Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 14, 2021 | |
Document and Entity Information | ||
Document type | 10-Q | |
Document quarterly report | true | |
Document period end date | Sep. 30, 2021 | |
Document transition report | false | |
Entity file number | 001-10898 | |
Registrant name | Travelers Companies, Inc. | |
Entity incorporation, state | MN | |
Entity tax identification number | 41-0518860 | |
Entity address, address line one | 485 Lexington Avenue | |
Entity address, city | New York | |
Entity address, state | NY | |
Entity address, postal zip code | 10017 | |
City area code | 917 | |
Local phone number | 778-6000 | |
Title of 12(b) security | Common stock, without par value | |
Trading symbol | TRV | |
Security exchange name | NYSE | |
Entity current reporting status | Yes | |
Entity interactive data current | Yes | |
Filer category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity shell company | false | |
Common stock shares outstanding | 246,008,687 | |
Central index key | 0000086312 | |
Amendment flag | false | |
Current fiscal year end date | --12-31 | |
Document fiscal year focus | 2021 | |
Document fiscal period focus | Q3 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Premiums | $ 7,829 | $ 7,380 | $ 22,831 | $ 21,564 |
Net investment income | 771 | 671 | 2,290 | 1,550 |
Fee income | 97 | 101 | 302 | 323 |
Net realized investment gains (losses) | 8 | 37 | 113 | (48) |
Other revenues | 100 | 86 | 269 | 195 |
Total revenues | 8,805 | 8,275 | 25,805 | 23,584 |
Claims and expenses | ||||
Claims and claim adjustment expenses | 5,464 | 4,886 | 15,479 | 14,782 |
Amortization of deferred acquisition costs | 1,281 | 1,207 | 3,742 | 3,558 |
General and administrative expenses | 1,187 | 1,109 | 3,524 | 3,367 |
Interest expense | 87 | 87 | 252 | 256 |
Total claims and expenses | 8,019 | 7,289 | 22,997 | 21,963 |
Income before income taxes | 786 | 986 | 2,808 | 1,621 |
Income tax expense | 124 | 159 | 479 | 234 |
Net income | $ 662 | $ 827 | $ 2,329 | $ 1,387 |
Net income per share | ||||
Basic (in dollars per share) | $ 2.65 | $ 3.24 | $ 9.24 | $ 5.44 |
Diluted (in dollars per share) | $ 2.62 | $ 3.23 | $ 9.16 | $ 5.41 |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 247.7 | 253.3 | 250.1 | 253.5 |
Diluted (in shares) | 250.1 | 254.3 | 252.4 | 254.5 |
Cash dividends declared per common share (in dollars per share) | $ 0.88 | $ 0.85 | $ 2.61 | $ 2.52 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 662 | $ 827 | $ 2,329 | $ 1,387 |
Other comprehensive income (loss) | ||||
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | (686) | 217 | (1,749) | 2,001 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 0 | (7) | 0 | (10) |
Net changes in benefit plan assets and obligations | 26 | 20 | 77 | 64 |
Net changes in unrealized foreign currency translation | (91) | 79 | (25) | (137) |
Other comprehensive income (loss) before income taxes | (751) | 309 | (1,697) | 1,918 |
Income tax expense (benefit) | (148) | 53 | (361) | 420 |
Other comprehensive income (loss), net of taxes | (603) | 256 | (1,336) | 1,498 |
Comprehensive income | $ 59 | $ 1,083 | $ 993 | $ 2,885 |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited at September 30, 2021) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Fixed maturities, available for sale, at fair value (amortized cost $73,614 and $68,830; allowance for expected credit losses of $2 and $2) | $ 77,040 | $ 74,003 |
Equity securities, at fair value (cost $398 and $387) | 509 | 453 |
Real estate investments | 1,004 | 1,026 |
Short-term securities | 4,754 | 5,511 |
Other investments | 4,199 | 3,430 |
Total investments | 87,506 | 84,423 |
Cash | 818 | 721 |
Investment income accrued | 565 | 603 |
Premiums receivable (net of allowance for expected credit losses of $102 and $105) | 8,289 | 7,829 |
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $142 and $146) | 8,329 | 8,350 |
Ceded unearned premiums | 1,084 | 772 |
Deferred acquisition costs | 2,570 | 2,358 |
Contractholder receivables (net of allowance for expected credit losses of $19 and $19) | 4,024 | 4,242 |
Goodwill | 4,005 | 3,976 |
Other intangible assets | 309 | 317 |
Other assets | 3,207 | 3,173 |
Total assets | 120,706 | 116,764 |
Liabilities | ||
Claims and claim adjustment expense reserves | 56,805 | 54,521 |
Unearned premium reserves | 16,677 | 15,222 |
Contractholder payables | 4,043 | 4,261 |
Payables for reinsurance premiums | 621 | 356 |
Deferred taxes | 274 | 558 |
Debt | 7,290 | 6,550 |
Other liabilities | 6,522 | 6,095 |
Total liabilities | 92,232 | 87,563 |
Shareholders’ equity | ||
Common stock (1,750.0 shares authorized; 246.0 and 252.4 shares issued and outstanding) | 24,084 | 23,743 |
Retained earnings | 40,438 | 38,771 |
Accumulated other comprehensive income | 1,166 | 2,502 |
Treasury stock, at cost (536.4 and 527.3 shares) | (37,214) | (35,815) |
Total shareholders’ equity | 28,474 | 29,201 |
Total liabilities and shareholders’ equity | $ 120,706 | $ 116,764 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals (Unaudited at September 30, 2021) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 73,614 | $ 68,830 |
Fixed maturities, available for sale, allowance for expected credit losses | 2 | 2 |
Equity securities, cost | 398 | 387 |
Premiums receivable, allowance for expected credit losses | 102 | 105 |
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | 142 | 146 |
Contractholder receivables, allowance for expected credit losses | $ 19 | $ 19 |
Common stock, shares authorized (in shares) | 1,750 | 1,750 |
Common stock, shares issued (in shares) | 246 | 252.4 |
Common stock, shares outstanding (in shares) | 246 | 252.4 |
Treasury stock, at cost (in shares) | 536.4 | 527.3 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common stock [Member] | Retained earnings [Member] | Retained earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated other comprehensive income, net of tax [Member] | Treasury stock, at cost [Member] | Common shares outstanding [Member] |
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | $ 23,469 | $ 36,977 | $ (43) | $ 640 | $ (35,143) | ||
Balance, beginning of period at Dec. 31, 2019 | 23,469 | 36,977 | $ (43) | 640 | (35,143) | ||
Shareholders' Equity [Roll Forward] | |||||||
Employee share-based compensation | 64 | ||||||
Compensation amortization under share-based plans and other changes | 113 | ||||||
Net income | $ 1,387 | 1,387 | |||||
Dividends | (646) | ||||||
Other | 4 | ||||||
Other comprehensive income (loss) | 1,498 | 1,498 | |||||
Treasury stock acquired — share repurchase authorizations | (425) | ||||||
Net shares acquired related to employee share-based compensation plans | (46) | ||||||
Balance, end of period at Sep. 30, 2020 | 27,849 | 23,646 | 37,679 | 2,138 | (35,614) | ||
Balance, beginning of year (in shares) at Dec. 31, 2019 | 255.5 | ||||||
Common shares outstanding | |||||||
Treasury stock acquired - share repurchase authorizations (in shares) | (3.5) | ||||||
Net shares issued under employee share-based compensation plans (in shares) | 1.3 | ||||||
Balance, end of period (in shares) at Sep. 30, 2020 | 253.3 | ||||||
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | 23,606 | 37,069 | 1,882 | (35,614) | |||
Balance, beginning of period at Jun. 30, 2020 | 23,606 | 37,069 | 1,882 | (35,614) | |||
Shareholders' Equity [Roll Forward] | |||||||
Employee share-based compensation | 8 | ||||||
Compensation amortization under share-based plans and other changes | 32 | ||||||
Net income | 827 | 827 | |||||
Dividends | (218) | ||||||
Other | 1 | ||||||
Other comprehensive income (loss) | 256 | 256 | |||||
Treasury stock acquired — share repurchase authorizations | 0 | ||||||
Net shares acquired related to employee share-based compensation plans | 0 | ||||||
Balance, end of period at Sep. 30, 2020 | 27,849 | 23,646 | 37,679 | 2,138 | (35,614) | ||
Balance, beginning of year (in shares) at Jun. 30, 2020 | 253.2 | ||||||
Common shares outstanding | |||||||
Treasury stock acquired - share repurchase authorizations (in shares) | 0 | ||||||
Net shares issued under employee share-based compensation plans (in shares) | 0.1 | ||||||
Balance, end of period (in shares) at Sep. 30, 2020 | 253.3 | ||||||
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | 27,849 | 23,646 | 37,679 | 2,138 | (35,614) | ||
Shareholders' equity | 29,201 | 23,743 | 38,771 | 2,502 | (35,815) | ||
Balance, beginning of period at Dec. 31, 2020 | 29,201 | 23,743 | 38,771 | 2,502 | (35,815) | ||
Shareholders' Equity [Roll Forward] | |||||||
Employee share-based compensation | 214 | ||||||
Compensation amortization under share-based plans and other changes | 127 | ||||||
Net income | 2,329 | 2,329 | |||||
Dividends | (660) | ||||||
Other | (2) | ||||||
Other comprehensive income (loss) | (1,336) | (1,336) | |||||
Treasury stock acquired — share repurchase authorizations | (1,360) | (1,356) | |||||
Net shares acquired related to employee share-based compensation plans | (43) | (43) | |||||
Balance, end of period at Sep. 30, 2021 | $ 28,474 | 24,084 | 40,438 | 1,166 | (37,214) | ||
Balance, beginning of year (in shares) at Dec. 31, 2020 | 252.4 | 252.4 | |||||
Common shares outstanding | |||||||
Treasury stock acquired - share repurchase authorizations (in shares) | (8.8) | (8.8) | |||||
Net shares issued under employee share-based compensation plans (in shares) | 2.4 | ||||||
Balance, end of period (in shares) at Sep. 30, 2021 | 246 | 246 | |||||
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | 24,002 | 39,998 | 1,769 | (36,613) | |||
Balance, beginning of period at Jun. 30, 2021 | 24,002 | 39,998 | 1,769 | (36,613) | |||
Shareholders' Equity [Roll Forward] | |||||||
Employee share-based compensation | 45 | ||||||
Compensation amortization under share-based plans and other changes | 37 | ||||||
Net income | $ 662 | 662 | |||||
Dividends | (220) | ||||||
Other | (2) | ||||||
Other comprehensive income (loss) | (603) | (603) | |||||
Treasury stock acquired — share repurchase authorizations | (600) | (600) | |||||
Net shares acquired related to employee share-based compensation plans | (1) | (1) | |||||
Balance, end of period at Sep. 30, 2021 | $ 28,474 | 24,084 | 40,438 | 1,166 | (37,214) | ||
Balance, beginning of year (in shares) at Jun. 30, 2021 | 249.5 | ||||||
Common shares outstanding | |||||||
Treasury stock acquired - share repurchase authorizations (in shares) | (3.8) | (3.8) | |||||
Net shares issued under employee share-based compensation plans (in shares) | 0.3 | ||||||
Balance, end of period (in shares) at Sep. 30, 2021 | 246 | 246 | |||||
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | $ 28,474 | $ 24,084 | $ 40,438 | $ 1,166 | $ (37,214) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 2,329 | $ 1,387 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized investment (gains) losses | (113) | 48 |
Depreciation and amortization | 662 | 577 |
Deferred federal income tax expense (benefit) | 61 | (67) |
Amortization of deferred acquisition costs | 3,742 | 3,558 |
Equity in (income) loss from other investments | (774) | 32 |
Premiums receivable | (462) | (324) |
Reinsurance recoverables | 20 | (150) |
Deferred acquisition costs | (3,955) | (3,694) |
Claims and claim adjustment expense reserves | 2,299 | 2,673 |
Unearned premium reserves | 1,460 | 960 |
Other operating activities | 313 | (382) |
Net cash provided by operating activities | 5,582 | 4,618 |
Cash flows from investing activities | ||
Proceeds from maturities of fixed maturities | 6,523 | 5,241 |
Proceeds from sales of investments: | ||
Fixed maturities | 2,864 | 1,994 |
Equity securities | 74 | 76 |
Real estate investments | 7 | 0 |
Other investments | 275 | 184 |
Purchases of investments: | ||
Fixed maturities | (14,356) | (9,951) |
Equity securities | (68) | (80) |
Real estate investments | (22) | (33) |
Other investments | (643) | (321) |
Net sales (purchases) of short-term securities | 754 | (1,387) |
Securities transactions in course of settlement | 407 | 522 |
Acquisition, net of cash acquired | (38) | 0 |
Other investing activities | (199) | (222) |
Net cash used in investing activities | (4,422) | (3,977) |
Cash flows from financing activities | ||
Treasury stock acquired — share repurchase authorizations | (1,356) | (425) |
Treasury stock acquired — net employee share-based compensation | (43) | (46) |
Dividends paid to shareholders | (655) | (643) |
Issuance of debt | 739 | 490 |
Issuance of common stock — employee share options | 256 | 72 |
Net cash used in financing activities | (1,059) | (552) |
Effect of exchange rate changes on cash | (4) | 0 |
Net increase in cash | 97 | 89 |
Cash at beginning of year | 721 | 494 |
Cash at end of period | 818 | 583 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 543 | 413 |
Interest paid | $ 222 | $ 226 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | BASIS OF PRESENTATION AND ACCOUNTING POLICIES Basis of Presentation The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the Company’s 2020 Annual Report). The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. Adoption of Accounting Standards Income Taxes - Simplifying the Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board (FASB) issued updated guidance for the accounting for income taxes. The updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The Company adopted the updated guidance for the quarter ended March 31, 2021. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. For additional information regarding accounting standards that the Company adopted during the periods presented, see note 1 of notes to the consolidated financial statements in the Company’s 2020 Annual Report. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Nature of Operations The Company’s results are reported in the following three business segments — Business Insurance, Bond & Specialty Insurance and Personal Insurance. These segments reflect the manner in which the Company’s businesses are currently managed and represent an aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. For more information regarding the Company’s nature of operations, see the “Nature of Operations ” section of note 1 of notes to the consolidated financial statements in the Company’s 2020 Annual Report. The following tables summarize the components of the Company’s revenues, income and total assets by reportable business segments: (For the three months ended September 30, in millions) Business Bond & Specialty Personal Total 2021 Premiums $ 3,970 $ 806 $ 3,053 $ 7,829 Net investment income 575 63 133 771 Fee income 90 — 7 97 Other revenues 69 5 26 100 Total segment revenues (1) $ 4,704 $ 874 $ 3,219 $ 8,797 Segment income (loss) (1) $ 558 $ 174 $ (2) $ 730 2020 Premiums $ 3,841 $ 723 $ 2,816 $ 7,380 Net investment income 498 58 115 671 Fee income 95 — 6 101 Other revenues 58 7 21 86 Total segment revenues (1) $ 4,492 $ 788 $ 2,958 $ 8,238 Segment income (1) $ 365 $ 115 $ 392 $ 872 _________________________________________________________ (1) Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in "interest expense and other." Segment income (loss) for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses) and income (loss) from "interest expense and other." (For the nine months ended September 30, in millions) Business Bond & Specialty Personal Total 2021 Premiums $ 11,649 $ 2,325 $ 8,857 $ 22,831 Net investment income 1,713 186 391 2,290 Fee income 282 — 20 302 Other revenues 179 17 73 269 Total segment revenues (1) $ 13,823 $ 2,528 $ 9,341 $ 25,692 Segment income (1) $ 1,518 $ 498 $ 433 $ 2,449 2020 Premiums $ 11,440 $ 2,083 $ 8,041 $ 21,564 Net investment income 1,131 155 264 1,550 Fee income 305 — 18 323 Other revenues 125 17 53 195 Total segment revenues (1) $ 13,001 $ 2,255 $ 8,376 $ 23,632 Segment income (1) $ 596 $ 309 $ 738 $ 1,643 _________________________________________________________ (1) Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in "interest expense and other." Segment income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses) and income (loss) from "interest expense and other." Business Segment Reconciliations Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 789 $ 851 $ 2,410 $ 2,568 Commercial automobile 718 698 2,122 2,058 Commercial property 582 522 1,669 1,544 General liability 662 605 1,887 1,786 Commercial multi-peril 939 891 2,708 2,660 Other 17 15 45 38 Total Domestic 3,707 3,582 10,841 10,654 International 263 259 808 786 Total Business Insurance 3,970 3,841 11,649 11,440 Bond & Specialty Insurance: Domestic: Fidelity and surety 277 277 819 805 General liability 365 310 1,043 893 Other 54 60 165 178 Total Domestic 696 647 2,027 1,876 International 110 76 298 207 Total Bond & Specialty Insurance 806 723 2,325 2,083 Personal Insurance: Domestic: Automobile 1,445 1,391 4,220 3,896 Homeowners and Other 1,437 1,262 4,122 3,659 Total Domestic 2,882 2,653 8,342 7,555 International 171 163 515 486 Total Personal Insurance 3,053 2,816 8,857 8,041 Total earned premiums 7,829 7,380 22,831 21,564 Net investment income 771 671 2,290 1,550 Fee income 97 101 302 323 Other revenues 100 86 269 195 Total segment revenues 8,797 8,238 25,692 23,632 Net realized investment gains (losses) 8 37 113 (48) Total revenues $ 8,805 $ 8,275 $ 25,805 $ 23,584 Income reconciliation, net of tax Total segment income $ 730 $ 872 $ 2,449 $ 1,643 Interest Expense and Other (1) (75) (74) (216) (219) Core income 655 798 2,233 1,424 Net realized investment gains (losses) 7 29 88 (37) Impact of changes in tax laws and/or tax rates (2) — — 8 — Net income $ 662 $ 827 $ 2,329 $ 1,387 _________________________________________________________ (1) The primary component of Interest Expense and Other was after-tax interest expense of $69 million for both the three months ended September 30, 2021 and 2020 and $199 million and $202 million for the nine months ended September 30, 2021 and 2020, respectively. (2) Impact is recognized in the accounting period in which the change is enacted. (in millions) September 30, December 31, Asset reconciliation Business Insurance $ 90,661 $ 88,422 Bond & Specialty Insurance 10,313 9,420 Personal Insurance 19,028 18,328 Total assets by reportable segment 120,002 116,170 Other assets (1) 704 594 Total consolidated assets $ 120,706 $ 116,764 _________________________________________________________ (1) The primary components of other assets at both September 30, 2021 and December 31, 2020 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturities The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows: Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Fair Value (at September 30, 2021, in millions) Gains Losses U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 3,908 $ — $ 27 $ 20 $ 3,915 Obligations of states, municipalities and political subdivisions: Local general obligation 18,064 — 1,022 72 19,014 Revenue 10,785 — 660 36 11,409 State general obligation 1,170 — 66 3 1,233 Pre-refunded 3,885 — 218 — 4,103 Total obligations of states, municipalities and political subdivisions 33,904 — 1,966 111 35,759 Debt securities issued by foreign governments 1,037 — 12 5 1,044 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,727 — 89 1 1,815 All other corporate bonds 33,026 2 1,598 129 34,493 Redeemable preferred stock 12 — 2 — 14 Total $ 73,614 $ 2 $ 3,694 $ 266 $ 77,040 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Fair Value (at December 31, 2020, in millions) Gains Losses U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,111 $ — $ 38 $ — $ 2,149 Obligations of states, municipalities and political subdivisions: Local general obligation 17,289 — 1,370 2 18,657 Revenue 11,806 — 909 — 12,715 State general obligation 1,343 — 101 — 1,444 Pre-refunded 3,325 — 219 — 3,544 Total obligations of states, municipalities and political subdivisions 33,763 — 2,599 2 36,360 Debt securities issued by foreign governments 1,028 — 26 — 1,054 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,222 — 139 — 2,361 All other corporate bonds 29,683 2 2,382 9 32,054 Redeemable preferred stock 23 — 2 — 25 Total $ 68,830 $ 2 $ 5,186 $ 11 $ 74,003 Pre-refunded bonds of $4.10 billion and $3.54 billion at September 30, 2021 and December 31, 2020, respectively, were bonds for which states or municipalities have established irrevocable trusts, almost exclusively comprised of U.S. Treasury securities and obligations of U.S. government and government agencies and authorities. These trusts were created to fund the payment of principal and interest due under the bonds. Proceeds from sales of fixed maturities classified as available for sale were $2.86 billion and $1.99 billion during the nine months ended September 30, 2021 and 2020, respectively. Gross gains of $56 million and $52 million and gross losses of $5 million and $3 million were realized on those sales during the nine months ended September 30, 2021 and 2020, respectively. Equity Securities The cost and fair value of investments in equity securities were as follows: Fair (at September 30, 2021, in millions) Cost Gross Gains Gross Losses Value Public common stock $ 367 $ 105 $ 5 $ 467 Non-redeemable preferred stock 31 11 — 42 Total $ 398 $ 116 $ 5 $ 509 Fair (at December 31, 2020, in millions) Cost Gross Gains Gross Losses Value Public common stock $ 352 $ 70 $ 12 $ 410 Non-redeemable preferred stock 35 8 — 43 Total $ 387 $ 78 $ 12 $ 453 For the nine months ended September 30, 2021 and 2020, the Company recognized $45 million and $(14) million of net gains (losses) on equity securities still held as of September 30, 2021 and 2020, respectively. Unrealized Investment Losses The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position at September 30, 2021 and December 31, 2020, the aggregate fair value and gross unrealized loss by length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of notes to the consolidated financial statements in the Company’s 2020 Annual Report. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1 of notes to the consolidated financial statements in the Company’s 2020 Annual Report to determine whether a credit loss impairment exists. Less than 12 months 12 months or longer Total (at September 30, 2021, in millions) Fair Gross Fair Gross Fair Gross Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,804 $ 20 $ 5 $ — $ 1,809 $ 20 Obligations of states, municipalities and political subdivisions 5,143 107 116 4 5,259 111 Debt securities issued by foreign governments 391 5 2 — 393 5 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 233 1 1 — 234 1 All other corporate bonds 5,831 121 189 8 6,020 129 Total $ 13,402 $ 254 $ 313 $ 12 $ 13,715 $ 266 Less than 12 months 12 months or longer Total (at December 31, 2020, in millions) Fair Gross Fair Gross Fair Gross Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 92 $ — $ — $ — $ 92 $ — Obligations of states, municipalities and political subdivisions 245 2 — — 245 2 Debt securities issued by foreign governments 7 — — — 7 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 20 — 1 — 21 — All other corporate bonds 681 6 97 3 778 9 Total $ 1,045 $ 8 $ 98 $ 3 $ 1,143 $ 11 At September 30, 2021, the amount of gross unrealized losses for all fixed maturity investments reported at fair value for which fair value was less than 80% of amortized cost was not significant. Credit Impairment Charges The following tables present changes in the allowance for expected credit losses on fixed maturities classified as available for sale for the category of All Other Corporate Bonds (no other categories of fixed maturities currently have an allowance for expected credit losses): Fixed Maturities At and For the Three Months Ended September 30, 2021 At and For the Three Months Ended September 30, 2020 (in millions) All Other Corporate Bonds All Other Corporate Bonds Balance, beginning of period $ 2 $ 8 Additions for expected credit losses on securities where no credit losses were previously recognized — 1 Additions (reductions) for expected credit losses on securities where credit losses were previously recognized 1 (3) Reductions due to sales/defaults of credit-impaired securities (1) (2) Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell (1) — — Balance, end of period $ 2 $ 4 (1) Credit impairment charges recognized in net realized investment gains (losses) for each of the three months ended September 30, 2021 and 2020 included $0 million of credit losses on fixed maturity securities which the Company had the intent to sell. An allowance for expected credit losses was not previously recorded for these securities. Fixed Maturities At and For the Nine Months Ended September 30, 2021 At and For the Nine Months Ended September 30, 2020 (in millions) All Other Corporate Bonds All Other Corporate Bonds Balance, beginning of period $ 2 $ — Additions for expected credit losses on securities where no credit losses were previously recognized 1 9 Additions (reductions) for expected credit losses on securities where credit losses were previously recognized — (3) Reductions due to sales/defaults of credit-impaired securities (1) (2) Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell (1) — — Balance, end of period $ 2 $ 4 (1) Credit impairment charges recognized in net realized investment gains (losses) for the nine months ended September 30, 2021 and 2020 included $0 million and $14 million, respectively, of credit losses on fixed maturity securities which the Company had the intent to sell. An allowance for expected credit losses was not previously recorded for these securities. Total net credit impairment charges included in net realized investment gains (losses) in the consolidated statement of income were $1 million and $(4) million for the three months ended September 30, 2021 and 2020, respectively, and $1 million and $58 million for the nine months ended September 30, 2021 and 2020, respectively. Additionally, net realized investment gains (losses) in the first nine months of 2020 included $40 million of realized losses related to the other-than-temporary impairment of the carrying value of an equity method investment included in other investments. Credit losses related to the fixed maturity portfolio for both the three months and nine months ended September 30, 2021 and 2020 represented less than 1% of the fixed maturity portfolio on a pre-tax basis and less than 1% of shareholders’ equity on an after-tax basis. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows: • Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. • Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. • Level 3 - Valuations based on models where significant inputs are not observable. The unobservable inputs reflect the Company’s own assumptions about the inputs that market participants would use. Valuation of Investments Reported at Fair Value in Financial Statements The Company utilized a pricing service to estimate fair value measurements for approximately 99% of its fixed maturities at both September 30, 2021 and December 31, 2020. While the vast majority of the Company’s fixed maturities are included in Level 2, the Company holds a number of municipal bonds and corporate bonds which are not valued by the pricing service and estimates the fair value of these bonds using either another internal pricing matrix, a present value income approach, or a broker quote (collectively, the other methodologies). The other methodologies include some unobservable inputs that are significant to the valuation. Due to the limited amount of observable market information available in the estimation of fair value, the Company includes the fair value estimates for bonds that are valued using the other methodologies in Level 3. Additionally, the Company held investments in non-public common and preferred equity securities that are reported in other investments. Fair value estimates for these investments are determined either internally or by an external fund manager based on the impact of recent observable transactions on the investment’s equity, recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. Due to the significant unobservable inputs in these valuations, the Company includes the fair value estimate of $343 million and $35 million for these investments at September 30, 2021 and December 31, 2020, respectively, in the amounts disclosed in Level 3. For more information regarding the valuation of the Company’s fixed maturities, equity securities and other investments, see note 4 of notes to the consolidated financial statements in the Company’s 2020 Annual Report. Other Liabilities The Company has a put/call option that was entered into in connection with a business acquisition that allows the Company to acquire the remaining shares of the acquired company at a future date. The fair value of the put/call option at September 30, 2021 and December 31, 2020 was $4 million and $5 million, respectively, and was determined using an internal model and is based on the acquired company's financial performance, adjusted for a risk margin and discounted to present value. The Company includes the fair value estimate of the put/call option in Level 3. Fair Value Hierarchy The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis. (at September 30, 2021, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 3,915 $ 3,915 $ — $ — Obligations of states, municipalities and political subdivisions 35,759 5 35,750 4 Debt securities issued by foreign governments 1,044 — 1,044 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,815 — 1,734 81 All other corporate bonds 34,493 4 34,346 143 Redeemable preferred stock 14 — 14 — Total fixed maturities 77,040 3,924 72,888 228 Equity securities Public common stock 467 467 — — Non-redeemable preferred stock 42 16 26 — Total equity securities 509 483 26 — Other investments 361 18 — 343 Total $ 77,910 $ 4,425 $ 72,914 $ 571 Other liabilities $ 4 $ — $ — $ 4 (at December 31, 2020, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,149 $ 2,149 $ — $ — Obligations of states, municipalities and political subdivisions 36,360 — 36,349 11 Debt securities issued by foreign governments 1,054 — 1,054 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,361 — 2,361 — All other corporate bonds 32,054 — 31,899 155 Redeemable preferred stock 25 3 22 — Total fixed maturities 74,003 2,152 71,685 166 Equity securities Public common stock 410 410 — — Non-redeemable preferred stock 43 18 25 — Total equity securities 453 428 25 — Other investments 52 17 — 35 Total $ 74,508 $ 2,597 $ 71,710 $ 201 Other liabilities $ 5 $ — $ — $ 5 Level 3 investments increased during the nine months ended September 30, 2021, primarily driven by an increase in Other Investments. There was no other significant activity in Level 3 of the hierarchy during the nine months ended September 30, 2021 or the year ended December 31, 2020. Financial Instruments Disclosed, But Not Carried, At Fair Value The following tables present the carrying value and fair value of the Company’s financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized. (at September 30, 2021, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets Short-term securities $ 4,754 $ 4,754 $ 663 $ 4,040 $ 51 Financial liabilities Debt $ 7,190 $ 9,131 $ — $ 9,131 $ — Commercial paper $ 100 $ 100 $ — $ 100 $ — (at December 31, 2020, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets Short-term securities $ 5,511 $ 5,511 $ 630 $ 4,829 $ 52 Financial liabilities Debt $ 6,450 $ 8,976 $ — $ 8,976 $ — Commercial paper $ 100 $ 100 $ — $ 100 $ — |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | ALLOWANCE FOR EXPECTED CREDIT LOSSES Premiums Receivable The following tables present the balances of premiums receivable, net of the allowance for expected credit losses, at September 30, 2021 and 2020, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2021 and 2020. At and For the Three Months Ended September 30, 2021 At and For the Three Months Ended September 30, 2020 (in millions) Premiums Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Premiums Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance, beginning of period $ 8,555 $ 105 $ 8,459 $ 94 Current period change for expected credit losses 15 17 Write-offs of uncollectible premiums receivable 18 15 Balance, end of period $ 8,289 $ 102 $ 8,225 $ 96 At and For the Nine Months Ended September 30, 2021 At and For the Nine Months Ended September 30, 2020 (in millions) Premiums Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Premiums Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance, beginning of period $ 7,829 $ 105 $ 7,909 $ 49 Current period change for expected credit losses 45 84 Write-offs of uncollectible premiums receivable 48 37 Balance, end of period $ 8,289 $ 102 $ 8,225 $ 96 Reinsurance Recoverables The following tables present the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at September 30, 2021 and 2020, and the changes in the allowance for estimated uncollectible reinsurance for the three and nine months ended September 30, 2021 and 2020. At and For the Three Months Ended September 30, 2021 At and For the Three Months Ended September 30, 2020 (in millions) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, beginning of period $ 8,209 $ 135 $ 8,093 $ 156 Current period change for estimated uncollectible reinsurance 7 (16) Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 8,329 $ 142 $ 8,317 $ 140 At and For the Nine Months Ended September 30, 2021 At and For the Nine Months Ended September 30, 2020 (in millions) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, beginning of period $ 8,350 $ 146 $ 8,235 $ 92 Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2020 — 53 Current period change for estimated uncollectible reinsurance (4) (5) Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 8,329 $ 142 $ 8,317 $ 140 Of the total reinsurance recoverables at September 30, 2021, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.77 billion, or 86%, were rated by A.M. Best Company. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better. The remaining 14% of reinsurance recoverables were comprised of the following: 7% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools and 6% related to balances of companies not rated by A.M. Best Company. Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements. Contractholder Receivables The following tables present the balances of contractholder receivables, net of the allowance for expected credit losses, at September 30, 2021 and 2020, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2021 and 2020. At and For the Three Months Ended September 30, 2021 At and For the Three Months Ended September 30, 2020 (in millions) Contractholder Receivables, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Contractholder Receivables, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance, beginning of period $ 4,016 $ 19 $ 4,314 $ 22 Current period change for expected credit losses — — Write-offs of uncollectible contractholder receivables — 1 Balance, end of period $ 4,024 $ 19 $ 4,347 $ 21 At and For the Nine Months Ended September 30, 2021 At and For the Nine Months Ended September 30, 2020 (in millions) Contractholder Receivables, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Contractholder Receivables, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance, beginning of period $ 4,242 $ 19 $ 4,599 $ 20 Current period change for expected credit losses — 2 Write-offs of uncollectible contractholder receivables — 1 Balance, end of period $ 4,024 $ 19 $ 4,347 $ 21 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table presents the carrying amount of the Company’s goodwill by segment. Each reportable segment includes goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates. (in millions) September 30, December 31, Business Insurance $ 2,608 $ 2,613 Bond & Specialty Insurance 550 550 Personal Insurance (1) 821 787 Other 26 26 Total $ 4,005 $ 3,976 _________________________________________________________ (1) Goodwill at September 30, 2021 included approximately $33 million associated with a business acquired in the first quarter of 2021, which is deductible for tax purposes. Other Intangible Assets The following tables present a summary of the Company’s other intangible assets by major asset class. (at September 30, 2021, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 104 $ 39 $ 65 Contract-based (1) 205 187 18 Total subject to amortization 309 226 83 Not subject to amortization 226 — 226 Total $ 535 $ 226 $ 309 (at December 31, 2020, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 101 $ 31 $ 70 Contract-based (1) 205 184 21 Total subject to amortization 306 215 91 Not subject to amortization 226 — 226 Total $ 532 $ 215 $ 317 _________________________________________________________ (1) Contract-based intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangible assets. Fair value adjustments recorded in connection with insurance acquisitions were based on management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves. The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the amounts measured in accordance with the acquirer’s accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. Amortization expense of intangible assets was $4 million for each of the three months ended September 30, 2021 and 2020, and $11 million for each of the nine months ended September 30, 2021 and 2020. Amortization expense for all intangible assets subject to amortization is estimated to be $3 million for the remainder of 2021, $14 million in 2022, $13 million in 2023, $12 million in 2024 and $12 million in 2025. Amortization expense for intangible assets arising from insurance contracts acquired in a business combination is estimated to be $1 million for the remainder of 2021, $3 million in 2022, $3 million in 2023, $2 million in 2024 and $2 million in 2025. |
Insurance Claim Reserves
Insurance Claim Reserves | 9 Months Ended |
Sep. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
Insurance Claim Reserves | Claims and claim adjustment expense reserves were as follows: (in millions) September 30, December 31, Property-casualty $ 56,795 $ 54,510 Accident and health 10 11 Total $ 56,805 $ 54,521 The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses: Nine Months Ended September 30, (in millions) 2021 2020 Claims and claim adjustment expense reserves at beginning of year $ 54,510 $ 51,836 Less reinsurance recoverables on unpaid losses 8,153 8,035 Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2020 — 53 Net reserves at beginning of year 46,357 43,854 Estimated claims and claim adjustment expenses for claims arising in the current year 15,813 14,809 Estimated decrease in claims and claim adjustment expenses for claims arising in prior years (398) (108) Total increases 15,415 14,701 Claims and claim adjustment expense payments for claims arising in: Current year 5,653 4,960 Prior years 7,339 7,246 Total payments 12,992 12,206 Unrealized foreign exchange gain (18) (62) Net reserves at end of period 48,762 46,287 Plus reinsurance recoverables on unpaid losses 8,033 8,119 Claims and claim adjustment expense reserves at end of period $ 56,795 $ 54,406 Gross claims and claim adjustment expense reserves at September 30, 2021 increased by $2.29 billion from December 31, 2020, primarily reflecting the impacts of (i) catastrophe losses in the first nine months of 2021, (ii) loss cost trends for the current accident year and (iii) reduced claim settlement activity largely due to the disruptions in the judicial system related to COVID-19. Reinsurance recoverables on unpaid losses at September 30, 2021 decreased by $120 million from December 31, 2020, primarily reflecting the impacts of cash collections in the first nine months of 2021, partially offset by catastrophe losses in the same period. PG&E Corporation and Pacific Gas and Electric Company (together, PG&E) emerged from bankruptcy on July 1, 2020, the date the Debtors' and Shareholder Proponents' Joint Chapter 11 Plan of Reorganization Dated June 19, 2020 (the Plan) became effective. In accordance with the terms of the Plan, PG&E funded a trust from which the Company and other subrogation claimants have received, and/or will receive, recoveries related to the 2017 and 2018 California wildfires. In the third quarter of 2020, the Company recognized a subrogation benefit related to these claims of $403 million (the Company's estimate of its total recoveries from the trust prior to its expiration in 2025, pre-tax and net of expenses and amounts that inure to the benefit of the Company's reinsurers). Prior Year Reserve Development The following disclosures regarding reserve development are on a “net of reinsurance” basis. For the nine months ended September 30, 2021 and 2020, estimated claims and claim adjustment expenses incurred included $398 million and $108 million, respectively, of net favorable development for claims arising in prior years, including $443 million and $171 million, respectively, of net favorable prior year reserve development, and $36 million of accretion of discount in each period that impacted the Company's results of operations. Business Insurance. Net unfavorable prior year reserve development in the third quarter of 2021 totaled $108 million, primarily driven by an increase in asbestos reserves of $225 million, partially offset by better than expected loss experience in domestic operations in the workers' compensation product line for multiple accident years. Net unfavorable prior year reserve development in the third quarter of 2020 totaled $220 million, primarily driven by an increase in asbestos reserves of $295 million, primarily in the segment's domestic operations, higher than expected loss experience in the segment's domestic operations in the general liability product line (excluding asbestos and environmental) for primary and excess coverages, primarily due to an increase to the reserves in the Company's run-off operations related to a single insured arising out of policies issued more than 20 years ago and in the commercial multi-peril product line (excluding PG&E subrogation recoveries and asbestos and environmental) for recent accident years, partially offset by PG&E subrogation recoveries of $81 million described above and better than expected loss experience in the segment's domestic operations in the workers' compensation product line for multiple accident years. Net favorable prior year reserve development in the first nine months of 2021 totaled $99 million, primarily driven by better than expected loss experience in domestic operations in the workers' compensation product line for multiple accident years and in the commercial automobile and commercial property product lines for recent accident years and better than expected loss experience in the segment's international operations, partially offset by an increase in asbestos reserves of $225 million, an increase in other reserves related to run-off operations and an increase to environmental reserves. Net unfavorable prior year reserve development in the first nine months of 2020 totaled $215 million, primarily driven by an increase in asbestos reserves of $295 million, primarily in the segment's domestic operations, higher than expected loss experience in the segment's domestic operations in the general liability product line (excluding asbestos and environmental) for primary and excess coverages and the commercial automobile product line and the commercial multi-peril product line (excluding PG&E subrogation recoveries and asbestos and environmental) for recent accident years, partially offset by better than expected loss experience in the segment's domestic operations in the workers' compensation product line and the commercial property product line (excluding PG&E subrogation recoveries) for multiple accident years, as well as PG&E subrogation recoveries of $81 million described above. Bond & Specialty Insurance. Net favorable prior year reserve development in the third quarter of 2021 totaled $22 million, primarily driven by better than expected loss experience in the segment's domestic operations in the fidelity and surety product lines for recent accident years. There was no net prior year reserve development in the third quarter of 2020. Net favorable prior year reserve development in the first nine months of 2021 totaled $81 million, primarily driven by better than expected loss experience in the segment's domestic operations in the fidelity and surety product lines for recent accident years, partially offset by higher than expected loss experience in the general liability product line for management liability coverages for multiple accident years. Net unfavorable prior year reserve development in the first nine months of 2020 totaled $33 million, primarily driven by higher than expected loss experience in the segment's domestic operations in the general liability product line for management liability coverages for recent accident years. Personal Insurance. Net favorable prior year reserve development in the third quarter of 2021 totaled $30 million, primarily driven by better than expected loss experience in the segment's domestic operations in the homeowners and other product line for recent accident years. Net favorable prior year reserve development in the third quarter of 2020 totaled $362 million, primarily driven by $322 million of PG&E subrogation recoveries described above and better than expected loss experience in the segment's domestic operations in the automobile product line for recent accident years. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2021 | |
Other Comprehensive Income And Accumulated Other Comprehensive Income Disclosure [Abstract] | |
Other Comprehensive Income and Accumulated Other Comprehensive Income | OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the changes in the Company’s accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2021. Changes in Net Unrealized Gains on Investment Securities (in millions) Having No Credit Having Credit Net Benefit Plan Assets and Net Unrealized Total Accumulated Balance, June 30, 2021 $ 3,057 $ 182 $ (792) $ (678) $ 1,769 Other comprehensive income (loss) (OCI) before reclassifications, net of tax (530) — — (84) (614) Amounts reclassified from AOCI, net of tax (10) — 21 — 11 Net OCI, current period (540) — 21 (84) (603) Balance, September 30, 2021 $ 2,517 $ 182 $ (771) $ (762) $ 1,166 Changes in Net Unrealized Gains on Investment Securities (in millions) Having No Credit Losses Recognized in the Consolidated Statement of Income Having Credit Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity Net Unrealized Foreign Currency Translation Total Accumulated Other Comprehensive Income Balance, December 31, 2020 $ 3,892 $ 182 $ (832) $ (740) $ 2,502 Other comprehensive income (loss) (OCI) before reclassifications, net of tax (1,335) — — (22) (1,357) Amounts reclassified from AOCI, net of tax (40) — 61 — 21 Net OCI, current period (1,375) — 61 (22) (1,336) Balance, September 30, 2021 $ 2,517 $ 182 $ (771) $ (762) $ 1,166 The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit). Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income $ (686) $ 217 $ (1,749) $ 2,001 Income tax expense (benefit) (146) 46 (374) 428 Net of taxes (540) 171 (1,375) 1,573 Having credit losses recognized in the consolidated statement of income — (7) — (10) Income tax benefit — (2) — (3) Net of taxes — (5) — (7) Net changes in benefit plan assets and obligations 26 20 77 64 Income tax expense 5 4 16 13 Net of taxes 21 16 61 51 Net changes in unrealized foreign currency translation (91) 79 (25) (137) Income tax expense (benefit) (7) 5 (3) (18) Net of taxes (84) 74 (22) (119) Total other comprehensive income (loss) (751) 309 (1,697) 1,918 Total income tax expense (benefit) (148) 53 (361) 420 Total other comprehensive income (loss), net of taxes $ (603) $ 256 $ (1,336) $ 1,498 The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income. Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Reclassification adjustments related to unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (12) $ (23) $ (50) $ (31) Income tax expense (2) (2) (5) (10) (7) Net of taxes (10) (18) (40) (24) Having credit losses recognized in the consolidated statement of income (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Reclassification adjustment related to benefit plan assets and obligations: Claims and claim adjustment expenses (3) 10 8 31 26 General and administrative expenses (3) 16 12 46 37 Total 26 20 77 63 Income tax benefit (2) 5 4 16 13 Net of taxes 21 16 61 50 Reclassification adjustment related to foreign currency translation (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Total reclassifications 14 (3) 27 32 Total income tax (expense) benefit 3 (1) 6 6 Total reclassifications, net of taxes $ 11 $ (2) $ 21 $ 26 _________________________________________________________ (1) (Increases) decreases net realized investment gains (losses) on the consolidated statement of income. (2) (Increases) decreases income tax expense on the consolidated statement of income. (3) Increases (decreases) expenses on the consolidated statement of income. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt Issuance . On June 8, 2021, the Company issued $750 million aggregate principal amount of 3.05% senior notes that will mature on June 8, 2051. The net proceeds of the issuance, after the deduction of the underwriting discount and expenses payable by the Company, totaled approximately $739 million. Interest on the senior notes is payable semi-annually in arrears on June 8 and December 8. Prior to December 8, 2050, the senior notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any senior notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest to but excluding December 8, 2050 on any senior notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury rate (as defined in the senior notes), plus 15 basis points. On or after |
Common Share Repurchases
Common Share Repurchases | 9 Months Ended |
Sep. 30, 2021 | |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | |
Common Share Repurchases | COMMON SHARE REPURCHASES During the three and nine months ended September 30, 2021, the Company repurchased 3.8 million and 8.8 million common shares, respectively, under its share repurchase authorizations for total cost of $600 million and $1.36 billion, respectively. The average cost per share repurchased was $155.57 and $153.93, respectively. In addition, the Company acquired 12,181 shares and 0.3 million shares for a total cost of approximately $1 million and $43 million during the three and nine months ended September 30, 2021, respectively, that were not part of its publicly announced share repurchase authorizations. These shares consisted of shares retained to cover payroll withholding taxes in connection with the vesting of restricted stock unit awards and performance share awards, and shares used by employees to cover the price of certain stock options that were exercised. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings per Share | EARNINGS PER SHARE The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the periods presented: Three Months Ended Nine Months Ended (in millions, except per share amounts) 2021 2020 2021 2020 Basic and Diluted Net income, as reported $ 662 $ 827 $ 2,329 $ 1,387 Participating share-based awards — allocated income (5) (6) (17) (9) Net income available to common shareholders — basic and diluted $ 657 $ 821 $ 2,312 $ 1,378 Common Shares Basic Weighted average shares outstanding 247.7 253.3 250.1 253.5 Diluted Weighted average shares outstanding 247.7 253.3 250.1 253.5 Weighted average effects of dilutive securities — stock options and performance shares 2.4 1.0 2.3 1.0 Total 250.1 254.3 252.4 254.5 Net Income per Common Share Basic $ 2.65 $ 3.24 $ 9.24 $ 5.44 Diluted $ 2.62 $ 3.23 $ 9.16 $ 5.41 |
Share-Based Incentive Compensat
Share-Based Incentive Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Incentive Compensation | SHARE-BASED INCENTIVE COMPENSATION The following information relates to fully vested stock option awards at September 30, 2021: Stock Options Number Weighted Weighted Aggregate Vested at end of period (1) 7,292,324 $ 124.13 6.1 years $ 203 Exercisable at end of period 4,340,430 $ 118.45 4.6 years $ 146 _________________________________________________________ (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. The total compensation cost for all share-based incentive compensation awards recognized in earnings was $37 million and $33 million for the three months ended September 30, 2021 and 2020, respectively, and $126 million and $113 million for the nine months ended September 30, 2021 and 2020, respectively. The related tax benefits recognized in the consolidated statement of income were $7 million and $6 million for the three months ended September 30, 2021 and 2020, respectively, and $22 million and $20 million for the nine months ended September 30, 2021 and 2020, respectively. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at September 30, 2021 was $184 million, which is expected to be recognized over a weighted-average period of 1.9 years. |
Pension Plans, Retirement Benef
Pension Plans, Retirement Benefits and Savings Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plans, Retirement Benefits and Savings Plans | PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The following table summarizes the components of net periodic benefit cost (benefit) for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended September 30, 2021 and 2020. Pension Plans Postretirement Benefit Plans (for the three months ended September 30, in millions) 2021 2020 2021 2020 Net Periodic Benefit Cost (Benefit): Service cost $ 35 $ 34 $ — $ — Non-service cost (benefit): Interest cost on benefit obligation $ 21 $ 29 $ 1 $ 1 Expected return on plan assets (69) (69) — — Amortization of unrecognized: Prior service benefit (1) (1) (1) (1) Net actuarial (gain) loss 28 23 (1) (1) Total non-service cost (benefit) (21) (18) (1) (1) Net periodic benefit cost (benefit) $ 14 $ 16 $ (1) $ (1) The following table indicates the line items in which the respective service cost and non-service cost (benefit) are presented in the consolidated statement of income for the three months ended September 30, 2021 and 2020. Pension Plans Postretirement Benefit Plans (for the three months ended September 30, in millions) 2021 2020 2021 2020 Service Cost: Claims and claim adjustment expenses $ 14 $ 14 $ — $ — General and administrative expenses 21 20 — — Total service cost 35 34 — — Non-Service Cost (Benefit): Claims and claim adjustment expenses (9) (8) — (1) General and administrative expenses (12) (10) (1) — Total non-service cost (benefit) (21) (18) (1) (1) Net periodic benefit cost (benefit) $ 14 $ 16 $ (1) $ (1) The following table summarizes the components of net periodic benefit cost (benefit) for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the nine months ended September 30, 2021 and 2020. Pension Plans Postretirement Benefit Plans (for the nine months ended September 30, in millions) 2021 2020 2021 2020 Net Periodic Benefit Cost (Benefit): Service cost $ 106 $ 100 $ — $ — Non-service cost (benefit): Interest cost on benefit obligation 62 86 2 3 Expected return on plan assets (206) (206) — — Amortization of unrecognized: Prior service benefit (1) (1) (3) (3) Net actuarial (gain) loss 82 69 (2) (2) Total non-service cost (benefit) (63) (52) (3) (2) Net periodic benefit cost (benefit) $ 43 $ 48 $ (3) $ (2) The following table indicates the line items in which the respective service cost and non-service benefit cost (benefit) are presented in the consolidated statement of income for the nine months ended September 30, 2021 and 2020. Pension Plans Postretirement Benefit Plans (for the nine months ended September 30, in millions) 2021 2020 2021 2020 Service Cost: Claims and claim adjustment expenses $ 43 $ 42 $ — $ — General and administrative expenses 63 58 — — Total service cost 106 100 — — Non-Service Cost (Benefit): Claims and claim adjustment expenses (26) (22) (1) (1) General and administrative expenses (37) (30) (2) (1) Total non-service cost (benefit) (63) (52) (3) (2) Net periodic benefit cost (benefit) $ 43 $ 48 $ (3) $ (2) |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | LEASES The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease, and a right-of-use asset and lease liability is recognized as part of other assets and other liabilities, respectively, in the consolidated balance sheet. Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Company's discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. The Company, in determining the present value of lease payments, utilizes either the rate implicit in the lease, if that rate is readily determinable, or the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease. Lease expense is included in general and administrative expenses in the consolidated statement of income. Additional information regarding the Company’s real estate operating leases is as follows: Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Lease cost Operating leases $ 22 $ 23 $ 67 $ 71 Short-term leases (1) — 1 1 2 Lease expense 22 24 68 73 Less: sublease income (2) — — — — Net lease cost $ 22 $ 24 $ 68 $ 73 Other information on operating leases Cash payments to settle a lease liability reported in cash flows $ 25 $ 27 $ 78 $ 82 Right-of-use assets obtained in exchange for new lease liabilities $ 2 $ 8 $ 21 $ 26 Weighted average discount rate 2.37 % 2.86 % 2.37 % 2.86 % Weighted average remaining lease term 4.6 years 4.9 years 4.6 years 4.9 years _________________________________________________________ (1) Leases with a term of twelve months or less are not recorded on the consolidated balance sheet. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 9 Months Ended |
Sep. 30, 2021 | |
Contingencies, Commitments and Guarantees [Abstract] | |
Contingencies, Commitments and Guarantees | CONTINGENCIES, COMMITMENTS AND GUARANTEES Contingencies The major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or to which any of the Company’s properties is subject are described below. Asbestos and Environmental Claims and Litigation In the ordinary course of its insurance business, the Company has received and continues to receive claims for insurance arising under policies issued by the Company asserting alleged injuries and damages from asbestos- and environmental-related exposures that are the subject of related coverage litigation. The Company is defending asbestos- and environmental-related litigation vigorously and believes that it has meritorious defenses; however, the outcomes of these disputes are uncertain. In this regard, the Company employs dedicated specialists and comprehensive resolution strategies to manage asbestos and environmental loss exposure, including settling litigation under appropriate circumstances. Currently, it is not possible to predict legal outcomes and their impact on future loss development for claims and litigation relating to asbestos and environmental claims. Any such development could be affected by future court decisions and interpretations, as well as future changes, if any, in applicable legislation. Because of these uncertainties, additional liabilities may arise for amounts in excess of the Company’s current insurance reserves. In addition, the Company’s estimate of ultimate claims and claim adjustment expenses may change. These additional liabilities or changes in estimates, or a range of either, cannot now be reasonably estimated and could result in income statement charges that could be material to the Company’s results of operations in future periods. Other Proceedings Not Arising Under Insurance Contracts or Reinsurance Agreements The Company is involved in other lawsuits, including lawsuits alleging extra-contractual damages relating to insurance contracts or reinsurance agreements, that do not arise under insurance contracts or reinsurance agreements. The legal costs associated with such lawsuits are expensed in the period in which the costs are incurred. Based upon currently available information, the Company does not believe it is reasonably possible that any such lawsuit or related lawsuits would be material to the Company’s results of operations or would have a material adverse effect on the Company’s financial position or liquidity. Other Commitments and Guarantees Commitments Investment Commitments — The Company has unfunded commitments to private equity limited partnerships, real estate partnerships and others. These commitments totaled $1.64 billion and $1.76 billion at September 30, 2021 and December 31, 2020, respectively. Guarantees The maximum amount of the Company’s contingent obligation for indemnifications related to the sale of businesses that are quantifiable was $351 million at September 30, 2021. The maximum amount of the Company’s obligation related to the guarantee of certain insurance policy obligations of a former insurance subsidiary was $480 million at September 30, 2021, all of which is indemnified by a third party. For more information regarding Company guarantees, see note 17 of notes to the consolidated financial statements in the Company’s 2020 Annual Report. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Policy Text Block] | Basis of Presentation The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the Company’s 2020 Annual Report). |
Adoption of Accounting Standards [Policy Text Block] | Adoption of Accounting Standards Income Taxes - Simplifying the Accounting for Income Taxes In December 2019, the Financial Accounting Standards Board (FASB) issued updated guidance for the accounting for income taxes. The updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The Company adopted the updated guidance for the quarter ended March 31, 2021. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. For additional information regarding accounting standards that the Company adopted during the periods presented, see note 1 of notes to the consolidated financial statements in the Company’s 2020 Annual Report. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Company's revenues and income by segment [Table Text Block] | (For the three months ended September 30, in millions) Business Bond & Specialty Personal Total 2021 Premiums $ 3,970 $ 806 $ 3,053 $ 7,829 Net investment income 575 63 133 771 Fee income 90 — 7 97 Other revenues 69 5 26 100 Total segment revenues (1) $ 4,704 $ 874 $ 3,219 $ 8,797 Segment income (loss) (1) $ 558 $ 174 $ (2) $ 730 2020 Premiums $ 3,841 $ 723 $ 2,816 $ 7,380 Net investment income 498 58 115 671 Fee income 95 — 6 101 Other revenues 58 7 21 86 Total segment revenues (1) $ 4,492 $ 788 $ 2,958 $ 8,238 Segment income (1) $ 365 $ 115 $ 392 $ 872 _________________________________________________________ (1) Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in "interest expense and other." Segment income (loss) for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses) and income (loss) from "interest expense and other." (For the nine months ended September 30, in millions) Business Bond & Specialty Personal Total 2021 Premiums $ 11,649 $ 2,325 $ 8,857 $ 22,831 Net investment income 1,713 186 391 2,290 Fee income 282 — 20 302 Other revenues 179 17 73 269 Total segment revenues (1) $ 13,823 $ 2,528 $ 9,341 $ 25,692 Segment income (1) $ 1,518 $ 498 $ 433 $ 2,449 2020 Premiums $ 11,440 $ 2,083 $ 8,041 $ 21,564 Net investment income 1,131 155 264 1,550 Fee income 305 — 18 323 Other revenues 125 17 53 195 Total segment revenues (1) $ 13,001 $ 2,255 $ 8,376 $ 23,632 Segment income (1) $ 596 $ 309 $ 738 $ 1,643 _________________________________________________________ (1) Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in "interest expense and other." Segment income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses) and income (loss) from "interest expense and other." |
Business segment reconciliations of revenue and income, net of tax [Table Text Block] | Business Segment Reconciliations Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 789 $ 851 $ 2,410 $ 2,568 Commercial automobile 718 698 2,122 2,058 Commercial property 582 522 1,669 1,544 General liability 662 605 1,887 1,786 Commercial multi-peril 939 891 2,708 2,660 Other 17 15 45 38 Total Domestic 3,707 3,582 10,841 10,654 International 263 259 808 786 Total Business Insurance 3,970 3,841 11,649 11,440 Bond & Specialty Insurance: Domestic: Fidelity and surety 277 277 819 805 General liability 365 310 1,043 893 Other 54 60 165 178 Total Domestic 696 647 2,027 1,876 International 110 76 298 207 Total Bond & Specialty Insurance 806 723 2,325 2,083 Personal Insurance: Domestic: Automobile 1,445 1,391 4,220 3,896 Homeowners and Other 1,437 1,262 4,122 3,659 Total Domestic 2,882 2,653 8,342 7,555 International 171 163 515 486 Total Personal Insurance 3,053 2,816 8,857 8,041 Total earned premiums 7,829 7,380 22,831 21,564 Net investment income 771 671 2,290 1,550 Fee income 97 101 302 323 Other revenues 100 86 269 195 Total segment revenues 8,797 8,238 25,692 23,632 Net realized investment gains (losses) 8 37 113 (48) Total revenues $ 8,805 $ 8,275 $ 25,805 $ 23,584 Income reconciliation, net of tax Total segment income $ 730 $ 872 $ 2,449 $ 1,643 Interest Expense and Other (1) (75) (74) (216) (219) Core income 655 798 2,233 1,424 Net realized investment gains (losses) 7 29 88 (37) Impact of changes in tax laws and/or tax rates (2) — — 8 — Net income $ 662 $ 827 $ 2,329 $ 1,387 _________________________________________________________ (1) The primary component of Interest Expense and Other was after-tax interest expense of $69 million for both the three months ended September 30, 2021 and 2020 and $199 million and $202 million for the nine months ended September 30, 2021 and 2020, respectively. (2) Impact is recognized in the accounting period in which the change is enacted. |
Asset reconciliation [Table Text Block] | (in millions) September 30, December 31, Asset reconciliation Business Insurance $ 90,661 $ 88,422 Bond & Specialty Insurance 10,313 9,420 Personal Insurance 19,028 18,328 Total assets by reportable segment 120,002 116,170 Other assets (1) 704 594 Total consolidated assets $ 120,706 $ 116,764 _________________________________________________________ (1) The primary components of other assets at both September 30, 2021 and December 31, 2020 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Amortized cost and fair value of investments in fixed maturities [Table Text Block] | The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows: Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Fair Value (at September 30, 2021, in millions) Gains Losses U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 3,908 $ — $ 27 $ 20 $ 3,915 Obligations of states, municipalities and political subdivisions: Local general obligation 18,064 — 1,022 72 19,014 Revenue 10,785 — 660 36 11,409 State general obligation 1,170 — 66 3 1,233 Pre-refunded 3,885 — 218 — 4,103 Total obligations of states, municipalities and political subdivisions 33,904 — 1,966 111 35,759 Debt securities issued by foreign governments 1,037 — 12 5 1,044 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,727 — 89 1 1,815 All other corporate bonds 33,026 2 1,598 129 34,493 Redeemable preferred stock 12 — 2 — 14 Total $ 73,614 $ 2 $ 3,694 $ 266 $ 77,040 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Fair Value (at December 31, 2020, in millions) Gains Losses U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,111 $ — $ 38 $ — $ 2,149 Obligations of states, municipalities and political subdivisions: Local general obligation 17,289 — 1,370 2 18,657 Revenue 11,806 — 909 — 12,715 State general obligation 1,343 — 101 — 1,444 Pre-refunded 3,325 — 219 — 3,544 Total obligations of states, municipalities and political subdivisions 33,763 — 2,599 2 36,360 Debt securities issued by foreign governments 1,028 — 26 — 1,054 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,222 — 139 — 2,361 All other corporate bonds 29,683 2 2,382 9 32,054 Redeemable preferred stock 23 — 2 — 25 Total $ 68,830 $ 2 $ 5,186 $ 11 $ 74,003 |
Cost and fair value of investments in equity securities [Table Text Block] | The cost and fair value of investments in equity securities were as follows: Fair (at September 30, 2021, in millions) Cost Gross Gains Gross Losses Value Public common stock $ 367 $ 105 $ 5 $ 467 Non-redeemable preferred stock 31 11 — 42 Total $ 398 $ 116 $ 5 $ 509 Fair (at December 31, 2020, in millions) Cost Gross Gains Gross Losses Value Public common stock $ 352 $ 70 $ 12 $ 410 Non-redeemable preferred stock 35 8 — 43 Total $ 387 $ 78 $ 12 $ 453 |
Unrealized investment losses [Table Text Block] | The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position at September 30, 2021 and December 31, 2020, the aggregate fair value and gross unrealized loss by length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of notes to the consolidated financial statements in the Company’s 2020 Annual Report. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1 of notes to the consolidated financial statements in the Company’s 2020 Annual Report to determine whether a credit loss impairment exists. Less than 12 months 12 months or longer Total (at September 30, 2021, in millions) Fair Gross Fair Gross Fair Gross Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,804 $ 20 $ 5 $ — $ 1,809 $ 20 Obligations of states, municipalities and political subdivisions 5,143 107 116 4 5,259 111 Debt securities issued by foreign governments 391 5 2 — 393 5 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 233 1 1 — 234 1 All other corporate bonds 5,831 121 189 8 6,020 129 Total $ 13,402 $ 254 $ 313 $ 12 $ 13,715 $ 266 Less than 12 months 12 months or longer Total (at December 31, 2020, in millions) Fair Gross Fair Gross Fair Gross Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 92 $ — $ — $ — $ 92 $ — Obligations of states, municipalities and political subdivisions 245 2 — — 245 2 Debt securities issued by foreign governments 7 — — — 7 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 20 — 1 — 21 — All other corporate bonds 681 6 97 3 778 9 Total $ 1,045 $ 8 $ 98 $ 3 $ 1,143 $ 11 |
Changes in the allowance for expected credit losses on fixed maturities classified as available for sale [Table Text Block] | The following tables present changes in the allowance for expected credit losses on fixed maturities classified as available for sale for the category of All Other Corporate Bonds (no other categories of fixed maturities currently have an allowance for expected credit losses): Fixed Maturities At and For the Three Months Ended September 30, 2021 At and For the Three Months Ended September 30, 2020 (in millions) All Other Corporate Bonds All Other Corporate Bonds Balance, beginning of period $ 2 $ 8 Additions for expected credit losses on securities where no credit losses were previously recognized — 1 Additions (reductions) for expected credit losses on securities where credit losses were previously recognized 1 (3) Reductions due to sales/defaults of credit-impaired securities (1) (2) Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell (1) — — Balance, end of period $ 2 $ 4 (1) Credit impairment charges recognized in net realized investment gains (losses) for each of the three months ended September 30, 2021 and 2020 included $0 million of credit losses on fixed maturity securities which the Company had the intent to sell. An allowance for expected credit losses was not previously recorded for these securities. Fixed Maturities At and For the Nine Months Ended September 30, 2021 At and For the Nine Months Ended September 30, 2020 (in millions) All Other Corporate Bonds All Other Corporate Bonds Balance, beginning of period $ 2 $ — Additions for expected credit losses on securities where no credit losses were previously recognized 1 9 Additions (reductions) for expected credit losses on securities where credit losses were previously recognized — (3) Reductions due to sales/defaults of credit-impaired securities (1) (2) Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell (1) — — Balance, end of period $ 2 $ 4 (1) Credit impairment charges recognized in net realized investment gains (losses) for the nine months ended September 30, 2021 and 2020 included $0 million and $14 million, respectively, of credit losses on fixed maturity securities which the Company had the intent to sell. An allowance for expected credit losses was not previously recorded for these securities. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured on a recurring basis [Table Text Block] | The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis. (at September 30, 2021, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 3,915 $ 3,915 $ — $ — Obligations of states, municipalities and political subdivisions 35,759 5 35,750 4 Debt securities issued by foreign governments 1,044 — 1,044 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,815 — 1,734 81 All other corporate bonds 34,493 4 34,346 143 Redeemable preferred stock 14 — 14 — Total fixed maturities 77,040 3,924 72,888 228 Equity securities Public common stock 467 467 — — Non-redeemable preferred stock 42 16 26 — Total equity securities 509 483 26 — Other investments 361 18 — 343 Total $ 77,910 $ 4,425 $ 72,914 $ 571 Other liabilities $ 4 $ — $ — $ 4 (at December 31, 2020, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,149 $ 2,149 $ — $ — Obligations of states, municipalities and political subdivisions 36,360 — 36,349 11 Debt securities issued by foreign governments 1,054 — 1,054 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,361 — 2,361 — All other corporate bonds 32,054 — 31,899 155 Redeemable preferred stock 25 3 22 — Total fixed maturities 74,003 2,152 71,685 166 Equity securities Public common stock 410 410 — — Non-redeemable preferred stock 43 18 25 — Total equity securities 453 428 25 — Other investments 52 17 — 35 Total $ 74,508 $ 2,597 $ 71,710 $ 201 Other liabilities $ 5 $ — $ — $ 5 |
Carrying value and fair value of the Company's financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized [Table Text Block] | The following tables present the carrying value and fair value of the Company’s financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized. (at September 30, 2021, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets Short-term securities $ 4,754 $ 4,754 $ 663 $ 4,040 $ 51 Financial liabilities Debt $ 7,190 $ 9,131 $ — $ 9,131 $ — Commercial paper $ 100 $ 100 $ — $ 100 $ — (at December 31, 2020, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets Short-term securities $ 5,511 $ 5,511 $ 630 $ 4,829 $ 52 Financial liabilities Debt $ 6,450 $ 8,976 $ — $ 8,976 $ — Commercial paper $ 100 $ 100 $ — $ 100 $ — |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
Changes in the allowance for expected credit losses on premiums receivable [Table Text Block] | The following tables present the balances of premiums receivable, net of the allowance for expected credit losses, at September 30, 2021 and 2020, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2021 and 2020. At and For the Three Months Ended September 30, 2021 At and For the Three Months Ended September 30, 2020 (in millions) Premiums Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Premiums Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance, beginning of period $ 8,555 $ 105 $ 8,459 $ 94 Current period change for expected credit losses 15 17 Write-offs of uncollectible premiums receivable 18 15 Balance, end of period $ 8,289 $ 102 $ 8,225 $ 96 At and For the Nine Months Ended September 30, 2021 At and For the Nine Months Ended September 30, 2020 (in millions) Premiums Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Premiums Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance, beginning of period $ 7,829 $ 105 $ 7,909 $ 49 Current period change for expected credit losses 45 84 Write-offs of uncollectible premiums receivable 48 37 Balance, end of period $ 8,289 $ 102 $ 8,225 $ 96 |
Changes in the allowance for estimated uncollectible reinsurance [Table Text Block] | The following tables present the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at September 30, 2021 and 2020, and the changes in the allowance for estimated uncollectible reinsurance for the three and nine months ended September 30, 2021 and 2020. At and For the Three Months Ended September 30, 2021 At and For the Three Months Ended September 30, 2020 (in millions) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, beginning of period $ 8,209 $ 135 $ 8,093 $ 156 Current period change for estimated uncollectible reinsurance 7 (16) Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 8,329 $ 142 $ 8,317 $ 140 At and For the Nine Months Ended September 30, 2021 At and For the Nine Months Ended September 30, 2020 (in millions) Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance Allowance for Estimated Uncollectible Reinsurance Balance, beginning of period $ 8,350 $ 146 $ 8,235 $ 92 Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2020 — 53 Current period change for estimated uncollectible reinsurance (4) (5) Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 8,329 $ 142 $ 8,317 $ 140 |
Changes in the allowance for expected credit losses on contractholder receivables [Table Text Block] | The following tables present the balances of contractholder receivables, net of the allowance for expected credit losses, at September 30, 2021 and 2020, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2021 and 2020. At and For the Three Months Ended September 30, 2021 At and For the Three Months Ended September 30, 2020 (in millions) Contractholder Receivables, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Contractholder Receivables, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance, beginning of period $ 4,016 $ 19 $ 4,314 $ 22 Current period change for expected credit losses — — Write-offs of uncollectible contractholder receivables — 1 Balance, end of period $ 4,024 $ 19 $ 4,347 $ 21 At and For the Nine Months Ended September 30, 2021 At and For the Nine Months Ended September 30, 2020 (in millions) Contractholder Receivables, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Contractholder Receivables, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance, beginning of period $ 4,242 $ 19 $ 4,599 $ 20 Current period change for expected credit losses — 2 Write-offs of uncollectible contractholder receivables — 1 Balance, end of period $ 4,024 $ 19 $ 4,347 $ 21 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by segment [Table Text Block] | The following table presents the carrying amount of the Company’s goodwill by segment. Each reportable segment includes goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates. (in millions) September 30, December 31, Business Insurance $ 2,608 $ 2,613 Bond & Specialty Insurance 550 550 Personal Insurance (1) 821 787 Other 26 26 Total $ 4,005 $ 3,976 _________________________________________________________ |
Other intangible assets subject to amortization [Table Text Block] | The following tables present a summary of the Company’s other intangible assets by major asset class. (at September 30, 2021, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 104 $ 39 $ 65 Contract-based (1) 205 187 18 Total subject to amortization 309 226 83 Not subject to amortization 226 — 226 Total $ 535 $ 226 $ 309 (at December 31, 2020, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 101 $ 31 $ 70 Contract-based (1) 205 184 21 Total subject to amortization 306 215 91 Not subject to amortization 226 — 226 Total $ 532 $ 215 $ 317 _________________________________________________________ (1) Contract-based intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangible assets. Fair value adjustments recorded in connection with insurance acquisitions were based on management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves. The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the amounts measured in accordance with the acquirer’s accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. |
Other intangible assets not subject to amortization [Table Text Block] | The following tables present a summary of the Company’s other intangible assets by major asset class. (at September 30, 2021, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 104 $ 39 $ 65 Contract-based (1) 205 187 18 Total subject to amortization 309 226 83 Not subject to amortization 226 — 226 Total $ 535 $ 226 $ 309 (at December 31, 2020, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 101 $ 31 $ 70 Contract-based (1) 205 184 21 Total subject to amortization 306 215 91 Not subject to amortization 226 — 226 Total $ 532 $ 215 $ 317 _________________________________________________________ (1) Contract-based intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangible assets. Fair value adjustments recorded in connection with insurance acquisitions were based on management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves. The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the amounts measured in accordance with the acquirer’s accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. |
Insurance Claim Reserves (Table
Insurance Claim Reserves (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
Claims and claim adjustment expense reserves [Table Text Block] | Claims and claim adjustment expense reserves were as follows: (in millions) September 30, December 31, Property-casualty $ 56,795 $ 54,510 Accident and health 10 11 Total $ 56,805 $ 54,521 |
Reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses [Table Text Block] | The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses: Nine Months Ended September 30, (in millions) 2021 2020 Claims and claim adjustment expense reserves at beginning of year $ 54,510 $ 51,836 Less reinsurance recoverables on unpaid losses 8,153 8,035 Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2020 — 53 Net reserves at beginning of year 46,357 43,854 Estimated claims and claim adjustment expenses for claims arising in the current year 15,813 14,809 Estimated decrease in claims and claim adjustment expenses for claims arising in prior years (398) (108) Total increases 15,415 14,701 Claims and claim adjustment expense payments for claims arising in: Current year 5,653 4,960 Prior years 7,339 7,246 Total payments 12,992 12,206 Unrealized foreign exchange gain (18) (62) Net reserves at end of period 48,762 46,287 Plus reinsurance recoverables on unpaid losses 8,033 8,119 Claims and claim adjustment expense reserves at end of period $ 56,795 $ 54,406 |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Comprehensive Income And Accumulated Other Comprehensive Income Disclosure [Abstract] | |
Changes in accumulated other comprehensive income (AOCI) [Table Text Block] | The following table presents the changes in the Company’s accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2021. Changes in Net Unrealized Gains on Investment Securities (in millions) Having No Credit Having Credit Net Benefit Plan Assets and Net Unrealized Total Accumulated Balance, June 30, 2021 $ 3,057 $ 182 $ (792) $ (678) $ 1,769 Other comprehensive income (loss) (OCI) before reclassifications, net of tax (530) — — (84) (614) Amounts reclassified from AOCI, net of tax (10) — 21 — 11 Net OCI, current period (540) — 21 (84) (603) Balance, September 30, 2021 $ 2,517 $ 182 $ (771) $ (762) $ 1,166 Changes in Net Unrealized Gains on Investment Securities (in millions) Having No Credit Losses Recognized in the Consolidated Statement of Income Having Credit Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity Net Unrealized Foreign Currency Translation Total Accumulated Other Comprehensive Income Balance, December 31, 2020 $ 3,892 $ 182 $ (832) $ (740) $ 2,502 Other comprehensive income (loss) (OCI) before reclassifications, net of tax (1,335) — — (22) (1,357) Amounts reclassified from AOCI, net of tax (40) — 61 — 21 Net OCI, current period (1,375) — 61 (22) (1,336) Balance, September 30, 2021 $ 2,517 $ 182 $ (771) $ (762) $ 1,166 |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) for each component [Table Text Block] | The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit). Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income $ (686) $ 217 $ (1,749) $ 2,001 Income tax expense (benefit) (146) 46 (374) 428 Net of taxes (540) 171 (1,375) 1,573 Having credit losses recognized in the consolidated statement of income — (7) — (10) Income tax benefit — (2) — (3) Net of taxes — (5) — (7) Net changes in benefit plan assets and obligations 26 20 77 64 Income tax expense 5 4 16 13 Net of taxes 21 16 61 51 Net changes in unrealized foreign currency translation (91) 79 (25) (137) Income tax expense (benefit) (7) 5 (3) (18) Net of taxes (84) 74 (22) (119) Total other comprehensive income (loss) (751) 309 (1,697) 1,918 Total income tax expense (benefit) (148) 53 (361) 420 Total other comprehensive income (loss), net of taxes $ (603) $ 256 $ (1,336) $ 1,498 |
Pre-tax and related income tax (expense) benefit components of the amounts reclassified from accumulated other comprehensive income to the consolidated statement of income [Table Text Block] | The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income. Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Reclassification adjustments related to unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (12) $ (23) $ (50) $ (31) Income tax expense (2) (2) (5) (10) (7) Net of taxes (10) (18) (40) (24) Having credit losses recognized in the consolidated statement of income (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Reclassification adjustment related to benefit plan assets and obligations: Claims and claim adjustment expenses (3) 10 8 31 26 General and administrative expenses (3) 16 12 46 37 Total 26 20 77 63 Income tax benefit (2) 5 4 16 13 Net of taxes 21 16 61 50 Reclassification adjustment related to foreign currency translation (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Total reclassifications 14 (3) 27 32 Total income tax (expense) benefit 3 (1) 6 6 Total reclassifications, net of taxes $ 11 $ (2) $ 21 $ 26 _________________________________________________________ (1) (Increases) decreases net realized investment gains (losses) on the consolidated statement of income. (2) (Increases) decreases income tax expense on the consolidated statement of income. (3) Increases (decreases) expenses on the consolidated statement of income. |
Earnings per Share (Table)
Earnings per Share (Table) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings per share reconciliation [Table Text Block] | The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the periods presented: Three Months Ended Nine Months Ended (in millions, except per share amounts) 2021 2020 2021 2020 Basic and Diluted Net income, as reported $ 662 $ 827 $ 2,329 $ 1,387 Participating share-based awards — allocated income (5) (6) (17) (9) Net income available to common shareholders — basic and diluted $ 657 $ 821 $ 2,312 $ 1,378 Common Shares Basic Weighted average shares outstanding 247.7 253.3 250.1 253.5 Diluted Weighted average shares outstanding 247.7 253.3 250.1 253.5 Weighted average effects of dilutive securities — stock options and performance shares 2.4 1.0 2.3 1.0 Total 250.1 254.3 252.4 254.5 Net Income per Common Share Basic $ 2.65 $ 3.24 $ 9.24 $ 5.44 Diluted $ 2.62 $ 3.23 $ 9.16 $ 5.41 |
Share-Based Incentive Compens_2
Share-Based Incentive Compensation (Table) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Information for fully vested stock option awards [Table Text Block] | The following information relates to fully vested stock option awards at September 30, 2021: Stock Options Number Weighted Weighted Aggregate Vested at end of period (1) 7,292,324 $ 124.13 6.1 years $ 203 Exercisable at end of period 4,340,430 $ 118.45 4.6 years $ 146 _________________________________________________________ (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. |
Pension Plans, Retirement Ben_2
Pension Plans, Retirement Benefits and Savings Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Summary of the components of net periodic benefit cost (benefit) for the Company's pension and postretirement benefit plans recognized in the consolidated statement of income [Table Text Block] | The following table summarizes the components of net periodic benefit cost (benefit) for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended September 30, 2021 and 2020. Pension Plans Postretirement Benefit Plans (for the three months ended September 30, in millions) 2021 2020 2021 2020 Net Periodic Benefit Cost (Benefit): Service cost $ 35 $ 34 $ — $ — Non-service cost (benefit): Interest cost on benefit obligation $ 21 $ 29 $ 1 $ 1 Expected return on plan assets (69) (69) — — Amortization of unrecognized: Prior service benefit (1) (1) (1) (1) Net actuarial (gain) loss 28 23 (1) (1) Total non-service cost (benefit) (21) (18) (1) (1) Net periodic benefit cost (benefit) $ 14 $ 16 $ (1) $ (1) The following table summarizes the components of net periodic benefit cost (benefit) for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the nine months ended September 30, 2021 and 2020. Pension Plans Postretirement Benefit Plans (for the nine months ended September 30, in millions) 2021 2020 2021 2020 Net Periodic Benefit Cost (Benefit): Service cost $ 106 $ 100 $ — $ — Non-service cost (benefit): Interest cost on benefit obligation 62 86 2 3 Expected return on plan assets (206) (206) — — Amortization of unrecognized: Prior service benefit (1) (1) (3) (3) Net actuarial (gain) loss 82 69 (2) (2) Total non-service cost (benefit) (63) (52) (3) (2) Net periodic benefit cost (benefit) $ 43 $ 48 $ (3) $ (2) |
Consolidated statement of income line items impacted by service costs and non-service cost (benefit) [Table Text Block] | The following table indicates the line items in which the respective service cost and non-service cost (benefit) are presented in the consolidated statement of income for the three months ended September 30, 2021 and 2020. Pension Plans Postretirement Benefit Plans (for the three months ended September 30, in millions) 2021 2020 2021 2020 Service Cost: Claims and claim adjustment expenses $ 14 $ 14 $ — $ — General and administrative expenses 21 20 — — Total service cost 35 34 — — Non-Service Cost (Benefit): Claims and claim adjustment expenses (9) (8) — (1) General and administrative expenses (12) (10) (1) — Total non-service cost (benefit) (21) (18) (1) (1) Net periodic benefit cost (benefit) $ 14 $ 16 $ (1) $ (1) The following table indicates the line items in which the respective service cost and non-service benefit cost (benefit) are presented in the consolidated statement of income for the nine months ended September 30, 2021 and 2020. Pension Plans Postretirement Benefit Plans (for the nine months ended September 30, in millions) 2021 2020 2021 2020 Service Cost: Claims and claim adjustment expenses $ 43 $ 42 $ — $ — General and administrative expenses 63 58 — — Total service cost 106 100 — — Non-Service Cost (Benefit): Claims and claim adjustment expenses (26) (22) (1) (1) General and administrative expenses (37) (30) (2) (1) Total non-service cost (benefit) (63) (52) (3) (2) Net periodic benefit cost (benefit) $ 43 $ 48 $ (3) $ (2) |
Leases (Table)
Leases (Table) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Additional information regarding real estate operating leases | Lease expense is included in general and administrative expenses in the consolidated statement of income. Additional information regarding the Company’s real estate operating leases is as follows: Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Lease cost Operating leases $ 22 $ 23 $ 67 $ 71 Short-term leases (1) — 1 1 2 Lease expense 22 24 68 73 Less: sublease income (2) — — — — Net lease cost $ 22 $ 24 $ 68 $ 73 Other information on operating leases Cash payments to settle a lease liability reported in cash flows $ 25 $ 27 $ 78 $ 82 Right-of-use assets obtained in exchange for new lease liabilities $ 2 $ 8 $ 21 $ 26 Weighted average discount rate 2.37 % 2.86 % 2.37 % 2.86 % Weighted average remaining lease term 4.6 years 4.9 years 4.6 years 4.9 years _________________________________________________________ (1) Leases with a term of twelve months or less are not recorded on the consolidated balance sheet. |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment reporting information | ||||
Number of reportable business segments | segment | 3 | |||
Premiums | $ 7,829 | $ 7,380 | $ 22,831 | $ 21,564 |
Net investment income | 771 | 671 | 2,290 | 1,550 |
Fee income | 97 | 101 | 302 | 323 |
Other revenues | 100 | 86 | 269 | 195 |
Net realized investment gains (losses) | 8 | 37 | 113 | (48) |
Total revenues | 8,805 | 8,275 | 25,805 | 23,584 |
Core income (loss) | 655 | 798 | 2,233 | 1,424 |
Net realized investment gains (losses), net of tax | 7 | 29 | 88 | (37) |
Impact of changes in tax laws and/or tax rates | 0 | 0 | 8 | 0 |
Net income | 662 | 827 | 2,329 | 1,387 |
Reportable Segments [Member] | ||||
Segment reporting information | ||||
Premiums | 7,829 | 7,380 | 22,831 | 21,564 |
Net investment income | 771 | 671 | 2,290 | 1,550 |
Fee income | 97 | 101 | 302 | 323 |
Other revenues | 100 | 86 | 269 | 195 |
Total segment revenues | 8,797 | 8,238 | 25,692 | 23,632 |
Core income (loss) | 730 | 872 | 2,449 | 1,643 |
Reportable Segments [Member] | Business Insurance [Member] | ||||
Segment reporting information | ||||
Premiums | 3,970 | 3,841 | 11,649 | 11,440 |
Net investment income | 575 | 498 | 1,713 | 1,131 |
Fee income | 90 | 95 | 282 | 305 |
Other revenues | 69 | 58 | 179 | 125 |
Total segment revenues | 4,704 | 4,492 | 13,823 | 13,001 |
Core income (loss) | 558 | 365 | 1,518 | 596 |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | ||||
Segment reporting information | ||||
Premiums | 3,707 | 3,582 | 10,841 | 10,654 |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Workers' compensation [Member] | ||||
Segment reporting information | ||||
Premiums | 789 | 851 | 2,410 | 2,568 |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Automobile [Member] | ||||
Segment reporting information | ||||
Premiums | 718 | 698 | 2,122 | 2,058 |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial property [Member] | ||||
Segment reporting information | ||||
Premiums | 582 | 522 | 1,669 | 1,544 |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | General liability [Member] | ||||
Segment reporting information | ||||
Premiums | 662 | 605 | 1,887 | 1,786 |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial multi-peril [Member] | ||||
Segment reporting information | ||||
Premiums | 939 | 891 | 2,708 | 2,660 |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Other [Member] | ||||
Segment reporting information | ||||
Premiums | 17 | 15 | 45 | 38 |
Reportable Segments [Member] | Business Insurance [Member] | International [Member] | ||||
Segment reporting information | ||||
Premiums | 263 | 259 | 808 | 786 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||||
Segment reporting information | ||||
Premiums | 806 | 723 | 2,325 | 2,083 |
Net investment income | 63 | 58 | 186 | 155 |
Fee income | 0 | 0 | 0 | 0 |
Other revenues | 5 | 7 | 17 | 17 |
Total segment revenues | 874 | 788 | 2,528 | 2,255 |
Core income (loss) | 174 | 115 | 498 | 309 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | ||||
Segment reporting information | ||||
Premiums | 696 | 647 | 2,027 | 1,876 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | General liability [Member] | ||||
Segment reporting information | ||||
Premiums | 365 | 310 | 1,043 | 893 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Fidelity and surety [Member] | ||||
Segment reporting information | ||||
Premiums | 277 | 277 | 819 | 805 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Other [Member] | ||||
Segment reporting information | ||||
Premiums | 54 | 60 | 165 | 178 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | International [Member] | ||||
Segment reporting information | ||||
Premiums | 110 | 76 | 298 | 207 |
Reportable Segments [Member] | Personal Insurance [Member] | ||||
Segment reporting information | ||||
Premiums | 3,053 | 2,816 | 8,857 | 8,041 |
Net investment income | 133 | 115 | 391 | 264 |
Fee income | 7 | 6 | 20 | 18 |
Other revenues | 26 | 21 | 73 | 53 |
Total segment revenues | 3,219 | 2,958 | 9,341 | 8,376 |
Core income (loss) | (2) | 392 | 433 | 738 |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | ||||
Segment reporting information | ||||
Premiums | 2,882 | 2,653 | 8,342 | 7,555 |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | Automobile [Member] | ||||
Segment reporting information | ||||
Premiums | 1,445 | 1,391 | 4,220 | 3,896 |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | Homeowners and Other [Member] | ||||
Segment reporting information | ||||
Premiums | 1,437 | 1,262 | 4,122 | 3,659 |
Reportable Segments [Member] | Personal Insurance [Member] | International [Member] | ||||
Segment reporting information | ||||
Premiums | 171 | 163 | 515 | 486 |
Other [Member] | ||||
Segment reporting information | ||||
Core income (loss) | (75) | (74) | (216) | (219) |
After-tax interest expense | $ 69 | $ 69 | $ 199 | $ 202 |
Segment Information (Details) -
Segment Information (Details) - Assets by Segment - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets by segment | ||
Total assets | $ 120,706 | $ 116,764 |
Reportable Segments [Member] | ||
Assets by segment | ||
Total assets | 120,002 | 116,170 |
Reportable Segments [Member] | Business Insurance [Member] | ||
Assets by segment | ||
Total assets | 90,661 | 88,422 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||
Assets by segment | ||
Total assets | 10,313 | 9,420 |
Reportable Segments [Member] | Personal Insurance [Member] | ||
Assets by segment | ||
Total assets | 19,028 | 18,328 |
Other assets [Member] | ||
Assets by segment | ||
Total assets | $ 704 | $ 594 |
Investments (Details) - Investm
Investments (Details) - Investment Information, Debt Securities - USD ($) $ in Millions | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Investment disclosure details | ||||||
Fixed maturities, amortized cost | $ 73,614 | $ 68,830 | ||||
Allowance for expected credit losses | 2 | 2 | ||||
Gross unrealized gains | 3,694 | 5,186 | ||||
Gross unrealized losses | 266 | 11 | ||||
Fixed maturities, at fair value | 77,040 | 74,003 | ||||
Proceeds from sales of fixed maturities classified as available for sale | 2,864 | $ 1,994 | ||||
Gross realized gains | 56 | 52 | ||||
Gross realized losses | 5 | 3 | ||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 3,908 | 2,111 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 27 | 38 | ||||
Gross unrealized losses | 20 | 0 | ||||
Fixed maturities, at fair value | 3,915 | 2,149 | ||||
Obligations of states, municipalities and political subdivisions [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 33,904 | 33,763 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 1,966 | 2,599 | ||||
Gross unrealized losses | 111 | 2 | ||||
Fixed maturities, at fair value | 35,759 | 36,360 | ||||
Obligations of states, municipalities and political subdivisions, local general obligation [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 18,064 | 17,289 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 1,022 | 1,370 | ||||
Gross unrealized losses | 72 | 2 | ||||
Fixed maturities, at fair value | 19,014 | 18,657 | ||||
Obligations of states, municipalities and political subdivisions, revenue [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 10,785 | 11,806 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 660 | 909 | ||||
Gross unrealized losses | 36 | 0 | ||||
Fixed maturities, at fair value | 11,409 | 12,715 | ||||
Obligations of states, municipalities and political subdivisions, state general obligation [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 1,170 | 1,343 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 66 | 101 | ||||
Gross unrealized losses | 3 | 0 | ||||
Fixed maturities, at fair value | 1,233 | 1,444 | ||||
Obligations of states, municipalities and political subdivisions, pre-refunded [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 3,885 | 3,325 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 218 | 219 | ||||
Gross unrealized losses | 0 | 0 | ||||
Fixed maturities, at fair value | 4,103 | 3,544 | ||||
Debt securities issued by foreign governments [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 1,037 | 1,028 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 12 | 26 | ||||
Gross unrealized losses | 5 | 0 | ||||
Fixed maturities, at fair value | 1,044 | 1,054 | ||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 1,727 | 2,222 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 89 | 139 | ||||
Gross unrealized losses | 1 | 0 | ||||
Fixed maturities, at fair value | 1,815 | 2,361 | ||||
All other corporate bonds [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 33,026 | 29,683 | ||||
Allowance for expected credit losses | 2 | $ 4 | $ 2 | 2 | $ 8 | $ 0 |
Gross unrealized gains | 1,598 | 2,382 | ||||
Gross unrealized losses | 129 | 9 | ||||
Fixed maturities, at fair value | 34,493 | 32,054 | ||||
Redeemable preferred stock [Member] | ||||||
Investment disclosure details | ||||||
Fixed maturities, amortized cost | 12 | 23 | ||||
Allowance for expected credit losses | 0 | 0 | ||||
Gross unrealized gains | 2 | 2 | ||||
Gross unrealized losses | 0 | 0 | ||||
Fixed maturities, at fair value | $ 14 | $ 25 |
Investments (Details) - Inves_2
Investments (Details) - Investment Information, Equity Securities - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Investment disclosure details | |||
Equity securities, cost | $ 398 | $ 387 | |
Gross gains | 116 | 78 | |
Gross losses | 5 | 12 | |
Equity securities, at fair value | 509 | 453 | |
Net recognized gains (losses) on equity securities still held | 45 | $ (14) | |
Public common stock [Member] | |||
Investment disclosure details | |||
Equity securities, cost | 367 | 352 | |
Gross gains | 105 | 70 | |
Gross losses | 5 | 12 | |
Equity securities, at fair value | 467 | 410 | |
Non-redeemable preferred stock [Member] | |||
Investment disclosure details | |||
Equity securities, cost | 31 | 35 | |
Gross gains | 11 | 8 | |
Gross losses | 0 | 0 | |
Equity securities, at fair value | $ 42 | $ 43 |
Investments (Details) - Inves_3
Investments (Details) - Investment Information, Losses - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | $ 13,402 | $ 1,045 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 254 | 8 |
Continuous unrealized loss position, 12 months or longer, fair value | 313 | 98 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 12 | 3 |
Continuous unrealized loss position, total, fair value | 13,715 | 1,143 |
Continuous unrealized loss position, total, gross unrealized losses | 266 | 11 |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | 1,804 | 92 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 20 | 0 |
Continuous unrealized loss position, 12 months or longer, fair value | 5 | 0 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 0 | 0 |
Continuous unrealized loss position, total, fair value | 1,809 | 92 |
Continuous unrealized loss position, total, gross unrealized losses | 20 | 0 |
Obligations of states, municipalities and political subdivisions [Member] | ||
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | 5,143 | 245 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 107 | 2 |
Continuous unrealized loss position, 12 months or longer, fair value | 116 | 0 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 4 | 0 |
Continuous unrealized loss position, total, fair value | 5,259 | 245 |
Continuous unrealized loss position, total, gross unrealized losses | 111 | 2 |
Debt securities issued by foreign governments [Member] | ||
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | 391 | 7 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 5 | 0 |
Continuous unrealized loss position, 12 months or longer, fair value | 2 | 0 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 0 | 0 |
Continuous unrealized loss position, total, fair value | 393 | 7 |
Continuous unrealized loss position, total, gross unrealized losses | 5 | 0 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | 233 | 20 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 1 | 0 |
Continuous unrealized loss position, 12 months or longer, fair value | 1 | 1 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 0 | 0 |
Continuous unrealized loss position, total, fair value | 234 | 21 |
Continuous unrealized loss position, total, gross unrealized losses | 1 | 0 |
All other corporate bonds [Member] | ||
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | 5,831 | 681 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 121 | 6 |
Continuous unrealized loss position, 12 months or longer, fair value | 189 | 97 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 8 | 3 |
Continuous unrealized loss position, total, fair value | 6,020 | 778 |
Continuous unrealized loss position, total, gross unrealized losses | $ 129 | $ 9 |
Investments (Details) - Allowan
Investments (Details) - Allowance for Expected Credit Losses - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for expected credit losses [Roll Forward] | ||||
Allowance for expected credit losses on fixed maturities classified as available-for-sale, balance, beginning of period | $ 2 | |||
Allowance for expected credit losses on fixed maturities classified as available-for-sale, balance, end of period | $ 2 | 2 | ||
Total net credit impairment charges included in net realized investment gains (losses) in the consolidated statement of income | $ 1 | $ (4) | $ 1 | $ 58 |
Total credit impairment charges included in net realized investment gains (losses) in the consolidated statement of income related to other investments | $ 40 | |||
Credit losses on fixed maturities recognized in the consolidated statement of income, as a percentage of the fixed maturity portfolio on a pre-tax basis (less than) | 1.00% | 1.00% | 1.00% | 1.00% |
Credit losses on fixed maturities recognized in the consolidated statement of income, as a percentage of shareholders' equity on an after-tax basis (less than) | 1.00% | 1.00% | 1.00% | 1.00% |
All other corporate bonds [Member] | ||||
Allowance for expected credit losses [Roll Forward] | ||||
Allowance for expected credit losses on fixed maturities classified as available-for-sale, balance, beginning of period | $ 2 | $ 8 | $ 2 | $ 0 |
Additions for expected credit losses on securities where no credit losses were previously recognized | 0 | 1 | 1 | 9 |
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized | 1 | (3) | 0 | (3) |
Reductions due to sales/defaults of credit-impaired securities | (1) | (2) | (1) | (2) |
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell | 0 | 0 | 0 | 0 |
Allowance for expected credit losses on fixed maturities classified as available-for-sale, balance, end of period | 2 | 4 | 2 | 4 |
Credit impairment charges recognized in net realized investment gains (losses) on securities which the Company intends to sell and for which an allowance for credit loss was not previously recorded | $ 0 | $ 0 | $ 0 | $ 14 |
Investments (Details) - Other I
Investments (Details) - Other Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Availability of financial information provided by hedge funds following the date of the reporting | 1 month |
Availability of financial information provided by private equity and real estate partnerships following the date of the reporting, maximum | 3 months |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Percent of fixed maturities for which a pricing service estimates fair value | 99.00% | 99.00% |
Estimated fair value of put/call option | $ 4 | $ 5 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Fair Value Hierarchy - Recurring basis [Member] - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | $ 77,910 | $ 74,508 |
Other liabilities measured on a recurring basis | 4 | 5 |
Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 77,040 | 74,003 |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 3,915 | 2,149 |
Obligations of states, municipalities and political subdivisions [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 35,759 | 36,360 |
Debt securities issued by foreign governments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 1,044 | 1,054 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 1,815 | 2,361 |
All other corporate bonds [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 34,493 | 32,054 |
Redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 14 | 25 |
Equity securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 509 | 453 |
Public common stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 467 | 410 |
Non-redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 42 | 43 |
Other Investments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 361 | 52 |
Level 1 [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 4,425 | 2,597 |
Other liabilities measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 3,924 | 2,152 |
Level 1 [Member] | U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 3,915 | 2,149 |
Level 1 [Member] | Obligations of states, municipalities and political subdivisions [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 5 | 0 |
Level 1 [Member] | Debt securities issued by foreign governments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 1 [Member] | All other corporate bonds [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 4 | 0 |
Level 1 [Member] | Redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 3 |
Level 1 [Member] | Equity securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 483 | 428 |
Level 1 [Member] | Public common stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 467 | 410 |
Level 1 [Member] | Non-redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 16 | 18 |
Level 1 [Member] | Other Investments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 18 | 17 |
Level 2 [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 72,914 | 71,710 |
Other liabilities measured on a recurring basis | 0 | 0 |
Level 2 [Member] | Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 72,888 | 71,685 |
Level 2 [Member] | U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 2 [Member] | Obligations of states, municipalities and political subdivisions [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 35,750 | 36,349 |
Level 2 [Member] | Debt securities issued by foreign governments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 1,044 | 1,054 |
Level 2 [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 1,734 | 2,361 |
Level 2 [Member] | All other corporate bonds [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 34,346 | 31,899 |
Level 2 [Member] | Redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 14 | 22 |
Level 2 [Member] | Equity securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 26 | 25 |
Level 2 [Member] | Public common stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 2 [Member] | Non-redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 26 | 25 |
Level 2 [Member] | Other Investments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 3 [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 571 | 201 |
Other liabilities measured on a recurring basis | 4 | 5 |
Level 3 [Member] | Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 228 | 166 |
Level 3 [Member] | U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Obligations of states, municipalities and political subdivisions [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 4 | 11 |
Level 3 [Member] | Debt securities issued by foreign governments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 81 | 0 |
Level 3 [Member] | All other corporate bonds [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 143 | 155 |
Level 3 [Member] | Redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Equity securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Public common stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Non-redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Other Investments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | 343 | 35 |
Level 3 [Member] | Investment in non-public common and preferred equity securities where the fair value estimate is determined either internally or by an external fund manager [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Total invested assets measured on a recurring basis | $ 343 | $ 35 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Financial Instruments - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Instruments | ||
Short-term securities | $ 4,754 | $ 5,511 |
Carrying Value [Member] | ||
Financial Instruments | ||
Short-term securities | 4,754 | 5,511 |
Debt | 7,190 | 6,450 |
Commercial paper | 100 | 100 |
Fair Value [Member] | ||
Financial Instruments | ||
Short-term securities | 4,754 | 5,511 |
Debt | 9,131 | 8,976 |
Commercial paper | 100 | 100 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Instruments | ||
Short-term securities | 663 | 630 |
Debt | 0 | 0 |
Commercial paper | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Instruments | ||
Short-term securities | 4,040 | 4,829 |
Debt | 9,131 | 8,976 |
Commercial paper | 100 | 100 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Instruments | ||
Short-term securities | 51 | 52 |
Debt | 0 | 0 |
Commercial paper | $ 0 | $ 0 |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses (Details) - Changes in the Allowance for Expected Credit Losses on Premiums Receivable - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Credit Loss [Abstract] | ||||
Premiums receivable (net of allowance for expected credit losses), balance, beginning of period | $ 8,555 | $ 8,459 | $ 7,829 | $ 7,909 |
Premiums receivable (net of allowance for expected credit losses), balance, end of period | 8,289 | 8,225 | 8,289 | 8,225 |
Premiums receivable, allowance for expected credit losses [Roll Forward] | ||||
Premiums receivable, allowance for expected credit losses, beginning balance | 105 | 94 | 105 | 49 |
Current period change for expected credit losses | 15 | 17 | 45 | 84 |
Write-offs of uncollectible premiums receivable | 18 | 15 | 48 | 37 |
Premiums receivable, allowance for expected credit losses, ending balance | $ 102 | $ 96 | $ 102 | $ 96 |
Allowance for Expected Credit_4
Allowance for Expected Credit Losses (Details) - Changes in the Allowance for Estimated Uncollectible Reinsurance - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Reinsurance recoverables, allowance for uncollectible reinsurance | |||||
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance), balance, beginning of period | $ 8,209 | $ 8,093 | $ 8,350 | $ 8,235 | |
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance), balance, end of period | $ 8,235 | 8,329 | 8,317 | 8,329 | 8,317 |
Reinsurance recoverables, allowance for uncollectible reinsurance [Roll Forward] | |||||
Reinsurance recoverables, allowance for uncollectible reinsurance, beginning balance | 135 | 156 | 146 | 92 | |
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | $ 92 | 142 | 140 | 142 | 140 |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||
Current period change for estimated uncollectible reinsurance | 7 | (16) | (4) | (5) | |
Write-offs of uncollectible reinsurance recoverables | 0 | 0 | 0 | 0 | |
Reinsurance recoverables, allowance for uncollectible reinsurance, ending balance | $ 92 | $ 142 | $ 140 | $ 142 | 140 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Reinsurance recoverables, allowance for uncollectible reinsurance [Roll Forward] | |||||
Reinsurance recoverables, allowance for uncollectible reinsurance, beginning balance | $ 53 | ||||
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | 53 | ||||
Reinsurance recoverables, allowance for uncollectible reinsurance, ending balance | $ 53 |
Allowance for Expected Credit_5
Allowance for Expected Credit Losses (Details) - Narrative - Reinsurer Concentration Risk [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Reinsurance Recoverables [Member] | Reinsurer Group Rated by A.M. Best [Member] | A.M. Best, Rating Provided [Member] | |
Reinsurance recoverables, credit quality indicator | |
Reinsurance recoverables, after deducting mandatory pools and associations and before allowances for expected credit losses | $ 5,770 |
Concentration risk percentage | 86.00% |
Reinsurance Recoverables [Member] | Reinsurer Group Not Rated by A.M. Best [Member] | |
Reinsurance recoverables, credit quality indicator | |
Concentration risk percentage | 14.00% |
Reinsurance Recoverables [Member] | Captive Insurance Companies [Member] | |
Reinsurance recoverables, credit quality indicator | |
Concentration risk percentage | 7.00% |
Reinsurance Recoverables [Member] | Voluntary Pools [Member] | |
Reinsurance recoverables, credit quality indicator | |
Concentration risk percentage | 1.00% |
Reinsurance Recoverables [Member] | Other Companies [Member] | |
Reinsurance recoverables, credit quality indicator | |
Concentration risk percentage | 6.00% |
Reinsurance Recoverables Rated by A.M. Best [Member] | Reinsurer Group Rated by A.M. Best [Member] | A.M. Best, A- Rating Or Better [Member] | |
Reinsurance recoverables, credit quality indicator | |
Concentration risk percentage | 94.00% |
Allowance for Expected Credit_6
Allowance for Expected Credit Losses (Details) - Changes in the Allowance for Expected Credit Losses on Contractholder Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Credit Loss [Abstract] | ||||
Contractholder receivables (net of the allowance for expected credit losses), balance, beginning of period | $ 4,016 | $ 4,314 | $ 4,242 | $ 4,599 |
Contractholder receivables (net of the allowance for expected credit losses), balance, end of period | 4,024 | 4,347 | 4,024 | 4,347 |
Contractholder receivables, allowance for expected credit losses [Roll Forward] | ||||
Contractholder receivables, allowance for expected credit losses, beginning balance | 19 | 22 | 19 | 20 |
Current period change for expected credit losses | 0 | 0 | 0 | 2 |
Write-offs of uncollectible contractholder receivables | 0 | 1 | 0 | 1 |
Contractholder receivables, allowance for expected credit losses, ending balance | $ 19 | $ 21 | $ 19 | $ 21 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill by segment | ||
Goodwill | $ 4,005 | $ 3,976 |
Reportable Segments [Member] | Business Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 2,608 | 2,613 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 550 | 550 |
Reportable Segments [Member] | Personal Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 821 | 787 |
Reportable Segments [Member] | Personal Insurance [Member] | Business Acquisition [Member] | ||
Goodwill by segment | ||
Goodwill | 33 | |
Other [Member] | ||
Goodwill by segment | ||
Goodwill | $ 26 | $ 26 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details) - Other Intangible Assets - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Other intangible assets by major asset class | |||||
Intangible assets subject to amortization, gross carrying amount | $ 309 | $ 309 | $ 306 | ||
Intangible assets subject to amortization, accumulated amortization | 226 | 226 | 215 | ||
Intangible assets subject to amortization, net | 83 | 83 | 91 | ||
Intangible assets not subject to amortization | 226 | 226 | 226 | ||
Total other intangible assets, gross carrying amount | 535 | 535 | 532 | ||
Total other intangible assets, net | 309 | 309 | 317 | ||
Amortization expense of intangible assets | 4 | $ 4 | 11 | $ 11 | |
Estimated intangible asset amortization expense, remainder of 2021 | 3 | 3 | |||
Estimated intangible asset amortization expense, 2022 | 14 | 14 | |||
Estimated intangible asset amortization expense, 2023 | 13 | 13 | |||
Estimated intangible asset amortization expense, 2024 | 12 | 12 | |||
Estimated intangible asset amortization expense, 2025 | 12 | 12 | |||
Customer-related [Member] | |||||
Other intangible assets by major asset class | |||||
Intangible assets subject to amortization, gross carrying amount | 104 | 104 | 101 | ||
Intangible assets subject to amortization, accumulated amortization | 39 | 39 | 31 | ||
Intangible assets subject to amortization, net | 65 | 65 | 70 | ||
Contract-based [Member] | |||||
Other intangible assets by major asset class | |||||
Intangible assets subject to amortization, gross carrying amount | 205 | 205 | 205 | ||
Intangible assets subject to amortization, accumulated amortization | 187 | 187 | 184 | ||
Intangible assets subject to amortization, net | 18 | 18 | $ 21 | ||
Insurance Contracts Acquired in Business Combination [Member] | |||||
Other intangible assets by major asset class | |||||
Estimated intangible asset amortization expense, remainder of 2021 | 1 | 1 | |||
Estimated intangible asset amortization expense, 2022 | 3 | 3 | |||
Estimated intangible asset amortization expense, 2023 | 3 | 3 | |||
Estimated intangible asset amortization expense, 2024 | 2 | 2 | |||
Estimated intangible asset amortization expense, 2025 | $ 2 | $ 2 |
Insurance Claim Reserves (Detai
Insurance Claim Reserves (Details) - Reserve Detail for Claims and Claim Adjustment Expenses - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | ||||||
Claims and claim adjustment expense reserves at beginning of year | $ 54,521 | |||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | $ 92 | 142 | $ 140 | $ 135 | $ 146 | $ 156 |
Claims and claim adjustment expense reserves at end of period | 56,805 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | ||||||
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | 53 | |||||
Property-casualty [Member] | ||||||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | ||||||
Claims and claim adjustment expense reserves at beginning of year | 54,510 | 51,836 | ||||
Reinsurance recoverables on unpaid losses | 8,153 | 8,035 | ||||
Net reserves at beginning of year | 46,357 | 43,854 | ||||
Estimated claims and claim adjustment expenses for claims arising in the current year | 15,813 | 14,809 | ||||
Estimated decrease in claims and claim adjustment expenses for claims arising in prior years | (398) | (108) | ||||
Total increases | 15,415 | 14,701 | ||||
Claims and claim adjustment expense payments for claims arising in current year | 5,653 | 4,960 | ||||
Claims and claim adjustment expense payments for claims arising in prior years | 7,339 | 7,246 | ||||
Total payments | 12,992 | 12,206 | ||||
Unrealized foreign exchange gain | (18) | (62) | ||||
Net reserves at end of period | 43,854 | 48,762 | 46,287 | |||
Reinsurance recoverables on unpaid losses | 8,035 | 8,033 | 8,119 | |||
Claims and claim adjustment expense reserves at end of period | 51,836 | 56,795 | $ 54,406 | |||
Amount of increase in gross claims and claim adjustment expense reserves | 2,290 | |||||
Amount of decrease in reinsurance recoverables on unpaid losses | 120 | |||||
Property-casualty [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | ||||||
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | $ 53 | |||||
Accident and health [Member] | ||||||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | ||||||
Claims and claim adjustment expense reserves at beginning of year | 11 | |||||
Claims and claim adjustment expense reserves at end of period | $ 10 |
Insurance Claim Reserves (Det_2
Insurance Claim Reserves (Details) - Subrogation Recovery $ in Millions | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Insurance Loss Reserves [Abstract] | |
Subrogation benefit recognized in earnings | $ 403 |
Insurance Claim Reserves (Det_3
Insurance Claim Reserves (Details) - Prior Year Reserve Development - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Liability for claims and claim adjustment expense | ||||
Subrogation benefit | $ 403 | |||
Property-casualty [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable (unfavorable) prior year reserve development included in estimated claims and claim adjustment expenses incurred for claims arising in prior years | $ 398 | $ 108 | ||
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | 443 | 171 | ||
Accretion expense | 36 | 36 | ||
Property-casualty [Member] | Business Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | $ (108) | (220) | 99 | (215) |
Subrogation benefit | 81 | 81 | ||
Property-casualty [Member] | Business Insurance [Member] | Asbestos reserves [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Increase to reserves | 225 | 295 | 225 | 295 |
Property-casualty [Member] | Bond & Specialty Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | 22 | 0 | 81 | (33) |
Property-casualty [Member] | Personal Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | $ 30 | 362 | $ 263 | 419 |
Subrogation benefit | $ 322 | $ 322 |
Other Comprehensive Income an_3
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated other comprehensive income [Roll Forward] | ||||
Balance, beginning of period | $ 29,201 | |||
Other comprehensive income (loss), net of taxes | $ (603) | $ 256 | (1,336) | $ 1,498 |
Balance, end of period | 28,474 | 27,849 | 28,474 | 27,849 |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | ||||
Other comprehensive income (loss), before taxes | (751) | 309 | (1,697) | 1,918 |
Income tax expense (benefit) | (148) | 53 | (361) | 420 |
Other comprehensive income (loss), net of taxes | (603) | 256 | (1,336) | 1,498 |
Accumulated Other Comprehensive Income [Member] | ||||
Accumulated other comprehensive income [Roll Forward] | ||||
Balance, beginning of period | 1,769 | 1,882 | 2,502 | 640 |
Other comprehensive income (loss) before reclassifications | (614) | (1,357) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 11 | 21 | ||
Other comprehensive income (loss), net of taxes | (603) | 256 | (1,336) | 1,498 |
Balance, end of period | 1,166 | 2,138 | 1,166 | 2,138 |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | ||||
Other comprehensive income (loss), before taxes | (751) | 309 | (1,697) | 1,918 |
Income tax expense (benefit) | (148) | 53 | (361) | 420 |
Other comprehensive income (loss), net of taxes | (603) | 256 | (1,336) | 1,498 |
Changes in Net Unrealized Gains on Investment Securities Having No Credit Losses Recognized in the Consolidated Statement of Income [Member] | ||||
Accumulated other comprehensive income [Roll Forward] | ||||
Balance, beginning of period | 3,057 | 3,892 | ||
Other comprehensive income (loss) before reclassifications | (530) | (1,335) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | (10) | (40) | ||
Other comprehensive income (loss), net of taxes | (540) | 171 | (1,375) | 1,573 |
Balance, end of period | 2,517 | 2,517 | ||
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | ||||
Other comprehensive income (loss), before taxes | (686) | 217 | (1,749) | 2,001 |
Income tax expense (benefit) | (146) | 46 | (374) | 428 |
Other comprehensive income (loss), net of taxes | (540) | 171 | (1,375) | 1,573 |
Changes in Net Unrealized Gains on Investment Securities Having Credit Losses Recognized in the Consolidated Statement of Income [Member] | ||||
Accumulated other comprehensive income [Roll Forward] | ||||
Balance, beginning of period | 182 | 182 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | ||
Other comprehensive income (loss), net of taxes | 0 | (5) | 0 | (7) |
Balance, end of period | 182 | 182 | ||
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | ||||
Other comprehensive income (loss), before taxes | 0 | (7) | 0 | (10) |
Income tax expense (benefit) | 0 | (2) | 0 | (3) |
Other comprehensive income (loss), net of taxes | 0 | (5) | 0 | (7) |
Net Benefit Plan Assets and Obligations Recognized in Shareholders' Equity [Member] | ||||
Accumulated other comprehensive income [Roll Forward] | ||||
Balance, beginning of period | (792) | (832) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 21 | 61 | ||
Other comprehensive income (loss), net of taxes | 21 | 16 | 61 | 51 |
Balance, end of period | (771) | (771) | ||
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | ||||
Other comprehensive income (loss), before taxes | 26 | 20 | 77 | 64 |
Income tax expense (benefit) | 5 | 4 | 16 | 13 |
Other comprehensive income (loss), net of taxes | 21 | 16 | 61 | 51 |
Net Unrealized Foreign Currency Translation [Member] | ||||
Accumulated other comprehensive income [Roll Forward] | ||||
Balance, beginning of period | (678) | (740) | ||
Other comprehensive income (loss) before reclassifications | (84) | (22) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | ||
Other comprehensive income (loss), net of taxes | (84) | 74 | (22) | (119) |
Balance, end of period | (762) | (762) | ||
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | ||||
Other comprehensive income (loss), before taxes | (91) | 79 | (25) | (137) |
Income tax expense (benefit) | (7) | 5 | (3) | (18) |
Other comprehensive income (loss), net of taxes | $ (84) | $ 74 | $ (22) | $ (119) |
Other Comprehensive Income an_4
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - Reclassifications - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment impacting net realized investment gains (losses) on the income statement | $ (8) | $ (37) | $ (113) | $ 48 |
Reclassification adjustment impacting claims and claim adjustment expenses on the income statement | 5,464 | 4,886 | 15,479 | 14,782 |
Reclassification adjustment impacting general and administrative expense on the income statement | 1,187 | 1,109 | 3,524 | 3,367 |
Total reclassifications | (786) | (986) | (2,808) | (1,621) |
Income tax (expense) benefit | (124) | (159) | (479) | (234) |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (662) | (827) | (2,329) | (1,387) |
Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Total reclassifications | 14 | (3) | 27 | 32 |
Income tax (expense) benefit | 3 | (1) | 6 | 6 |
Amounts reclassified from accumulated other comprehensive income, net of taxes | 11 | (2) | 21 | 26 |
Changes in Net Unrealized Gains on Investment Securities Having No Credit Losses Recognized in the Consolidated Statement of Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment impacting net realized investment gains (losses) on the income statement | (12) | (23) | (50) | (31) |
Income tax (expense) benefit | (2) | (5) | (10) | (7) |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (10) | (18) | (40) | (24) |
Changes in Net Unrealized Gains on Investment Securities Having Credit Losses Recognized in the Consolidated Statement of Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment impacting net realized investment gains (losses) on the income statement | 0 | 0 | 0 | 0 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income, net of taxes | 0 | 0 | 0 | 0 |
Net Benefit Plan Assets and Obligations Recognized in Shareholders' Equity [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment impacting claims and claim adjustment expenses on the income statement | 10 | 8 | 31 | 26 |
Reclassification adjustment impacting general and administrative expense on the income statement | 16 | 12 | 46 | 37 |
Total reclassifications | 26 | 20 | 77 | 63 |
Income tax (expense) benefit | 5 | 4 | 16 | 13 |
Amounts reclassified from accumulated other comprehensive income, net of taxes | 21 | 16 | 61 | 50 |
Net Unrealized Foreign Currency Translation [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment impacting net realized investment gains (losses) on the income statement | 0 | 0 | 0 | 0 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income, net of taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Jun. 08, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument | |||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 739 | $ 490 | |
Senior Notes [Member] | 3.050% Senior Notes due June 8, 2051 [Member] | |||
Debt Instrument | |||
Debt, principal amount | $ 750 | ||
Interest rate (percent) | 3.05% | ||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 739 | ||
Percentage of principal amount at which redemption price may be set | 100.00% | ||
Basis points added to current Treasury rate used in calculation of alternative redemption price | 0.15% |
Common Share Repurchases (Detai
Common Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Apr. 20, 2021 | |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | |||
Number of shares repurchased (in shares) | 3,800,000 | 8,800,000 | |
Cost of shares repurchased | $ 600 | $ 1,360 | |
Average cost per share repurchased (in dollars per share) | $ 155.57 | $ 153.93 | |
Number of shares acquired to cover tax withholding costs and exercise costs (in shares) | 12,181 | 300,000 | |
Cost of shares acquired to cover tax withholding costs and exercise costs | $ 1 | $ 43 | |
Additional share repurchase authorization | $ 5,000 | ||
Remaining capacity under share repurchase authorization | $ 4,810 | $ 4,810 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income | $ 662 | $ 827 | $ 2,329 | $ 1,387 |
Participating share-based awards — allocated income | (5) | (6) | (17) | (9) |
Net income available to common shareholders -- basic | 657 | 821 | 2,312 | 1,378 |
Net income available to common shareholders -- diluted | $ 657 | $ 821 | $ 2,312 | $ 1,378 |
Weighted average shares outstanding, basic (in shares) | 247.7 | 253.3 | 250.1 | 253.5 |
Weighted average effects of dilutive securities - stock options and performance shares (in shares) | 2.4 | 1 | 2.3 | 1 |
Weighted average shares outstanding, diluted (in shares) | 250.1 | 254.3 | 252.4 | 254.5 |
Net income per common share, basic (in dollars per share) | $ 2.65 | $ 3.24 | $ 9.24 | $ 5.44 |
Net income per common share, diluted (in dollars per share) | $ 2.62 | $ 3.23 | $ 9.16 | $ 5.41 |
Share-Based Incentive Compens_3
Share-Based Incentive Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Stock options vested at end of period, number (in shares) | 7,292,324 | 7,292,324 | ||
Stock options vested at end of period, weighted average exercise price (in dollars per share) | $ 124.13 | $ 124.13 | ||
Stock options vested at end of period, weighted average contractual life remaining (in years) | 6 years 1 month 6 days | |||
Stock options vested at end of period, aggregate intrinsic value | $ 203 | $ 203 | ||
Stock options exercisable at end of period, number (in shares) | 4,340,430 | 4,340,430 | ||
Stock options exercisable at end of period, weighted average exercise price (in dollars per share) | $ 118.45 | $ 118.45 | ||
Stock options exercisable at end of period, weighted average contractual life remaining (in years) | 4 years 7 months 6 days | |||
Stock options exercisable at end of period, aggregate intrinsic value | $ 146 | $ 146 | ||
Total compensation cost recognized in earnings for all share-based incentive compensation awards | 37 | $ 33 | 126 | $ 113 |
Tax benefit recognized in earnings related to compensation costs | 7 | $ 6 | 22 | $ 20 |
Total unrecognized compensation cost related to all nonvested share-based incentive compensation awards | $ 184 | $ 184 | ||
Weighted-average period of recognition for unrecognized compensation cost (in years) | 1 year 10 months 24 days |
Pension Plans, Retirement Ben_3
Pension Plans, Retirement Benefits and Savings Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Plans [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | $ 35 | $ 34 | $ 106 | $ 100 |
Interest cost on benefit obligation | 21 | 29 | 62 | 86 |
Expected return on plan assets | (69) | (69) | (206) | (206) |
Net periodic benefit cost (benefit), amortization of unrecognized prior service benefit | (1) | (1) | (1) | (1) |
Net periodic benefit cost (benefit), amortization of unrecognized net actuarial (gain) loss | 28 | 23 | 82 | 69 |
Total non-service cost (benefit) | (21) | (18) | (63) | (52) |
Net periodic benefit cost (benefit) | 14 | 16 | 43 | 48 |
Pension Plans [Member] | Claims and claim adjustment expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 14 | 14 | 43 | 42 |
Total non-service cost (benefit) | (9) | (8) | (26) | (22) |
Pension Plans [Member] | General and administrative expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 21 | 20 | 63 | 58 |
Total non-service cost (benefit) | (12) | (10) | (37) | (30) |
Postretirement Benefit Plans [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost on benefit obligation | 1 | 1 | 2 | 3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Net periodic benefit cost (benefit), amortization of unrecognized prior service benefit | (1) | (1) | (3) | (3) |
Net periodic benefit cost (benefit), amortization of unrecognized net actuarial (gain) loss | (1) | (1) | (2) | (2) |
Total non-service cost (benefit) | (1) | (1) | (3) | (2) |
Net periodic benefit cost (benefit) | (1) | (1) | (3) | (2) |
Postretirement Benefit Plans [Member] | Claims and claim adjustment expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 0 | 0 | 0 | 0 |
Total non-service cost (benefit) | 0 | (1) | (1) | (1) |
Postretirement Benefit Plans [Member] | General and administrative expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 0 | 0 | 0 | 0 |
Total non-service cost (benefit) | $ (1) | $ 0 | $ (2) | $ (1) |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating leases | $ 22 | $ 23 | $ 67 | $ 71 |
Short-term leases | 0 | 1 | 1 | 2 |
Lease expense | 22 | 24 | 68 | 73 |
Less: sublease income | 0 | 0 | 0 | 0 |
Net lease cost | 22 | 24 | 68 | 73 |
Cash payments to settle a lease liability reported in cash flows | 25 | 27 | 78 | 82 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 2 | $ 8 | $ 21 | $ 26 |
Weighted average discount rate (percent) | 2.37% | 2.86% | 2.37% | 2.86% |
Weighted average remaining lease term (in years) | 4 years 7 months 6 days | 4 years 10 months 24 days | 4 years 7 months 6 days | 4 years 10 months 24 days |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Details) - Commitments - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Contingencies, Commitments and Guarantees [Abstract] | ||
Unfunded commitments to private equity limited partnerships, real estate partnerships and others | $ 1,640 | $ 1,760 |
Contingencies, Commitments an_3
Contingencies, Commitments and Guarantees (Details) - Guarantees $ in Millions | Sep. 30, 2021USD ($) |
Indemnifications related to the sale of businesses [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | $ 351 |
Guarantees of certain insurance policy obligations [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | 480 |
Amount indemnified by a third party | $ 480 |