) | |
Amortization of unrecognized net loss | 9 | 7 | 32 | 22 | |
Regulatory asset decrease | 1 | ||||
Settlement charge | 2 | 2 | |||
Net periodic benefit cost | $ (4) | $ (3) | $ (6) | $ (10) |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015RigsStatesCountryHotelSegmentmi | |
Segment Reporting Information [Line Items] | |
Number of offshore drilling rigs | Rigs | 33 |
Number of rig under construction | Rigs | 1 |
Number of countries where drilling rigs are located | Country | 7 |
Miles of natural gas and NGL pipeline | mi | 14,625 |
Number of states having natural gas storage facilities | States | 4 |
Total number of hotels owned and/or operated | 23 |
CNA Financial [Member] | |
Segment Reporting Information [Line Items] | |
Number of CNA segments | Segment | 4 |
United States [Member] | |
Segment Reporting Information [Line Items] | |
Number of hotels | 22 |
Canada [Member] | |
Segment Reporting Information [Line Items] | |
Number of hotels | 1 |
Business Segments - Consolidate
Business Segments - Consolidated Revenues and Income (Loss) by Business Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,169 | $ 3,523 | $ 10,082 | $ 10,804 |
Income (loss) before income tax and noncontrolling interests | 348 | 339 | 748 | 1,399 |
Income from continuing operations | 182 | 179 | 461 | 747 |
Discontinued operations, net | 29 | (364) | ||
Net income (loss) | 182 | 208 | 461 | 383 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | (50) | 37 | (42) | 65 |
Investment gains (losses) included in net income (loss) | (29) | 24 | (18) | 39 |
CNA Financial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,153 | 2,411 | 6,832 | 7,314 |
Income (loss) before income tax and noncontrolling interests | 234 | 295 | 713 | 961 |
Net income (loss) | 161 | 188 | 495 | 623 |
CNA Financial [Member] | Other Non-Core [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 324 | 350 | 978 | 1,022 |
Income (loss) before income tax and noncontrolling interests | (120) | (78) | (410) | (103) |
Net income (loss) | (44) | (33) | (167) | (12) |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | 2 | 31 | (2) | 48 |
Investment gains (losses) included in net income (loss) | 1 | 19 | 5 | 29 |
CNA Financial [Member] | Property and Casualty [Member] | Specialty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 846 | 930 | 2,667 | 2,776 |
Income (loss) before income tax and noncontrolling interests | 248 | 280 | 661 | 729 |
Net income (loss) | 147 | 166 | 394 | 435 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | (22) | 3 | (18) | 9 |
Investment gains (losses) included in net income (loss) | (14) | 2 | (11) | 5 |
CNA Financial [Member] | Property and Casualty [Member] | Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 767 | 890 | 2,545 | 2,772 |
Income (loss) before income tax and noncontrolling interests | 83 | 83 | 391 | 267 |
Net income (loss) | 49 | 51 | 231 | 163 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | (29) | 2 | (23) | 7 |
Investment gains (losses) included in net income (loss) | (16) | 4 | (13) | 5 |
CNA Financial [Member] | Property and Casualty [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 216 | 241 | 642 | 744 |
Income (loss) before income tax and noncontrolling interests | 23 | 10 | 71 | 68 |
Net income (loss) | 9 | 4 | 37 | 37 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | (1) | 1 | 1 | 1 |
Investment gains (losses) included in net income (loss) | (1) | 1 | ||
Diamond Offshore [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 608 | 737 | 1,867 | 2,148 |
Income (loss) before income tax and noncontrolling interests | 139 | 82 | (42) | 362 |
Net income (loss) | 47 | 25 | (34) | 136 |
Boardwalk Pipeline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 296 | 279 | 925 | 931 |
Income (loss) before income tax and noncontrolling interests | 48 | 28 | 163 | 105 |
Net income (loss) | 18 | 8 | 55 | 7 |
Loews Hotels [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 146 | 126 | 452 | 343 |
Income (loss) before income tax and noncontrolling interests | 1 | 25 | 14 | |
Net income (loss) | 2 | 15 | 8 | |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (34) | (30) | 6 | 68 |
Income (loss) before income tax and noncontrolling interests | (74) | (66) | (111) | (43) |
Net income (loss) | $ (46) | $ (42) | $ (70) | $ (27) |
Business Segments - Consolida58
Business Segments - Consolidated Revenues and Income (Loss) by Business Segment (Parenthetical) (Detail) - Bluegrass Project [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |
Asset impairment charge, before tax and noncontrolling interests | $ 94 |
Asset impairment loss, net of tax and noncontrolling interests | $ 55 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
CNA Financial [Member] | |
Commitments [Line Items] | |
Aggregate amount related to indemnification agreements | $ 260 |
Aggregate amount related to quantifiable guarantees | 375 |
Potential amount of future payments under guarantees | 2,000 |
Harsh Environment Semisubmersible Drilling Rig [Member] | Diamond Offshore Drilling, Inc. [Member] | |
Commitments [Line Items] | |
Total cost of the project | 764 |
Remaining contractual payment is due upon delivery of rig | $ 440 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations Reflected in Consolidated Condensed Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Expenses: | ||
Income (loss) from discontinued operations | $ 29 | $ (364) |
HighMount [Member] | ||
Revenues: | ||
Other revenue, primarily operating | 49 | 150 |
Total | 49 | 150 |
Expenses: | ||
Impairment of natural gas and oil properties | 29 | |
Operating | 54 | 165 |
Interest | 3 | 8 |
Total | 57 | 202 |
Income (loss) before income tax | (8) | (52) |
Income tax (expense) benefit | 3 | 2 |
Results of discontinued operations, net of income tax | (5) | (50) |
Impairment loss, net of tax (expense) benefit | 30 | (137) |
Income (loss) from discontinued operations | 25 | (187) |
CAC [Member] | ||
Revenues: | ||
Net investment income | 14 | 94 |
Investment gains | 1 | 3 |
Total | 15 | 97 |
Expenses: | ||
Insurance claims and policyholders' benefits | 12 | 75 |
Other operating expenses | 2 | |
Operating | 12 | 77 |
Income (loss) before income tax | 3 | 20 |
Income tax (expense) benefit | (2) | (6) |
Results of discontinued operations, net of income tax | 1 | 14 |
Loss on sale, net of tax (expense) benefit | 3 | (211) |
Amounts attributable to noncontrolling interests | 20 | |
Income (loss) from discontinued operations | $ 4 | $ (177) |
Discontinued Operations - Sch61
Discontinued Operations - Schedule of Discontinued Operations Reflected in Consolidated Condensed Statements of Income (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
HighMount [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income tax (expense) benefit on impairment loss | $ (30) | $ 62 |
CAC [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on sale, tax (expense) benefit | $ (1) | $ 40 |
Consolidating Financial Infor62
Consolidating Financial Information - Consolidating Balance Sheet Information (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Assets: | ||||
Investments | $ 50,550 | $ 52,032 | ||
Cash | 328 | 364 | $ 637 | $ 294 |
Receivables | 8,079 | 7,770 | ||
Property, plant and equipment | 15,902 | 15,611 | ||
Goodwill | 352 | 374 | ||
Other assets | 1,715 | 1,616 | ||
Deferred acquisition costs of insurance subsidiaries | 606 | 600 | ||
Total assets | 77,532 | 78,367 | ||
Liabilities and Equity: | ||||
Insurance reserves | 36,093 | 36,380 | ||
Payable to brokers | 733 | 673 | ||
Short term debt | 1,278 | 335 | ||
Long term debt | 9,492 | 10,333 | ||
Deferred income taxes | 796 | 893 | ||
Other liabilities | 4,987 | 5,103 | ||
Total liabilities | 53,379 | 53,717 | ||
Total shareholders' equity | 18,744 | 19,280 | ||
Noncontrolling interests | 5,409 | 5,370 | ||
Total equity | 24,153 | 24,650 | $ 25,116 | $ 24,906 |
Total liabilities and equity | 77,532 | 78,367 | ||
Eliminations [Member] | ||||
Assets: | ||||
Receivables | (127) | (56) | ||
Deferred income taxes | (434) | (598) | ||
Investments in capital stocks of subsidiaries | (15,751) | (15,974) | ||
Other assets | 13 | 14 | ||
Total assets | (16,299) | (16,614) | ||
Liabilities and Equity: | ||||
Deferred income taxes | (419) | (400) | ||
Other liabilities | (129) | (240) | ||
Total liabilities | (548) | (640) | ||
Total shareholders' equity | (15,751) | (15,974) | ||
Total equity | (15,751) | (15,974) | ||
Total liabilities and equity | (16,299) | (16,614) | ||
CNA Financial [Member] | Operating Segments [Member] | ||||
Assets: | ||||
Investments | 45,318 | 46,262 | ||
Cash | 236 | 190 | ||
Receivables | 7,069 | 7,097 | ||
Property, plant and equipment | 310 | 280 | ||
Deferred income taxes | 304 | 222 | ||
Goodwill | 115 | 117 | ||
Other assets | 832 | 778 | ||
Deferred acquisition costs of insurance subsidiaries | 606 | 600 | ||
Total assets | 54,790 | 55,546 | ||
Liabilities and Equity: | ||||
Insurance reserves | 36,093 | 36,380 | ||
Payable to brokers | 166 | 117 | ||
Short term debt | 350 | |||
Long term debt | 2,214 | 2,561 | ||
Deferred income taxes | 6 | 11 | ||
Other liabilities | 3,724 | 3,713 | ||
Total liabilities | 42,553 | 42,782 | ||
Total shareholders' equity | 10,972 | 11,457 | ||
Noncontrolling interests | 1,265 | 1,307 | ||
Total equity | 12,237 | 12,764 | ||
Total liabilities and equity | 54,790 | 55,546 | ||
Diamond Offshore [Member] | Operating Segments [Member] | ||||
Assets: | ||||
Investments | 144 | 234 | ||
Cash | 11 | 16 | ||
Receivables | 519 | 490 | ||
Property, plant and equipment | 6,892 | 6,949 | ||
Goodwill | 20 | |||
Other assets | 260 | 307 | ||
Total assets | 7,826 | 8,016 | ||
Liabilities and Equity: | ||||
Payable to brokers | 5 | |||
Short term debt | 493 | 250 | ||
Long term debt | 1,982 | 1,981 | ||
Deferred income taxes | 402 | 514 | ||
Other liabilities | 571 | 792 | ||
Total liabilities | 3,448 | 3,542 | ||
Total shareholders' equity | 2,335 | 2,359 | ||
Noncontrolling interests | 2,043 | 2,115 | ||
Total equity | 4,378 | 4,474 | ||
Total liabilities and equity | 7,826 | 8,016 | ||
Boardwalk Pipeline [Member] | Operating Segments [Member] | ||||
Assets: | ||||
Cash | 6 | 8 | ||
Receivables | 121 | 128 | ||
Property, plant and equipment | 7,654 | 7,649 | ||
Goodwill | 237 | 237 | ||
Other assets | 334 | 304 | ||
Total assets | 8,352 | 8,326 | ||
Liabilities and Equity: | ||||
Long term debt | 3,459 | 3,690 | ||
Deferred income taxes | 765 | 732 | ||
Other liabilities | 464 | 400 | ||
Total liabilities | 4,688 | 4,822 | ||
Total shareholders' equity | 1,565 | 1,558 | ||
Noncontrolling interests | 2,099 | 1,946 | ||
Total equity | 3,664 | 3,504 | ||
Total liabilities and equity | 8,352 | 8,326 | ||
Loews Hotels [Member] | Operating Segments [Member] | ||||
Assets: | ||||
Investments | 91 | 75 | ||
Cash | 16 | 9 | ||
Receivables | 38 | 29 | ||
Property, plant and equipment | 998 | 671 | ||
Deferred income taxes | 2 | 2 | ||
Other assets | 268 | 206 | ||
Total assets | 1,413 | 992 | ||
Liabilities and Equity: | ||||
Short term debt | 35 | 85 | ||
Long term debt | 556 | 421 | ||
Deferred income taxes | 42 | 36 | ||
Other liabilities | 64 | 17 | ||
Total liabilities | 697 | 559 | ||
Total shareholders' equity | 714 | 431 | ||
Noncontrolling interests | 2 | 2 | ||
Total equity | 716 | 433 | ||
Total liabilities and equity | 1,413 | 992 | ||
Corporate and Other [Member] | ||||
Assets: | ||||
Investments | 4,997 | 5,461 | ||
Cash | 59 | 141 | ||
Receivables | 459 | 82 | ||
Property, plant and equipment | 48 | 62 | ||
Deferred income taxes | 128 | 374 | ||
Investments in capital stocks of subsidiaries | 15,751 | 15,974 | ||
Other assets | 8 | 7 | ||
Total assets | 21,450 | 22,101 | ||
Liabilities and Equity: | ||||
Payable to brokers | 567 | 551 | ||
Short term debt | 400 | |||
Long term debt | 1,281 | 1,680 | ||
Other liabilities | 293 | 421 | ||
Total liabilities | 2,541 | 2,652 | ||
Total shareholders' equity | 18,909 | 19,449 | ||
Total equity | 18,909 | 19,449 | ||
Total liabilities and equity | $ 21,450 | $ 22,101 |
Consolidating Financial Infor63
Consolidating Financial Information - Consolidating Statement of Income Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Insurance premiums | $ 1,751 | $ 1,810 | $ 5,173 | $ 5,427 |
Net investment income | 321 | 451 | 1,419 | 1,625 |
Investment gains (losses) | (50) | 37 | (42) | 65 |
Contract drilling revenues | 599 | 728 | 1,816 | 2,063 |
Other revenues | 548 | 497 | 1,716 | 1,624 |
Total | 10,082 | 10,804 | ||
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,200 | 1,354 | 4,008 | 4,241 |
Amortization of deferred acquisition costs | 319 | 332 | 936 | 996 |
Contract drilling expenses | 276 | 400 | 971 | 1,165 |
Other operating expenses | 898 | 977 | 3,026 | 2,634 |
Interest | 128 | 121 | 393 | 369 |
Total | 2,821 | 3,184 | 9,334 | 9,405 |
Income (loss) before income tax | 348 | 339 | 748 | 1,399 |
Income tax (expense) benefit | (66) | (99) | (170) | (347) |
Income from continuing operations | 282 | 240 | 578 | 1,052 |
Discontinued operations, net | 29 | (384) | ||
Net income | 282 | 269 | 578 | 668 |
Amounts attributable to noncontrolling interests | (100) | (61) | (117) | (285) |
Net income (loss) attributable to Loews Corporation | 461 | 383 | ||
Eliminations [Member] | ||||
Revenues: | ||||
Intercompany interest and dividends | (733) | (647) | ||
Total | (733) | (647) | ||
Expenses: | ||||
Income (loss) before income tax | (733) | (647) | ||
Income from continuing operations | (647) | |||
Net income | (733) | (647) | ||
Net income (loss) attributable to Loews Corporation | (733) | (647) | ||
CNA Financial [Member] | ||||
Expenses: | ||||
Income (loss) before income tax | 234 | 295 | 713 | 961 |
CNA Financial [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Insurance premiums | 5,173 | 5,427 | ||
Net investment income | 1,412 | 1,556 | ||
Investment gains (losses) | (42) | 65 | ||
Other revenues | 289 | 266 | ||
Total | 6,832 | 7,314 | ||
Expenses: | ||||
Insurance claims and policyholders' benefits | 4,008 | 4,241 | ||
Amortization of deferred acquisition costs | 936 | 996 | ||
Other operating expenses | 1,058 | 978 | ||
Interest | 117 | 138 | ||
Total | 6,119 | 6,353 | ||
Income (loss) before income tax | 713 | 961 | ||
Income tax (expense) benefit | (162) | (268) | ||
Income from continuing operations | 693 | |||
Discontinued operations, net | (197) | |||
Net income | 551 | 496 | ||
Amounts attributable to noncontrolling interests | (56) | (50) | ||
Net income (loss) attributable to Loews Corporation | 495 | 446 | ||
Diamond Offshore [Member] | ||||
Expenses: | ||||
Income (loss) before income tax | 139 | 82 | (42) | 362 |
Diamond Offshore [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Net investment income | 2 | 1 | ||
Contract drilling revenues | 1,816 | 2,063 | ||
Other revenues | 49 | 84 | ||
Total | 1,867 | 2,148 | ||
Expenses: | ||||
Contract drilling expenses | 971 | 1,165 | ||
Other operating expenses | 867 | 575 | ||
Interest | 71 | 46 | ||
Total | 1,909 | 1,786 | ||
Income (loss) before income tax | (42) | 362 | ||
Income tax (expense) benefit | (6) | (84) | ||
Income from continuing operations | 278 | |||
Net income | (48) | 278 | ||
Amounts attributable to noncontrolling interests | 14 | (142) | ||
Net income (loss) attributable to Loews Corporation | (34) | 136 | ||
Boardwalk Pipeline [Member] | ||||
Expenses: | ||||
Income (loss) before income tax | 48 | $ 28 | 163 | 105 |
Boardwalk Pipeline [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Net investment income | 1 | |||
Other revenues | 924 | 931 | ||
Total | 925 | 931 | ||
Expenses: | ||||
Other operating expenses | 628 | 705 | ||
Interest | 134 | 121 | ||
Total | 762 | 826 | ||
Income (loss) before income tax | 163 | 105 | ||
Income tax (expense) benefit | (33) | (5) | ||
Income from continuing operations | 100 | |||
Net income | 130 | 100 | ||
Amounts attributable to noncontrolling interests | (75) | (93) | ||
Net income (loss) attributable to Loews Corporation | 55 | 7 | ||
Loews Hotels [Member] | ||||
Expenses: | ||||
Income (loss) before income tax | $ 1 | 25 | 14 | |
Loews Hotels [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Other revenues | 452 | 343 | ||
Total | 452 | 343 | ||
Expenses: | ||||
Other operating expenses | 412 | 320 | ||
Interest | 15 | 9 | ||
Total | 427 | 329 | ||
Income (loss) before income tax | 25 | 14 | ||
Income tax (expense) benefit | (10) | (6) | ||
Income from continuing operations | 8 | |||
Net income | 15 | 8 | ||
Net income (loss) attributable to Loews Corporation | 15 | 8 | ||
Corporate and Other [Member] | ||||
Revenues: | ||||
Net investment income | 4 | 68 | ||
Intercompany interest and dividends | 733 | 647 | ||
Other revenues | 2 | |||
Total | 739 | 715 | ||
Expenses: | ||||
Other operating expenses | 61 | 56 | ||
Interest | 56 | 55 | ||
Total | 117 | 111 | ||
Income (loss) before income tax | 622 | 604 | ||
Income tax (expense) benefit | 41 | 16 | ||
Income from continuing operations | 620 | |||
Discontinued operations, net | (187) | |||
Net income | 663 | 433 | ||
Net income (loss) attributable to Loews Corporation | $ 663 | $ 433 |