Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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 | 336,959,362 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Fixed maturities, amortized cost of $38,810 and $37,407 | $ 42,894 | $ 39,701 |
Equity securities, cost of $581 and $824 | 586 | 752 |
Limited partnership investments | 3,293 | 3,313 |
Other invested assets, primarily mortgage loans | 719 | 824 |
Short term investments | 4,893 | 4,810 |
Total investments | 52,385 | 49,400 |
Cash | 344 | 440 |
Receivables | 7,853 | 8,041 |
Property, plant and equipment | 15,200 | 15,477 |
Goodwill | 347 | 351 |
Other assets | 1,760 | 1,699 |
Deferred acquisition costs of insurance subsidiaries | 619 | 598 |
Total assets | 78,508 | 76,006 |
Liabilities and Equity: | ||
Claim and claim adjustment expense | 22,672 | 22,663 |
Future policy benefits | 11,219 | 10,152 |
Unearned premiums | 3,862 | 3,671 |
Total insurance reserves | 37,753 | 36,486 |
Payable to brokers | 451 | 567 |
Short term debt | 185 | 1,040 |
Long term debt | 10,737 | 9,520 |
Deferred income taxes | 735 | 382 |
Other liabilities | 5,241 | 5,201 |
Total liabilities | 55,102 | 53,196 |
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 - 339,951,927 and 339,897,547 shares | 3 | 3 |
Additional paid-in capital | 3,207 | 3,184 |
Retained earnings | 15,031 | 14,731 |
Accumulated other comprehensive income (loss) | 144 | (357) |
Shareholders Equity Before Treasury Stock, Total | 18,385 | 17,561 |
Less treasury stock, at cost (2,992,565 shares) | (115) | |
Total shareholders' equity | 18,270 | 17,561 |
Noncontrolling interests | 5,136 | 5,249 |
Total equity | 23,406 | 22,810 |
Total liabilities and equity | $ 78,508 | $ 76,006 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 38,810 | $ 37,407 |
Equity securities, cost | $ 581 | $ 824 |
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 | 339,951,927 | 339,897,547 |
Treasury stock, shares | 2,992,565 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Insurance premiums | $ 1,767 | $ 1,751 | $ 5,196 | $ 5,173 |
Net investment income | 561 | 321 | 1,570 | 1,419 |
Investment gains (losses): | ||||
Other-than-temporary impairment losses | (18) | (56) | (56) | (99) |
Other net investment gains | 63 | 6 | 74 | 57 |
Total investment gains (losses) | 45 | (50) | 18 | (42) |
Contract drilling revenues | 340 | 599 | 1,141 | 1,816 |
Other revenues | 574 | 548 | 1,842 | 1,716 |
Total | 3,287 | 3,169 | 9,767 | 10,082 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,202 | 1,200 | 3,949 | 4,008 |
Amortization of deferred acquisition costs | 314 | 319 | 926 | 936 |
Contract drilling expenses | 187 | 276 | 598 | 971 |
Other operating expenses | 898 | 898 | 3,416 | 3,026 |
Interest | 130 | 128 | 403 | 393 |
Total | 2,731 | 2,821 | 9,292 | 9,334 |
Income before income tax | 556 | 348 | 475 | 748 |
Income tax expense | (163) | (66) | (171) | (170) |
Net income (loss) | 393 | 282 | 304 | 578 |
Amounts attributable to noncontrolling interests | (66) | (100) | 60 | (117) |
Net income attributable to Loews Corporation | $ 327 | $ 182 | $ 364 | $ 461 |
Basic and diluted net income per share | $ 0.97 | $ 0.50 | $ 1.08 | $ 1.25 |
Dividends per share | $ 0.0625 | $ 0.0625 | $ 0.1875 | $ 0.1875 |
Weighted average shares outstanding: | ||||
Shares of common stock | 337,180 | 360,910 | 338,330 | 367,740 |
Dilutive potential shares of common stock | 440 | 190 | 280 | 290 |
Total weighted average shares outstanding assuming dilution | 337,620 | 361,100 | 338,610 | 368,030 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract] | ||||
Net income (loss) | $ 393 | $ 282 | $ 304 | $ 578 |
Other comprehensive income (loss), after tax Changes in: | ||||
Net unrealized gains (losses) on investments with other-than-temporary impairments | 3 | 2 | 7 | (3) |
Net other unrealized gains (losses) on investments | 42 | (39) | 591 | (292) |
Total unrealized gains (losses) on available-for-sale investments | 45 | (37) | 598 | (295) |
Unrealized gains on cash flow hedges | 1 | 1 | 2 | 5 |
Pension liability | 7 | 4 | 20 | 51 |
Foreign currency | (24) | (53) | (58) | (100) |
Other comprehensive income (loss) | 29 | (85) | 562 | (339) |
Comprehensive income | 422 | 197 | 866 | 239 |
Amounts attributable to noncontrolling interests | (70) | (91) | (1) | (82) |
Total comprehensive income attributable to Loews Corporation | $ 352 | $ 106 | $ 865 | $ 157 |
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, 2014 | $ 24,650 | $ 4 | $ 3,481 | $ 15,515 | $ 280 | $ 5,370 | |
Net income (loss) | 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 |
Beginning Balance at Jun. 30, 2015 | 53 | ||||||
Net income (loss) | 282 | ||||||
Other comprehensive income (loss) | (85) | ||||||
Ending Balance at Sep. 30, 2015 | 24,153 | 4 | 3,490 | 15,906 | (23) | (633) | 5,409 |
Beginning Balance at Dec. 31, 2015 | 22,810 | 3 | 3,184 | 14,731 | (357) | 5,249 | |
Net income (loss) | 304 | 364 | (60) | ||||
Other comprehensive income (loss) | 562 | 501 | 61 | ||||
Dividends paid | (177) | (63) | |||||
Dividends paid | (114) | ||||||
Purchases of subsidiary stock from noncontrolling interests | (9) | 3 | (12) | ||||
Purchases of Loews treasury stock | (115) | (115) | |||||
Stock-based compensation | 35 | 33 | 2 | ||||
Other | (4) | (13) | (1) | 10 | |||
Ending Balance at Sep. 30, 2016 | 23,406 | 3 | 3,207 | 15,031 | 144 | (115) | 5,136 |
Beginning Balance at Jun. 30, 2016 | 119 | ||||||
Net income (loss) | 393 | ||||||
Other comprehensive income (loss) | 29 | ||||||
Ending Balance at Sep. 30, 2016 | $ 23,406 | $ 3 | $ 3,207 | $ 15,031 | $ 144 | $ (115) | $ 5,136 |
Consolidated Condensed Stateme7
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities: | ||
Net income (loss) | $ 304 | $ 578 |
Adjustments to reconcile net income to net cash provided (used) by operating activities, net | 1,676 | 1,370 |
Changes in operating assets and liabilities, net: | ||
Receivables | (165) | 31 |
Deferred acquisition costs | (24) | 11 |
Insurance reserves | 464 | 195 |
Other assets | (80) | (81) |
Other liabilities | 9 | (108) |
Trading securities | (468) | 199 |
Net cash flow operating activities | 1,716 | 2,195 |
Investing Activities: | ||
Purchases of fixed maturities | (7,472) | (7,055) |
Proceeds from sales of fixed maturities | 4,239 | 3,590 |
Proceeds from maturities of fixed maturities | 2,263 | 3,101 |
Purchases of limited partnership investments | (324) | (120) |
Proceeds from sales of limited partnership investments | 207 | 156 |
Purchases of property, plant and equipment | (1,264) | (1,447) |
Dispositions | 277 | 28 |
Change in short term investments | 104 | 298 |
Other, net | 124 | (138) |
Net cash flow investing activities | (1,846) | (1,587) |
Financing Activities: | ||
Dividends paid | (63) | (69) |
Dividends paid to noncontrolling interests | (114) | (138) |
Purchases of subsidiary stock from noncontrolling interests | (8) | (29) |
Purchases of Loews treasury stock | (115) | (617) |
Issuance of Loews common stock | 7 | |
Proceeds from sale of subsidiary stock | 114 | |
Principal payments on debt | (2,882) | (1,761) |
Issuance of debt | 3,226 | 1,851 |
Other, net | (2) | 4 |
Net cash flow financing activities | 42 | (638) |
Effect of foreign exchange rate on cash | (8) | (6) |
Net change in cash | (96) | (36) |
Cash, beginning of period | 440 | 364 |
Cash, end of period | $ 344 | $ 328 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
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 attributable to Loews Corporation” as used herein means Net income attributable to Loews Corporation shareholders. In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2016 and December 31, 2015, results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015 and changes in shareholders’ equity and cash flows for the nine months ended September 30, 2016 and 2015. 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. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. 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. Shares attributable to employee stock-based compensation awards of 3.3 million, 5.8 million, 4.7 million and 4.5 million shares were not included in the diluted weighted average shares amounts for the three and nine months ended September 30, 2016 and 2015 because the effect would have been antidilutive. Accounting changes Recently issued ASUs In May of 2015, the FASB issued ASU 2015-09, “Financial Services – In January of 2016, the FASB issued ASU 2016-01, “Financial Instruments – In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The updated guidance requires lessees to recognize lease assets and lease liabilities for most operating leases. In addition, the updated guidance requires that lessors separate lease and nonlease components in a contract in accordance with the new revenue guidance in ASU 2014-09. The updated guidance is effective for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements. In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the effect the guidance will have on its consolidated financial statements, and expects the primary changes to be the use of the expected credit loss model for the mortgage loan portfolio and reinsurance receivables and the presentation of credit losses within the available-for-sale fixed maturities portfolio through an allowance method rather than as a direct write-down. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected. The allowance method for available-for-sale debt securities will allow the Company to record reversals of credit losses if the estimate of credit losses declines. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Investments | 2. Investments Net investment income is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Fixed maturity securities $ 457 $ 449 $ 1,352 $ 1,344 Limited partnership investments 91 (122 ) 98 88 Short term investments 3 4 8 7 Equity securities 1 3 8 9 Income (loss) from trading portfolio (a) 11 (5 ) 113 (9) Other 12 9 34 26 Total investment income 575 338 1,613 1,465 Investment expenses (14 ) (17 ) (43 ) (46) Net investment income $ 561 $ 321 $ 1,570 $ 1,419 (a) Includes net unrealized gains (losses) related to changes in fair value on trading securities still held of $8, $(59), $63 and $(71) for the three and nine months ended September 30, 2016 and 2015. Investment gains (losses) are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In millions) Fixed maturity securities $ 47 $ (29 ) $ 34 $ (29) Equity securities (3 ) (18 ) (5 ) (19) Derivative instruments 1 (1 ) (12 ) 9 Short term investments and other (2 ) 1 (3) Investment gains (losses) (a) $ 45 $ (50 ) $ 18 $ (42) (a) Includes gross realized gains of $68, $23, $157 and $93 and gross realized losses of $24, $70, $128 and $141 on available-for-sale securities for the three and nine months ended September 30, 2016 and 2015. 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, 2016 2015 2016 2015 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 14 $ 36 $ 43 $ 52 States, municipalities and political subdivisions 18 Asset-backed: Residential mortgage-backed 1 1 7 Other asset-backed 3 1 Total asset-backed - 1 4 8 Total fixed maturities available-for-sale 14 37 47 78 Equity securities available-for-sale - common stock 4 19 9 20 Short term investments 1 Net OTTI losses recognized in earnings $ 18 $ 56 $ 56 $ 99 The amortized cost and fair values of securities are as follows: September 30, 2016 Cost or Gross Gross Estimated Unrealized (In millions) Fixed maturity securities: Corporate and other bonds $ 17,985 $1,867 $ 36 $ 19,816 $ (1) States, municipalities and political subdivisions 11,566 1,937 2 13,501 (27) Asset-backed: Residential mortgage-backed 5,174 206 15 5,365 (24) Commercial mortgage-backed 2,064 88 8 2,144 Other asset-backed 948 12 1 959 Total asset-backed 8,186 306 24 8,468 (24) U.S. Treasury and obligations of government-sponsored enterprises 68 8 76 Foreign government 415 23 438 Redeemable preferred stock 18 2 20 Fixed maturities available-for-sale 38,238 4,143 62 42,319 (52) Fixed maturities trading 572 4 1 575 Total fixed maturities 38,810 4,147 63 42,894 (52) Equity securities: Common stock 15 6 1 20 Preferred stock 93 5 2 96 Equity securities available-for-sale 108 11 3 116 - Equity securities trading 473 81 84 470 Total equity securities 581 92 87 586 Total $ 39,391 $4,239 $ 150 $ 43,480 $ (52) December 31, 2015 (In millions) Fixed maturity securities: Corporate and other bonds $ 17,097 $ 1,019 $ 347 $ 17,769 States, municipalities and political subdivisions 11,729 1,453 8 13,174 $ (4) Asset-backed: Residential mortgage-backed 4,935 154 17 5,072 (37) Commercial mortgage-backed 2,154 55 12 2,197 Other asset-backed 923 6 8 921 Total asset-backed 8,012 215 37 8,190 (37) U.S. Treasury and obligations of government-sponsored enterprises 62 5 67 Foreign government 334 13 1 346 Redeemable preferred stock 33 2 35 Fixed maturities available-for-sale 37,267 2,707 393 39,581 (41) Fixed maturities, trading 140 20 120 Total fixed maturities 37,407 2,707 413 39,701 (41) Equity securities: Common stock 46 3 1 48 Preferred stock 145 7 3 149 Equity securities available-for-sale 191 10 4 197 - Equity securities, trading 633 56 134 555 Total equity securities 824 66 138 752 - Total $ 38,231 $ 2,773 $ 551 $ 40,453 $ (41) 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. 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 increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (“Shadow Adjustments”). As of September 30, 2016 and December 31, 2015, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1.5 billion and $996 million. The available-for-sale securities in a gross unrealized loss position are as follows: Less than 12 Months 12 Months or Longer Total September 30, 2016 Estimated Gross Estimated Gross Estimated Gross (In millions) Fixed maturity securities: Corporate and other bonds $ 617 $ 10 $ 338 $ 26 $ 955 $ 36 States, municipalities and political subdivisions 163 2 9 172 2 Asset-backed: Residential mortgage-backed 273 6 212 9 485 15 Commercial mortgage-backed 391 7 96 1 487 8 Other asset-backed 153 1 17 170 1 Total asset-backed 817 14 325 10 1,142 24 U.S. Treasury and obligations of government-sponsored enterprises 2 2 Foreign government 16 16 Total fixed maturity securities 1,615 26 672 36 2,287 62 Common stock 1 1 Preferred stock 15 2 15 2 Total $ 1,630 $ 29 $ 672 $ 36 $ 2,302 $ 65 December 31, 2015 (In millions) Fixed maturity securities: Corporate and other bonds $ 4,882 $ 302 $ 174 $ 45 $ 5,056 $ 347 States, municipalities and political subdivisions 338 8 75 413 8 Asset-backed: Residential mortgage-backed 963 9 164 8 1,127 17 Commercial mortgage-backed 652 10 96 2 748 12 Other asset-backed 552 8 5 557 8 Total asset-backed 2,167 27 265 10 2,432 37 U.S. Treasury and obligations of government- sponsored enterprises 4 4 Foreign government 54 1 54 1 Redeemable preferred stock 3 3 Total fixed maturity securities 7,448 338 514 55 7,962 393 Common stock 3 1 3 1 Preferred stock 13 3 13 3 Total $ 7,464 $ 342 $ 514 $ 55 $ 7,978 $ 397 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 attributable to changes in interest rates, credit spreads and other factors. The Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional OTTI losses to be recorded as of September 30, 2016. 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, 2016 and 2015 for which a portion of an OTTI loss was recognized in Other comprehensive income. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Beginning balance of credit losses on fixed maturity securities $ 41 $ 59 $ 53 $ 62 Reductions for securities sold during the period (2) (2) (14) (5) Reductions for securities the Company intends to sell or more likely than not will be required to sell (1) (1) Ending balance of credit losses on fixed maturity securities $ 38 $ 57 $ 38 $ 57 Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. September 30, 2016 December 31, 2015 Cost or Estimated Cost or Estimated (In millions) Due in one year or less $ 1,665 $ 1,710 $ 1,574 $ 1,595 Due after one year through five years 9,052 9,584 7,738 8,082 Due after five years through ten years 14,659 15,625 14,652 14,915 Due after ten years 12,862 15,400 13,303 14,989 Total $ 38,238 $ 42,319 $ 37,267 $ 39,581 Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life. 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, 2016 December 31, 2015 Contractual/ Contractual / Notional Estimated Fair Value Notional Estimated Fair Value Amount Asset (Liability) Amount Asset (Liability) (In millions) Without hedge designation: Equity markets: Options – purchased $ 391 $ 22 $ 501 $ 16 – written 229 $ (9) 614 $ (28) Futures – long 312 (1) – short 106 (1) Interest rate risk: Futures – long 63 Foreign exchange: Currency forwards – long 133 2 – short 152 Currency options – long 250 550 7 Commodities: Futures – long 68 1 Embedded derivative on funds withheld liability 175 (8 ) 179 5 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 19,555 $ 261 $ 19,816 States, municipalities and political subdivisions 13,500 1 13,501 Asset-backed: Residential mortgage-backed 5,286 79 5,365 Commercial mortgage-backed 2,120 24 2,144 Other asset-backed 916 43 959 Total asset-backed 8,322 146 8,468 U.S. Treasury and obligations of government-sponsored enterprises $ 76 76 Foreign government 438 438 Redeemable preferred stock 20 20 Fixed maturities available-for-sale 96 41,815 408 42,319 Fixed maturities trading 569 6 575 Total fixed maturities $ 96 $ 42,384 $ 414 $ 42,894 Equity securities available-for-sale $ 97 $ 19 $ 116 Equity securities trading 469 1 470 Total equity securities $ 566 $ - $ 20 $ 586 Short term investments $ 3,902 $ 911 $ 4,813 Other invested assets 54 5 59 Life settlement contracts $ 67 67 Payable to brokers (215 ) (215) December 31, 2015 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 17,601 $ 168 $ 17,769 States, municipalities and political subdivisions 13,172 2 13,174 Asset-backed: Residential mortgage-backed 4,938 134 5,072 Commercial mortgage-backed 2,175 22 2,197 Other asset-backed 868 53 921 Total asset-backed 7,981 209 8,190 U.S. Treasury and obligations of government-sponsored enterprises $ 66 1 67 Foreign government 346 346 Redeemable preferred stock 35 35 Fixed maturities available-for-sale 101 39,101 379 39,581 Fixed maturities trading 35 85 120 Total fixed maturities $ 101 $ 39,136 $ 464 $ 39,701 Equity securities available-for-sale $ 177 $ 20 $ 197 Equity securities trading 554 1 555 Total equity securities $ 731 $ - $ 21 $ 752 Short term investments $ 3,600 $ 1,134 $ 4,734 Other invested assets 102 44 146 Receivables 9 $ 3 12 Life settlement contracts 74 74 Payable to brokers (196 ) (196) 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, 2016 and 2015: 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 2016 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 $ 242 $ 1 $ 7 $ 16 $ (5) $ 261 States, municipalities and political subdivisions 2 (1) 1 Asset-backed: Residential mortgage-backed 134 (1 ) 5 (1) $ (58 ) 79 Commercial mortgage- backed 11 23 (8) (2 ) 24 Other asset-backed 45 34 (36 ) 43 Total asset-backed 190 - (1 ) 62 $ - (9) $ - (96 ) 146 $ - Fixed maturities available-for-sale 434 1 6 78 (15) (96 ) 408 Fixed maturities trading 6 6 (1) Total fixed maturities $ 440 $ 1 $ 6 $ 78 $ - $ (15) $ - $ (96 ) $ 414 $ (1) Equity securities available-for-sale $ 19 $ (1 ) $ 1 $ 19 $ (2) Equity securities trading 2 $ (1) 1 (1) Total equity securities $ 21 $ (1 ) $ 1 $ (1) $ - $ - $ - $ - $ 20 $ (3) Life settlement contracts $ 67 $ 67 Derivative financial instruments, net 1 $ (1 ) - Net Realized Gains Transfers into Transfers out of Balance, Unrealized 2015 Balance, Included in Included in Purchases Sales Settlements Held at (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 2016 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 $ 168 $ 1 $ 14 $ 163 $ (36 ) $ (15) $ (34) $ 261 States, municipalities and political subdivisions 2 (1) 1 Asset-backed: Residential mortgage-backed 134 2 (2) 15 (10) (60) 79 Commercial mortgage-backed 22 32 (17) $ 3 (16) 24 Other asset-backed 53 2 69 (25 ) (1) 2 (57) 43 Total asset-backed 209 2 - 116 (25 ) (28) 5 (133) 146 $ - Fixed maturities available-for-sale 379 3 14 279 (61 ) (44) 5 (167) 408 Fixed maturities trading 85 5 2 (86 ) 6 3 Total fixed maturities $ 464 $ 8 $ 14 $ 281 $ (147 ) $ (44) $ 5 $ (167) $ 414 $ 3 Equity securities available-for-sale $ 20 $ (1 ) $ 19 $ (2) Equity securities trading 1 1 $ (1 ) 1 Total equity securities $ 21 $ - $ - $ - $ (1 ) $ - $ - $ - $ 20 $ (2) Life settlement contracts $ 74 $ 10 $ (17) $ 67 $ 2 Derivative financial instruments, net 3 (4 ) $ (2 ) $ 3 - (3) 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 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, 2016 there were no transfers between Level 1 and Level 2. 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. 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 highly liquid and exchange traded 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 primarily assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with 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 primarily priced using broker/dealer quotes and 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 valued 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. 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 measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company. September 30, 2016 Estimated Valuation Unobservable Range (In millions) Fixed maturity securities $ 211 Discounted cash flow Credit spread 2% – 40% (6%) Life settlement contracts 67 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% – 1,676% (162%) December 31, 2015 Fixed maturity securities $ 138 Discounted cash flow Credit spread 3% – 184% (6%) Life settlement contracts 74 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% – 1,676% (164%) For fixed maturity securities, an increase to the credit spread assumptions would result in a lower 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 Estimated Fair Value September 30, 2016 Amount Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 629 $ 654 $ 654 Liabilities: Short term debt 185 $ 182 3 185 Long term debt 10,722 10,428 646 11,074 December 31, 2015 Assets: Other invested assets, primarily mortgage loans $ 678 $ 688 $ 688 Liabilities: Short term debt 1,038 $ 1,050 2 1,052 Long term debt 9,507 8,538 595 9,133 The following methods and assumptions were used in estimating the fair value of these financial assets and liabilities. The fair value of mortgage loans, included in Other invested assets, was 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, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Diamond Offshore Sale of Assets In February of 2016, Diamond Offshore entered into a ten-year agreement with a subsidiary of GE Oil & Gas (“GE”) to provide services with respect to certain blowout preventer and related well control equipment on four newly-built drillships. Such services include management of maintenance, certification and reliability with respect to such equipment. In connection with the contractual services agreement with GE, Diamond Offshore will sell the well control equipment to a GE affiliate and subsequently lease back such equipment pursuant to separate ten-year operating leases. During the nine months ended September 30, 2016, Diamond Offshore completed three sale and leaseback transactions and received $158 million in proceeds, which was less than the carrying value of the equipment. The resulting difference was recorded as prepaid rent with no gain or loss recognized on the transactions, and will be amortized over the terms of the operating leases. Future commitments under the operating leases and contractual services agreements are estimated to aggregate approximately $491 million over the term of the agreements. Diamond Offshore expects to complete the remaining sale and leaseback transaction in the fourth quarter of 2016. Asset Impairments During the second quarter of 2016, in response to the continuing decline in industry-wide utilization for semisubmersible rigs, further exacerbated by additional and more frequent contract cancelations by customers, declining dayrates, as well as the results of a third-party strategic review of Diamond Offshore’s long-term business plan completed in the second quarter of 2016, Diamond Offshore reassessed its projections for a recovery in the offshore drilling market. As a result, Diamond Offshore concluded that an expected market recovery is now likely further in the future than had previously been estimated. Consequently, Diamond Offshore believes its cold-stacked rigs, as well as those rigs expected to be cold-stacked in the near term after they come off contract, will likely remain cold-stacked for an extended period of time. Diamond Offshore also believes that the re-entry costs for these rigs will be higher than previously estimated, negatively impacting the undiscounted, probability-weighted cash flow projections utilized in its impairment analysis. In addition, in response to the declining market, Diamond Offshore also reduced anticipated market pricing and expected utilization of these rigs after reactivation. In the second quarter of 2016, Diamond Offshore evaluated 15 of its drilling rigs with indications that their carrying amounts may not be recoverable. Based on updated assumptions and analyses, Diamond Offshore determined that the carrying values of eight of these rigs, consisting of three ultra-deepwater, three deepwater and two mid-water semisubmersible rigs, were impaired. Diamond Offshore estimated the fair value of the eight impaired rigs using an income approach. The fair value of each rig was estimated based on a calculation of the rig’s discounted future net cash flows over its remaining economic life, which utilized significant unobservable inputs, including, but not limited to, assumptions related to estimated dayrate revenue, rig utilization, estimated reactivation and regulatory survey costs, as well as estimated proceeds that may be received on ultimate disposition of the rig. The fair value estimates were representative of Level 3 fair value measurements due to the significant level of estimation involved and the lack of transparency as to the inputs used. During the second quarter of 2016, Diamond Offshore recognized an impairment loss of $672 million ($263 million after tax and noncontrolling interests). In the third quarter of 2016, Diamond Offshore evaluated nine of its drilling rigs with indications that their carrying amounts may not be recoverable. Based on its assumptions and analyses, Diamond Offshore determined that the carrying values of these rigs were not impaired. If market fundamentals in the offshore oil and gas industry deteriorate further, Diamond Offshore may be required to recognize additional impairment losses in future periods. Diamond Offshore recognized aggregate impairment losses of $2 million ($1 million after tax and noncontrolling interests) and $361 million ($159 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2015. See Note 6 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for further discussion of Diamond Offshore’s 2015 asset impairments. |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves | 9 Months Ended |
Sep. 30, 2016 | |
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 claim 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 have contributed to material period-to-period fluctuations in CNA’s results of operations and/or equity. CNA reported catastrophe losses, net of reinsurance, of $16 million and $14 million for the three months ended September 30, 2016 and 2015 and $137 million and $103 million for the nine months ended September 30, 2016 and 2015. Catastrophe losses in 2016 resulted primarily from U.S. weather-related events and the Fort McMurray wildfires. Net Prior Year Development The following tables and discussion present net prior year development. Three Months Ended September 30, 2016 Specialty Commercial International Total (In millions) Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (112) $ (5) $ (15) $ (132) Pretax (favorable) unfavorable premium development (3) (2) (5) Total pretax (favorable) unfavorable net prior year development $ (112) $ (8) $ (17) $ (137) Three Months Ended September 30, 2015 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) Nine Months Ended September 30, 2016 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (211) $ (37) $ (34) $ (282) Pretax (favorable) unfavorable premium development (18) (7) (2) (27) Total pretax (favorable) unfavorable net prior year development $ (229) $ (44) $ (36) $ (309) 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) Specialty The following table and discussion present 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 2016 2015 2016 2015 (In millions) Medical professional liability $ 13 $ (19) $ (17) $ (11) Other professional liability and management liability (48) (37) (98) (41) Surety (63) (70) (63) (69) Warranty 2 7 1 Other (16) (4) (40) (21) Total pretax (favorable) unfavorable development $ (112) $ (130) $ (211) $ (141) Three Months 2016 Unfavorable development for medical professional liability was primarily due to higher than expected frequency in accident years 2014 and 2015 in aging services. Increased claims on a specific hospital policy in accident years 2014 and 2015 was also an unfavorable contributor, although more than offset by favorable development relative to expectations in accident years 2013 and prior. Favorable development in other professional liability and management liability was primarily related to lower than expected frequency of claims and favorable outcomes on specific claims for accident years 2010 through 2014. Favorable development in surety coverages was primarily due to lower than expected frequency of large losses in accident years 2014 and prior. Favorable development for other coverages was due to better than expected claim frequency in commercial lines coverages provided to Specialty customers in accident years 2010 through 2015. 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 was 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. Nine Months 2016 Favorable development for medical professional liability was primarily due to lower than expected severities for individual healthcare professionals, allied facilities and hospitals in accident years 2011 and prior. This was partially offset by unfavorable development in accident years 2012 and 2013 related to higher than expected large loss emergence in hospitals and higher than expected frequency and severity in accident years 2014 and 2015 in CNA’s aging services business. Favorable development in other professional liability and management liability was primarily related to favorable settlements on closed claims in accident years 2011 through 2013 in professional services. Additional favorable development related to lower than expected frequency of claims and favorable outcomes on specific claims in accident years 2010 through 2014 in professional services. This was partially offset by unfavorable development related to a specific financial institutions claim in accident year 2014, higher severities in accident year 2015 and deterioration on credit crises-related claims in accident year 2009. Favorable development in surety coverages was primarily due to lower than expected frequency of large losses in accident years 2014 and prior. Favorable development for other coverages provided to Specialty customers was due to better than expected claim frequency in property coverages in accident year 2015 and commercial lines coverages in accident years 2010 through 2015. 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. Commercial The following table and discussion present further detail of the development recorded for the Commercial segment: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Commercial auto $ (12) $ (47) $ 7 General liability 14 $ 3 (38) 8 Workers’ compensation (6) (1) 48 22 Property and other (1) (13) (37) Total pretax (favorable) unfavorable development $ (5) $ (11) $ (37) $ - Three Months 2016 Favorable development for commercial auto was primarily due to lower than expected severities in accident years 2012 through 2015. Unfavorable development for general liability was primarily due to an increase in reported claims prior to the closing of the three year window set forth by the Minnesota Child Victims Act in accident years 2006 and prior. Favorable development for workers’ compensation was primarily driven by lower than expected frequencies in accident years 2009 through 2014, partially offset by the estimated impact of recent Florida court rulings in accident years 2008 through 2015. 2015 Favorable development for property and other was primarily due to better than expected loss emergence on catastrophe events in accident year 2014. Nine Months 2016 Favorable development for commercial auto was primarily due to favorable settlements on claims in accident years 2010 through 2014 and lower than expected severities in accident years 2012 through 2015. Favorable development for general liability was primarily due to better than expected claim settlements in accident years 2012 through 2014 and better than expected severity on umbrella claims in accident years 2010 through 2013. This was partially offset by unfavorable development related to an increase in reported claims prior to the closing of the three year window set forth by the Minnesota Child Victims Act in accident years 2006 and prior. Unfavorable development for workers’ compensation was primarily due to higher than expected severity for Defense Base Act contractors and the estimated impact of recent Florida court rulings in accident years 2008 through 2015. This was partially offset by favorable development related to lower than expected frequencies related to accident years 2009 through 2014. Unfavorable development for property and other was primarily due to higher than expected severity from a 2015 catastrophe event. This was offset by favorable development primarily due to better than expected loss frequency in accident years 2013 through 2015. 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. International The following table and discussion present further detail of the development recorded for the International segment: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Medical professional liability $ (2 ) $ (8 ) $ (3 ) $ (8) Other professional liability (1 ) (11 ) 16 (16) Liability (2 ) (5 ) (21 ) (12) Property & marine (9 ) (5 ) (16 ) (19) Other (1 ) (5 ) (10 ) 9 Total pretax (favorable) unfavorable development $ (15 ) $ (34 ) $ (34 ) $ (46) Three Months 2016 Favorable development for other professional liability was primarily due to favorable settlements on claims in accident years 2013 and prior. This was largely offset by higher than expected unfavorable large loss emergence in accident years 2014 and 2015. Favorable development for property and marine was primarily due to favorable emergence of expected losses on a specific claim relating to the December 2015 United Kingdom (“U.K.”) Floods. 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. Nine Months 2016 Unfavorable development for other professional liability was primarily due to higher than expected large loss emergence in accident years 2011 through 2015, partially offset by favorable settlements on claims in accident years 2013 and prior. Favorable development for liability was primarily due to better than expected severity in accident years 2013 and prior. Favorable development for property and marine was primarily due to favorable emergence of expected losses on a specific claim relating to the December 2015 U.K. Floods. Favorable development for other coverages was primarily due to better than expected severity in auto liability in accident years 2011 through 2015. 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. Asbestos and Environmental Pollution (“A&EP”) 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 A&EP liabilities were ceded to NICO through a loss portfolio transfer (loss portfolio transfer or “LPT”). At the effective date of the transaction, 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 LPT 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 recognized $0.9 billion of additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring deferred retroactive reinsurance accounting treatment. This deferred gain is recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which a change in the estimate of ceded incurred losses is recognized, the change to the deferred gain is cumulatively recognized in earnings as if the revised estimate was available at the effective date of the LPT. The following table presents the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Net A&EP adverse development before consideration of LPT $ - $ - $ 200 $ 150 Provision for uncollectible third party reinsurance on A&EP Additional amounts ceded under LPT - - 200 150 Retroactive reinsurance benefit recognized (12) (4) (94) (75) Pretax impact of unrecognized deferred retroactive reinsurance benefit $ (12) $ (4) $ 106 $ 75 CNA completed its reserve review of A&EP reserves in the first quarter of 2016. Based upon CNA’s review, net unfavorable development prior to cessions to the LPT of $200 million was recognized. The unfavorable development was driven by an increase in anticipated future expenses associated with determination of coverage, higher anticipated payouts associated with a limited number of historical accounts having significant asbestos exposures and higher than expected severity on pollution claims. This unfavorable development was ceded to NICO under the LPT, however CNA’s reported earnings were negatively affected due to the application of retroactive reinsurance accounting, as only a portion of the additional amounts ceded under the LPT were recognized in that quarter. All amounts recognized related to the LPT are recorded within Insurance claims and policyholders’ benefits in the Consolidated Condensed Statement of Income. As of September 30, 2016 and December 31, 2015, the cumulative amounts ceded under the LPT were $2.8 billion and $2.6 billion. The unrecognized deferred retroactive reinsurance benefit was $347 million and $241 million as of September 30, 2016 and December 31, 2015. NICO established a collateral trust account as security for its obligations to CNA. The fair value of the collateral trust account was $2.5 billion and $2.8 billion as of September 30, 2016 and December 31, 2015. 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The components of U.S. and foreign income before income tax and a reconciliation between the federal income tax expense at statutory rates and the actual income tax expense is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Income (loss) before income tax: U.S. $ 638 $ 188 $ 535 $ 454 Foreign (82) 160 (60) 294 Total $ 556 $ 348 $ 475 $ 748 Income tax expense at statutory rate $ 194 $ 122 $ 166 $ 262 Increase (decrease) in income tax expense resulting from: Exempt investment income (28) (34) (92) (92) Foreign related tax differential 2 (27) 102 (32) Amortization of deferred charges associated with intercompany rig sales to other tax jurisdictions 1 42 Taxes related to domestic affiliate 1 5 2 (1) Partnership earnings not subject to taxes (9) (6) (37) (26) Unrecognized tax benefit (2) (4) 8 1 Other 5 9 22 16 Income tax expense $ 163 $ 66 $ 171 $ 170 The effective tax rate is impacted by the change in the relative components of earnings or losses generated in foreign tax jurisdictions with lower tax rates. As of September 30, 2016, a valuation allowance of $61 million was established for the future tax benefit of foreign tax credits in the U.S. which Diamond Offshore no longer expects to be able to realize prior to their expiration. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt CNA Financial In the first quarter of 2016, CNA completed a public offering of $500 million aggregate principal amount of 4.5% senior notes due March 1, 2026 and used the net proceeds to repay the entire $350 million outstanding principal amount of its 6.5% senior notes due August 15, 2016. Diamond Offshore In the first quarter of 2016, Diamond Offshore cancelled its commercial paper program and repaid the $287 million in commercial paper outstanding at December 31, 2015 with proceeds from Eurodollar loans under its revolving credit agreement. As of September 30, 2016, there was $182 million outstanding under the revolving credit agreement. Boardwalk Pipeline In May of 2016, Boardwalk Pipeline completed a public offering of $550 million aggregate principal amount of 6.0% senior notes due June 1, 2026 and used the proceeds to reduce borrowings under its revolving credit facility. Loews In March of 2016, the Company completed a public offering of $500 million aggregate principal amount of 3.8% senior notes due April 1, 2026 and repaid in full the entire $400 million aggregate principal amount of its 5.3% senior notes at maturity. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | 8. Shareholders’ Equity Accumulated other comprehensive income (loss) The tables below display the changes in Accumulated other comprehensive income (“AOCI”) by component for the three and nine months ended September 30, 2015 and 2016: OTTI Gains Unrealized Cash Flow Pension Foreign Total (In millions) Balance, July 1, 2015 $ 28 $ 619 $ (3) $ (598) $ 7 $ 53 Other comprehensive income (loss) before reclassifications, after tax of $(1), $38, $0, $(1) and $0 2 (70) (1) (53) (122) Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(17), $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) Balance, July 1, 2016 $ 28 $ 838 $ (2) $ (639) $ (106) $ 119 Other comprehensive income (loss) before reclassifications, after tax of $(4), $(32), $0, $0 and $0 7 69 (24) 52 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $2, $13, $0, $(4) and $0 (4) (27) 1 7 (23) Other comprehensive income (loss) 3 42 1 7 (24) 29 Amounts attributable to noncontrolling interests (1) (4) (1) 2 (4) Balance, September 30, 2016 $ 30 $ 876 $ (2) $ (632) $ (128) $ 144 OTTI Gains Unrealized Cash Flow Pension Foreign Total (In millions) Balance, January 1, 2015 $ 32 $ 846 $ (6) $ (641) $ 49 $ 280 Other comprehensive income (loss) before reclassifications, after tax of $1, $162, $1, $(19) and $0 (3) (321) (2) 36 (100) (390) Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(22), $(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) Balance, January 1, 2016 $ 24 $ 347 $ (3) $ (649) $ (76) $ (357) Other comprehensive income (loss) before reclassifications, after tax of $(5), $(304), $0, $0 and $0 9 608 (58) 559 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $12, $0, $(11) and $0 (2) (17) 2 20 3 Other comprehensive income (loss) 7 591 2 20 (58) 562 Amounts attributable to noncontrolling interests (1) (62) (1) (3) 6 (61) Balance, September 30, 2016 $ 30 $ 876 $ (2) $ (632) $ (128) $ 144 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) Cash flow hedges Other revenues and Contract drilling expenses Pension liability Other operating expenses Subsidiary Equity Transactions Loews purchased 0.3 million shares of CNA common stock at an aggregate cost of $8 million during the nine months ended September 30, 2016. The Company’s percentage ownership interest in CNA remained unchanged as a result of these transactions, at 90%. The Company’s purchase price of the shares was lower than the carrying value of its investment in CNA, resulting in an increase to Additional paid-in capital (“APIC”) of $3 million. Treasury Stock The Company repurchased 3.0 million and 16.3 million shares of Loews common stock at aggregate costs of $115 million and $633 million during the nine months ended September 30, 2016 and 2015. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | 9. Benefit Plans The Company has several non-contributory defined benefit plans and postretirement benefit plans covering eligible employees and retirees. The following table presents the components of net periodic benefit cost for the plans: Pension Benefits Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Service cost $ 2 $ 2 $ 6 $ 10 Interest cost 33 31 97 95 Expected return on plan assets (45) (48) (133) (145) Amortization of unrecognized net loss 11 9 34 32 Settlement charge 1 2 3 2 Net periodic benefit cost $ 2 $ (4) $ 7 $ (6) Other Postretirement Benefits Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 1 1 2 2 Expected return on plan assets (1) (1) (3) (3) Amortization of unrecognized prior service benefit (1) (3) (3) (8) Amortization of unrecognized net loss 1 Net periodic benefit cost $ - $ (2) $ (3) $ (7) |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | 10. Business Segments The Company’s segments are CNA Financial’s core property and casualty commercial insurance operations which include Specialty, Commercial and International; CNA’s Other Non-Core operations; Diamond Offshore; Boardwalk Pipeline; Loews Hotels; and Corporate and other. 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. For additional disclosures regarding the composition of the Company’s segments see Note 20 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The following tables present the Company’s consolidated revenues and income (loss) by business segment: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Revenues (a): CNA Financial: Property and Casualty: Specialty $ 946 $ 846 $ 2,739 $ 2,667 Commercial 913 767 2,591 2,545 International 229 216 658 642 Other Non-Core 345 324 996 978 Total CNA Financial 2,433 2,153 6,984 6,832 Diamond Offshore 350 608 1,211 1,867 Boardwalk Pipeline 306 296 961 925 Loews Hotels 161 146 513 452 Corporate and other 37 (34 ) 98 6 Total $ 3,287 $ 3,169 $ 9,767 $ 10,082 Income (loss) before income tax and noncontrolling interests (a): CNA Financial: Property and Casualty: Specialty $ 306 $ 248 $ 736 $ 661 Commercial 186 83 427 391 International 33 23 16 71 Other Non-Core (49 ) (120 ) (355 ) (410) Total CNA Financial 476 234 824 713 Diamond Offshore 36 139 (538 ) (42) Boardwalk Pipeline 46 48 210 163 Loews Hotels 4 1 17 25 Corporate and other (6 ) (74 ) (38 ) (111) Total $ 556 $ 348 $ 475 $ 748 Net income (loss) (a): CNA Financial: Property and Casualty: Specialty $ 180 $ 147 $ 437 $ 394 Commercial 110 49 252 231 International 22 9 9 37 Other Non-Core (4 ) (44 ) (141 ) (167) Total CNA Financial 308 161 557 495 Diamond Offshore 7 47 (240 ) (34) Boardwalk Pipeline 14 18 62 55 Loews Hotels 3 2 7 15 Corporate and other (5 ) (46 ) (22 ) (70) Total $ 327 $ 182 $ 364 $ 461 (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 2016 2015 2016 2015 Revenues and Income (loss) before income tax and noncontrolling interests: CNA Financial: Property and Casualty: Specialty $ 9 $ (22 ) $ 2 $ (18 ) Commercial 12 (29 ) 2 (23 ) International 6 (1 ) 14 1 Other Non-Core 18 2 12 (2 ) Total CNA Financial 45 (50 ) 30 (42 ) Corporate and other (12 ) Total $ 45 $ (50 ) $ 18 $ (42 ) Net income (loss): CNA Financial: Property and Casualty: Specialty $ 5 $ (14 ) $ 1 $ (11 ) Commercial 7 (16 ) 1 (13 ) International 4 10 1 Other Non-Core 11 1 4 5 Total CNA Financial 27 (29 ) 16 (18 ) Corporate and other (4 ) Total $ 27 $ (29 ) $ 12 $ (18 ) |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 11. Legal Proceedings CNA Financial In September 2016, a class action lawsuit was filed against CCC, Continental Assurance Company (“CAC”), CNA, the Investment Committee of the CNA 401(k) Plus Plan, The Northern Trust Company and John Does 1-10 (“Defendants”) over the CNA 401(k) Plus Plan. The complaint alleges that Defendants breached fiduciary duties to the CNA 401(k) Plus Plan and caused prohibited transactions in violation of The Employee Retirement Income Security Act of 1974 when the CNA Fixed Income Fund’s annuity contract with CAC was canceled. The plaintiff alleges he and a proposed class of the CNA 401(k) Plus Plan participants who had invested in the Fixed Income Fund suffered lower returns in their CNA 401(k) Plus Plan investments as a consequence of these alleged violations and seeks relief on behalf of the putative class. CNA has only recently begun evaluating the lawsuit as this litigation is in its preliminary stages, and as of yet no class has been certified. CCC and the other Defendants are contesting the case and the Company currently is unable to predict the final outcome or the impact on its financial condition, results of operations or cash flows. As of September 30, 2016, the likelihood of loss is reasonably possible, but the amount of loss, if any, cannot be estimated at this stage of the litigation. Other Litigation The Company and its subsidiaries are parties to other 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, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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 representations and warranties with respect to the business entities or assets 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, 2016, the aggregate amount related to quantifiable guarantees was $375 million and the aggregate amount related to indemnification agreements was $258 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 a 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, 2016, 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. CNA also provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities provided by a previously owned subsidiary. As of September 30, 2016, the potential amount of future payments CNA could be required to pay under these guarantees was approximately $1.9 billion, which will be paid over the lifetime of the annuitants. CNA does not believe any payment is likely under these guarantees, as CNA is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities. |
Consolidating Financial Informa
Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Consolidating Financial Information | 13. Consolidating Financial Information The following schedules present the Company’s consolidating balance sheet information at September 30, 2016 and December 31, 2015, and consolidating statements of income information for the nine months ended September 30, 2016 and 2015. 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, 2016 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Assets: Investments $ 46,980 $ 76 $ 105 $ 98 $ 5,126 $ 52,385 Cash 290 5 7 18 24 344 Receivables 7,389 278 93 25 138 $ (70) 7,853 Property, plant and equipment 281 5,820 7,954 1,102 43 15,200 Deferred income taxes 241 3 58 (302) - Goodwill 110 237 347 Investments in capital stocks of subsidiaries 15,250 (15,250) - Other assets 924 231 319 268 4 14 1,760 Deferred acquisition costs of insurance subsidiaries 619 619 Total assets $ 56,834 $ 6,410 $ 8,715 $ 1,514 $ 20,643 $ (15,608) $ 78,508 Liabilities and Equity: Insurance reserves $ 37,753 $ 37,753 Payable to brokers 234 $ 217 451 Short term debt 1 $ 182 $ 2 185 Long term debt 2,713 1,981 $ 3,627 642 1,774 10,737 Deferred income taxes 3 164 807 49 $ (288) 735 Other liabilities 3,960 451 546 72 282 (70) 5,241 Total liabilities 44,664 2,778 4,980 765 2,273 (358) 55,102 Total shareholders’ equity 10,915 1,936 1,552 747 18,370 (15,250) 18,270 Noncontrolling interests 1,255 1,696 2,183 2 5,136 Total equity 12,170 3,632 3,735 749 18,370 (15,250) 23,406 Total liabilities and equity $ 56,834 $ 6,410 $ 8,715 $ 1,514 $ 20,643 $ (15,608) $ 78,508 Loews Corporation Consolidating Balance Sheet Information December 31, 2015 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Assets: Investments $ 44,699 $ 117 $ 81 $ 4,503 $ 49,400 Cash 387 13 $ 4 12 24 440 Receivables 7,384 409 93 35 96 $ 24 8,041 Property, plant and equipment 333 6,382 7,712 1,003 47 15,477 Deferred income taxes 662 3 68 (733) - Goodwill 114 237 351 Investments in capital stocks of subsidiaries 15,129 (15,129) - Other assets 848 233 319 282 17 1,699 Deferred acquisition costs of insurance subsidiaries 598 598 Total assets $ 55,025 $ 7,154 $ 8,365 $ 1,416 $ 19,867 $ (15,821) $ 76,006 Liabilities and Equity: Insurance reserves $ 36,486 $ 36,486 Payable to brokers 358 $ 209 567 Short term debt 351 $ 287 $ 2 400 1,040 Long term debt 2,213 1,980 $ 3,458 590 1,279 9,520 Deferred income taxes 5 276 766 47 $ (712) 382 Other liabilities 3,883 496 510 70 222 20 5,201 Total liabilities 43,296 3,039 4,734 709 2,110 (692) 53,196 Total shareholders’ equity 10,516 2,195 1,517 705 17,757 (15,129) 17,561 Noncontrolling interests 1,213 1,920 2,114 2 5,249 Total equity 11,729 4,115 3,631 707 17,757 (15,129) 22,810 Total liabilities and equity $ 55,025 $ 7,154 $ 8,365 $ 1,416 $ 19,867 $ (15,821) $ 76,006 Loews Corporation Consolidating Statement of Income Information Nine Months Ended September 30, 2016 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Revenues: Insurance premiums $ 5,196 $ 5,196 Net investment income 1,461 $ 1 $ 108 1,570 Intercompany interest and dividends 706 $ (706) - Investment gains (losses) 30 (12) 18 Contract drilling revenues 1,141 1,141 Other revenues 297 69 $ 961 $ 513 2 1,842 Total 6,984 1,199 961 513 816 (706) 9,767 Expenses: Insurance claims and policyholders’ benefits 3,949 3,949 Amortization of deferred acquisition costs 926 926 Contract drilling expenses 598 598 Other operating expenses 1,158 1,082 615 479 82 3,416 Interest 127 69 136 17 54 403 Total 6,160 1,749 751 496 136 - 9,292 Income (loss) before income tax 824 (550) 210 17 680 (706) 475 Income tax (expense) benefit (203) 78 (44) (10) 8 (171) Net income (loss) 621 (472) 166 7 688 (706) 304 Amounts attributable to noncontrolling interests (64) 228 (104) 60 Net income (loss) attributable to Loews Corporation $ 557 $ (244) $ 62 $ 7 $ 688 $ (706) $ 364 Loews Corporation Consolidating Statement of Income Information Nine Months Ended September 30, 2015 CNA Diamond Boardwalk Loews 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 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
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 attributable to Loews Corporation” as used herein means Net income attributable to Loews Corporation shareholders. In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2016 and December 31, 2015, results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015 and changes in shareholders’ equity and cash flows for the nine months ended September 30, 2016 and 2015. 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. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
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. Shares attributable to employee stock-based compensation awards of 3.3 million, 5.8 million, 4.7 million and 4.5 million shares were not included in the diluted weighted average shares amounts for the three and nine months ended September 30, 2016 and 2015 because the effect would have been antidilutive. |
Accounting changes | Accounting changes |
Recently issued ASUs | Recently issued ASUs In May of 2015, the FASB issued ASU 2015-09, “Financial Services – In January of 2016, the FASB issued ASU 2016-01, “Financial Instruments – In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The updated guidance requires lessees to recognize lease assets and lease liabilities for most operating leases. In addition, the updated guidance requires that lessors separate lease and nonlease components in a contract in accordance with the new revenue guidance in ASU 2014-09. The updated guidance is effective for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements. In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the effect the guidance will have on its consolidated financial statements, and expects the primary changes to be the use of the expected credit loss model for the mortgage loan portfolio and reinsurance receivables and the presentation of credit losses within the available-for-sale fixed maturities portfolio through an allowance method rather than as a direct write-down. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected. The allowance method for available-for-sale debt securities will allow the Company to record reversals of credit losses if the estimate of credit losses declines. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Net Investment Income and Investment Gains (Losses) | Net investment income is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Fixed maturity securities $ 457 $ 449 $ 1,352 $ 1,344 Limited partnership investments 91 (122 ) 98 88 Short term investments 3 4 8 7 Equity securities 1 3 8 9 Income (loss) from trading portfolio (a) 11 (5 ) 113 (9) Other 12 9 34 26 Total investment income 575 338 1,613 1,465 Investment expenses (14 ) (17 ) (43 ) (46) Net investment income $ 561 $ 321 $ 1,570 $ 1,419 (a) Includes net unrealized gains (losses) related to changes in fair value on trading securities still held of $8, $(59), $63 and $(71) for the three and nine months ended September 30, 2016 and 2015. Investment gains (losses) are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In millions) Fixed maturity securities $ 47 $ (29 ) $ 34 $ (29) Equity securities (3 ) (18 ) (5 ) (19) Derivative instruments 1 (1 ) (12 ) 9 Short term investments and other (2 ) 1 (3) Investment gains (losses) (a) $ 45 $ (50 ) $ 18 $ (42) (a) Includes gross realized gains of $68, $23, $157 and $93 and gross realized losses of $24, $70, $128 and $141 on available-for-sale securities for the three and nine months ended September 30, 2016 and 2015. (a) Includes gross realized gains of $68, $23, $157 and $93 and gross realized losses of $24, $70, $128 and $141 on available-for-sale securities for the three and nine months ended September 30, 2016 and 2015. |
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, 2016 2015 2016 2015 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 14 $ 36 $ 43 $ 52 States, municipalities and political subdivisions 18 Asset-backed: Residential mortgage-backed 1 1 7 Other asset-backed 3 1 Total asset-backed - 1 4 8 Total fixed maturities available-for-sale 14 37 47 78 Equity securities available-for-sale - common stock 4 19 9 20 Short term investments 1 Net OTTI losses recognized in earnings $ 18 $ 56 $ 56 $ 99 |
Amortized Cost and Fair Values of Securities | The amortized cost and fair values of securities are as follows: September 30, 2016 Cost or Gross Gross Estimated Unrealized (In millions) Fixed maturity securities: Corporate and other bonds $ 17,985 $1,867 $ 36 $ 19,816 $ (1) States, municipalities and political subdivisions 11,566 1,937 2 13,501 (27) Asset-backed: Residential mortgage-backed 5,174 206 15 5,365 (24) Commercial mortgage-backed 2,064 88 8 2,144 Other asset-backed 948 12 1 959 Total asset-backed 8,186 306 24 8,468 (24) U.S. Treasury and obligations of government-sponsored enterprises 68 8 76 Foreign government 415 23 438 Redeemable preferred stock 18 2 20 Fixed maturities available-for-sale 38,238 4,143 62 42,319 (52) Fixed maturities trading 572 4 1 575 Total fixed maturities 38,810 4,147 63 42,894 (52) Equity securities: Common stock 15 6 1 20 Preferred stock 93 5 2 96 Equity securities available-for-sale 108 11 3 116 - Equity securities trading 473 81 84 470 Total equity securities 581 92 87 586 Total $ 39,391 $4,239 $ 150 $ 43,480 $ (52) December 31, 2015 (In millions) Fixed maturity securities: Corporate and other bonds $ 17,097 $ 1,019 $ 347 $ 17,769 States, municipalities and political subdivisions 11,729 1,453 8 13,174 $ (4) Asset-backed: Residential mortgage-backed 4,935 154 17 5,072 (37) Commercial mortgage-backed 2,154 55 12 2,197 Other asset-backed 923 6 8 921 Total asset-backed 8,012 215 37 8,190 (37) U.S. Treasury and obligations of government-sponsored enterprises 62 5 67 Foreign government 334 13 1 346 Redeemable preferred stock 33 2 35 Fixed maturities available-for-sale 37,267 2,707 393 39,581 (41) Fixed maturities, trading 140 20 120 Total fixed maturities 37,407 2,707 413 39,701 (41) Equity securities: Common stock 46 3 1 48 Preferred stock 145 7 3 149 Equity securities available-for-sale 191 10 4 197 - Equity securities, trading 633 56 134 555 Total equity securities 824 66 138 752 - Total $ 38,231 $ 2,773 $ 551 $ 40,453 $ (41) |
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 September 30, 2016 Estimated Gross Estimated Gross Estimated Gross (In millions) Fixed maturity securities: Corporate and other bonds $ 617 $ 10 $ 338 $ 26 $ 955 $ 36 States, municipalities and political subdivisions 163 2 9 172 2 Asset-backed: Residential mortgage-backed 273 6 212 9 485 15 Commercial mortgage-backed 391 7 96 1 487 8 Other asset-backed 153 1 17 170 1 Total asset-backed 817 14 325 10 1,142 24 U.S. Treasury and obligations of government-sponsored enterprises 2 2 Foreign government 16 16 Total fixed maturity securities 1,615 26 672 36 2,287 62 Common stock 1 1 Preferred stock 15 2 15 2 Total $ 1,630 $ 29 $ 672 $ 36 $ 2,302 $ 65 December 31, 2015 (In millions) Fixed maturity securities: Corporate and other bonds $ 4,882 $ 302 $ 174 $ 45 $ 5,056 $ 347 States, municipalities and political subdivisions 338 8 75 413 8 Asset-backed: Residential mortgage-backed 963 9 164 8 1,127 17 Commercial mortgage-backed 652 10 96 2 748 12 Other asset-backed 552 8 5 557 8 Total asset-backed 2,167 27 265 10 2,432 37 U.S. Treasury and obligations of government- sponsored enterprises 4 4 Foreign government 54 1 54 1 Redeemable preferred stock 3 3 Total fixed maturity securities 7,448 338 514 55 7,962 393 Common stock 3 1 3 1 Preferred stock 13 3 13 3 Total $ 7,464 $ 342 $ 514 $ 55 $ 7,978 $ 397 |
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, 2016 and 2015 for which a portion of an OTTI loss was recognized in Other comprehensive income. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Beginning balance of credit losses on fixed maturity securities $ 41 $ 59 $ 53 $ 62 Reductions for securities sold during the period (2) (2) (14) (5) Reductions for securities the Company intends to sell or more likely than not will be required to sell (1) (1) Ending balance of credit losses on fixed maturity securities $ 38 $ 57 $ 38 $ 57 |
Available-for-Sale Fixed Maturity Securities by Contractual Maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. September 30, 2016 December 31, 2015 Cost or Estimated Cost or Estimated (In millions) Due in one year or less $ 1,665 $ 1,710 $ 1,574 $ 1,595 Due after one year through five years 9,052 9,584 7,738 8,082 Due after five years through ten years 14,659 15,625 14,652 14,915 Due after ten years 12,862 15,400 13,303 14,989 Total $ 38,238 $ 42,319 $ 37,267 $ 39,581 |
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, 2016 December 31, 2015 Contractual/ Contractual / Notional Estimated Fair Value Notional Estimated Fair Value Amount Asset (Liability) Amount Asset (Liability) (In millions) Without hedge designation: Equity markets: Options – purchased $ 391 $ 22 $ 501 $ 16 – written 229 $ (9) 614 $ (28) Futures – long 312 (1) – short 106 (1) Interest rate risk: Futures – long 63 Foreign exchange: Currency forwards – long 133 2 – short 152 Currency options – long 250 550 7 Commodities: Futures – long 68 1 Embedded derivative on funds withheld liability 175 (8 ) 179 5 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 19,555 $ 261 $ 19,816 States, municipalities and political subdivisions 13,500 1 13,501 Asset-backed: Residential mortgage-backed 5,286 79 5,365 Commercial mortgage-backed 2,120 24 2,144 Other asset-backed 916 43 959 Total asset-backed 8,322 146 8,468 U.S. Treasury and obligations of government-sponsored enterprises $ 76 76 Foreign government 438 438 Redeemable preferred stock 20 20 Fixed maturities available-for-sale 96 41,815 408 42,319 Fixed maturities trading 569 6 575 Total fixed maturities $ 96 $ 42,384 $ 414 $ 42,894 Equity securities available-for-sale $ 97 $ 19 $ 116 Equity securities trading 469 1 470 Total equity securities $ 566 $ - $ 20 $ 586 Short term investments $ 3,902 $ 911 $ 4,813 Other invested assets 54 5 59 Life settlement contracts $ 67 67 Payable to brokers (215 ) (215) December 31, 2015 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 17,601 $ 168 $ 17,769 States, municipalities and political subdivisions 13,172 2 13,174 Asset-backed: Residential mortgage-backed 4,938 134 5,072 Commercial mortgage-backed 2,175 22 2,197 Other asset-backed 868 53 921 Total asset-backed 7,981 209 8,190 U.S. Treasury and obligations of government-sponsored enterprises $ 66 1 67 Foreign government 346 346 Redeemable preferred stock 35 35 Fixed maturities available-for-sale 101 39,101 379 39,581 Fixed maturities trading 35 85 120 Total fixed maturities $ 101 $ 39,136 $ 464 $ 39,701 Equity securities available-for-sale $ 177 $ 20 $ 197 Equity securities trading 554 1 555 Total equity securities $ 731 $ - $ 21 $ 752 Short term investments $ 3,600 $ 1,134 $ 4,734 Other invested assets 102 44 146 Receivables 9 $ 3 12 Life settlement contracts 74 74 Payable to brokers (196 ) (196) |
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, 2016 and 2015: 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 2016 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 $ 242 $ 1 $ 7 $ 16 $ (5) $ 261 States, municipalities and political subdivisions 2 (1) 1 Asset-backed: Residential mortgage-backed 134 (1 ) 5 (1) $ (58 ) 79 Commercial mortgage- backed 11 23 (8) (2 ) 24 Other asset-backed 45 34 (36 ) 43 Total asset-backed 190 - (1 ) 62 $ - (9) $ - (96 ) 146 $ - Fixed maturities available-for-sale 434 1 6 78 (15) (96 ) 408 Fixed maturities trading 6 6 (1) Total fixed maturities $ 440 $ 1 $ 6 $ 78 $ - $ (15) $ - $ (96 ) $ 414 $ (1) Equity securities available-for-sale $ 19 $ (1 ) $ 1 $ 19 $ (2) Equity securities trading 2 $ (1) 1 (1) Total equity securities $ 21 $ (1 ) $ 1 $ (1) $ - $ - $ - $ - $ 20 $ (3) Life settlement contracts $ 67 $ 67 Derivative financial instruments, net 1 $ (1 ) - Net Realized Gains Transfers into Transfers out of Balance, Unrealized 2015 Balance, Included in Included in Purchases Sales Settlements Held at (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 2016 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 $ 168 $ 1 $ 14 $ 163 $ (36 ) $ (15) $ (34) $ 261 States, municipalities and political subdivisions 2 (1) 1 Asset-backed: Residential mortgage-backed 134 2 (2) 15 (10) (60) 79 Commercial mortgage-backed 22 32 (17) $ 3 (16) 24 Other asset-backed 53 2 69 (25 ) (1) 2 (57) 43 Total asset-backed 209 2 - 116 (25 ) (28) 5 (133) 146 $ - Fixed maturities available-for-sale 379 3 14 279 (61 ) (44) 5 (167) 408 Fixed maturities trading 85 5 2 (86 ) 6 3 Total fixed maturities $ 464 $ 8 $ 14 $ 281 $ (147 ) $ (44) $ 5 $ (167) $ 414 $ 3 Equity securities available-for-sale $ 20 $ (1 ) $ 19 $ (2) Equity securities trading 1 1 $ (1 ) 1 Total equity securities $ 21 $ - $ - $ - $ (1 ) $ - $ - $ - $ 20 $ (2) Life settlement contracts $ 74 $ 10 $ (17) $ 67 $ 2 Derivative financial instruments, net 3 (4 ) $ (2 ) $ 3 - (3) 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 |
Quantitative Information about Significant Unobservable Inputs Utilized by Company in Fair Value Measurements of Level 3 Assets | he following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company. September 30, 2016 Estimated Valuation Unobservable Range (In millions) Fixed maturity securities $ 211 Discounted cash flow Credit spread 2% – 40% (6%) Life settlement contracts 67 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% – 1,676% (162%) December 31, 2015 Fixed maturity securities $ 138 Discounted cash flow Credit spread 3% – 184% (6%) Life settlement contracts 74 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% – 1,676% (164%) |
Carrying Amount, Estimated Fair Value and Level of Fair Value Hierarchy of Company's Financial Assets and Liabilities | 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 Estimated Fair Value September 30, 2016 Amount Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 629 $ 654 $ 654 Liabilities: Short term debt 185 $ 182 3 185 Long term debt 10,722 10,428 646 11,074 December 31, 2015 Assets: Other invested assets, primarily mortgage loans $ 678 $ 688 $ 688 Liabilities: Short term debt 1,038 $ 1,050 2 1,052 Long term debt 9,507 8,538 595 9,133 |
Claim and Claim Adjustment Ex24
Claim and Claim Adjustment Expense Reserves (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Net Prior Year Development | The following tables and discussion present net prior year development. Three Months Ended September 30, 2016 Specialty Commercial International Total (In millions) Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (112) $ (5) $ (15) $ (132) Pretax (favorable) unfavorable premium development (3) (2) (5) Total pretax (favorable) unfavorable net prior year development $ (112) $ (8) $ (17) $ (137) Three Months Ended September 30, 2015 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) Nine Months Ended September 30, 2016 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (211) $ (37) $ (34) $ (282) Pretax (favorable) unfavorable premium development (18) (7) (2) (27) Total pretax (favorable) unfavorable net prior year development $ (229) $ (44) $ (36) $ (309) 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) |
Impact of Loss Portfolio Transfer on Consolidated Condensed Statements of Income | The following table presents the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Net A&EP adverse development before consideration of LPT $ - $ - $ 200 $ 150 Provision for uncollectible third party reinsurance on A&EP Additional amounts ceded under LPT - - 200 150 Retroactive reinsurance benefit recognized (12) (4) (94) (75) Pretax impact of unrecognized deferred retroactive reinsurance benefit $ (12) $ (4) $ 106 $ 75 |
CNA Financial [Member] | Specialty [Member] | |
Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development | The following table and discussion present 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 2016 2015 2016 2015 (In millions) Medical professional liability $ 13 $ (19) $ (17) $ (11) Other professional liability and management liability (48) (37) (98) (41) Surety (63) (70) (63) (69) Warranty 2 7 1 Other (16) (4) (40) (21) Total pretax (favorable) unfavorable development $ (112) $ (130) $ (211) $ (141) |
CNA Financial [Member] | Commercial [Member] | |
Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development | The following table and discussion present further detail of the development recorded for the Commercial segment: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Commercial auto $ (12) $ (47) $ 7 General liability 14 $ 3 (38) 8 Workers’ compensation (6) (1) 48 22 Property and other (1) (13) (37) Total pretax (favorable) unfavorable development $ (5) $ (11) $ (37) $ - |
CNA Financial [Member] | International [Member] | |
Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development | The following table and discussion present further detail of the development recorded for the International segment: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Medical professional liability $ (2 ) $ (8 ) $ (3 ) $ (8) Other professional liability (1 ) (11 ) 16 (16) Liability (2 ) (5 ) (21 ) (12) Property & marine (9 ) (5 ) (16 ) (19) Other (1 ) (5 ) (10 ) 9 Total pretax (favorable) unfavorable development $ (15 ) $ (34 ) $ (34 ) $ (46) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of U.S. and Foreign Income and Reconciliation between Federal Income Tax Expense at Statutory Rates and Actual Income Tax Expense | The components of U.S. and foreign income before income tax and a reconciliation between the federal income tax expense at statutory rates and the actual income tax expense is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Income (loss) before income tax: U.S. $ 638 $ 188 $ 535 $ 454 Foreign (82) 160 (60) 294 Total $ 556 $ 348 $ 475 $ 748 Income tax expense at statutory rate $ 194 $ 122 $ 166 $ 262 Increase (decrease) in income tax expense resulting from: Exempt investment income (28) (34) (92) (92) Foreign related tax differential 2 (27) 102 (32) Amortization of deferred charges associated with intercompany rig sales to other tax jurisdictions 1 42 Taxes related to domestic affiliate 1 5 2 (1) Partnership earnings not subject to taxes (9) (6) (37) (26) Unrecognized tax benefit (2) (4) 8 1 Other 5 9 22 16 Income tax expense $ 163 $ 66 $ 171 $ 170 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 and 2016: OTTI Gains Unrealized Cash Flow Pension Foreign Total (In millions) Balance, July 1, 2015 $ 28 $ 619 $ (3) $ (598) $ 7 $ 53 Other comprehensive income (loss) before reclassifications, after tax of $(1), $38, $0, $(1) and $0 2 (70) (1) (53) (122) Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(17), $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) Balance, July 1, 2016 $ 28 $ 838 $ (2) $ (639) $ (106) $ 119 Other comprehensive income (loss) before reclassifications, after tax of $(4), $(32), $0, $0 and $0 7 69 (24) 52 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $2, $13, $0, $(4) and $0 (4) (27) 1 7 (23) Other comprehensive income (loss) 3 42 1 7 (24) 29 Amounts attributable to noncontrolling interests (1) (4) (1) 2 (4) Balance, September 30, 2016 $ 30 $ 876 $ (2) $ (632) $ (128) $ 144 OTTI Gains Unrealized Cash Flow Pension Foreign Total (In millions) Balance, January 1, 2015 $ 32 $ 846 $ (6) $ (641) $ 49 $ 280 Other comprehensive income (loss) before reclassifications, after tax of $1, $162, $1, $(19) and $0 (3) (321) (2) 36 (100) (390) Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(22), $(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) Balance, January 1, 2016 $ 24 $ 347 $ (3) $ (649) $ (76) $ (357) Other comprehensive income (loss) before reclassifications, after tax of $(5), $(304), $0, $0 and $0 9 608 (58) 559 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $12, $0, $(11) and $0 (2) (17) 2 20 3 Other comprehensive income (loss) 7 591 2 20 (58) 562 Amounts attributable to noncontrolling interests (1) (62) (1) (3) 6 (61) Balance, September 30, 2016 $ 30 $ 876 $ (2) $ (632) $ (128) $ 144 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost for the plans: Pension Benefits Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Service cost $ 2 $ 2 $ 6 $ 10 Interest cost 33 31 97 95 Expected return on plan assets (45) (48) (133) (145) Amortization of unrecognized net loss 11 9 34 32 Settlement charge 1 2 3 2 Net periodic benefit cost $ 2 $ (4) $ 7 $ (6) Other Postretirement Benefits Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 1 1 2 2 Expected return on plan assets (1) (1) (3) (3) Amortization of unrecognized prior service benefit (1) (3) (3) (8) Amortization of unrecognized net loss 1 Net periodic benefit cost $ - $ (2) $ (3) $ (7) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Consolidated Revenues and Income (Loss) by Business Segment | The following tables present the Company’s consolidated revenues and income (loss) by business segment: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Revenues (a): CNA Financial: Property and Casualty: Specialty $ 946 $ 846 $ 2,739 $ 2,667 Commercial 913 767 2,591 2,545 International 229 216 658 642 Other Non-Core 345 324 996 978 Total CNA Financial 2,433 2,153 6,984 6,832 Diamond Offshore 350 608 1,211 1,867 Boardwalk Pipeline 306 296 961 925 Loews Hotels 161 146 513 452 Corporate and other 37 (34 ) 98 6 Total $ 3,287 $ 3,169 $ 9,767 $ 10,082 Income (loss) before income tax and noncontrolling interests (a): CNA Financial: Property and Casualty: Specialty $ 306 $ 248 $ 736 $ 661 Commercial 186 83 427 391 International 33 23 16 71 Other Non-Core (49 ) (120 ) (355 ) (410) Total CNA Financial 476 234 824 713 Diamond Offshore 36 139 (538 ) (42) Boardwalk Pipeline 46 48 210 163 Loews Hotels 4 1 17 25 Corporate and other (6 ) (74 ) (38 ) (111) Total $ 556 $ 348 $ 475 $ 748 Net income (loss) (a): CNA Financial: Property and Casualty: Specialty $ 180 $ 147 $ 437 $ 394 Commercial 110 49 252 231 International 22 9 9 37 Other Non-Core (4 ) (44 ) (141 ) (167) Total CNA Financial 308 161 557 495 Diamond Offshore 7 47 (240 ) (34) Boardwalk Pipeline 14 18 62 55 Loews Hotels 3 2 7 15 Corporate and other (5 ) (46 ) (22 ) (70) Total $ 327 $ 182 $ 364 $ 461 (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 2016 2015 2016 2015 Revenues and Income (loss) before income tax and noncontrolling interests: CNA Financial: Property and Casualty: Specialty $ 9 $ (22 ) $ 2 $ (18 ) Commercial 12 (29 ) 2 (23 ) International 6 (1 ) 14 1 Other Non-Core 18 2 12 (2 ) Total CNA Financial 45 (50 ) 30 (42 ) Corporate and other (12 ) Total $ 45 $ (50 ) $ 18 $ (42 ) Net income (loss): CNA Financial: Property and Casualty: Specialty $ 5 $ (14 ) $ 1 $ (11 ) Commercial 7 (16 ) 1 (13 ) International 4 10 1 Other Non-Core 11 1 4 5 Total CNA Financial 27 (29 ) 16 (18 ) Corporate and other (4 ) Total $ 27 $ (29 ) $ 12 $ (18 ) |
Consolidating Financial Infor29
Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Consolidating Balance Sheet Information | Consolidating Balance Sheet Information September 30, 2016 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Assets: Investments $ 46,980 $ 76 $ 105 $ 98 $ 5,126 $ 52,385 Cash 290 5 7 18 24 344 Receivables 7,389 278 93 25 138 $ (70) 7,853 Property, plant and equipment 281 5,820 7,954 1,102 43 15,200 Deferred income taxes 241 3 58 (302) - Goodwill 110 237 347 Investments in capital stocks of subsidiaries 15,250 (15,250) - Other assets 924 231 319 268 4 14 1,760 Deferred acquisition costs of insurance subsidiaries 619 619 Total assets $ 56,834 $ 6,410 $ 8,715 $ 1,514 $ 20,643 $ (15,608) $ 78,508 Liabilities and Equity: Insurance reserves $ 37,753 $ 37,753 Payable to brokers 234 $ 217 451 Short term debt 1 $ 182 $ 2 185 Long term debt 2,713 1,981 $ 3,627 642 1,774 10,737 Deferred income taxes 3 164 807 49 $ (288) 735 Other liabilities 3,960 451 546 72 282 (70) 5,241 Total liabilities 44,664 2,778 4,980 765 2,273 (358) 55,102 Total shareholders’ equity 10,915 1,936 1,552 747 18,370 (15,250) 18,270 Noncontrolling interests 1,255 1,696 2,183 2 5,136 Total equity 12,170 3,632 3,735 749 18,370 (15,250) 23,406 Total liabilities and equity $ 56,834 $ 6,410 $ 8,715 $ 1,514 $ 20,643 $ (15,608) $ 78,508 Loews Corporation Consolidating Balance Sheet Information December 31, 2015 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Assets: Investments $ 44,699 $ 117 $ 81 $ 4,503 $ 49,400 Cash 387 13 $ 4 12 24 440 Receivables 7,384 409 93 35 96 $ 24 8,041 Property, plant and equipment 333 6,382 7,712 1,003 47 15,477 Deferred income taxes 662 3 68 (733) - Goodwill 114 237 351 Investments in capital stocks of subsidiaries 15,129 (15,129) - Other assets 848 233 319 282 17 1,699 Deferred acquisition costs of insurance subsidiaries 598 598 Total assets $ 55,025 $ 7,154 $ 8,365 $ 1,416 $ 19,867 $ (15,821) $ 76,006 Liabilities and Equity: Insurance reserves $ 36,486 $ 36,486 Payable to brokers 358 $ 209 567 Short term debt 351 $ 287 $ 2 400 1,040 Long term debt 2,213 1,980 $ 3,458 590 1,279 9,520 Deferred income taxes 5 276 766 47 $ (712) 382 Other liabilities 3,883 496 510 70 222 20 5,201 Total liabilities 43,296 3,039 4,734 709 2,110 (692) 53,196 Total shareholders’ equity 10,516 2,195 1,517 705 17,757 (15,129) 17,561 Noncontrolling interests 1,213 1,920 2,114 2 5,249 Total equity 11,729 4,115 3,631 707 17,757 (15,129) 22,810 Total liabilities and equity $ 55,025 $ 7,154 $ 8,365 $ 1,416 $ 19,867 $ (15,821) $ 76,006 |
Consolidating Statement of Income Information | Consolidating Statement of Income Information Nine Months Ended September 30, 2016 CNA Diamond Boardwalk Loews Corporate Eliminations Total (In millions) Revenues: Insurance premiums $ 5,196 $ 5,196 Net investment income 1,461 $ 1 $ 108 1,570 Intercompany interest and dividends 706 $ (706) - Investment gains (losses) 30 (12) 18 Contract drilling revenues 1,141 1,141 Other revenues 297 69 $ 961 $ 513 2 1,842 Total 6,984 1,199 961 513 816 (706) 9,767 Expenses: Insurance claims and policyholders’ benefits 3,949 3,949 Amortization of deferred acquisition costs 926 926 Contract drilling expenses 598 598 Other operating expenses 1,158 1,082 615 479 82 3,416 Interest 127 69 136 17 54 403 Total 6,160 1,749 751 496 136 - 9,292 Income (loss) before income tax 824 (550) 210 17 680 (706) 475 Income tax (expense) benefit (203) 78 (44) (10) 8 (171) Net income (loss) 621 (472) 166 7 688 (706) 304 Amounts attributable to noncontrolling interests (64) 228 (104) 60 Net income (loss) attributable to Loews Corporation $ 557 $ (244) $ 62 $ 7 $ 688 $ (706) $ 364 Loews Corporation Consolidating Statement of Income Information Nine Months Ended September 30, 2015 CNA Diamond Boardwalk Loews 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 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Employee Stock Option [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Shares excluded from diluted EPS calculation | 3.3 | 5.8 | 4.7 | 4.5 | |
Accounting Standards Update 2015-03 [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Decrease in other assets and long term debt | $ 23 | ||||
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% | ||||
Boardwalk Pipeline Partners, LP [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Subsidiary ownership percentage | 51.00% |
Investments - Net Investment In
Investments - Net Investment Income and Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Investment Income [Line Items] | ||||
Total investment income | $ 575 | $ 338 | $ 1,613 | $ 1,465 |
Investment expenses | (14) | (17) | (43) | (46) |
Investment gains (losses) | 45 | (50) | 18 | (42) |
Net investment income | 561 | 321 | 1,570 | 1,419 |
Fixed Maturity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 457 | 449 | 1,352 | 1,344 |
Investment gains (losses) | 47 | (29) | 34 | (29) |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 1 | 3 | 8 | 9 |
Investment gains (losses) | (3) | (18) | (5) | (19) |
Derivative Instruments [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment gains (losses) | 1 | (1) | (12) | 9 |
Short Term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 3 | 4 | 8 | 7 |
Investment gains (losses) | (2) | 1 | (3) | |
Limited Partnership Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 91 | (122) | 98 | 88 |
Income (Loss) from Trading Portfolio [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 11 | (5) | 113 | (9) |
Other [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | $ 12 | $ 9 | $ 34 | $ 26 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Investment Income [Line Items] | ||||
Net unrealized gains (losses) on trading securities | $ 8 | $ (59) | $ 63 | $ (71) |
Fixed Maturity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross realized gains on available-for-sale securities | 68 | 23 | 157 | 93 |
Gross realized losses on available-for-sale securities | $ 24 | $ 70 | $ 128 | $ 141 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | $ 18 | $ 56 | $ 56 | $ 99 |
Corporate and Other Bonds [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 14 | 36 | 43 | 52 |
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 | 1 | 7 | |
Other Asset-Backed [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 3 | 1 | ||
Total Asset-Backed [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 1 | 4 | 8 | |
Total Fixed Maturities Available-for-Sale [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 14 | 37 | 47 | 78 |
Common Stock [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | $ 4 | $ 19 | $ 9 | 20 |
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, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | $ 39,391 | $ 38,231 |
Gross Unrealized Gains | 4,239 | 2,773 |
Gross Unrealized Losses | 150 | 551 |
Estimated Fair Value | 43,480 | 40,453 |
Unrealized OTTI Losses (Gains) | (52) | (41) |
Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 38,810 | 37,407 |
Gross Unrealized Gains | 4,147 | 2,707 |
Gross Unrealized Losses | 63 | 413 |
Estimated Fair Value | 42,894 | 39,701 |
Unrealized OTTI Losses (Gains) | (52) | (41) |
Corporate and Other Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 17,985 | 17,097 |
Gross Unrealized Gains | 1,867 | 1,019 |
Gross Unrealized Losses | 36 | 347 |
Estimated Fair Value | 19,816 | 17,769 |
Unrealized OTTI Losses (Gains) | (1) | |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 11,566 | 11,729 |
Gross Unrealized Gains | 1,937 | 1,453 |
Gross Unrealized Losses | 2 | 8 |
Estimated Fair Value | 13,501 | 13,174 |
Unrealized OTTI Losses (Gains) | (27) | (4) |
Residential Mortgage-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 5,174 | 4,935 |
Gross Unrealized Gains | 206 | 154 |
Gross Unrealized Losses | 15 | 17 |
Estimated Fair Value | 5,365 | 5,072 |
Unrealized OTTI Losses (Gains) | (24) | (37) |
Commercial Mortgage-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 2,064 | 2,154 |
Gross Unrealized Gains | 88 | 55 |
Gross Unrealized Losses | 8 | 12 |
Estimated Fair Value | 2,144 | 2,197 |
Other Asset-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 948 | 923 |
Gross Unrealized Gains | 12 | 6 |
Gross Unrealized Losses | 1 | 8 |
Estimated Fair Value | 959 | 921 |
Total Asset-Backed [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 8,186 | 8,012 |
Gross Unrealized Gains | 306 | 215 |
Gross Unrealized Losses | 24 | 37 |
Estimated Fair Value | 8,468 | 8,190 |
Unrealized OTTI Losses (Gains) | (24) | (37) |
U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 68 | 62 |
Gross Unrealized Gains | 8 | 5 |
Estimated Fair Value | 76 | 67 |
Foreign Government [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 415 | 334 |
Gross Unrealized Gains | 23 | 13 |
Gross Unrealized Losses | 1 | |
Estimated Fair Value | 438 | 346 |
Redeemable Preferred Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 18 | 33 |
Gross Unrealized Gains | 2 | 2 |
Estimated Fair Value | 20 | 35 |
Total Fixed Maturities Available-for-Sale [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 38,238 | 37,267 |
Gross Unrealized Gains | 4,143 | 2,707 |
Gross Unrealized Losses | 62 | 393 |
Estimated Fair Value | 42,319 | 39,581 |
Unrealized OTTI Losses (Gains) | (52) | (41) |
Fixed Maturities Trading [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 572 | 140 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | 1 | 20 |
Estimated Fair Value | 575 | 120 |
Common Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 15 | 46 |
Gross Unrealized Gains | 6 | 3 |
Gross Unrealized Losses | 1 | 1 |
Estimated Fair Value | 20 | 48 |
Preferred Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 93 | 145 |
Gross Unrealized Gains | 5 | 7 |
Gross Unrealized Losses | 2 | 3 |
Estimated Fair Value | 96 | 149 |
Equity Securities Available-for-Sale [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 108 | 191 |
Gross Unrealized Gains | 11 | 10 |
Gross Unrealized Losses | 3 | 4 |
Estimated Fair Value | 116 | 197 |
Equity Securities Trading [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 473 | 633 |
Gross Unrealized Gains | 81 | 56 |
Gross Unrealized Losses | 84 | 134 |
Estimated Fair Value | 470 | 555 |
Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 581 | 824 |
Gross Unrealized Gains | 92 | 66 |
Gross Unrealized Losses | 87 | 138 |
Estimated Fair Value | $ 586 | $ 752 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized gains on investments included in "AOCI" | $ 1,500,000,000 | $ 996,000,000 |
Additional other than temporary impairment losses | 0 | |
Amortized cost of marketable securities unrealized loss position | $ 0 |
Investments - Securities Availa
Investments - Securities Available-for-Sale in Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Corporate and Other Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | $ 617 | $ 4,882 |
Gross Unrealized Losses, Less than 12 Months | 10 | 302 |
Estimated Fair Value, 12 Months or Longer | 338 | 174 |
Gross Unrealized Losses, 12 Months or Longer | 26 | 45 |
Total Estimated Fair Value | 955 | 5,056 |
Total Gross Unrealized Losses | 36 | 347 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 163 | 338 |
Gross Unrealized Losses, Less than 12 Months | 2 | 8 |
Estimated Fair Value, 12 Months or Longer | 9 | 75 |
Total Estimated Fair Value | 172 | 413 |
Total Gross Unrealized Losses | 2 | 8 |
Residential Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 273 | 963 |
Gross Unrealized Losses, Less than 12 Months | 6 | 9 |
Estimated Fair Value, 12 Months or Longer | 212 | 164 |
Gross Unrealized Losses, 12 Months or Longer | 9 | 8 |
Total Estimated Fair Value | 485 | 1,127 |
Total Gross Unrealized Losses | 15 | 17 |
Commercial Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 391 | 652 |
Gross Unrealized Losses, Less than 12 Months | 7 | 10 |
Estimated Fair Value, 12 Months or Longer | 96 | 96 |
Gross Unrealized Losses, 12 Months or Longer | 1 | 2 |
Total Estimated Fair Value | 487 | 748 |
Total Gross Unrealized Losses | 8 | 12 |
Other Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 153 | 552 |
Gross Unrealized Losses, Less than 12 Months | 1 | 8 |
Estimated Fair Value, 12 Months or Longer | 17 | 5 |
Total Estimated Fair Value | 170 | 557 |
Total Gross Unrealized Losses | 1 | 8 |
Total Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 817 | 2,167 |
Gross Unrealized Losses, Less than 12 Months | 14 | 27 |
Estimated Fair Value, 12 Months or Longer | 325 | 265 |
Gross Unrealized Losses, 12 Months or Longer | 10 | 10 |
Total Estimated Fair Value | 1,142 | 2,432 |
Total Gross Unrealized Losses | 24 | 37 |
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 | 2 | 4 |
Total Estimated Fair Value | 2 | 4 |
Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 16 | 54 |
Gross Unrealized Losses, Less than 12 Months | 1 | |
Total Estimated Fair Value | 16 | 54 |
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 | |
Total Estimated Fair Value | 3 | |
Total Fixed Maturities Available-for-Sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,615 | 7,448 |
Gross Unrealized Losses, Less than 12 Months | 26 | 338 |
Estimated Fair Value, 12 Months or Longer | 672 | 514 |
Gross Unrealized Losses, 12 Months or Longer | 36 | 55 |
Total Estimated Fair Value | 2,287 | 7,962 |
Total Gross Unrealized Losses | 62 | 393 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 3 | |
Gross Unrealized Losses, Less than 12 Months | 1 | 1 |
Total Estimated Fair Value | 3 | |
Total Gross Unrealized Losses | 1 | 1 |
Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 15 | 13 |
Gross Unrealized Losses, Less than 12 Months | 2 | 3 |
Total Estimated Fair Value | 15 | 13 |
Total Gross Unrealized Losses | 2 | 3 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,630 | 7,464 |
Gross Unrealized Losses, Less than 12 Months | 29 | 342 |
Estimated Fair Value, 12 Months or Longer | 672 | 514 |
Gross Unrealized Losses, 12 Months or Longer | 36 | 55 |
Total Estimated Fair Value | 2,302 | 7,978 |
Total Gross Unrealized Losses | $ 65 | $ 397 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Beginning balance of credit losses on fixed maturity securities | $ 41 | $ 59 | $ 53 | $ 62 |
Reductions for securities sold during the period | (2) | (2) | (14) | (5) |
Reductions for securities the Company intends to sell or more likely than not will be required to sell | (1) | (1) | ||
Ending balance of credit losses on fixed maturity securities | $ 38 | $ 57 | $ 38 | $ 57 |
Investments - Available-for-Sal
Investments - Available-for-Sale Fixed Maturity Securities by Contractual Maturity (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Cost or Amortized Cost, Due in one year or less | $ 1,665 | $ 1,574 |
Cost or Amortized Cost, Due after one year through five years | 9,052 | 7,738 |
Cost or Amortized Cost, Due after five years through ten years | 14,659 | 14,652 |
Cost or Amortized Cost, Due after ten years | 12,862 | 13,303 |
Cost or Amortized Cost, Total | 38,238 | 37,267 |
Estimated Fair Value, Due in one year or less | 1,710 | 1,595 |
Estimated Fair Value, Due after one year through five years | 9,584 | 8,082 |
Estimated Fair Value, Due after five years through ten years | 15,625 | 14,915 |
Estimated Fair Value, Due after ten years | 15,400 | 14,989 |
Estimated Fair Value, Total | $ 42,319 | $ 39,581 |
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, 2016 | Dec. 31, 2015 |
Embedded Derivative on Funds Withheld Liability [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | $ 175,000,000 | $ 179,000,000 |
Estimated Fair Value, Asset | 5,000,000 | |
Estimated Fair Value, (Liability) | (8,000,000) | |
Without Hedge Designation [Member] | Equity Markets, Options - Purchased [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 391,000,000 | 501,000,000 |
Estimated Fair Value, Asset | 22,000,000 | 16,000,000 |
Without Hedge Designation [Member] | Equity Markets, Options - Written [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 229,000,000 | 614,000,000 |
Estimated Fair Value, (Liability) | (9,000,000) | (28,000,000) |
Without Hedge Designation [Member] | Equity Futures [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 312,000,000 | |
Estimated Fair Value, (Liability) | (1,000,000) | |
Without Hedge Designation [Member] | Equity Futures [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 106,000,000 | |
Estimated Fair Value, (Liability) | (1,000,000) | |
Without Hedge Designation [Member] | Interest Rate Futures [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 63,000,000 | |
Without Hedge Designation [Member] | Currency Forwards [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 133,000,000 | |
Estimated Fair Value, Asset | 2,000,000 | |
Without Hedge Designation [Member] | Currency Forwards [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 152,000,000 | |
Without Hedge Designation [Member] | Currency Options [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 250,000,000 | 550,000,000 |
Estimated Fair Value, Asset | $ 7,000,000 | |
Without Hedge Designation [Member] | Commodities Futures [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 68,000,000 | |
Estimated Fair Value, Asset | $ 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, 2016 | Dec. 31, 2015 |
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 | $ (215) | $ (196) |
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 | 19,816 | 17,769 |
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 | 13,501 | 13,174 |
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 | 5,365 | 5,072 |
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 | 2,144 | 2,197 |
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 | 959 | 921 |
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 | 8,468 | 8,190 |
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 | 76 | 67 |
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 | 438 | 346 |
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 | 20 | 35 |
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 | 42,319 | 39,581 |
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 | 575 | 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 | 42,894 | 39,701 |
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 | 116 | 197 |
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 | 470 | 555 |
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 | 586 | 752 |
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 | 59 | 146 |
Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 12 | |
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 | 67 | 74 |
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 | 4,813 | 4,734 |
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 | (215) | (196) |
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 | 76 | 66 |
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 | 20 | 35 |
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 | 96 | 101 |
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 | 96 | 101 |
Level 1 [Member] | 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 | 97 | 177 |
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 | 469 | 554 |
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 | 566 | 731 |
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 | 54 | 102 |
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 | 3,902 | 3,600 |
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 | 19,555 | 17,601 |
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 | 13,500 | 13,172 |
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 | 5,286 | 4,938 |
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 | 2,120 | 2,175 |
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 | 916 | 868 |
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 | 8,322 | 7,981 |
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 | |
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 | 438 | 346 |
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 | 41,815 | 39,101 |
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 | 569 | 35 |
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 | 42,384 | 39,136 |
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 | 5 | 44 |
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 | 9 | |
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 | 911 | 1,134 |
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 | 261 | 168 |
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 | 1 | 2 |
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 | 79 | 134 |
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 | 24 | 22 |
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 | 43 | 53 |
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 | 146 | 209 |
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 | 408 | 379 |
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 | 6 | 85 |
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 | 414 | 464 |
Level 3 [Member] | 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 | 19 | 20 |
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 | 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 | 20 | 21 |
Level 3 [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 | 3 | |
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 | $ 67 | $ 74 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative financial instruments, net, Beginning balance | $ 1 | $ 3 | ||
Derivative financial instruments, net, Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | (1) | (4) | ||
Derivative financial instruments, net, Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 0 | 0 | ||
Derivative financial instruments, net, Purchases | 0 | 0 | ||
Derivative financial instruments, net, Sales | (2) | |||
Derivative financial instruments, net, Settlements | 0 | 0 | ||
Derivative financial instruments, net, Transfers into Level 3 | 3 | |||
Derivative financial instruments, net, Transfers out of Level 3 | 0 | 0 | ||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (3) | |||
Corporate and Other Bonds [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 242 | $ 141 | 168 | $ 162 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 1 | (1) | |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 7 | 14 | (1) | |
Purchases | 16 | 27 | 163 | 39 |
Sales | (1) | (36) | (13) | |
Settlements | (5) | (11) | (15) | (32) |
Transfers into Level 3 | 37 | |||
Transfers out of Level 3 | (3) | (34) | (38) | |
Ending balance | 261 | 153 | 261 | 153 |
States, Municipalities and Political Subdivisions [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 2 | 85 | 2 | 94 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | |||
Settlements | (1) | (1) | (10) | |
Transfers out of Level 3 | (24) | (24) | ||
Ending balance | 1 | 61 | 1 | 61 |
Residential Mortgage-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 134 | 207 | 134 | 189 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 2 | 2 | 4 | |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (1) | (2) | (2) | (4) |
Purchases | 5 | 4 | 15 | 76 |
Settlements | (1) | (7) | (10) | (28) |
Transfers out of Level 3 | (58) | (60) | (33) | |
Ending balance | 79 | 204 | 79 | 204 |
Commercial Mortgage-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 11 | 87 | 22 | 83 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 5 | 7 | ||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (4) | (4) | ||
Purchases | 23 | 8 | 32 | 23 |
Settlements | (8) | (15) | (17) | (17) |
Transfers into Level 3 | 3 | 17 | ||
Transfers out of Level 3 | (2) | (10) | (16) | (38) |
Ending balance | 24 | 71 | 24 | 71 |
Other Asset-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 45 | 490 | 53 | 655 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 3 | |||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (6) | 2 | 4 | |
Purchases | 34 | 43 | 69 | 125 |
Sales | (20) | (25) | (254) | |
Settlements | (32) | (1) | (52) | |
Transfers into Level 3 | 2 | |||
Transfers out of Level 3 | (36) | (4) | (57) | (10) |
Ending balance | 43 | 471 | 43 | 471 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (1) | |||
Total Asset-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 190 | 784 | 209 | 927 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 7 | 2 | 14 | |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | (1) | (12) | (4) | |
Purchases | 62 | 55 | 116 | 224 |
Sales | (20) | (25) | (254) | |
Settlements | (9) | (54) | (28) | (97) |
Transfers into Level 3 | 5 | 17 | ||
Transfers out of Level 3 | (96) | (14) | (133) | (81) |
Ending balance | 146 | 746 | 146 | 746 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (1) | |||
Total Fixed Maturities Available-for-Sale [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 434 | 1,010 | 379 | 1,183 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 7 | 3 | 14 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 6 | (12) | 14 | (5) |
Purchases | 78 | 82 | 279 | 263 |
Sales | (21) | (61) | (267) | |
Settlements | (15) | (65) | (44) | (139) |
Transfers into Level 3 | 5 | 54 | ||
Transfers out of Level 3 | (96) | (41) | (167) | (143) |
Ending balance | 408 | 960 | 408 | 960 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (1) | |||
Fixed Maturities Trading [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 6 | 89 | 85 | 90 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | (2) | 5 | (2) | |
Purchases | 2 | |||
Sales | (1) | (86) | (2) | |
Ending balance | 6 | 86 | 6 | 86 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (1) | (2) | 3 | (2) |
Fixed Maturity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 440 | 1,099 | 464 | 1,273 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 5 | 8 | 12 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 6 | (12) | 14 | (5) |
Purchases | 78 | 82 | 281 | 263 |
Sales | (22) | (147) | (269) | |
Settlements | (15) | (65) | (44) | (139) |
Transfers into Level 3 | 5 | 54 | ||
Transfers out of Level 3 | (96) | (41) | (167) | (143) |
Ending balance | 414 | 1,046 | 414 | 1,046 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (1) | (2) | 3 | (3) |
Equity Securities Available-for-Sale [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 19 | 16 | 20 | 16 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | (1) | (1) | ||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | (1) | (1) | |
Ending balance | 19 | 15 | 19 | 15 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (2) | (2) | ||
Equity Securities Trading [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 2 | 1 | 1 | 1 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 1 | 1 | |
Purchases | (1) | |||
Sales | (2) | (1) | (2) | |
Ending balance | 1 | 1 | ||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (1) | 1 | 1 | |
Equity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 21 | 17 | 21 | 17 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | (1) | 1 | 1 | |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | (1) | (1) | |
Purchases | (1) | |||
Sales | (2) | (1) | (2) | |
Ending balance | 20 | 15 | 20 | 15 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | (3) | 1 | (2) | 1 |
Life Settlement Contracts [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 67 | 75 | 74 | 82 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 5 | 10 | 22 | |
Settlements | (6) | (17) | (30) | |
Ending balance | $ 67 | 74 | 67 | 74 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30 | $ 2 | $ 2 | $ 1 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value Disclosures [Abstract] | ||
Transfers out of Level 2 to Level 1, Assets | $ 0 | $ 10,000,000 |
Transfers out of Level 1 to Level 2, Assets | $ 0 | $ 0 |
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 ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fixed Maturity Securities [Member] | Discounted Cash Flow [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | $ 211 | $ 138 |
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% | 3.00% |
Fixed Maturity Securities [Member] | Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit spread adjustment | 40.00% | 184.00% |
Fixed Maturity Securities [Member] | Weighted Average [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit spread adjustment | 6.00% | 6.00% |
Life Settlement Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate risk premium | 9.00% | 9.00% |
Life Settlement Contracts [Member] | Discounted Cash Flow [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | $ 67 | $ 74 |
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% |
Life Settlement Contracts [Member] | Weighted Average [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortality assumption | 162.00% | 164.00% |
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, 2016 | Dec. 31, 2015 |
Estimate Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | $ 654 | $ 688 |
Short term debt | 185 | 1,052 |
Long term debt | 11,074 | 9,133 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | 629 | 678 |
Short term debt | 185 | 1,038 |
Long term debt | 10,722 | 9,507 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short term debt | 182 | 1,050 |
Long term debt | 10,428 | 8,538 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | 654 | 688 |
Short term debt | 3 | 2 |
Long term debt | $ 646 | $ 595 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2016 | Jun. 30, 2016USD ($)Drilling_RigRigs | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Drilling_RigTransactions | Sep. 30, 2015USD ($) | |
Diamond Offshore Drilling, Inc. [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of sale and leaseback transactions | Transactions | 3 | ||||
Proceed from sale and leaseback transactions | $ 158,000,000 | ||||
Gain (loss) on sale sale and leaseback transactions | 0 | ||||
Aggregate amount of future commitments under the operating leases and contractual services agreements | $ 491,000,000 | ||||
Diamond Offshore Drilling, Inc. [Member] | Ge Oil And Gas [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Service agreement term | 10 years | ||||
Diamond Offshore [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset impairment loss, before tax and noncontrolling interests | $ 672,000,000 | $ 2,000,000 | $ 361,000,000 | ||
Asset impairment loss, net of tax and noncontrolling interests | $ 263,000,000 | $ 1,000,000 | $ 159,000,000 | ||
Diamond Offshore [Member] | Drilling Rigs [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Number rigs used for evaluated for impairment | Drilling_Rig | 15 | 9 | |||
Number of equipments impaired | Rigs | 8 | ||||
Diamond Offshore [Member] | Ultra Deepwater [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of equipments impaired | Rigs | 3 | ||||
Diamond Offshore [Member] | Deepwater [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of equipments impaired | Rigs | 3 | ||||
Diamond Offshore [Member] | Mid-Water Rigs [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of equipments impaired | Rigs | 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, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2015 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Catastrophe losses, net of reinsurance | $ 16 | $ 14 | $ 137 | $ 103 | ||||
Additional amounts ceded under LPT | $ 900 | |||||||
Net unfavorable development prior to LPT | $ 200 | 200 | $ 150 | |||||
Fair value of the collateral trust account | 2,500 | 2,500 | $ 2,800 | |||||
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 | 2,800 | 2,800 | 2,600 | |||||
Remaining unrecognized retroactive reinsurance benefit | $ 347 | $ 347 | $ 241 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
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 | $ (132) | $ (175) | $ (282) | $ (187) |
Pretax (favorable) unfavorable premium development | (5) | (5) | (27) | (11) |
Total pretax (favorable) unfavorable net prior year development | (137) | (180) | (309) | (198) |
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 | (112) | (130) | (211) | (141) |
Pretax (favorable) unfavorable premium development | (2) | (18) | (10) | |
Total pretax (favorable) unfavorable net prior year development | (112) | (132) | (229) | (151) |
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 | (5) | (11) | (37) | |
Pretax (favorable) unfavorable premium development | (3) | (5) | (7) | (17) |
Total pretax (favorable) unfavorable net prior year development | (8) | (16) | (44) | (17) |
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 | (15) | (34) | (34) | (46) |
Pretax (favorable) unfavorable premium development | (2) | 2 | (2) | 16 |
Total pretax (favorable) unfavorable net prior year development | $ (17) | $ (32) | $ (36) | $ (30) |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Total pretax (favorable) unfavorable development | $ (132) | $ (175) | $ (282) | $ (187) |
CNA Financial [Member] | Specialty [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Medical professional liability | 13 | (19) | (17) | (11) |
Other professional liability and management liability | (48) | (37) | (98) | (41) |
Surety | (63) | (70) | (63) | (69) |
Warranty | 2 | 7 | 1 | |
Other | (16) | (4) | (40) | (21) |
Total pretax (favorable) unfavorable development | (112) | (130) | (211) | (141) |
CNA Financial [Member] | Commercial [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Commercial auto | (12) | (47) | 7 | |
General liability | 14 | 3 | (38) | 8 |
Workers' compensation | (6) | (1) | 48 | 22 |
Property and other | (1) | (13) | (37) | |
Total pretax (favorable) unfavorable development | (5) | (11) | (37) | |
CNA Financial [Member] | International [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Medical professional liability | (2) | (8) | (3) | (8) |
Other professional liability | (1) | (11) | 16 | (16) |
General liability | (2) | (5) | (21) | (12) |
Property & marine | (9) | (5) | (16) | (19) |
Other | (1) | (5) | (10) | 9 |
Total pretax (favorable) unfavorable development | $ (15) | $ (34) | $ (34) | $ (46) |
Claim and Claim Adjustment Ex49
Claim and Claim Adjustment Expense Reserves - Impact of Loss Portfolio Transfer on Consolidated Condensed Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Insurance [Abstract] | |||||
Net A&EP adverse development before consideration of LPT | $ 200 | $ 200 | $ 150 | ||
Provision for uncollectible third party reinsurance on A&EP | $ 0 | $ 0 | 0 | 0 | |
Additional amounts ceded under LPT | 200 | 150 | |||
Retroactive reinsurance benefit recognized | (12) | (4) | (94) | (75) | |
Pretax impact of unrecognized deferred retroactive reinsurance benefit | $ (12) | $ (4) | $ 106 | $ 75 |
Income Taxes - Components of U.
Income Taxes - Components of U.S. and Foreign Income and Reconciliation between Federal Income Tax Expense at Statutory Rates and Actual Income Tax Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income (loss) before income tax: | ||||
Income (loss) before income tax, U.S. | $ 638 | $ 188 | $ 535 | $ 454 |
Income (loss) before income tax, Foreign | (82) | 160 | (60) | 294 |
Income (loss) before income tax | 556 | 348 | 475 | 748 |
Income tax expense at statutory rate | 194 | 122 | 166 | 262 |
Increase (decrease) in income tax expense resulting from: | ||||
Exempt investment income | (28) | (34) | (92) | (92) |
Foreign related tax differential | 2 | (27) | 102 | (32) |
Amortization of deferred charges associated with intercompany rig sales to other tax jurisdictions | 1 | 42 | ||
Taxes related to domestic affiliate | 1 | 5 | 2 | (1) |
Partnership earnings not subject to taxes | (9) | (6) | (37) | (26) |
Unrecognized tax benefit | (2) | (4) | 8 | 1 |
Other | 5 | 9 | 22 | 16 |
Income tax expense | $ 163 | $ 66 | $ 171 | $ 170 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Diamond Offshore Drilling, Inc. [Member] | |
Income Tax Contingency [Line Items] | |
Valuation allowance | $ 61 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||
May 31, 2016 | Mar. 31, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | |
Diamond Offshore [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of commercial paper | $ 287,000,000 | |||
Outstanding borrowings | $ 182,000,000 | |||
3.8% Senior Notes Due April 1, 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument principal amount | $ 500,000,000 | $ 500,000,000 | ||
Debt instrument interest rate | 3.80% | 3.80% | ||
Debt maturity date | Apr. 1, 2026 | |||
5.3% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 5.30% | 5.30% | ||
Repayment of debt | $ 400,000,000 | |||
4.5% Senior Notes Due March 1, 2026 [Member] | CNA Financial [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument principal amount | $ 500,000,000 | $ 500,000,000 | ||
Debt instrument interest rate | 4.50% | 4.50% | ||
Debt maturity date | Mar. 1, 2026 | |||
6.5% Senior Notes Due August 15, 2016 [Member] | CNA Financial [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument principal amount | $ 350,000,000 | $ 350,000,000 | ||
Debt instrument interest rate | 6.50% | 6.50% | ||
Debt maturity date | Aug. 15, 2016 | |||
6.0% Senior Notes Due June 1, 2026 [Member] | Boardwalk Pipeline [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument principal amount | $ 550,000,000 | |||
Debt instrument interest rate | 6.00% | |||
Debt maturity date | Jun. 1, 2026 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 22,810 | $ 24,650 | ||
Other comprehensive income (loss) before reclassifications, after tax | $ 52 | $ (122) | 559 | (390) |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | (23) | 37 | 3 | 51 |
Other comprehensive income (loss) | 29 | (85) | 562 | (339) |
Issuance of equity securities by subsidiary | 1 | |||
Amounts attributable to noncontrolling interests | (4) | 9 | (61) | 35 |
Ending Balance | 23,406 | 24,153 | 23,406 | 24,153 |
OTTI Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 28 | 28 | 24 | 32 |
Other comprehensive income (loss) before reclassifications, after tax | 7 | 2 | 9 | (3) |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | (4) | (2) | ||
Other comprehensive income (loss) | 3 | 2 | 7 | (3) |
Amounts attributable to noncontrolling interests | (1) | (1) | 1 | |
Ending Balance | 30 | 30 | 30 | 30 |
Unrealized Gains (Losses) on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 838 | 619 | 347 | 846 |
Other comprehensive income (loss) before reclassifications, after tax | 69 | (70) | 608 | (321) |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | (27) | 31 | (17) | 29 |
Other comprehensive income (loss) | 42 | (39) | 591 | (292) |
Amounts attributable to noncontrolling interests | (4) | 4 | (62) | 30 |
Ending Balance | 876 | 584 | 876 | 584 |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (2) | (3) | (3) | (6) |
Other comprehensive income (loss) before reclassifications, after tax | (2) | |||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 1 | 1 | 2 | 7 |
Other comprehensive income (loss) | 1 | 1 | 2 | 5 |
Amounts attributable to noncontrolling interests | (1) | (1) | (1) | (2) |
Ending Balance | (2) | (3) | (2) | (3) |
Pension Liability [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (639) | (598) | (649) | (641) |
Other comprehensive income (loss) before reclassifications, after tax | (1) | 36 | ||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 7 | 5 | 20 | 15 |
Other comprehensive income (loss) | 7 | 4 | 20 | 51 |
Issuance of equity securities by subsidiary | 1 | |||
Amounts attributable to noncontrolling interests | 1 | (3) | (4) | |
Ending Balance | (632) | (593) | (632) | (593) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (106) | 7 | (76) | 49 |
Other comprehensive income (loss) before reclassifications, after tax | (24) | (53) | (58) | (100) |
Other comprehensive income (loss) | (24) | (53) | (58) | (100) |
Amounts attributable to noncontrolling interests | 2 | 5 | 6 | 10 |
Ending Balance | (128) | (41) | (128) | (41) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 119 | 53 | (357) | 280 |
Other comprehensive income (loss) | 501 | (304) | ||
Ending Balance | $ 144 | $ (23) | $ 144 | $ (23) |
Shareholders' Equity - Compon54
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
OTTI Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | $ (4) | $ (1) | $ (5) | $ 1 |
Tax on reclassification from accumulated other comprehensive income | 2 | 0 | 1 | 0 |
Unrealized Gains (Losses) on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | (32) | 38 | (304) | 162 |
Tax on reclassification from accumulated other comprehensive income | 13 | (17) | 12 | (22) |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Tax on reclassification from accumulated other comprehensive income | 0 | 0 | 0 | |
Pension Liability [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 1 |
Tax on reclassification from accumulated other comprehensive income | (4) | (2) | (11) | (2) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | (1) | 0 | (19) |
Tax on reclassification from accumulated other comprehensive income | 0 | 0 | (9) | |
Accumulated Other Comprehensive Income (Loss) [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 ($) shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Shareholders Equity [Line Items] | ||
Treasury stock repurchased, shares | 3 | 16.3 |
Purchase of Loews treasury stock | $ 115 | $ 633 |
CNA Financial [Member] | ||
Shareholders Equity [Line Items] | ||
Purchase of common stock | 0.3 | |
Common stock, aggregate cost | $ 8 | |
Subsidiary ownership percentage | 90.00% | |
Increase (decrease) in Additional paid-in capital | $ 3 | |
CNA Financial [Member] | Minimum [Member] | ||
Shareholders Equity [Line Items] | ||
Subsidiary ownership percentage | 90.00% |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 2 | $ 6 | $ 10 |
Interest cost | 33 | 31 | 97 | 95 |
Expected return on plan assets | (45) | (48) | (133) | (145) |
Amortization of unrecognized net loss | 11 | 9 | 34 | 32 |
Settlement charge | 1 | 2 | 3 | 2 |
Net periodic benefit cost | 2 | (4) | 7 | (6) |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 1 | 1 | 2 | 2 |
Expected return on plan assets | (1) | (1) | (3) | (3) |
Amortization of unrecognized prior service benefit | $ (1) | (3) | (3) | (8) |
Amortization of unrecognized net loss | 1 | |||
Net periodic benefit cost | $ (2) | $ (3) | $ (7) |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,287 | $ 3,169 | $ 9,767 | $ 10,082 |
Income (loss) before income tax and noncontrolling interests | 556 | 348 | 475 | 748 |
Net income (loss) | 327 | 182 | 364 | 461 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | 45 | (50) | 18 | (42) |
Investment gains (losses) included in net income (loss) | 27 | (29) | 12 | (18) |
CNA Financial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,433 | 2,153 | 6,984 | 6,832 |
Income (loss) before income tax and noncontrolling interests | 476 | 234 | 824 | 713 |
Net income (loss) | 308 | 161 | 557 | 495 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | 45 | (50) | 30 | (42) |
Investment gains (losses) included in net income (loss) | 27 | (29) | 16 | (18) |
CNA Financial [Member] | Other Non-Core [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 345 | 324 | 996 | 978 |
Income (loss) before income tax and noncontrolling interests | (49) | (120) | (355) | (410) |
Net income (loss) | (4) | (44) | (141) | (167) |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | 18 | 2 | 12 | (2) |
Investment gains (losses) included in net income (loss) | 11 | 1 | 4 | 5 |
CNA Financial [Member] | Property and Casualty [Member] | Specialty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 946 | 846 | 2,739 | 2,667 |
Income (loss) before income tax and noncontrolling interests | 306 | 248 | 736 | 661 |
Net income (loss) | 180 | 147 | 437 | 394 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | 9 | (22) | 2 | (18) |
Investment gains (losses) included in net income (loss) | 5 | (14) | 1 | (11) |
CNA Financial [Member] | Property and Casualty [Member] | Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 913 | 767 | 2,591 | 2,545 |
Income (loss) before income tax and noncontrolling interests | 186 | 83 | 427 | 391 |
Net income (loss) | 110 | 49 | 252 | 231 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | 12 | (29) | 2 | (23) |
Investment gains (losses) included in net income (loss) | 7 | (16) | 1 | (13) |
CNA Financial [Member] | Property and Casualty [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 229 | 216 | 658 | 642 |
Income (loss) before income tax and noncontrolling interests | 33 | 23 | 16 | 71 |
Net income (loss) | 22 | 9 | 9 | 37 |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | 6 | (1) | 14 | 1 |
Investment gains (losses) included in net income (loss) | 4 | 10 | 1 | |
Diamond Offshore [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 350 | 608 | 1,211 | 1,867 |
Income (loss) before income tax and noncontrolling interests | 36 | 139 | (538) | (42) |
Net income (loss) | 7 | 47 | (240) | (34) |
Boardwalk Pipeline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 306 | 296 | 961 | 925 |
Income (loss) before income tax and noncontrolling interests | 46 | 48 | 210 | 163 |
Net income (loss) | 14 | 18 | 62 | 55 |
Loews Hotels [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 161 | 146 | 513 | 452 |
Income (loss) before income tax and noncontrolling interests | 4 | 1 | 17 | 25 |
Net income (loss) | 3 | 2 | 7 | 15 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 37 | (34) | 98 | 6 |
Income (loss) before income tax and noncontrolling interests | (6) | (74) | (38) | (111) |
Net income (loss) | $ (5) | $ (46) | (22) | $ (70) |
Investment gains (losses) included in Revenues and Income (loss) before income tax and noncontrolling interests | (12) | |||
Investment gains (losses) included in net income (loss) | $ (4) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - CNA Financial [Member] $ in Millions | Sep. 30, 2016USD ($) |
Commitments [Line Items] | |
Aggregate amount related to indemnification agreements | $ 258 |
Aggregate amount related to quantifiable guarantees | 375 |
Potential amount of future payments under guarantees | $ 1,900 |
Consolidating Financial Infor59
Consolidating Financial Information - Consolidating Balance Sheet Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||||
Investments | $ 52,385 | $ 49,400 | ||
Cash | 344 | 440 | $ 328 | $ 364 |
Receivables | 7,853 | 8,041 | ||
Property, plant and equipment | 15,200 | 15,477 | ||
Goodwill | 347 | 351 | ||
Other assets | 1,760 | 1,699 | ||
Deferred acquisition costs of insurance subsidiaries | 619 | 598 | ||
Total assets | 78,508 | 76,006 | ||
Liabilities and Equity: | ||||
Insurance reserves | 37,753 | 36,486 | ||
Payable to brokers | 451 | 567 | ||
Short term debt | 185 | 1,040 | ||
Long term debt | 10,737 | 9,520 | ||
Deferred income taxes | 735 | 382 | ||
Other liabilities | 5,241 | 5,201 | ||
Total liabilities | 55,102 | 53,196 | ||
Total shareholders' equity | 18,270 | 17,561 | ||
Noncontrolling interests | 5,136 | 5,249 | ||
Total equity | 23,406 | 22,810 | $ 24,153 | $ 24,650 |
Total liabilities and equity | 78,508 | 76,006 | ||
Eliminations [Member] | ||||
Assets: | ||||
Receivables | (70) | 24 | ||
Deferred income taxes | (302) | (733) | ||
Investments in capital stocks of subsidiaries | (15,250) | (15,129) | ||
Other assets | 14 | 17 | ||
Total assets | (15,608) | (15,821) | ||
Liabilities and Equity: | ||||
Deferred income taxes | (288) | (712) | ||
Other liabilities | (70) | 20 | ||
Total liabilities | (358) | (692) | ||
Total shareholders' equity | (15,250) | (15,129) | ||
Total equity | (15,250) | (15,129) | ||
Total liabilities and equity | (15,608) | (15,821) | ||
CNA Financial [Member] | Operating Segments [Member] | ||||
Assets: | ||||
Investments | 46,980 | 44,699 | ||
Cash | 290 | 387 | ||
Receivables | 7,389 | 7,384 | ||
Property, plant and equipment | 281 | 333 | ||
Deferred income taxes | 241 | 662 | ||
Goodwill | 110 | 114 | ||
Other assets | 924 | 848 | ||
Deferred acquisition costs of insurance subsidiaries | 619 | 598 | ||
Total assets | 56,834 | 55,025 | ||
Liabilities and Equity: | ||||
Insurance reserves | 37,753 | 36,486 | ||
Payable to brokers | 234 | 358 | ||
Short term debt | 1 | 351 | ||
Long term debt | 2,713 | 2,213 | ||
Deferred income taxes | 3 | 5 | ||
Other liabilities | 3,960 | 3,883 | ||
Total liabilities | 44,664 | 43,296 | ||
Total shareholders' equity | 10,915 | 10,516 | ||
Noncontrolling interests | 1,255 | 1,213 | ||
Total equity | 12,170 | 11,729 | ||
Total liabilities and equity | 56,834 | 55,025 | ||
Diamond Offshore [Member] | Operating Segments [Member] | ||||
Assets: | ||||
Investments | 76 | 117 | ||
Cash | 5 | 13 | ||
Receivables | 278 | 409 | ||
Property, plant and equipment | 5,820 | 6,382 | ||
Other assets | 231 | 233 | ||
Total assets | 6,410 | 7,154 | ||
Liabilities and Equity: | ||||
Short term debt | 182 | 287 | ||
Long term debt | 1,981 | 1,980 | ||
Deferred income taxes | 164 | 276 | ||
Other liabilities | 451 | 496 | ||
Total liabilities | 2,778 | 3,039 | ||
Total shareholders' equity | 1,936 | 2,195 | ||
Noncontrolling interests | 1,696 | 1,920 | ||
Total equity | 3,632 | 4,115 | ||
Total liabilities and equity | 6,410 | 7,154 | ||
Boardwalk Pipeline [Member] | Operating Segments [Member] | ||||
Assets: | ||||
Investments | 105 | |||
Cash | 7 | 4 | ||
Receivables | 93 | 93 | ||
Property, plant and equipment | 7,954 | 7,712 | ||
Goodwill | 237 | 237 | ||
Other assets | 319 | 319 | ||
Total assets | 8,715 | 8,365 | ||
Liabilities and Equity: | ||||
Long term debt | 3,627 | 3,458 | ||
Deferred income taxes | 807 | 766 | ||
Other liabilities | 546 | 510 | ||
Total liabilities | 4,980 | 4,734 | ||
Total shareholders' equity | 1,552 | 1,517 | ||
Noncontrolling interests | 2,183 | 2,114 | ||
Total equity | 3,735 | 3,631 | ||
Total liabilities and equity | 8,715 | 8,365 | ||
Loews Hotels [Member] | Operating Segments [Member] | ||||
Assets: | ||||
Investments | 98 | 81 | ||
Cash | 18 | 12 | ||
Receivables | 25 | 35 | ||
Property, plant and equipment | 1,102 | 1,003 | ||
Deferred income taxes | 3 | 3 | ||
Other assets | 268 | 282 | ||
Total assets | 1,514 | 1,416 | ||
Liabilities and Equity: | ||||
Short term debt | 2 | 2 | ||
Long term debt | 642 | 590 | ||
Deferred income taxes | 49 | 47 | ||
Other liabilities | 72 | 70 | ||
Total liabilities | 765 | 709 | ||
Total shareholders' equity | 747 | 705 | ||
Noncontrolling interests | 2 | 2 | ||
Total equity | 749 | 707 | ||
Total liabilities and equity | 1,514 | 1,416 | ||
Corporate and Other [Member] | ||||
Assets: | ||||
Investments | 5,126 | 4,503 | ||
Cash | 24 | 24 | ||
Receivables | 138 | 96 | ||
Property, plant and equipment | 43 | 47 | ||
Deferred income taxes | 58 | 68 | ||
Investments in capital stocks of subsidiaries | 15,250 | 15,129 | ||
Other assets | 4 | |||
Total assets | 20,643 | 19,867 | ||
Liabilities and Equity: | ||||
Payable to brokers | 217 | 209 | ||
Short term debt | 400 | |||
Long term debt | 1,774 | 1,279 | ||
Other liabilities | 282 | 222 | ||
Total liabilities | 2,273 | 2,110 | ||
Total shareholders' equity | 18,370 | 17,757 | ||
Total equity | 18,370 | 17,757 | ||
Total liabilities and equity | $ 20,643 | $ 19,867 |
Consolidating Financial Infor60
Consolidating Financial Information - Consolidating Statement of Income Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Insurance premiums | $ 1,767 | $ 1,751 | $ 5,196 | $ 5,173 |
Net investment income | 561 | 321 | 1,570 | 1,419 |
Investment gains (losses) | 45 | (50) | 18 | (42) |
Contract drilling revenues | 340 | 599 | 1,141 | 1,816 |
Other revenues | 574 | 548 | 1,842 | 1,716 |
Total | 9,767 | 10,082 | ||
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,202 | 1,200 | 3,949 | 4,008 |
Amortization of deferred acquisition costs | 314 | 319 | 926 | 936 |
Contract drilling expenses | 187 | 276 | 598 | 971 |
Other operating expenses | 898 | 898 | 3,416 | 3,026 |
Interest | 130 | 128 | 403 | 393 |
Total | 2,731 | 2,821 | 9,292 | 9,334 |
Income (loss) before income tax | 556 | 348 | 475 | 748 |
Income tax (expense) benefit | (163) | (66) | (171) | (170) |
Net income (loss) | 393 | 282 | 304 | 578 |
Amounts attributable to noncontrolling interests | (66) | (100) | 60 | (117) |
Net income (loss) attributable to Loews Corporation | 364 | 461 | ||
Eliminations [Member] | ||||
Revenues: | ||||
Intercompany interest and dividends | (706) | (733) | ||
Total | (706) | (733) | ||
Expenses: | ||||
Income (loss) before income tax | (706) | (733) | ||
Net income (loss) | (706) | (733) | ||
Net income (loss) attributable to Loews Corporation | (706) | (733) | ||
CNA Financial [Member] | ||||
Expenses: | ||||
Income (loss) before income tax | 476 | 234 | 824 | 713 |
CNA Financial [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Insurance premiums | 5,196 | 5,173 | ||
Net investment income | 1,461 | 1,412 | ||
Investment gains (losses) | 30 | (42) | ||
Other revenues | 297 | 289 | ||
Total | 6,984 | 6,832 | ||
Expenses: | ||||
Insurance claims and policyholders' benefits | 3,949 | 4,008 | ||
Amortization of deferred acquisition costs | 926 | 936 | ||
Other operating expenses | 1,158 | 1,058 | ||
Interest | 127 | 117 | ||
Total | 6,160 | 6,119 | ||
Income (loss) before income tax | 824 | 713 | ||
Income tax (expense) benefit | (203) | (162) | ||
Net income (loss) | 621 | 551 | ||
Amounts attributable to noncontrolling interests | (64) | (56) | ||
Net income (loss) attributable to Loews Corporation | 557 | 495 | ||
Diamond Offshore [Member] | ||||
Expenses: | ||||
Income (loss) before income tax | 36 | 139 | (538) | (42) |
Diamond Offshore [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Net investment income | 1 | 2 | ||
Investment gains (losses) | (12) | |||
Contract drilling revenues | 1,141 | 1,816 | ||
Other revenues | 69 | 49 | ||
Total | 1,199 | 1,867 | ||
Expenses: | ||||
Contract drilling expenses | 598 | 971 | ||
Other operating expenses | 1,082 | 867 | ||
Interest | 69 | 71 | ||
Total | 1,749 | 1,909 | ||
Income (loss) before income tax | (550) | (42) | ||
Income tax (expense) benefit | 78 | (6) | ||
Net income (loss) | (472) | (48) | ||
Amounts attributable to noncontrolling interests | 228 | 14 | ||
Net income (loss) attributable to Loews Corporation | (244) | (34) | ||
Boardwalk Pipeline [Member] | ||||
Expenses: | ||||
Income (loss) before income tax | 46 | 48 | 210 | 163 |
Boardwalk Pipeline [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Net investment income | 1 | |||
Other revenues | 961 | 924 | ||
Total | 961 | 925 | ||
Expenses: | ||||
Other operating expenses | 615 | 628 | ||
Interest | 136 | 134 | ||
Total | 751 | 762 | ||
Income (loss) before income tax | 210 | 163 | ||
Income tax (expense) benefit | (44) | (33) | ||
Net income (loss) | 166 | 130 | ||
Amounts attributable to noncontrolling interests | (104) | (75) | ||
Net income (loss) attributable to Loews Corporation | 62 | 55 | ||
Loews Hotels [Member] | ||||
Expenses: | ||||
Income (loss) before income tax | $ 4 | $ 1 | 17 | 25 |
Loews Hotels [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Other revenues | 513 | 452 | ||
Total | 513 | 452 | ||
Expenses: | ||||
Other operating expenses | 479 | 412 | ||
Interest | 17 | 15 | ||
Total | 496 | 427 | ||
Income (loss) before income tax | 17 | 25 | ||
Income tax (expense) benefit | (10) | (10) | ||
Net income (loss) | 7 | 15 | ||
Net income (loss) attributable to Loews Corporation | 7 | 15 | ||
Corporate and Other [Member] | ||||
Revenues: | ||||
Net investment income | 108 | 4 | ||
Intercompany interest and dividends | 706 | 733 | ||
Other revenues | 2 | 2 | ||
Total | 816 | 739 | ||
Expenses: | ||||
Other operating expenses | 82 | 61 | ||
Interest | 54 | 56 | ||
Total | 136 | 117 | ||
Income (loss) before income tax | 680 | 622 | ||
Income tax (expense) benefit | 8 | 41 | ||
Net income (loss) | 688 | 663 | ||
Net income (loss) attributable to Loews Corporation | $ 688 | $ 663 |