Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 14, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document type | 10-K | ||
Document annual report | true | ||
Document period end date | Dec. 31, 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 | ||
Well-known seasoned issuer | Yes | ||
Voluntary filers | No | ||
Entity current reporting status | Yes | ||
Entity interactive data current | Yes | ||
Filer category | Large Accelerated Filer | ||
Entity small business | false | ||
Entity emerging growth company | false | ||
ICFR auditor attestation flag | true | ||
Entity shell company | false | ||
Entity public float | $ 37,239,472,474 | ||
Common stock shares outstanding | 241,500,732 | ||
Documents incorporated by reference | Portions of the Registrant's Proxy Statement relating to the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this report. | ||
Central index key | 0000086312 | ||
Current fiscal year end date | --12-31 | ||
Amendment flag | false | ||
Document fiscal year focus | 2021 | ||
Document fiscal period focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | New York, NY |
Auditor Firm ID | 185 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Premiums | $ 30,855 | $ 29,044 | $ 28,272 |
Net investment income | 3,033 | 2,227 | 2,468 |
Fee income | 402 | 429 | 459 |
Net realized investment gains | 171 | 2 | 113 |
Other revenues | 355 | 279 | 269 |
Total revenues | 34,816 | 31,981 | 31,581 |
Claims and expenses | |||
Claims and claim adjustment expenses | 20,298 | 19,123 | 19,133 |
Amortization of deferred acquisition costs | 5,043 | 4,773 | 4,601 |
General and administrative expenses | 4,677 | 4,509 | 4,365 |
Interest expense | 340 | 339 | 344 |
Total claims and expenses | 30,358 | 28,744 | 28,443 |
Income before income taxes | 4,458 | 3,237 | 3,138 |
Income tax expense | 796 | 540 | 516 |
Net income | $ 3,662 | $ 2,697 | $ 2,622 |
Net income per share | |||
Basic (in dollars per share) | $ 14.63 | $ 10.56 | $ 10.01 |
Diluted (in dollars per share) | $ 14.49 | $ 10.52 | $ 9.92 |
Weighted average number of common shares outstanding | |||
Basic (in shares) | 248.5 | 253.5 | 260 |
Diluted (in shares) | 250.8 | 254.6 | 262.3 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 3,662 | $ 2,697 | $ 2,622 |
Other comprehensive income (loss): | |||
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income | (2,115) | 2,331 | 2,994 |
Changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income | 0 | (9) | (4) |
Net changes in benefit plan assets and obligations | 455 | 18 | 33 |
Net changes in unrealized foreign currency translation | (11) | 12 | 117 |
Other comprehensive income (loss) before income taxes | (1,671) | 2,352 | 3,140 |
Income tax expense (benefit) | (362) | 490 | 641 |
Other comprehensive income (loss), net of taxes | (1,309) | 1,862 | 2,499 |
Comprehensive income | $ 2,353 | $ 4,559 | $ 5,121 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Fixed maturities, available for sale, at fair value (amortized cost $74,751 and $68,830; allowance for expected credit losses of $3 and $2) | $ 77,810 | $ 74,003 |
Equity securities, at fair value (cost $749 and $415) | 893 | 484 |
Real estate investments | 979 | 1,026 |
Short-term securities | 3,836 | 5,511 |
Other investments | 3,857 | 3,399 |
Total investments | 87,375 | 84,423 |
Cash | 761 | 721 |
Investment income accrued | 615 | 603 |
Premiums receivable (net of allowance for expected credit losses of $107 and $105) | 8,085 | 7,829 |
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $141 and $146) | 8,452 | 8,350 |
Ceded unearned premiums | 902 | 772 |
Deferred acquisition costs | 2,542 | 2,358 |
Contractholder receivables (net of allowance for expected credit losses of $21 and $19) | 3,890 | 4,242 |
Goodwill | 4,008 | 3,976 |
Other intangible assets | 306 | 317 |
Other assets | 3,530 | 3,173 |
Total assets | 120,466 | 116,764 |
Liabilities | ||
Claims and claim adjustment expense reserves | 56,907 | 54,521 |
Unearned premium reserves | 16,469 | 15,222 |
Contractholder payables | 3,911 | 4,261 |
Payables for reinsurance premiums | 384 | 356 |
Deferred taxes | 289 | 558 |
Debt | 7,290 | 6,550 |
Other liabilities | 6,329 | 6,095 |
Total liabilities | 91,579 | 87,563 |
Shareholders’ equity | ||
Common stock (1,750.0 shares authorized; 241.2 and 252.4 shares issued and outstanding) | 24,154 | 23,743 |
Retained earnings | 41,555 | 38,771 |
Accumulated other comprehensive income | 1,193 | 2,502 |
Treasury stock, at cost (541.5 and 527.3 shares) | (38,015) | (35,815) |
Total shareholders’ equity | 28,887 | 29,201 |
Total liabilities and shareholders’ equity | $ 120,466 | $ 116,764 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals - USD ($) shares in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | |||
Fixed maturities, available for sale, amortized cost | $ 74,751 | $ 68,830 | |
Fixed maturities, available for sale, allowance for expected credit losses | 3 | 2 | |
Equity securities, cost | 749 | 415 | |
Premiums receivable, allowance for expected credit losses | 107 | 105 | $ 49 |
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | 141 | 146 | 92 |
Contractholder receivables, allowance for expected credit losses | $ 21 | $ 19 | $ 20 |
Common stock, shares authorized (in shares) | 1,750 | 1,750 | |
Common stock, shares issued (in shares) | 241.2 | 252.4 | |
Common stock, shares outstanding (in shares) | 241.2 | 252.4 | |
Treasury stock, at cost (in shares) | 541.5 | 527.3 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - 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 (loss), net of tax [Member] | Treasury stock, at cost [Member] | Common shares outstanding [Member] |
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | $ 23,144 | $ 35,204 | $ (1,859) | $ (33,595) | |||
Balance, beginning of year at Dec. 31, 2018 | 23,144 | 35,204 | (1,859) | (33,595) | |||
Shareholders' Equity [Roll Forward] | |||||||
Employee share-based compensation | 180 | ||||||
Compensation amortization under share-based plans and other changes | 145 | ||||||
Net income | $ 2,622 | 2,622 | |||||
Dividends | (848) | ||||||
Other | (1) | ||||||
Other comprehensive income (loss) | 2,499 | 2,499 | |||||
Treasury stock acquired — share repurchase authorization | (1,500) | ||||||
Net shares acquired related to employee share-based compensation plans | (48) | ||||||
Balance, end of year at Dec. 31, 2019 | 25,943 | 23,469 | 36,977 | $ (43) | 640 | (35,143) | |
Balance, beginning of year (in shares) at Dec. 31, 2018 | 263.6 | ||||||
Common shares outstanding | |||||||
Treasury stock acquired — share repurchase authorization (in shares) | (10.8) | ||||||
Net shares issued under employee share-based compensation plans (in shares) | 2.7 | ||||||
Balance, end of year (in shares) at Dec. 31, 2019 | 255.5 | ||||||
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | 25,943 | 23,469 | 36,977 | $ (43) | 640 | (35,143) | |
Employee share-based compensation | 123 | ||||||
Compensation amortization under share-based plans and other changes | 151 | ||||||
Net income | 2,697 | 2,697 | |||||
Dividends | (864) | ||||||
Other | 4 | ||||||
Other comprehensive income (loss) | 1,862 | 1,862 | |||||
Treasury stock acquired — share repurchase authorization | (625) | ||||||
Net shares acquired related to employee share-based compensation plans | (47) | (47) | |||||
Balance, end of year at Dec. 31, 2020 | $ 29,201 | 23,743 | 38,771 | 2,502 | (35,815) | ||
Common shares outstanding | |||||||
Treasury stock acquired — share repurchase authorization (in shares) | (4.9) | ||||||
Net shares issued under employee share-based compensation plans (in shares) | 1.8 | ||||||
Balance, end of year (in shares) at Dec. 31, 2020 | 252.4 | 252.4 | |||||
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | $ 29,201 | 23,743 | 38,771 | 2,502 | (35,815) | ||
Employee share-based compensation | 247 | ||||||
Compensation amortization under share-based plans and other changes | 164 | ||||||
Net income | 3,662 | 3,662 | |||||
Dividends | (876) | ||||||
Other | (2) | ||||||
Other comprehensive income (loss) | (1,309) | (1,309) | |||||
Treasury stock acquired — share repurchase authorization | (2,160) | (2,156) | |||||
Net shares acquired related to employee share-based compensation plans | (44) | (44) | |||||
Balance, end of year at Dec. 31, 2021 | $ 28,887 | 24,154 | 41,555 | 1,193 | (38,015) | ||
Common shares outstanding | |||||||
Treasury stock acquired — share repurchase authorization (in shares) | (13.9) | (13.9) | |||||
Net shares issued under employee share-based compensation plans (in shares) | 2.7 | ||||||
Balance, end of year (in shares) at Dec. 31, 2021 | 241.2 | 241.2 | |||||
Shareholders' Equity [Roll Forward] | |||||||
Shareholders' equity | $ 28,887 | $ 24,154 | $ 41,555 | $ 1,193 | $ (38,015) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 3,662 | $ 2,697 | $ 2,622 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net realized investment gains | (171) | (2) | (113) |
Depreciation and amortization | 870 | 789 | 763 |
Deferred federal income tax expense (benefit) | 62 | (29) | (33) |
Amortization of deferred acquisition costs | 5,043 | 4,773 | 4,601 |
Equity in income from other investments | (993) | (130) | (251) |
Premiums receivable | (258) | 94 | (384) |
Reinsurance recoverables | (101) | (162) | 157 |
Deferred acquisition costs | (5,227) | (4,854) | (4,747) |
Claims and claim adjustment expense reserves | 2,388 | 2,622 | 1,047 |
Unearned premium reserves | 1,249 | 592 | 1,008 |
Other operating activities | 750 | 129 | 535 |
Net cash provided by operating activities | 7,274 | 6,519 | 5,205 |
Cash flows from investing activities | |||
Proceeds from maturities of fixed maturities | 8,852 | 7,387 | 6,845 |
Proceeds from sales of investments: | |||
Fixed maturities | 3,165 | 3,057 | 2,187 |
Equity securities | 102 | 116 | 165 |
Real estate investments | 31 | 0 | 0 |
Other investments | 427 | 276 | 434 |
Purchases of investments: | |||
Fixed maturities | (18,153) | (14,073) | (10,711) |
Equity securities | (407) | (127) | (100) |
Real estate investments | (28) | (113) | (107) |
Other investments | (520) | (472) | (491) |
Net sales (purchases) of short-term securities | 1,671 | (566) | (957) |
Securities transactions in the course of settlement | (19) | (47) | 158 |
Acquisition, net of cash acquired | (38) | 0 | 0 |
Other investing activities | (279) | (330) | (325) |
Net cash used in investing activities | (5,196) | (4,892) | (2,902) |
Cash flows from financing activities | |||
Treasury stock acquired — share repurchase authorization | (2,156) | (625) | (1,500) |
Treasury stock acquired — net employee share-based compensation | (44) | (47) | (48) |
Dividends paid to shareholders | (869) | (861) | (844) |
Payment of debt | 0 | (500) | (500) |
Issuance of debt | 739 | 490 | 492 |
Issuance of common stock -- employee share options | 293 | 127 | 213 |
Net cash used in financing activities | (2,037) | (1,416) | (2,187) |
Effect of exchange rate changes on cash | (1) | 16 | 5 |
Net increase in cash | 40 | 227 | 121 |
Cash at beginning of year | 721 | 494 | 373 |
Cash at end of year | 761 | 721 | 494 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 707 | 578 | 428 |
Interest paid | $ 337 | $ 339 | $ 338 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (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 consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. All material intercompany transactions and balances have been eliminated. Certain reclassifications have been made to the 2020 and 2019 financial statements to conform to the 2021 presentation. Adoption of Accounting Standards Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board (FASB) issued updated guidance for the accounting for credit losses for financial instruments. The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables and structured settlements that are recorded as part of reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the updated guidance for the quarter ended March 31, 2020. Income Taxes - Simplifying the Accounting for Income Taxes In December 2019, 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 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. Management's Discussion and Analysis, Selected Financial Data and Supplementary Financial Information In November 2020, the SEC issued Release No. 33-10890 to adopt amendments to modernize, simplify and enhance certain financial disclosure requirements in Regulation S-K, including the elimination of the requirement to disclose five years of selected financial data. The amendments in the release became effective February 10, 2021 with application of the amended rules required for fiscal years ending on or after August 9, 2021. The Company applied the amended requirements beginning with the year ended December 31, 2021 and no longer provides five years of selected quarterly financial data in the notes to consolidated financial statements. Accounting Policies Investments Fixed Maturities Fixed maturities include bonds, notes and redeemable preferred stocks. Fixed maturities, including instruments subject to securities lending agreements, are classified as available for sale and reported at fair value, with unrealized investment gains and losses, net of income taxes, charged or credited directly to other comprehensive income. Equity Securities Equity securities, which include public and non-public common and non-redeemable preferred stocks, are reported at fair value with changes in fair value recognized in net realized investment gains (losses). Real Estate Investments The Company’s real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. Real estate is recorded on the purchase date at the purchase price, which generally represents fair value, and is supported by internal analysis or external appraisals that use discounted cash flow analyses and other acceptable valuation techniques. Real estate held for investment purposes is subsequently carried at cost less accumulated depreciation. Buildings are depreciated on a straight-line basis over the shorter of the expected useful life of the building or 39 years. Real estate held for sale is carried at lower of cost or fair value, less estimated costs to sell. Short-term Securities Short-term securities have an original maturity of less than one year and are carried at amortized cost, which approximates fair value. Other Investments Investments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships The Company uses the equity method of accounting for investments in private equity limited partnerships, hedge funds and real estate partnerships. The partnerships and the hedge funds generally report investments on their balance sheet at fair value. The financial statements prepared by the investee are received by the Company on a lag basis, with the lag period generally dependent upon the type of underlying investments. The private equity and real estate partnerships provide financial information quarterly which is generally available to investors, including the Company, within three months following the date of the reporting period. The hedge funds provide financial information monthly, which is generally available to investors within one month following the date of the reporting period. The Company regularly requests financial information from the partnerships prior to the receipt of the partnerships’ financial statements and records any material information obtained from these requests in its consolidated financial statements. Other Derivatives are also included in other investments. The Company’s derivative financial instruments are carried at fair value, with the changes in fair value reflected in the consolidated statement of income in net realized investment gains (losses). For a further discussion of the derivatives used by the Company, see note 3. Net Investment Income Investment income from fixed maturities is recognized based on the constant effective yield method which includes an adjustment for estimated principal pre-payments, if any. The effective yield used to determine amortization for fixed maturities subject to prepayment risk (e.g., asset-backed, loan-backed and structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows, which are obtained from a widely-accepted securities data provider. The adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for non-highly rated prepayable fixed maturities are accounted for using the prospective method. Dividends on equity securities (including those with transfer restrictions) are recognized in income when declared. Rental income on real estate is recognized on a straight-line basis over the lease term. See the section titled: Real Estate in note 3 for further discussion. Investments in private equity limited partnerships, hedge funds, real estate partnerships and joint ventures are accounted for using the equity method of accounting, whereby the Company’s share of the investee’s earnings or losses in the fund is reported in net investment income. Accrual of income is suspended on non-securitized fixed maturities that are in default, or on which it is likely that future payments will not be made as scheduled. Interest income on investments in default is recognized only when payments are received. Investments included in the consolidated balance sheet that were not income-producing for the preceding 12 months were not material. Net Realized Investment Gains and Losses Net realized investment gains and losses include net realized gains (losses) from the sale of investments, credit impairment losses on investment assets, changes in the fair value of equity securities, foreign currency transaction gains and losses and changes in the fair value of derivative financial instruments. Net realized investment gains (losses) on the sale of investments are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. Investment Impairments The Company conducts a periodic review to identify and evaluate invested assets that may have credit impairments. Credit Impairments Related to Fixed Maturity Investments Some of the factors considered in assessing impairment of fixed maturity investments due to credit-related factors include: (1) the extent to which the fair value has been less than amortized cost; (2) the financial condition, near-term and long-term prospects for the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices; (3) the likelihood of the recoverability of principal and interest; and (4) whether it is more likely than not that the Company will be required to sell the investment prior to an anticipated recovery in value. Beginning on January 1, 2020, credit losses are recognized through an allowance account. See note 1 - Adoption of Accounting Standards - Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments for additional information. For fixed maturity investments that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component in net realized investment gains (losses). The impairment related to all other factors (non-credit factors) is reported in other comprehensive income. The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit loss, the cost basis is not adjusted. For fixed maturity investments where the Company records a credit loss, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. For fixed maturity investments where the Company expects a recovery in value, the constant effective yield method is utilized, and the investment is amortized to par. For fixed maturity investments the Company intends to sell or for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount of the impairment is included in net realized investment gains (losses). The new cost basis of the investment is the previous amortized cost basis less the impairment recognized in net realized investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair value. The Company reports investment income accrued separately from fixed maturity investments, available for sale, and has elected not to measure an allowance for credit losses for investment income accrued. Investment income accrued is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payments. Uncollectible available-for-sale debt securities are written-off when the Company determines that no additional payments of principal or interest will be received. Determination of Credit Loss — Fixed Maturities The Company determines the credit loss component of fixed maturity investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater than the present value of the expected cash flows, the difference is considered a credit loss and recognized as an impairment loss in net realized investment gains (losses). For non-structured fixed maturities (U.S. Treasury securities, obligations of U.S. government and government agencies and authorities, obligations of states, municipalities and political subdivisions, debt securities issued by foreign governments and certain corporate debt), the estimate of expected cash flows is determined by projecting a recovery value and a recovery time frame and assessing whether further principal and interest will be received. The determination of recovery value incorporates an issuer valuation assumption utilizing one or a combination of valuation methods as deemed appropriate by the Company. The Company determines the undiscounted recovery value by allocating the estimated value of the issuer to the Company’s assessment of the priority of claims. The present value of the cash flows is determined by applying the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment) and an estimated recovery time frame. Generally, that time frame for securities for which the issuer is in bankruptcy is 12 months. For securities for which the issuer is financially troubled but not in bankruptcy, that time frame is generally 24 months. Included in the present value calculation are expected principal and interest payments; however, for securities for which the issuer is classified as bankrupt or in default, the present value calculation assumes no interest payments and a single recovery amount. In estimating the recovery value, significant judgment is involved in the development of assumptions relating to a myriad of factors related to the issuer including, but not limited to, revenue, margin and earnings projections, the likely market or liquidation values of assets, potential additional debt to be incurred pre- or post-bankruptcy/restructuring, the ability to shift existing or new debt to different priority layers, the amount of restructuring/bankruptcy expenses, the size and priority of unfunded pension obligations, litigation or other contingent claims, the treatment of intercompany claims and the likely outcome with respect to inter-creditor conflicts. For structured fixed maturity securities (primarily residential and commercial mortgage-backed securities and asset-backed securities), the Company estimates the present value of the security by projecting future cash flows of the assets underlying the securitization, allocating the flows to the various tranches based on the structure of the securitization and determining the present value of the cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). The Company incorporates levels of delinquencies, defaults and severities as well as credit attributes of the remaining assets in the securitization, along with other economic data, to arrive at its estimate of the parameters applied to the assets underlying the securitization. Real Estate Investments On at least an annual basis, the Company obtains independent appraisals for substantially all of its real estate investments. In addition, the carrying value of all real estate investments is reviewed for impairment on a quarterly basis or when events or changes in circumstances indicate that the carrying amount may not be recoverable. The review for impairment considers the valuation from the independent appraisal, when applicable, and incorporates an estimate of the undiscounted cash flows expected to result from the use and eventual disposition of the real estate property. An impairment loss is recognized if the expected future undiscounted cash flows are less than the carrying value of the real estate property. The impairment loss is the amount by which the carrying amount exceeds fair value. Other Investments The Company reviews its investments in private equity limited partnerships, hedge funds and real estate partnerships for impairment no less frequently than quarterly and monitors the performance throughout the year through discussions with the managers/general partners. If the Company becomes aware of an impairment of a partnership’s investments at the balance sheet date prior to receiving the partnership’s financial statements, it will recognize an impairment by recording a reduction in the carrying value of the partnership with a corresponding charge to net investment income. Changes in Intent to Sell Temporarily Impaired Assets The Company may, from time to time, sell invested assets subsequent to the balance sheet date that it did not intend to sell at the balance sheet date. Conversely, the Company may not sell invested assets that it asserted that it intended to sell at the balance sheet date. Such changes in intent are due to events occurring subsequent to the balance sheet date. The types of events that may result in a change in intent include, but are not limited to, significant changes in the economic facts and circumstances related to the invested asset (e.g., a downgrade or upgrade from a rating agency), significant unforeseen changes in liquidity needs, or changes in tax laws or the regulatory environment. Securities Lending The Company has, from time to time, engaged in securities lending activities from which it generates net investment income by lending certain of its investments to other institutions for short periods of time. Borrowers of these securities provide collateral equal to at least 102% of the market value of the loaned securities plus accrued interest. This collateral is held by a third-party custodian, and the Company has the right to access the collateral only in the event that the institution borrowing the Company’s securities is in default under the lending agreement (i.e., the Company is not permitted to re-pledge or sell any such collateral). Therefore, the Company does not recognize the receipt of the collateral held by the third-party custodian or the obligation to return the collateral. The loaned securities remain a recorded asset of the Company. The Company accepts only cash as collateral for securities on loan and restricts the manner in which that cash is invested. Reinsurance Recoverables Amounts recoverable from reinsurers are estimated in a manner consistent with the associated claim liability. Included in reinsurance recoverables are amounts related to certain structured settlements. The Company reports its reinsurance recoverables net of an allowance for amounts that are estimated to be uncollectible. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers. Amounts deemed to be uncollectible, including amounts due from known insolvent reinsurers, are written off against the allowance. Changes in the allowance, as well as any subsequent collections of amounts previously written off, are reported as part of claims and claim adjustment expenses. The Company evaluates and monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to minimize its exposure to significant losses from reinsurer insolvencies. Deferred Acquisition Costs Incremental direct costs of acquired, new and renewal insurance contracts, consisting of commissions (other than contingent commissions) and premium-related taxes, are capitalized and charged to expense pro rata over the contract periods in which the related premiums are earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income and, if not, are charged to expense. Future investment income attributable to related premiums is taken into account in measuring the recoverability of the carrying value of this asset. All other acquisition expenses are charged to operations as incurred. Contractholder Receivables and Payables Under certain workers’ compensation insurance contracts with deductible features, the Company is obligated to pay the claimant for the full amount of the claim. The Company is subsequently reimbursed by the policyholder for the deductible amount. These amounts are included on a gross basis in the consolidated balance sheet in both contractholder payables and contractholder receivables. Contractholder receivables are reported net of an allowance for expected credit losses. The allowance is based upon the Company’s ongoing review of amounts outstanding, changes in policyholder credit standing, and other relevant factors. A probability-of-default methodology, which reflects current and forecasted economic conditions, is used to estimate the allowance for expected credit losses. Goodwill and Other Intangible Assets The Company performs a review, on at least an annual basis, of goodwill held by the reporting units which are the Company’s three operating and reportable segments: Business Insurance; Bond & Specialty Insurance; and Personal Insurance. The Company estimates the fair value of its reporting units and compares it to their carrying value, including goodwill. If the carrying values of the reporting units were to exceed their fair value, the amount of the impairment would be calculated and goodwill adjusted accordingly. The Company uses a discounted cash flow model to estimate the fair value of its reporting units. The discounted cash flow model is an income approach to valuation that is based on a detailed cash flow analysis for deriving a current fair value of reporting units and is representative of the Company’s reporting units’ current and expected future financial performance. The discount rate assumptions reflect the Company’s assessment of the risks inherent in the projected future cash flows and the Company’s weighted-average cost of capital, and are compared against available market data for reasonableness. Other indefinite-lived intangible assets held by the Company are also reviewed for impairment on at least an annual basis. The classification of the asset as indefinite-lived is reassessed and an impairment is recognized if the carrying amount of the asset exceeds its fair value. Intangible assets that are deemed to have a finite useful life are amortized over their useful lives. The carrying amount of intangible assets with a finite useful life is regularly reviewed for indicators of impairment in value. Impairment is recognized only if the carrying amount of the intangible asset is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the fair value of the asset. As a result of the reviews performed for the years ended December 31, 2021, 2020 and 2019, the Company determined that the estimated fair value substantially exceeded the respective carrying value of its reporting units for those years and that goodwill was not impaired. The Company also determined during its reviews for each year that its other indefinite-lived intangible assets and finite-lived intangible assets were not impaired. Internal-Use Software In the ordinary course of business, the Company develops and purchases software as well as enters into arrangements to utilize software as a service under cloud computing arrangements. These software costs and any costs related to the implementation and set-up of the cloud computing arrangements are capitalized and reported within other assets in the consolidated balance sheet. Claims and Claim Adjustment Expense Reserves Claims and claim adjustment expense reserves represent management's estimate of the ultimate liability for unpaid losses and loss adjustment expenses for claims that have been reported and claims that have been incurred but not yet reported (IBNR) as of the balance sheet date. The reserves are adjusted regularly based upon experience. Included in the claims and claim adjustment expense reserves in the consolidated balance sheet are reserves for long-term disability and annuity claim payments, primarily arising from workers’ compensation insurance and workers’ compensation excess insurance policies, that are discounted to the present value of estimated future payments. The Company performs a continuing review of its claims and claim adjustment expense reserves, including its reserving techniques and the impact of reinsurance. The reserves are also reviewed regularly by qualified actuaries employed by the Company. Since the reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are included in the results of operations in the period in which the estimates are changed. Such changes in estimates could occur in a future period and may be material to the Company’s results of operations and financial position in such period. Other Liabilities Included in other liabilities in the consolidated balance sheet is the Company’s estimate of its liability for guaranty fund and other insurance-related assessments. The liability for expected state guaranty fund and other premium-based assessments is recognized as the Company writes or becomes obligated to write or renew the premiums on which the assessments are expected to be based. The liability for loss-based assessments is recognized as the related losses are incurred. At December 31, 2021 and 2020, the Company had a liability of $176 million and $178 million, respectively, for guaranty fund and other insurance-related assessments and related recoverables of $8 million and $10 million, respectively. The liability for such assessments and the related recoverables are not discounted for the time value of money. The loss-based assessments are expected to be paid over a period ranging from one year to the life expectancy of certain workers’ compensation claimants and the recoveries are expected to occur over the same period of time. Also included in other liabilities is an accrual for policyholder dividends. Certain insurance contracts, primarily workers’ compensation, are participating whereby dividends are paid to policyholders in accordance with contract provisions. Net written premiums for participating dividend policies were approximately 1% of total net written premiums for each of the years ended December 31, 2021, 2020 and 2019. Policyholder dividends are accrued against earnings using best available estimates of amounts to be paid. The liability accrued for policyholder dividends totaled $69 million at both December 31, 2021 and 2020. Treasury Stock The cost of common stock repurchased by the Company is reported as treasury stock and represents authorized and unissued shares of the Company under the Minnesota Business Corporation Act. Statutory Accounting Practices The Company’s U.S. insurance subsidiaries, domiciled principally in the State of Connecticut, are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of the states of domicile. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. The State of Connecticut requires insurers domiciled in Connecticut to prepare their statutory financial statements in accordance with National Association of Insurance Commissioners’ (NAIC) statutory accounting practices. Permitted statutory accounting practices are those practices that differ either from state-prescribed statutory accounting practices or NAIC statutory accounting practices. The Company does not apply any statutory accounting practices that would be considered a prescribed or permitted statutory accounting practice that differs from NAIC statutory accounting practices. The Company’s non-U.S. insurance subsidiaries file financial statements prepared in accordance with the regulatory reporting requirements of their respective local jurisdiction. Premiums and Unearned Premium Reserves Premiums are recognized as revenues pro rata over the policy period. Unearned premium reserves represent the unexpired portion of policy premiums. Accrued retrospective premiums are included in premium balances receivable. Premium balances receivable are reported net of an allowance for expected credit losses. The allowance is based upon the Company’s ongoing review of amounts outstanding, historical loss data, including delinquencies and write-offs, current and forecasted economic conditions and other relevant factors. Credit risk is partially mitigated by the Company’s ability to cancel the policy if the policyholder does not pay the premium. However, the impact of extended payment terms and non-cancellation concessions granted to customers as a result of COVID-19 and related economic conditions is also considered in the Company's evaluation of the allowance. Ceded premiums are charged to income over the applicable term of the various reinsurance contracts with third party reinsurers. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers and are reported as part of other assets. Fee Income Fee income includes revenues from risk and claims management services provided to the Company’s insureds and third-party non-insureds, as well as policy issuance and claims management services to workers' compensation residual market pools. Fee income is earned over the policy period for the services provided to the Company’s insureds, and either over the contract period or as the Company completes its service obligations for the services provided to third-party non-insureds. Other Revenues Other revenues include revenues from premium installment charges, which are recognized as collected, gains and losses on dispositions of assets and redemption of debt, and other miscellaneous revenues, including gains recognized as a result of settlements of reinsurance disputes and claim-related legal matters. Other revenues also include revenues from noninsurance subsidiaries (other than fee income) for insurance-related services and on-line insurance brokerage services and is recognized as the service is provided to the customer. Income Taxes The Company recognizes deferred income tax assets and liabilities for the expected future tax effects attributable to temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. Foreign Currency The Company assigns functional currencies to its foreign operations, which are generally the currencies of the local operating environment. Foreign currency amounts are remeasured to the functional currency, and the resu |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The accounting policies used to prepare the segment reporting data for the Company’s three reportable business segments are the same as those described in the Summary of Significant Accounting Policies in note 1. Except as described below for certain legal entities, the Company allocates its invested assets and the related net investment income to its reportable business segments. Pre-tax net investment income is allocated based upon an investable funds concept, which takes into account liabilities (net of non-invested assets) and appropriate capital considerations for each segment. For investable funds, a benchmark investment yield is developed that reflects the estimated duration of the loss reserves’ future cash flows, the interest rate environment at the time the losses were incurred and A+ rated corporate debt instrument yields. For capital, a benchmark investment yield is developed that reflects the average yield on the total investment portfolio. The benchmark investment yields are applied to each segment’s investable funds and capital, respectively, to produce a total notional investment income by segment. The Company’s actual net investment income is allocated to each segment in proportion to the respective segment’s notional investment income to total notional investment income. There are certain legal entities within the Company that are dedicated to specific reportable business segments. The invested assets and related net investment income from these legal entities are reported in the applicable business segment and are not allocated among the other business segments. The cost of the Company’s catastrophe treaty program is included in the Company’s ceded premiums and is allocated among reportable business segments based on an estimate of actual market reinsurance pricing using expected losses calculated by the Company’s catastrophe model, adjusted for any experience adjustments. The following tables summarize the components of the Company’s revenues, income, net written premiums and total assets by reportable business segments. (for the year ended December 31, in millions) Business Bond & Personal Total 2021 Premiums $ 15,734 $ 3,138 $ 11,983 $ 30,855 Net investment income 2,265 247 521 3,033 Fee income 375 — 27 402 Other revenues 235 23 97 355 Total segment revenues (1) $ 18,609 $ 3,408 $ 12,628 $ 34,645 Amortization and depreciation $ 3,180 $ 643 $ 2,084 $ 5,907 Income tax expense 499 165 179 843 Segment income (1) 2,385 668 760 3,813 2020 Premiums $ 15,294 $ 2,823 $ 10,927 $ 29,044 Net investment income 1,633 213 381 2,227 Fee income 405 — 24 429 Other revenues 176 27 76 279 Total segment revenues (1) $ 17,508 $ 3,063 $ 11,408 $ 31,979 Amortization and depreciation $ 3,069 $ 579 $ 1,908 $ 5,556 Income tax expense 213 107 308 628 Segment income (1) 1,309 473 1,195 2,977 2019 Premiums $ 15,300 $ 2,565 $ 10,407 $ 28,272 Net investment income 1,816 233 419 2,468 Fee income 437 — 22 459 Other revenues 155 26 87 268 Total segment revenues (1) $ 17,708 $ 2,824 $ 10,935 $ 31,467 Amortization and depreciation $ 3,037 $ 533 $ 1,787 $ 5,357 Income tax expense 223 151 195 569 Segment income (1) 1,392 618 824 2,834 _________________________________________ (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." Net written premiums by market were as follows: (for the year ended December 31, in millions) 2021 2020 2019 Business Insurance: Domestic: Select Accounts $ 2,833 $ 2,821 $ 2,911 Middle Market 8,933 8,511 8,630 National Accounts 987 996 1,051 National Property and Other 2,265 2,086 1,965 Total Domestic 15,018 14,414 14,557 International 1,074 1,017 1,072 Total Business Insurance 16,092 15,431 15,629 Bond & Specialty Insurance: Domestic: Management Liability 1,983 1,769 1,605 Surety 888 845 866 Total Domestic 2,871 2,614 2,471 International 505 337 268 Total Bond & Specialty Insurance 3,376 2,951 2,739 Personal Insurance: Domestic: Automobile 5,827 5,369 5,412 Homeowners and Other 5,980 5,329 4,664 Total Domestic 11,807 10,698 10,076 International 684 652 707 Total Personal Insurance 12,491 11,350 10,783 Total consolidated net written premiums $ 31,959 $ 29,732 $ 29,151 Business Segment Reconciliations (for the year ended December 31, in millions) 2021 2020 2019 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 3,227 $ 3,378 $ 3,829 Commercial automobile 2,855 2,761 2,632 Commercial property 2,275 2,087 1,937 General liability 2,576 2,401 2,342 Commercial multi-peril 3,667 3,552 3,453 Other 65 54 40 Total Domestic 14,665 14,233 14,233 International 1,069 1,061 1,067 Total Business Insurance 15,734 15,294 15,300 Bond & Specialty Insurance: Domestic: Fidelity and surety 1,091 1,075 1,036 General liability 1,415 1,219 1,082 Other 220 237 216 Total Domestic 2,726 2,531 2,334 International 412 292 231 Total Bond & Specialty Insurance 3,138 2,823 2,565 Personal Insurance: Domestic Automobile 5,687 5,280 5,311 Homeowners and Other 5,608 4,988 4,393 Total Domestic 11,295 10,268 9,704 International 688 659 703 Total Personal Insurance 11,983 10,927 10,407 Total earned premiums 30,855 29,044 28,272 Net investment income 3,033 2,227 2,468 Fee income 402 429 459 Other revenues 355 279 268 Total segment revenues 34,645 31,979 31,467 Other revenues — — 1 Net realized investment gains 171 2 113 Total revenues $ 34,816 $ 31,981 $ 31,581 Income reconciliation, net of tax Total segment income $ 3,813 $ 2,977 $ 2,834 Interest Expense and Other (1) (291) (291) (297) Core income 3,522 2,686 2,537 Net realized investment gains 132 11 85 Impact of changes in tax laws and/or tax rates (2) 8 — — Net income $ 3,662 $ 2,697 $ 2,622 ______________________________________ (1) The primary component of Interest Expense and Other was after-tax interest expense of $269 million, $268 million and $272 million in 2021, 2020 and 2019, respectively. (2) Impact is recognized in the accounting period in which the change is enacted. (at December 31, in millions) 2021 2020 Asset reconciliation: Business Insurance $ 90,353 $ 88,422 Bond & Specialty Insurance 10,146 9,420 Personal Insurance 18,983 18,328 Total assets for reportable segments 119,482 116,170 Other assets (1) 984 594 Total consolidated assets $ 120,466 $ 116,764 ___________________________________________ (1) The primary components of other assets at both December 31, 2021 and 2020, were accrued over-funded benefit plan assets related to the Company's qualified domestic pension plan and other intangible assets. Enterprise-Wide Disclosures The Company does not have revenue from transactions with a single customer amounting to 10 percent or more of its revenues. The following table presents revenues of the Company’s operations based on location: (for the year ended December 31, in millions) 2021 2020 2019 U.S. $ 32,596 $ 30,123 $ 29,638 Non-U.S.: Canada 1,351 1,278 1,371 Other Non-U.S. 869 580 572 Total Non-U.S. 2,220 1,858 1,943 Total revenues $ 34,816 $ 31,981 $ 31,581 |
Investments
Investments | 12 Months Ended |
Dec. 31, 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 Allowance for Expected Credit Losses Gross Unrealized Fair (at December 31, 2021, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 3,574 $ — $ 20 $ 32 $ 3,562 Obligations of states, municipalities and political subdivisions: Local general obligation 18,668 — 1,045 46 19,667 Revenue 11,274 — 693 27 11,940 State general obligation 1,158 — 67 2 1,223 Pre-refunded 3,825 — 207 — 4,032 Total obligations of states, municipalities and political subdivisions 34,925 — 2,012 75 36,862 Debt securities issued by foreign governments 1,041 — 7 7 1,041 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,754 — 68 5 1,817 All other corporate bonds 33,445 3 1,247 175 34,514 Redeemable preferred stock 12 — 2 — 14 Total $ 74,751 $ 3 $ 3,356 $ 294 $ 77,810 Amortized Allowance for Expected Credit Losses Gross Unrealized Fair (at December 31, 2020, in millions) Cost Gains Losses Value 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 The amortized cost and fair value of fixed maturities by contractual maturity follow. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (at December 31, 2021, in millions) Amortized Fair Due in one year or less $ 4,592 $ 4,635 Due after 1 year through 5 years 18,081 18,833 Due after 5 years through 10 years 25,645 26,401 Due after 10 years 24,679 26,124 72,997 75,993 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,754 1,817 Total $ 74,751 $ 77,810 Pre-refunded bonds of $4.03 billion and $3.54 billion at December 31, 2021 and 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. The Company’s fixed maturity investment portfolio at December 31, 2021 and 2020 included $1.82 billion and $2.36 billion, respectively, of residential mortgage-backed securities, which include pass-through securities and collateralized mortgage obligations (CMOs). Included in the totals at December 31, 2021 and 2020 were $846 million and $1.24 billion, respectively, of GNMA, FNMA, FHLMC (excluding FHA project loans) and Canadian government guaranteed residential mortgage-backed pass-through securities classified as available for sale. Also included in those totals were residential CMOs classified as available for sale with a fair value of $971 million and $1.12 billion at December 31, 2021 and 2020, respectively. Approximately 47% and 65% of the Company’s CMO holdings at December 31, 2021 and 2020, respectively, were guaranteed by or fully collateralized by securities issued by GNMA, FNMA or FHLMC. The weighted average credit rating of the $511 million and $396 million of non-guaranteed CMO holdings at December 31, 2021 and 2020, respectively, was “Aaa/Aa1” and “Aa1,” respectively. The weighted average credit rating of all of the above securities was "Aaa/Aa1” at both December 31, 2021 and 2020. At December 31, 2021 and 2020, the Company held commercial mortgage-backed securities (CMBS, including FHA project loans) of $1.30 billion and $1.42 billion, respectively, which are included in “All other corporate bonds” in the tables above. At December 31, 2021 and 2020, approximately $207 million and $392 million of these securities, respectively, or the loans backing such securities, contained guarantees by the U.S. government or a government-sponsored enterprise. The weighted average credit rating of the $1.09 billion and $1.03 billion of non-guaranteed securities at December 31, 2021 and 2020, respectively, was “Aaa” at both dates. The CMBS portfolio is supported by loans that are diversified across economic sectors and geographical areas. The weighted average credit rating of the CMBS portfolio was “Aaa” at both December 31, 2021 and 2020. At December 31, 2021 and 2020, the Company had $253 million and $139 million, respectively, of securities on loan as part of a tri-party lending agreement. Proceeds from sales of fixed maturities classified as available for sale were $3.17 billion, $3.06 billion and $2.19 billion in 2021, 2020 and 2019, respectively. Gross gains of $74 million, $70 million and $67 million and gross losses of $5 million, $3 million and $8 million were realized on those sales in 2021, 2020 and 2019, respectively. At December 31, 2021 and 2020, the Company’s insurance subsidiaries had $4.32 billion and $4.45 billion, respectively, of securities on deposit at financial institutions in certain states pursuant to the respective states’ insurance regulatory requirements. Funds deposited with third parties to be used as collateral to secure various liabilities on behalf of insureds, cedants and other creditors had a fair value of $58 million and $52 million at December 31, 2021 and 2020, respectively. Other investments pledged as collateral securing outstanding letters of credit had a fair value of $1 million at both December 31, 2021 and 2020. In addition, the Company utilizes Lloyd’s trust deposits, whereby owned securities with a fair value of approximately $33 million and $119 million held by a wholly-owned subsidiary at December 31, 2021 and 2020, respectively, and $34 million and $35 million held by TRV at December 31, 2021 and 2020, respectively, were pledged into Lloyd’s trust accounts to provide a portion of the capital needed to support the Company’s obligations at Lloyd’s. Equity Securities The cost and fair value of investments in equity securities were as follows: (at December 31, 2021, in millions) Cost Gross Gains Gross Losses Fair Value Common stock $ 694 $ 137 $ 4 $ 827 Non-redeemable preferred stock 55 11 — 66 Total $ 749 $ 148 $ 4 $ 893 (at December 31, 2020, in millions) Cost Gross Gains Gross Losses Fair Value Common stock $ 356 $ 72 $ 12 $ 416 Non-redeemable preferred stock 59 9 — 68 Total $ 415 $ 81 $ 12 $ 484 The Company reclassified non-public common and preferred equities into equity securities on the consolidated balance sheet in the fourth quarter of 2021. Previously, these equities were reported in other investments. The reclassification has been made to the 2020 financial statements to conform to the 2021 presentation. The Company recognized $78 million and $27 million of net gains on equity securities still held as of December 31, 2021 and 2020, respectively. Real Estate The Company’s real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. The Company negotiates commercial leases with individual tenants through unrelated, licensed real estate brokers. Negotiated terms and conditions include, among others, rental rates, length of lease period and improvements to the premises to be provided by the landlord. Proceeds from the sale of real estate investments were $31 million in 2021 and $0 million in both 2020 and 2019. Gains of $8 million were realized on those sales in 2021. Accumulated depreciation on real estate held for investment purposes was $497 million and $462 million at December 31, 2021 and 2020, respectively. Future minimum rental income on operating leases relating to the Company’s real estate properties is expected to be $117 million, $93 million, $75 million, $51 million and $36 million for 2022, 2023, 2024, 2025 and 2026, respectively, and $67 million for 2027 and thereafter. Short-term Securities The Company’s short-term securities consist of Aaa-rated registered money market funds, U.S. Treasury securities, high-quality commercial paper (primarily A1/P1) and high-quality corporate securities purchased within a year to their maturity with a combined average of 29 days to maturity at December 31, 2021. The amortized cost of these securities, which totaled $3.84 billion and $5.51 billion at December 31, 2021 and 2020, respectively, approximated their fair value. Other Investments Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, the impact of any volatility in global financial markets on net investment income from these other investments is generally reflected in the Company's financial statements on a quarter lag basis. Variable Interest Entities Entities which do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (VIE). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. The Company is a passive investor in limited partner equity interests issued by third party VIEs. These include certain of the Company’s investments in private equity limited partnerships, hedge funds and real estate partnerships where the Company is not related to the general partner. These investments are generally accounted for under the equity method and reported in the Company’s consolidated balance sheet as other investments unless the Company is deemed the primary beneficiary. These equity interests generally cannot be redeemed. Distributions from these investments are received by the Company as a result of liquidation of the underlying investments of the funds and/or as income distribution. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company’s consolidated balance sheet and any unfunded commitment. The Company considers an investment in a VIE in which it has a 20% or greater equity interest as a significant VIE. Neither the Company’s carrying amounts nor the unfunded commitments related to these significant VIE’s are material individually or in the aggregate. Unrealized Investment Losses The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position at December 31, 2021 and 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. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1, in determining whether a credit loss impairment exists. Less than 12 months 12 months or longer Total (at December 31, 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 $ 2,438 $ 32 $ 5 $ — $ 2,443 $ 32 Obligations of states, municipalities and political subdivisions 3,873 69 153 6 4,026 75 Debt securities issued by foreign governments 452 7 7 — 459 7 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 426 5 1 — 427 5 All other corporate bonds 7,306 153 436 22 7,742 175 Total fixed maturities $ 14,495 $ 266 $ 602 $ 28 $ 15,097 $ 294 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 fixed maturities $ 1,045 $ 8 $ 98 $ 3 $ 1,143 $ 11 At December 31, 2021, the Company had no fixed maturity investments reported at fair value for which fair value was less than 80% of amortized cost. Credit Impairment Charges Credit impairment charges included in net realized investment gains in the consolidated statement of income were as follows: (for the year ended December 31, in millions) 2021 2020 2019 Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ — $ — $ — Obligations of states, municipalities and political subdivisions — — — Debt securities issued by foreign governments — — — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities — — — All other corporate bonds 2 15 4 Redeemable preferred stock — — — Total fixed maturities 2 15 4 Other investments — 40 — Total $ 2 $ 55 $ 4 Net realized investment gains in 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. The following table presents 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 All Other Corporate Bonds (in millions) At and For the Twelve Months Ended December 31, 2021 At and For the Twelve Months Ended December 31, 2020 Balance, beginning of period $ 2 $ — Additions for expected credit losses on securities where no credit losses were previously recognized 1 10 Additions (reductions) for expected credit losses on securities where credit losses were previously recognized 1 (6) 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 $ 3 $ 2 _________________________________________________________ (1) Credit impairment charges recognized in net realized investment gains included $0 million and $13 million for the twelve months ended December 31, 2021 and 2020, respectively, of credit losses on fixed maturity securities which the Company intends to sell. An allowance for expected credit losses was not previously recorded for these securities. Credit losses related to the fixed maturity portfolio for 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 at both December 31, 2021 and 2020. Concentrations and Credit Quality Concentrations of credit risk arise from exposure to counterparties that are engaged in similar activities and have similar economic characteristics that could cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The Company seeks to mitigate credit risk by actively monitoring the creditworthiness of counterparties, obtaining collateral as deemed appropriate and applying controls that include credit approvals, limits of credit exposure and other monitoring procedures. At December 31, 2021 and 2020, other than U.S. Treasury securities and obligations of U.S. government and government agencies and authorities, the Company was not exposed to any concentration of credit risk of a single issuer greater than 5% of the Company’s shareholders’ equity. Included in fixed maturities are below investment grade securities totaling $1.11 billion and $1.34 billion at December 31, 2021 and 2020, respectively. The Company defines its below investment grade securities as those securities rated below investment grade by external rating agencies, or the equivalent by the Company when a public rating does not exist. Such securities include below investment grade bonds that are publicly traded and certain other privately issued bonds that are classified as below investment grade loans. Net Investment Income (for the year ended December 31, in millions) 2021 2020 2019 Gross investment income Fixed maturities $ 1,989 $ 2,011 $ 2,070 Equity securities 19 15 15 Short-term securities 7 44 105 Real estate investments 59 48 55 Other investments 999 146 263 Gross investment income 3,073 2,264 2,508 Investment expenses 40 37 40 Net investment income $ 3,033 $ 2,227 $ 2,468 Changes in net unrealized gains (losses) on investment securities that are included as a separate component of other comprehensive income (loss) were as follows: (at and for the year ended December 31, in millions) 2021 2020 2019 Changes in net unrealized investment gains (losses) Fixed maturities $ (2,113) $ 2,322 $ 2,990 Other investments (2) — — Change in net pre-tax unrealized gains (losses) on investment securities (2,115) 2,322 2,990 Related tax expense (benefit) (456) 494 631 Change in net unrealized gains (losses) on investment securities (1,659) 1,828 2,359 Balance, beginning of year 4,074 2,246 (113) Balance, end of year $ 2,415 $ 4,074 $ 2,246 Derivative Financial Instruments From time to time, the Company enters into certain derivative financial instruments that are reported on the balance sheet at fair value. The change in fair value of these investments is reported in net realized investment gains and losses. The Company uses U.S. Treasury note futures contracts to modify the effective duration of specific assets within the investment portfolio. The U.S. Treasury futures contracts require a daily mark-to-market and are settled daily with the broker. At December 31, 2021 and 2020, the Company had no open U.S. Treasury futures contracts. Net realized investment gains and losses related to U.S. Treasury futures contracts in 2021, 2020 and 2019 were not significant. 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. Net realized investment gains and losses related to this put/call option in 2021, 2020 and 2019 were not significant. The Company also sells a small amount of U.S. equity index put option contracts that are settled for cash upon their expiration or when they are rolled over. Net realized investment gains and losses related to these derivatives in 2021, 2020 and 2019 were not significant. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 fair value of a financial instrument is the estimated amount at which the instrument could be exchanged in an orderly transaction between knowledgeable, unrelated, willing parties, i.e., not in a forced transaction. The estimated fair value of a financial instrument may differ from the amount that could be realized if the security was sold in an immediate sale, e.g., a forced transaction. Additionally, the valuation of investments is more subjective when markets are less liquid due to the lack of market based inputs, which may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction would occur. For investments that have quoted market prices in active markets, the Company uses the unadjusted quoted market prices as fair value and includes these prices in the amounts disclosed in Level 1 of the hierarchy. The Company receives the quoted market prices from third party, nationally recognized pricing services. When quoted market prices are unavailable, the Company utilizes these pricing services to determine an estimate of fair value. The fair value estimates provided from these pricing services are included in the amount disclosed in Level 2 of the hierarchy. If quoted market prices and an estimate from a pricing service are unavailable, the Company produces an estimate of fair value based on internally developed valuation techniques, which, depending on the level of observable market inputs, will render the fair value estimate as Level 2 or Level 3. The Company bases all of its estimates of fair value for assets on the bid price as it represents what a third-party market participant would be willing to pay in an arm’s length transaction. Fixed Maturities The Company utilized a pricing service to estimate fair value measurements for approximately 99% of its fixed maturities at both December 31, 2021 and 2020. The pricing service utilizes market quotations for fixed maturity securities that have quoted prices in active markets. Since fixed maturities other than U.S. Treasury securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, the pricing service uses an Option Adjusted Spread model to develop prepayment and interest rate scenarios. The pricing service evaluates each asset class based on relevant market information, relevant credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each market input depends on the asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary. The pricing service utilized by the Company has indicated that it will only produce an estimate of fair value if there is objectively verifiable information to produce a valuation. If the pricing service discontinues pricing an investment, the Company would be required to produce an estimate of fair value using some of the same methodologies as the pricing service but would have to make assumptions for any market-based inputs that were unavailable due to market conditions. The Company reviews the estimates of fair value provided by the pricing service and compares the estimates to the Company’s knowledge of the market to determine if the estimates obtained are representative of the prices in the market. In addition, the Company has periodic discussions with the pricing service to discuss and understand any changes in process and their responsiveness to changes occurring in the markets. The Company also monitors all monthly price changes and further evaluates any securities whose value changed more than 10% from the prior month. The Company has implemented various other processes including randomly selecting purchased or sold securities and comparing execution prices to the estimates from the pricing service as well as reviewing securities whose valuation did not change from their previous valuation (stale price review). The Company also uses a second independent pricing service to further test the primary pricing service’s valuation of the Company’s fixed maturity portfolio. These processes have not highlighted any significant issues with the fair value estimates received from the primary pricing service. The fair value estimates of most fixed maturity investments are based on observable market information rather than market quotes. Accordingly, the estimates of fair value for such fixed maturities, other than U.S. Treasury securities, provided by the pricing service are included in the amount disclosed in Level 2 of the hierarchy. The estimated fair value of U.S. Treasury securities is included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices. The Company also holds certain fixed maturity investments which are not priced by the pricing service and, accordingly, estimates the fair value of such fixed maturities using an internal matrix that is based on market information regarding interest rates, credit spreads and liquidity. The underlying source data for calculating the matrix of credit spreads relative to the U.S. Treasury curve are observable market-based indices that relate to corporate and high-yield fixed maturity investments. The Company includes the fair value estimates of these corporate bonds in Level 2, since all significant inputs are market observable. 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. Equity Securities — Common Stock and Non-Redeemable Preferred Stock For public common stock and non-redeemable preferred stocks, the Company receives prices from pricing services that are based on observable market transactions and includes these estimates in the amount disclosed in Level 1. When current market quotes in active markets are unavailable for certain non-redeemable preferred stocks held by the Company, the Company receives an estimate of fair value from the pricing services. The services utilize similar methodologies to price the non-redeemable preferred stocks as they do for the fixed maturities. The Company includes the fair value estimate for these non-redeemable preferred stocks in the amount disclosed in Level 2. For certain investments in non-public common and preferred equity securities, the fair value estimate is 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 included the fair value estimate of $343 million and $31 million for these investments at December 31, 2021 and 2020, respectively, in the amounts disclosed in Level 3. Other Investments The Company holds investments in various publicly-traded securities which are reported in other investments. These investments include mutual funds and other small holdings. The $18 million and $17 million fair value of these investments at December 31, 2021 and 2020, respectively, was disclosed in Level 1. Due to the significant unobservable inputs in these valuations, the Company includes the total fair value estimate for all of these investments at December 31, 2021 and 2020 in the amount disclosed in Level 3. 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 at December 31, 2021 and 2020 was $3 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 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 December 31, 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 $ 3,562 $ 3,562 $ — $ — Obligations of states, municipalities and political subdivisions 36,862 — 36,858 4 Debt securities issued by foreign governments 1,041 — 1,041 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,817 — 1,762 55 All other corporate bonds 34,514 — 34,325 189 Redeemable preferred stock 14 — 14 — Total fixed maturities 77,810 3,562 74,000 248 Equity securities Common stock 827 509 — 318 Non-redeemable preferred stock 66 21 20 25 Total equity securities 893 530 20 343 Other investments 23 18 — 5 Total $ 78,726 $ 4,110 $ 74,020 $ 596 Other liabilities $ 3 $ — $ — $ 3 (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 Common stock 416 410 — 6 Non-redeemable preferred stock 68 18 25 25 Total equity securities 484 428 25 31 Other investments 21 17 — 4 Total $ 74,508 $ 2,597 $ 71,710 $ 201 Other liabilities $ 5 $ — $ — $ 5 The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2021 and 2020. (in millions) Fixed Equity Securities Other Total Balance at December 31, 2020 $ 166 $ 31 $ 4 $ 201 Total realized and unrealized investment gains (losses): Reported in net realized investment gains (1) (1) 5 1 5 Reported in increases in other comprehensive income (loss) (3) — — (3) Purchases, sales and settlements/maturities: Purchases 227 307 — 534 Sales — — — — Settlements/maturities (48) — — (48) Gross transfers into Level 3 — — — — Gross transfers out of Level 3 (93) — — (93) Balance at December 31, 2021 $ 248 $ 343 $ 5 $ 596 Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date $ — $ 5 $ 1 $ 6 ___________________________________________ (1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. The Company also includes in Level 3 the put/call option entered into in connection with a business acquisition that is reported in other liabilities and had a fair value of $3 million at December 31, 2021. (in millions) Fixed Equity Securities Other Total Balance at December 31, 2019 $ 101 $ 13 $ 7 $ 121 Total realized and unrealized investment gains (losses): Reported in net realized investment gains (1) (1) 2 (2) (1) Reported in increases in other comprehensive income (loss) 2 — — 2 Purchases, sales and settlements/maturities: Purchases 79 16 — 95 Sales — — (1) (1) Settlements/maturities (15) — — (15) Gross transfers into Level 3 3 — — 3 Gross transfers out of Level 3 (3) — — (3) Balance at December 31, 2020 $ 166 $ 31 $ 4 $ 201 Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date $ — $ 2 $ (2) $ — ___________________________________________ (1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. The Company also includes in Level 3 the put/call option entered into in connection with a business acquisition that is reported in other liabilities and had a fair value of $5 million at 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 December 31, 2021, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 3,836 $ 3,836 $ 1,163 $ 2,615 $ 58 Financial liabilities: Debt $ 7,190 $ 9,085 $ — $ 9,085 $ — 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 — The Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the years ended December 31, 2021 and 2020. |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | ALLOWANCE FOR EXPECTED CREDIT LOSSES Premiums Receivable The following table presents the balances of premiums receivable, net of the allowance for expected credit losses, at December 31, 2021 and 2020, and the changes in the allowance for expected credit losses for the twelve months ended December 31, 2021 and 2020. At and For the Twelve Months Ended December 31, 2021 At and For the Twelve Months Ended December 31, 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 65 103 Write-offs of uncollectible premiums receivable 63 47 Balance, end of period $ 8,085 $ 107 $ 7,829 $ 105 Reinsurance Recoverables The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at December 31, 2021 and 2020, and the changes in the allowance for estimated uncollectible reinsurance for the twelve months ended December 31, 2021 and 2020. At and For the Twelve Months Ended December 31, 2021 At and For the Twelve Months Ended December 31, 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 (5) 1 Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 8,452 $ 141 $ 8,350 $ 146 Of the total reinsurance recoverables at December 31, 2021, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.93 billion, or 87%, 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 13% of reinsurance recoverables were comprised of the following: 6% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools, and 6% were balances from other 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 table presents the balances of contractholder receivables, net of the allowance for expected credit losses, at December 31, 2021 and 2020, and the changes in the allowance for expected credit losses for the twelve months ended December 31, 2021 and 2020. At and For the Twelve Months Ended December 31, 2021 At and For the Twelve Months Ended December 31, 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 1 Write-offs of uncollectible contractholder receivables — 2 Balance, end of period $ 3,890 $ 21 $ 4,242 $ 19 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company’s consolidated financial statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned premiums) the Company has underwritten to other insurance companies who agree to share these risks. The primary purpose of ceded reinsurance is to protect the Company, at a cost, from losses in excess of the amount it is prepared to accept and to protect the Company’s capital. Reinsurance is placed on both a quota-share and excess-of-loss basis. Ceded reinsurance arrangements do not discharge the Company as the primary insurer, except for instances where the primary policy or policies have been novated, such as in certain structured settlement agreements. The Company utilizes a corporate catastrophe excess-of-loss reinsurance treaty with unaffiliated reinsurers to manage its exposure to losses resulting from catastrophes and to protect its capital. In addition to the coverage provided under this treaty, the Company also utilizes a reinsurance agreement entered into in connection with catastrophe bonds issued by Long Point Re III to protect against certain weather-related and earthquake losses in the Northeastern United States, a Northeast property catastrophe excess-of-loss reinsurance treaty to protect against losses resulting from weather-related and earthquake catastrophes in the Northeastern United States and an underlying property aggregate catastrophe excess-of-loss reinsurance treaty to protect against the accumulation of certain property losses in North America. The Company also utilizes excess-of-loss treaties to protect against earthquake losses up to a certain threshold in Business Insurance (for certain markets) and for Personal Insurance, and several reinsurance treaties specific to its international operations. The Company monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to evaluate the collectability of amounts due from reinsurers and as a basis for determining the reinsurers with which the Company conducts ongoing business. In addition, in the ordinary course of business, the Company may become involved in coverage disputes with its reinsurers. Some of these disputes could result in lawsuits and arbitrations brought by or against the reinsurers to determine the Company’s rights and obligations under the various reinsurance agreements. The Company employs dedicated specialists and strategies to manage reinsurance collections and disputes. Included in reinsurance recoverables are amounts related to involuntary reinsurance arrangements. The Company is required to participate in various involuntary reinsurance arrangements through assumed reinsurance, principally with regard to residual market mechanisms in workers’ compensation and automobile insurance, as well as homeowners’ insurance in certain coastal areas. In addition, the Company provides services for several of these involuntary arrangements (mandatory pools and associations) under which it writes such residual market business directly, then cedes 100% of this business to the mandatory pool. Such participations and servicing arrangements are arranged to mitigate credit risk to the Company, as any ceded balances are jointly backed by all the pool members. Also included in reinsurance recoverables are amounts related to certain structured settlements. Structured settlements are annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the structured settlement is included in reinsurance recoverables and the related claim cost is included in the liability for claims and claim adjustment expense reserves, as the Company retains the contingent liability to the claimant. If it is expected that the life insurance company is not able to pay, the Company would recognize an impairment of the related reinsurance recoverable if, and to the extent, the purchased annuities are not covered by state guaranty associations. In the event that the life insurance company fails to make the required annuity payments, the Company would be required to make such payments. The following is a summary of reinsurance financial data reflected in the consolidated statement of income: (for the year ended December 31, in millions) 2021 2020 2019 Written premiums Direct $ 33,180 $ 30,762 $ 30,022 Assumed 1,064 1,001 1,041 Ceded (2,285) (2,031) (1,912) Total net written premiums $ 31,959 $ 29,732 $ 29,151 Earned premiums Direct $ 31,977 $ 29,978 $ 28,994 Assumed 1,032 1,010 1,076 Ceded (2,154) (1,944) (1,798) Total net earned premiums $ 30,855 $ 29,044 $ 28,272 Percentage of assumed earned premiums to net earned premiums 3.3 % 3.5 % 3.8 % Ceded claims and claim adjustment expenses incurred $ 1,184 $ 1,030 $ 1,089 Ceded premiums include the premiums paid for coverage provided by the Company’s catastrophe bonds. Reinsurance recoverables include amounts recoverable on both paid and unpaid claims and claim adjustment expenses and were as follows: (at December 31, in millions) 2021 2020 Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses $ 3,931 $ 3,731 Gross structured settlements 2,900 2,964 Mandatory pools and associations 1,762 1,801 Gross reinsurance recoverables 8,593 8,496 Allowance for estimated uncollectible reinsurance (141) (146) Net reinsurance recoverables $ 8,452 $ 8,350 Terrorism Risk Insurance Program The Terrorism Risk Insurance Program is a Federal program administered by the Department of the Treasury authorized through December 31, 2027 that provides for a system of shared public and private compensation for certain insured losses resulting from certified acts of terrorism. In order for a loss to be covered under the program (subject losses), the loss must meet certain aggregate industry loss minimums and must be the result of an event that is certified as an act of terrorism by the U.S. Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General of the United States. The annual aggregate industry loss minimum under the program is $200 million. The program excludes from participation the following types of insurance: Federal crop insurance, private mortgage insurance, financial guaranty insurance, medical malpractice insurance, health or life insurance, flood insurance, reinsurance, commercial automobile, professional liability (other than directors' and officers’), surety, burglary and theft, and farm-owners multi-peril. In the case of a war declared by Congress, only workers’ compensation losses are covered by the program. All commercial property and casualty insurers licensed in the United States are generally required to participate in the program. Under the program, a participating insurer, in exchange for making terrorism insurance available, is entitled to be reimbursed by the Federal Government for 80% of subject losses, after an insurer deductible, subject to an annual cap. The deductible for any calendar year is equal to 20% of the insurer’s direct earned premiums for covered lines for the preceding calendar year. The Company’s estimated deductible under the program is $2.71 billion for 2022. The annual cap limits the amount of aggregate subject losses for all participating insurers to $100 billion. Once subject losses have reached the $100 billion aggregate during a program year, participating insurers will not be liable under the program for additional covered terrorism losses for that program year. There have been no terrorism-related losses that have triggered program coverage since the program was established. Given that the law establishing the program remains untested, there is substantial uncertainty as to how it will be applied if an act of terrorism is certified under the program. In addition, application of the program to a specific event will depend upon whether the government has designated such event as a covered event. It is also possible that future legislative action could change or eliminate the program. Further, given the unpredictable frequency and severity of terrorism losses, as well as the limited terrorism coverage in the Company’s own reinsurance program, future losses from acts of terrorism, particularly involving nuclear, biological, chemical or radiological events, could be material to the Company’s operating results, financial position and/or liquidity in future periods. In addition, the Company may not have sufficient resources to respond to claims arising from a high frequency of high severity natural catastrophes and/or of man-made catastrophic events involving conventional means. While the Company seeks to manage its exposure to man-made catastrophic events involving conventional means, the Company may not have sufficient resources to respond to claims arising out of one or more man-made catastrophic events involving nuclear, biological, chemical or radiological means. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 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. (at December 31, in millions) 2021 2020 Business Insurance $ 2,610 $ 2,613 Bond & Specialty Insurance 550 550 Personal Insurance (1) 822 787 Other 26 26 Total $ 4,008 $ 3,976 _________________________________________________________ (1) Goodwill at December 31, 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 December 31, 2021, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 104 $ 41 $ 63 Contract-based (1) 205 188 17 Total subject to amortization 309 229 80 Not subject to amortization 226 — 226 Total $ 535 $ 229 $ 306 (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
Insurance Claim Reserves | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Loss Reserves [Abstract] | |
Insurance Claim Reserves | INSURANCE CLAIM RESERVES Claims and claim adjustment expense reserves were as follows: (at December 31, in millions) 2021 2020 Property-casualty $ 56,897 $ 54,510 Accident and health 10 11 Total $ 56,907 $ 54,521 The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses: (at and for the year ended December 31, in millions) 2021 2020 2019 Claims and claim adjustment expense reserves at beginning of year $ 54,510 $ 51,836 $ 50,653 Less reinsurance recoverables on unpaid losses 8,153 8,035 8,182 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 42,471 Estimated claims and claim adjustment expenses for claims arising in the current year 20,698 19,285 18,854 Estimated increase (decrease) in claims and claim adjustment expenses for claims arising in prior years (484) (267) 164 Total increases 20,214 19,018 19,018 Claims and claim adjustment expense payments for claims arising in: Current year 8,401 7,497 7,734 Prior years 9,470 9,092 10,060 Total payments 17,871 16,589 17,794 Unrealized foreign exchange loss (gain) (12) 74 106 Net reserves at end of year 48,688 46,357 43,801 Plus reinsurance recoverables on unpaid losses 8,209 8,153 8,035 Claims and claim adjustment expense reserves at end of year $ 56,897 $ 54,510 $ 51,836 Gross claims and claim adjustment expense reserves at December 31, 2021 increased by $2.39 billion over December 31, 2020, primarily reflecting the impacts of (i) higher volumes of insured exposures, (ii) catastrophe losses in 2021, (iii) loss cost trends for the current accident year and (iv) reduced claim settlement activity largely due to continued disruptions in the judicial system related to COVID-19. Gross claims and claim adjustment expense reserves at December 31, 2020 increased by $2.67 billion over December 31, 2019, primarily reflecting the impacts of (i) reduced judicial system and claim settlement activity largely related to COVID-19 and (ii) catastrophe losses in 2020. Reinsurance recoverables on unpaid losses at December 31, 2021 increased by $56 million over December 31, 2020, primarily reflecting the impacts of catastrophe losses in 2021, partially offset by a lower level of structured settlements and recoverables from mandatory pools and associations. Reinsurance recoverables on unpaid losses at December 31, 2020 increased by $118 million over December 31, 2019, primarily reflecting the impacts of catastrophe losses in 2020, partially offset by a lower level of recoverables from mandatory pools and associations and the $53 million increase in the allowance for estimated uncollectible reinsurance from the cumulative effect of adoption of updated accounting guidance for credit losses Beginning in late March 2020, in response to COVID-19, a number of states have enacted changes designed to effectively expand workers’ compensation coverage by creating a presumption of compensability for certain types of workers. In addition, other states are considering similar changes. Depending on the number of states that institute such changes and the terms of the changes, the Company could experience elevated claims frequency and severity for its workers' compensation line, which could have a material adverse effect on its results of operations. 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 2020, the Company recognized a subrogation benefit related to these claims of $403 million . Included in the claims and claim adjustment expense reserves are reserves for long-term disability and annuity claim payments, primarily arising from workers’ compensation insurance and workers’ compensation excess insurance policies, that are discounted to the present value of the estimated future payments. The discount rates used were a range of 3.5% to 5.0% at both December 31, 2021 and 2020. Total reserves net of the discount were $2.74 billion and $2.69 billion, and the related amount of discount was $1.15 billion and $1.14 billion, at December 31, 2021 and 2020, respectively. Accretion of the discount is reported as part of “claims and claim adjustment expenses” in the consolidated statement of income and was $48 million, $49 million and $49 million for the years ended December 31, 2021, 2020 and 2019. Prior Year Reserve Development The following disclosures regarding reserve development are on a “net of reinsurance” basis. 2021 In 2021 , estimated claims and claim adjustment expenses incurred included $484 million of net favorable development for claims arising in prior years, including $538 million of net favorable prior year reserve development and $48 million of accretion of discount that impacted the Company's results of operations. Business Insurance . Net favorable prior year reserve development in 2021 totaled $173 million, primarily driven by the following: • Workers' compensation - better than expected loss experience in the segment's domestic operations for multiple accident years; • Commercial property - better than expected loss experience in the segment's domestic operations for recent accident years; • International - better than expected loss experience for recent accident years; and • Commercial automobile - better than expected loss experience in the segment's domestic operations for recent accident years. Partially offset by: • Asbestos reserves - an increase of $225 million, primarily in the segment's domestic general liability product line; • Other reserves - an increase related to run-off operations; and • Environmental reserves - an increase primarily in the segment's domestic general liability product line. Bond & Specialty Insurance . Net favorable prior year reserve development in 2021 totaled $105 million, primarily driven by better than expected loss experience in the segment's domestic operations in the fidelity and surety product lines for multiple accident years, partially offset by higher than expected loss experience in the general liability product line for management liability coverages for multiple accident years. Personal Insurance . Net favorable prior year reserve development in 2021 totaled $260 million, primarily driven by better than expected loss experience in the segment's domestic operations in both the homeowners and other and automobile product lines for recent accident years. 2020 In 2020, estimated claims and claim adjustment expenses incurred included $267 million of net favorable development for claims arising in prior years, including $351 million of net favorable prior year reserve development and $49 million of accretion of discount that impacted the Company's results of operations. Business Insurance . Net unfavorable prior year reserve development in 2020 totaled $91 million, primarily driven by the following: • Asbestos reserves - an increase of $295 million, primarily in the segment's domestic general liability product line; • General liability (excluding asbestos and environmental) - higher than expected loss experience in the segment's domestic operations for primary and excess coverages for recent accident years, as well as an increase to general liability reserves in the Company's run-off operations related to policies issued more than 20 years ago; • Commercial automobile - higher than expected loss experience in the segment's domestic operations for recent accident years; and • Commercial multi-peril (excluding PG&E subrogation recoveries and asbestos and environmental) - higher than expected loss experience in the segment's domestic operations for recent accident years. Partially offset by: • Workers' compensation - better than expected loss experience in the segment's domestic operations for multiple accident years; • Commercial property (excluding PG&E subrogation recoveries) - better than expected loss experience in the segment's domestic operations for multiple accident years; and • PG&E subrogation recoveries - $81 million of recoveries described above. Bond & Specialty Insurance . Net unfavorable prior year reserve development in 2020 totaled $1 million, as higher than expected loss experience in the domestic general liability product line for management liability coverages for recent accident years was largely offset by better than expected loss experience in the surety product line for multiple accident years. Personal Insurance . Net favorable prior year reserve development in 2020 totaled $443 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. 2019 In 2019, estimated claims and claim adjustment expenses incurred included $164 million of net unfavorable development for claims arising in prior years, including $60 million of net unfavorable prior year reserve development and $49 million of accretion of discount that impacted the Company's results of operations. Business Insurance . Net unfavorable prior year reserve development in 2019 totaled $258 million, primarily driven by the following: • General liability (excluding asbestos and environmental) - higher than expected loss experience in the segment's domestic operations for primary and excess coverages for multiple accident years, including the impact for accident years 2009 and prior related to the enactment of legislation by a number of states that extended the statute of limitations for childhood sexual molestation claims; • Commercial automobile - higher than expected loss experience in the segment's domestic operations for recent accident years; • Asbestos reserves - an increase of $220 million, primarily in the segment's domestic general liability product line; • Commercial multi-peril - higher than expected loss experience in the segment's domestic operations for recent accident years; and • Environmental reserves - an increase of $76 million, primarily in the segment's domestic general liability product line, Partially offset by: • Workers' compensation - better than expected loss experience in the segment's domestic operations for multiple accident years; and • Commercial property - better than expected loss experience in the segment's domestic operations for recent accident years. Bond & Specialty Insurance . Net favorable prior year reserve development in 2019 totaled $65 million, primarily driven by better than expected loss experience in the segment’s domestic operations in the general liability product line for management liability coverages and in the fidelity and surety product line for multiple accident years. Personal Insurance . Net favorable prior year reserve development in 2019 totaled $133 million, primarily driven by better than expected loss experience in the segment's domestic operations in both the automobile and homeowners and other product lines for recent accident years. Claims Development The following is a summary of claims and claim adjustment expense reserves, including certain components, for the Company’s major product lines by reporting segment at December 31, 2021. (at December 31, 2021, in millions) Net Undiscounted Discount Subtotal: Reinsurance Claims and Claim Business Insurance General liability $ 8,893 $ (139) $ 8,754 $ 978 $ 9,732 Commercial property 997 — 997 513 1,510 Commercial multi-peril 4,427 — 4,427 225 4,652 Commercial automobile 3,740 — 3,740 303 4,043 Workers’ compensation (1) 16,623 (948) 15,675 665 16,340 Bond & Specialty Insurance General liability 2,297 — 2,297 173 2,470 Fidelity and surety 527 — 527 6 533 Personal Insurance Automobile 3,155 — 3,155 442 3,597 Homeowners (excluding Other) 1,661 — 1,661 210 1,871 International - Canada 745 — 745 21 766 Subtotal — claims and allocated claim adjustment expenses for the products presented in the development tables below 43,065 (1,087) 41,978 3,536 45,514 Other insurance contracts (2) 4,231 (4) 4,227 1,825 6,052 Unallocated loss adjustment expense reserves 2,383 — 2,383 15 2,398 Structured settlements (3) — — — 2,856 2,856 Other 100 — 100 (23) 77 Total property-casualty 49,779 (1,091) 48,688 8,209 56,897 Accident and health — — — 10 10 Total $ 49,779 $ (1,091) $ 48,688 $ 8,219 $ 56,907 ___________________________________________ (1) Net discount amount includes discount of $55 million on reinsurance recoverables for long-term disability and annuity claim payments. (2) Primarily includes residual market, international (other than operations in Canada within the Personal Insurance segment) and runoff assumed reinsurance business. (3) Includes structured settlements in cases where the Company did not receive a release from the claimant. (4) Total reinsurance recoverables (on paid and unpaid losses) at December 31, 2021 were $8.45 billion. The claim development tables that follow present, by accident year, incurred and cumulative paid claims and allocated claim adjustment expense on a historical basis. This claim development information is presented on an undiscounted, net of reinsurance basis for ten years, or the number of years for which claims incurred typically remain outstanding if less than ten years. The claim development tables also provide the historical average annual percentage payout of incurred claims (including the impact of subrogation recoveries from PG&E for accident years 2017 and 2018 in the commercial property, commercial multi-peril and homeowners and other product lines) by age, net of reinsurance, as supplementary information (identified as unaudited in the tables below). For Personal Insurance - International - Canada, the claim development information reflects the acquisition of The Dominion of Canada General Insurance Company (Dominion) in November 2013 on a retrospective basis (includes Dominion data for years prior to the Company’s acquisition of Dominion). Business Insurance General Liability ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves Dec 31, 2021 Cumulative Number of Reported Claims 2012 $ 989 $ 985 $ 935 $ 913 $ 892 $ 905 $ 917 $ 920 $ 941 $ 927 $ 59 25,061 2013 965 975 958 940 927 933 975 975 963 72 22,775 2014 976 989 983 948 956 1,013 988 979 100 22,576 2015 998 956 923 967 1,057 1,087 1,072 113 21,689 2016 1,075 1,058 1,087 1,187 1,204 1,179 189 20,556 2017 1,133 1,143 1,196 1,234 1,226 266 19,262 2018 1,253 1,312 1,344 1,395 407 19,135 2019 1,447 1,486 1,498 682 17,717 2020 1,467 1,493 1,013 12,141 2021 1,591 1,365 9,119 Total $ 12,323 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 32 $ 150 $ 295 $ 489 $ 589 $ 699 $ 754 $ 811 $ 831 $ 837 2013 35 175 363 498 639 745 816 836 853 2014 37 163 321 515 640 750 805 832 2015 36 137 336 558 740 828 875 Liability for Claims 2016 35 191 421 649 758 858 And Allocated Claim 2017 40 180 378 552 724 Adjustment Expenses, 2018 42 202 441 709 Net of Reinsurance 2019 51 233 482 2020 61 244 2012 - Before 2021 67 2021 2012 Total $ 6,481 $ 5,842 $ 3,051 Total net liability $ 8,893 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 3.5 % 12.2 % 17.4 % 18.3 % 13.1 % 10.2 % 5.8 % 3.6 % 2.0 % 0.6 % Commercial Property ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2017 $ 1,209 $ 1,177 $ 1,151 $ 1,128 $ 1,117 $ 3 25,143 2018 1,093 1,079 1,070 1,068 20 25,077 2019 1,069 1,034 1,031 (12) 25,376 2020 1,107 1,025 38 25,434 2021 1,236 94 21,996 Total $ 5,477 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Liability for Claims Accident Year And Allocated Claim 2017 $ 618 $ 1,003 $ 1,073 $ 1,094 $ 1,103 Adjustment Expenses, 2018 561 928 981 1,005 Net of Reinsurance 2019 610 957 1,001 2020 580 857 2017 - Before 2021 645 2021 2017 Total $ 4,611 $ 866 $ 131 Total net liability $ 997 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 55.2 % 32.4 % 5.2 % 2.0 % 0.8 % Commercial Multi-Peril ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 1,885 $ 1,883 $ 1,903 $ 1,888 $ 1,888 $ 1,867 $ 1,859 $ 1,854 $ 1,853 $ 1,851 $ 21 105,054 2013 1,615 1,623 1,620 1,609 1,591 1,600 1,599 1,598 1,593 26 83,991 2014 1,663 1,627 1,625 1,617 1,626 1,627 1,627 1,622 32 78,465 2015 1,568 1,625 1,593 1,597 1,606 1,593 1,584 46 71,922 2016 1,662 1,623 1,598 1,590 1,601 1,587 63 69,368 2017 1,872 1,928 1,956 1,919 1,935 104 72,318 2018 1,976 2,114 2,092 2,112 163 72,853 2019 2,017 2,087 2,089 294 66,484 2020 2,142 2,141 575 67,796 2021 2,164 892 47,190 Total $ 18,678 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 795 $ 1,246 $ 1,424 $ 1,590 $ 1,699 $ 1,752 $ 1,780 $ 1,804 $ 1,811 $ 1,818 2013 644 987 1,167 1,304 1,410 1,475 1,516 1,532 1,544 2014 628 956 1,154 1,328 1,448 1,512 1,544 1,560 2015 595 970 1,144 1,310 1,409 1,452 1,489 Liability for Claims 2016 585 950 1,133 1,278 1,373 1,437 And Allocated Claim 2017 716 1,199 1,388 1,531 1,674 Adjustment Expenses, 2018 792 1,302 1,500 1,669 Net of Reinsurance 2019 707 1,187 1,423 2020 791 1,180 2012 - Before 2021 744 2021 2012 Total $ 14,538 $ 4,140 $ 287 Total net liability $ 4,427 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 37.6 % 22.6 % 10.8 % 9.0 % 6.6 % 3.5 % 2.1 % 1.1 % 0.6 % 0.4 % Commercial Automobile ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2017 $ 1,386 $ 1,501 $ 1,524 $ 1,522 $ 1,533 $ 53 192,155 2018 1,645 1,742 1,745 1,761 130 204,588 2019 1,835 1,951 1,976 321 206,533 2020 1,788 1,677 640 141,722 2021 1,741 941 132,893 Total $ 8,688 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Liability for Claims Accident Year And Allocated Claim 2017 $ 456 $ 746 $ 1,027 $ 1,226 $ 1,361 Adjustment Expenses, 2018 515 848 1,159 1,404 Net of Reinsurance 2019 539 934 1,269 2020 437 696 2017 - Before 2021 453 2021 2017 Total $ 5,183 $ 3,505 $ 235 Total net liability $ 3,740 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 27.6 % 18.3 % 17.6 % 13.4 % 8.8 % Workers’ Compensation ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 2,447 $ 2,456 $ 2,457 $ 2,456 $ 2,445 $ 2,453 $ 2,416 $ 2,387 $ 2,377 $ 2,375 $ 347 138,454 2013 2,553 2,545 2,540 2,506 2,463 2,423 2,354 2,321 2,304 344 134,573 2014 2,554 2,553 2,547 2,476 2,430 2,393 2,352 2,336 393 131,465 2015 2,644 2,585 2,505 2,441 2,372 2,279 2,220 462 130,920 2016 2,768 2,690 2,569 2,473 2,372 2,300 456 130,036 2017 2,779 2,681 2,584 2,483 2,439 638 122,110 2018 2,744 2,687 2,599 2,503 737 122,931 2019 2,680 2,714 2,699 844 119,678 2020 2,559 2,530 1,249 95,611 2021 2,356 1,420 83,546 Total $ 24,062 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 443 $ 940 $ 1,217 $ 1,394 $ 1,536 $ 1,629 $ 1,689 $ 1,735 $ 1,768 $ 1,793 2013 458 954 1,237 1,413 1,525 1,604 1,659 1,700 1,729 2014 455 944 1,224 1,399 1,505 1,581 1,634 1,672 2015 430 893 1,154 1,310 1,411 1,470 1,520 Liability for Claims 2016 421 873 1,118 1,272 1,367 1,433 And Allocated Claim 2017 433 890 1,154 1,314 1,418 Adjustment Expenses, 2018 440 919 1,169 1,330 Net of Reinsurance 2019 466 951 1,229 2020 389 794 2012 - Before 2021 427 2021 2012 Total $ 13,345 $ 10,717 $ 5,906 Total net liability $ 16,623 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 18.2 % 19.5 % 11.2 % 7.0 % 4.7 % 3.2 % 2.4 % 1.8 % 1.3 % 1.1 % Bond & Specialty Insurance General Liability ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 538 $ 591 $ 614 $ 605 $ 601 $ 599 $ 605 $ 593 $ 581 $ 605 $ 14 4,872 2013 510 565 606 630 654 607 586 575 564 (4) 4,467 2014 549 571 563 518 473 452 450 449 15 4,375 2015 528 524 486 437 395 414 413 21 4,226 2016 512 511 504 520 514 510 34 4,398 2017 534 517 526 493 524 65 4,585 2018 530 548 585 595 99 4,795 2019 588 653 665 214 5,290 2020 772 753 399 5,004 2021 812 613 3,847 Total $ 5,890 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 38 $ 160 $ 255 $ 342 $ 383 $ 419 $ 436 $ 453 $ 459 $ 493 2013 34 154 252 352 400 434 451 462 482 2014 38 150 239 312 367 407 418 426 2015 38 141 234 310 338 348 381 Liability for Claims 2016 30 141 233 313 378 446 And Allocated Claim 2017 38 155 262 340 404 Adjustment Expenses, 2018 49 182 290 383 Net of Reinsurance 2019 51 189 323 2020 52 210 2012 - Before 2021 78 2021 2012 Total $ 3,626 $ 2,264 $ 33 Total net liability $ 2,297 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 7.5 % 22.1 % 19.0 % 16.1 % 9.9 % 7.3 % 4.1 % 2.2 % 2.2 % 5.6 % Fidelity and Surety ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 244 $ 271 $ 240 $ 241 $ 226 $ 1 940 2018 220 235 220 220 2 907 2019 203 193 200 37 871 2020 274 203 93 754 2021 284 253 421 Total $ 1,133 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 70 $ 166 $ 194 $ 205 $ 210 Adjustment Expenses, 2018 64 171 202 206 Net of Reinsurance 2019 49 121 147 2020 50 79 2017 - Before 2021 25 2021 2017 Total $ 667 $ 466 $ 61 Total net liability $ 527 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 23.6 % 35.4 % 13.2 % 3.4 % 2.1 % Personal Insurance Automobile ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 3,323 $ 3,256 $ 3,221 $ 3,206 $ 3,199 $ 24 1,062,811 2018 3,281 3,269 3,233 3,220 60 1,051,415 2019 3,362 3,361 3,333 153 1,032,740 2020 2,829 2,764 353 808,338 2021 3,716 1,028 894,499 Total $ 16,232 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 1,912 $ 2,575 $ 2,887 $ 3,046 $ 3,121 Adjustment Expenses, 2018 1,889 2,582 2,880 3,040 Net of Reinsurance 2019 1,933 2,650 2,958 2020 1,571 2,126 2017 - Before 2021 2,062 2021 2017 Total $ 13,307 $ 2,925 $ 230 Total net liability $ 3,155 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 57.8 % 21.0 % 9.4 % 5.0 % 2.4 % Homeowners (excluding Other) ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 2,312 $ 2,340 $ 2,343 $ 2,170 $ 2,160 $ 14 170,198 2018 2,610 2,574 2,381 2,325 21 187,306 2019 2,297 2,344 2,343 26 181,209 2020 3,019 2,967 170 219,786 2021 3,463 774 203,280 Total $ 13,258 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 1,471 $ 2,059 $ 2,197 $ 2,089 $ 2,103 Adjustment Expenses, 2018 1,657 2,298 2,255 2,239 Net of Reinsurance 2019 1,613 2,179 2,269 2020 2,019 2,673 2017 - Before 2021 2,334 2021 2017 Total $ 11,618 $ 1,640 $ 21 Total net liability $ 1,661 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 68.7 % 25.2 % 2.8 % (2.8) % 0.7 % International - Canada ( dollars in millions ) For the Years Ended December 31, IBNR Reserves December 31, 2021 Cumulative 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Reported Year Unaudited Claims 2012 $ 446 $ 423 $ 425 $ 408 $ 407 $ 390 $ 383 $ 371 $ 372 $ 372 $ — 51,245 2013 497 490 481 469 456 454 444 439 436 (7) 54,268 2014 440 456 456 444 437 434 433 430 (10) 52,300 2015 370 369 369 366 367 366 361 (2) 45,220 2016 370 419 420 429 429 428 2 45,764 2017 355 391 414 414 413 5 46,825 2018 451 474 475 480 17 50,599 2019 456 451 473 53 48,179 2020 356 342 88 30,098 2021 357 136 26,606 Total $ 4,092 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2012 $ 170 $ 237 $ 268 $ 295 $ 324 $ 342 $ 351 $ 356 $ 362 $ 365 2013 199 278 311 345 378 397 415 423 430 2014 194 272 309 339 371 394 411 426 2015 166 232 260 290 315 330 344 Liability for Claims 2016 217 291 317 352 377 395 And Allocated Claim 2017 187 263 304 328 356 Adjustment Expenses, 2018 224 312 349 389 Net of Reinsurance 2019 221 296 333 2020 148 199 2012 - Before 2021 131 2021 2012 Total $ 3,368 $ 724 $ 21 Total net liability $ 745 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 45.1 % 17.5 % 8.0 % 7.5 % 7.1 % 4.6 % 3.6 % 2.3 % 1.6 % 0.7 % The incurred and paid amounts have been translated from the local currency to U.S. dollars using the December 31, 2021 spot rate for all years presented in the table above in order to isolate changes in foreign exchange rates from loss development. Methodology for Estimating Incurred But Not Reported (IBNR) Reserves Claims and claim adjustment expense reserves represent management’s estimate of the ultimate liability for unpaid losses and loss adjustment expenses for claims that have been reported and claims that have been incurred but not yet reported (IBNR) as of the balance sheet date. Claims and claim adjustment expense reserves do not represent an exact calculation of the liability, but instead represent management estimates, primarily utilizing actuarial expertise and projection methods that develop estimates for the ultimate cost of claims and claim adjustment expenses. Because the establishment of claims and claim adjustment expense reserves is an inherently uncertain process involving estimates and judgment, currently estimated claims and claim adjustment expense reserves may change. The Company reflects changes to the reserves in the results of operations in the period the estimates are changed. Cumulative amounts paid and case reserves held as of the balance sheet date are subtracted from the estimate of the ultimate cost of claims and claim adjustment expenses to derive incurred but not reported (IBNR) reserves. Accordingly, IBNR reserves include the cost of unreported claims, development on known claims and re-opened claims. This approach to estimating IBNR reserves has been in place for many years, with no material changes in methodology in the past year. Detailed claim data is typically insufficient to produce a reliable indication of the initial estimate for ultimate claims and claim adjustment expenses for an accident year. As a result, the initial estimate for an accident year is generally based on an exposure-based method using either the loss ratio projection or the expected loss method. The loss ratio projection method, which is typically used for guaranteed-cost business, develops an initial estimate of ultimate claims and claim adjustment expenses for an accident year by multiplying earned premium for the accident year by a projected loss ratio. The projected loss ratio is determined by analyzing prior period experience, and adjusting for loss cost trends, rate level differences, mix of business changes and other known or observed factors influencing the accident year relative to prior accident years. The expected loss method, which is typically used for loss sensitive business, develops an initial estimate of ultimate claims and claim adjustment expenses for an accident year by analyzing exposures by account. For prior accident years, the following estimation and analysis methods are principally used by the Company’s actuaries to estimate the ultimate cost of claims and claim adjustment expenses. These estimation and analysis methods are typically referred to as conventional actuarial methods. • The paid loss development method assumes that the future change (positive or negative) in cumulative paid losses for a given cohort of claims will occur in a stable, predictable pattern from year-to-year, consistent with the pattern observed in past cohorts. • The case incurred development method is the same as the paid loss development method but is based on cumulative case-incurred losses rather than paid losses. • The Bornhuetter-Ferguson method uses an initial estimate of ultimate losses for a given product line reserve component, typically expressed as a ratio to earned premium. The method assumes that the ratio of additional claim activity to earned premium for that component is relatively stable and predictable over time and that actual claim activity to date is not a credible predictor of further activity for that component. The method is used most often for more recent accident years where claim data is sparse and/or volatile, with a transition to other methods as the underlying claim data becomes more voluminous and therefore more credible. • The average value analysis combined with the reported claim development method assumes that average claim values are stable and predictable over time for a particular cohort of claims. It is typically limited to analysis at more granular levels, such as coverage or hazard/peril, where a more homogeneous subset of claims produce a more stable and fairly predictable average value. The reported claim development method is the same as the paid loss development method but uses changes in cumulative claim counts to produce estimates of ultimate claim counts rather than ultimate dollars. The resulting estimate of ultimate claim counts by cohort is multiplied by an average value per claim from an average value analysis to obtain estimated ultimate claims and claim adjustment expenses. While these are the principal methods utilized, the Company’s actuaries have available to them the full range of actuarial methods developed by the casualty actuarial profession. The Company’s actuaries are also regularly monitoring developments within the profession for advances in existing techniques or the creation of new techniques that might improve current and future estimates. Most actuarial methods assume that past patterns demonstrated in the data will repeat themselves in the future. For certain reserve components where this assumption may not hold, such as asbestos and environmental reserves, conventional actuarial methods are not utilized by the Company. Methodology for Determining Cumulative Number of Reported Claims A claim file is created when the Company is notified of an actual demand for payment, notified of an event that may lead to a demand for payment or when it is determined that a demand for payment could possibly lead to a future demand for payment on another coverage on the same policy or on another policy. Claim files are |
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Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt outstanding was as follows: (at December 31, in millions) 2021 2020 Short-term: Commercial paper $ 100 $ 100 Total short-term debt 100 100 Long-term: 7.75% Senior notes due April 15, 2026 200 200 7.625% Junior subordinated debentures due December 15, 2027 125 125 6.375% Senior notes due March 15, 2033 500 500 6.75% Senior notes due June 20, 2036 400 400 6.25% Senior notes due June 15, 2037 800 800 5.35% Senior notes due November 1, 2040 750 750 4.60% Senior notes due August 1, 2043 500 500 4.30% Senior notes due August 25, 2045 400 400 8.50% Junior subordinated debentures due December 15, 2045 56 56 3.75% Senior notes due May 15, 2046 500 500 8.312% Junior subordinated debentures due July 1, 2046 73 73 4.00% Senior notes due May 30, 2047 700 700 4.05% Senior notes due March 7, 2048 500 500 4.10% Senior notes due March 4, 2049 500 500 2.55% Senior notes due April 27, 2050 500 500 3.05% Senior notes due June 8, 2051 750 — Total long-term debt 7,254 6,504 Total debt principal 7,354 6,604 Unamortized fair value adjustment 39 41 Unamortized debt issuance costs (103) (95) Total debt $ 7,290 $ 6,550 2021 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 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 100% of the principal amount of any senior notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. 2020 Debt Issuance. On April 27, 2020, the Company issued $500 million aggregate principal amount of 2.55% senior notes that will mature on April 27, 2050. The net proceeds of the issuance, after the deduction of the underwriting discount and expenses payable by the Company, totaled approximately $490 million. Interest on the senior notes is payable semi-annually in arrears on April 27 and October 27. Prior to October 27, 2049, 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 October 27, 2049 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 25 basis points. On or after October 27, 2049, 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 100% of the principal amount of any senior notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. 2020 Debt Repayment . On November 1, 2020, the Company's $500 million, 3.90% notes matured and were fully paid. 2019 Debt Issuance. On March 4, 2019, the Company issued $500 million aggregate principal amount of 4.10% senior notes that will mature on March 4, 2049. The net proceeds of the issuance, after the deduction of the underwriting discount and expenses payable by the Company, totaled approximately $492 million. Interest on the senior notes is payable semi-annually in arrears on March 4 and September 4. Prior to September 4, 2048, 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 September 4, 2048 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 20 basis points. On or after September 4, 2048, 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 100% of the principal amount of any senior notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. 2019 Debt Repayment . On June 2, 2019, the Company's $500 million, 5.90% senior notes matured and were fully paid. Description of Debt Commercial Paper —The Company maintains an $800 million commercial paper program. Interest rates on commercial paper issued in 2021 ranged from 0.09% to 0.12%, and in 2020 ranged from 0.12% to 1.62%. Senior Notes —The Company’s various senior debt issues are unsecured obligations that rank equally with one another. Interest payments are made semi-annually. The Company generally may redeem some or all of the notes prior to maturity in accordance with terms unique to each debt instrument. Junior Subordinated Debentures —The Company’s three junior subordinated debenture instruments are all similar in nature to each other. Three separate business trusts issued preferred securities to investors and used the proceeds to purchase the Company’s junior subordinated debentures. Interest on each of the instruments is paid semi-annually. The Company’s consolidated balance sheet includes the debt instruments acquired in a business acquisition, which were recorded at fair value as of the acquisition date. The resulting fair value adjustment is being amortized over the remaining life of the respective debt instruments using the effective-interest method. The amortization of the fair value adjustment reduced interest expense by $2 million for both of the years ended December 31, 2021 and 2020. The following table presents merger-related unamortized fair value adjustments and the related effective interest rate: Unamortized Fair Value Effective Interest Rate to Maturity (in millions) Issue Rate Maturity Date 2021 2020 Junior subordinated debentures 7.625 % Dec. 2027 $ 8 $ 10 6.147 % 8.500 % Dec. 2045 14 14 6.362 % 8.312 % Jul. 2046 17 17 6.362 % Total $ 39 $ 41 The Travelers Companies, Inc. fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings Inc. (TIGHI). The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033. Maturities —Other than commercial paper and $200 million of senior notes coming due in 2026, the Company has no senior or junior subordinated debentures that become due during the years 2022 through 2026. Credit Agreement The Company is party to a five-year, $1.0 billion revolving credit agreement with a syndicate of financial institutions that expires on June 4, 2023. Pursuant to the credit agreement covenants, the Company must maintain a minimum consolidated net worth, defined as shareholders’ equity determined in accordance with GAAP (excluding accumulated other comprehensive income (loss)) plus (a) trust preferred securities (not to exceed 15% of total capital) and (b) mandatorily convertible securities (combined with trust preferred securities, not to exceed 25% of total capital) less goodwill and other intangible assets, of $12.494 billion. In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change in control, which is defined to include the acquisition of 35% or more of the Company’s voting stock and certain changes in the composition of the Company’s Board of Directors. At December 31, 2021, the Company was in compliance with these covenants. Generally, the cost of borrowing under this agreement will range from LIBOR plus 75 basis points to LIBOR plus 137.5 basis points, depending on the Company’s credit ratings. At December 31, 2021, that cost would have been LIBOR plus 100 basis points, had there been any amounts outstanding under the credit agreement. In the event that LIBOR is no longer available, the credit agreement provides that the Company and the syndicate of financial institutions use commercially reasonable efforts to jointly agree upon an alternate rate of interest. The Company has uncollateralized letters of credit with an aggregate limit of $319 million at December 31, 2021, including $279 million that provides a portion of the capital needed to support the Company's obligations at Lloyd's. Shelf Registration |
Shareholders' Equity and Divide
Shareholders' Equity and Dividend Availability | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity and Dividend Availability | SHAREHOLDERS’ EQUITY AND DIVIDEND AVAILABILITY Authorized Shares The number of authorized shares of the Company is 1.755 billion, consisting of five million shares of preferred stock, 1.745 billion shares of voting common stock and five million undesignated shares. The Company’s Articles of Incorporation authorize the Board of Directors to establish, from the undesignated shares, one or more classes and series of shares, and to further designate the type of shares and terms thereof. Preferred Stock The Company’s Articles of Incorporation provide authority to issue up to five million shares of preferred stock. Common Stock The Company is governed by the Minnesota Business Corporation Act. All authorized shares of voting common stock have no par value. Shares of common stock reacquired are considered authorized and unissued shares. Restricted Stock In August 2020, 41,997 shares of restricted stock issued by the Company in August 2017 to certain employees of an acquired business vested and were distributed. The value of the shares was recognized over the vesting period and was included with the share-based compensation cost of awards that are issued under the Company’s share-based incentive compensation plan (see note 14). Treasury Stock The Company’s Board of Directors has approved common share repurchase authorizations under which repurchases may be made from time to time in the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, in private transactions or otherwise. The authorizations do not have a stated expiration date. The timing and actual number of shares to be repurchased in the future will depend on a variety of factors, including the Company’s financial position, earnings, share price, catastrophe losses, maintaining capital levels commensurate with the Company’s desired ratings from independent rating agencies, changes in levels of written premiums, funding of the Company’s qualified pension plan, capital requirements of the Company’s operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions and other factors. In April 2021, the Board of Directors approved a share repurchase authorization that added an additional $5.0 billion of repurchase capacity. During 2021, the Company repurchased 13.9 million shares under its share repurchase authorization, for a total of $2.16 billion. The average cost per share repurchased was $154.79. At December 31, 2021, the Company had $4.01 billion of capacity remaining under its share repurchase authorization. The Company’s Amended and Restated 2004 Stock Incentive Plan and the Amended and Restated 2014 Stock Incentive Plan provide settlement alternatives to employees in which the Company retains shares 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. During the years ended December 31, 2021 and 2020, the Company acquired $44 million and $47 million, respectively, of its common stock under these plans. Common shares acquired are reported as treasury stock in the consolidated balance sheet. Dividend Availability The Company’s U.S. insurance subsidiaries, domiciled principally in the State of Connecticut, are subject to various regulatory restrictions that limit the maximum amount of dividends available to be paid by each insurance subsidiary to its respective parent company without prior approval of insurance regulatory authorities. A maximum of $3.08 billion is available by the end of 2022 for such dividends to the holding company, TRV, without prior approval of the Connecticut Insurance Department. The Company may choose to accelerate the timing within 2022 and/or increase the amount of dividends from its insurance subsidiaries in 2022, which could result in certain dividends being subject to approval by the Connecticut Insurance Department. In addition to the regulatory restrictions on the availability of dividends that can be paid by the Company’s U.S. insurance subsidiaries, the maximum amount of dividends that may be paid to the Company’s shareholders is limited, to a lesser degree, by certain covenants contained in its line of credit agreement with a syndicate of financial institutions that require the Company to maintain a minimum consolidated net worth as described in note 9. TRV is not dependent on dividends or other forms of repatriation from its foreign operations to support its liquidity needs. The undistributed earnings of the Company’s foreign operations are intended to be permanently reinvested in those operations, and such earnings were not material to the Company's financial position or liquidity at December 31, 2021. TRV and its two non-insurance holding company subsidiaries received dividends of $2.18 billion, $2.00 billion and $2.50 billion from their U.S. insurance subsidiaries in 2021, 2020 and 2019, respectively. For the years ended December 31, 2021, 2020 and 2019, TRV declared cash dividends per common share of $3.49, $3.37 and $3.23, respectively, and paid cash dividends of $869 million, $861 million and $844 million, respectively. Statutory Net Income and Statutory Capital and Surplus Statutory net income of the Company’s domestic and international insurance subsidiaries was $3.41 billion, $2.98 billion and $2.74 billion for the years ended December 31, 2021, 2020 and 2019, respectively. Statutory capital and surplus of the Company’s domestic and international insurance subsidiaries was $23.91 billion and $22.18 billion at December 31, 2021 and 2020, respectively. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2021, 2020 and 2019. Changes in Net Unrealized Gains (Losses) on (in millions) Having No Credit Having Credit Losses Net Benefit Plan Assets and Net Unrealized Total Accumulated Balance, December 31, 2018 $ (306) $ 193 $ (873) $ (873) $ (1,859) Other comprehensive income (loss) (OCI) before reclassifications, net of tax 2,406 (4) (14) 106 2,494 Amounts reclassified from AOCI, net of tax (43) — 41 7 5 Net OCI, current period 2,363 (4) 27 113 2,499 Balance, December 31, 2019 2,057 189 (846) (760) 640 OCI before reclassifications, net of tax 1,876 (7) (53) 21 1,837 Amounts reclassified from AOCI, net of tax (41) — 67 (1) 25 Net OCI, current period 1,835 (7) 14 20 1,862 Balance, December 31, 2020 3,892 182 (832) (740) 2,502 OCI before reclassifications, net of tax (1,606) — 278 (9) (1,337) Amounts reclassified from AOCI, net of tax (53) — 81 — 28 Net OCI, current period (1,659) — 359 (9) (1,309) Balance, December 31, 2021 $ 2,233 $ 182 $ (473) $ (749) $ 1,193 The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit). (for the year ended December 31, in millions) 2021 2020 2019 Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income $ (2,115) $ 2,331 $ 2,994 Income tax expense (benefit) (456) 496 631 Net of taxes (1,659) 1,835 2,363 Having credit losses recognized in the consolidated statement of income — (9) (4) Income tax benefit — (2) — Net of taxes — (7) (4) Net changes in benefit plan assets and obligations 455 18 33 Income tax expense 96 4 6 Net of taxes 359 14 27 Net changes in unrealized foreign currency translation (11) 12 117 Income tax expense (benefit) (2) (8) 4 Net of taxes (9) 20 113 Total other comprehensive income (loss) (1,671) 2,352 3,140 Total income tax expense (benefit) (362) 490 641 Total other comprehensive income (loss), net of taxes $ (1,309) $ 1,862 $ 2,499 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. (for the year ended December 31, in millions) 2021 2020 2019 Reclassification adjustments related to unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (67) $ (52) $ (55) Income tax expense (2) (14) (11) (12) Net of taxes (53) (41) (43) 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) 41 35 21 General and administrative expenses (3) 61 50 31 Total 102 85 52 Income tax benefit (2) 21 18 11 Net of taxes 81 67 41 Reclassification adjustment related to foreign currency translation (1) — (1) 7 Income tax benefit (2) — — — Net of taxes — (1) 7 Total reclassifications 35 32 4 Total income tax (expense) benefit 7 7 (1) Total reclassifications, net of taxes $ 28 $ 25 $ 5 ___________________________________________ (1) (Increases) decreases net realized investment gains 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
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share was computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities and excludes the effect of any anti-dilutive shares. Potentially dilutive securities include restricted stock units, deferred stock units, stock options and performance share awards related to the employee share-based incentive compensation programs. The restricted stock units and deferred stock units contain non-forfeitable rights to dividends and are included as participating securities in the calculation of basic and diluted earnings per share using the two-class method. Stock option and performance share awards are included in the calculation of diluted earnings per share using the treasury stock method. The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations: (for the year ended December 31, in millions, except per share amounts) 2021 2020 2019 Basic and Diluted Net income, as reported $ 3,662 $ 2,697 $ 2,622 Participating securities — allocated income (27) (19) (19) Net income available to common shareholders — basic and diluted $ 3,635 $ 2,678 $ 2,603 Common Shares Basic Weighted average shares outstanding 248.5 253.5 260.0 Diluted Weighted average shares outstanding 248.5 253.5 260.0 Weighted average effects of dilutive securities: Stock options and performance shares 2.3 1.1 2.3 Total 250.8 254.6 262.3 Net income Per Common Share 0 Basic $ 14.63 $ 10.56 $ 10.01 Diluted $ 14.49 $ 10.52 $ 9.92 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Components of Income Tax Expense The following table presents the components of income tax expense included in the amounts reported in the Company’s consolidated financial statements: (for the year ended December 31, in millions) 2021 2020 2019 Composition of income tax expense included in the consolidated statement of income Current expense: Federal $ 659 $ 532 $ 546 Foreign 67 35 7 State 6 4 6 Total current tax expense 732 571 559 Deferred expense (benefit): Federal 62 (29) (33) Foreign 2 (2) (10) Total deferred tax expense (benefit) 64 (31) (43) Total income tax expense included in the consolidated statement of income 796 540 516 Composition of income tax expense (benefit) included in shareholders’ equity Expense (benefit) relating to changes in the unrealized gain (loss) on investments, unrealized loss on foreign exchange and other items in other comprehensive income (loss) (362) 490 641 Total income tax expense included in the consolidated financial statements $ 434 $ 1,030 $ 1,157 The following is a reconciliation of income tax expense at the U.S. federal statutory income tax rate to the income tax expense reported in the Company’s consolidated statement of income: (for the year ended December 31, in millions) 2021 2020 2019 Income (loss) before income taxes U.S. $ 4,107 $ 3,095 $ 3,211 Foreign 351 142 (73) Total income before income taxes 4,458 3,237 3,138 Effective tax rate Statutory tax rate 21 % 21 % 21 % Expected federal income tax expense 936 680 659 Tax effect of: Nontaxable investment income (147) (147) (149) Other, net 7 7 6 Total income tax expense $ 796 $ 540 $ 516 Effective tax rate 18 % 17 % 16 % The Company paid income taxes of $707 million, $578 million and $428 million during the years ended December 31, 2021, 2020 and 2019, respectively. The current income tax payable was $119 million and $131 million at December 31, 2021 and 2020, respectively, and was included in other liabilities in the consolidated balance sheet. Deferred Tax Liability The net deferred tax liability comprises the tax effects of temporary differences related to the following assets and liabilities: (at December 31, in millions) 2021 2020 Deferred tax assets Claims and claim adjustment expense reserves $ 601 $ 575 Unearned premium reserves 603 560 Compensation-related liabilities 35 110 Net operating losses 101 87 Other 152 180 Total gross deferred tax assets 1,492 1,512 Less: valuation allowance 23 21 Adjusted gross deferred tax assets 1,469 1,491 Deferred tax liabilities Deferred acquisition costs 479 445 Investments 940 1,225 Depreciation 112 130 Other 227 249 Total gross deferred tax liabilities 1,758 2,049 Net deferred tax liability $ 289 $ 558 If the Company determines that any of its deferred tax assets will not result in future tax benefits, a valuation allowance must be established for the portion of these assets that are not expected to be realized. The net change in the valuation allowance for deferred tax assets was an increase of $2 million in 2021, primarily driven by a $3 million increase in the Company's Canadian subsidiary, partially offset by a decrease of $1 million in the Company's Republic of Ireland subsidiary. Based upon a review of the Company’s anticipated future taxable income, and also including all other available evidence, both positive and negative, the Company’s management concluded that it is more likely than not that the net deferred tax assets will be realized. U.S. income taxes have not been recognized on any undistributed earnings that are intended to be permanently reinvested. Any potential U.S. income tax on these amounts is immaterial. Net Operating Losses For tax return purposes, as of December 31, 2021, the Company had net operating loss (NOL) carryforwards in the United States, Canada, the Republic of Ireland and the United Kingdom. The amount and timing of realizing the benefits of NOL carryforwards depend on future taxable income and limitations imposed by tax laws. Only the benefits of the United Kingdom NOL carryforwards have been recognized in the consolidated financial statements and are included in net deferred tax assets. The NOL amounts by jurisdiction and year of expiration are as follows: (in millions) Amount Year of United States $ 2 2035 - 2036 Canada $ 25 2035 - 2041 Republic of Ireland $ 127 None United Kingdom $ 328 None Uncertain Tax Positions The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2021 and 2020: (in millions) 2021 2020 Balance at January 1 $ 49 $ 37 Additions for tax positions of prior years 2 16 Reductions for tax positions of prior years (3) — Reductions based on tax positions related to current year — — Expiration of statute of limitations — (4) Balance at December 31 $ 48 $ 49 Included in the balances at both December 31, 2021 and 2020 were $48 million of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. Also included in the balances at those dates were $0 million and $1 million, respectively, of tax positions for which the ultimate deductibility is certain, but for which there is uncertainty about the timing of deductibility. The timing of such deductibility could affect the annual effective tax rate depending on the year of deduction and tax rate at the time. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in income taxes. During the years ended December 31, 2021, 2020 and 2019, the Company recognized approximately $3 million, $0 million and $(1) million in interest, respectively. The Company had approximately $16 million and $13 million accrued for the payment of interest at December 31, 2021 and 2020, respectively. The IRS is conducting an examination of the Company’s U.S. income tax returns for 2017 and 2018. The Company believes that it is reasonably possible the liability for unrecognized tax benefits will decrease by approximately $40 million to $50 million within the next twelve months due to the expected completion of the examination of the Company’s U.S. income tax returns for 2017 and 2018. The decrease primarily pertains to temporary differences that originated in periods prior to the Tax Cuts and Jobs Act of 2017. |
Share-Based Incentive Compensat
Share-Based Incentive Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Incentive Compensation | SHARE-BASED INCENTIVE COMPENSATION The Company has a share-based incentive compensation plan, The Travelers Companies, Inc. Amended and Restated 2014 Stock Incentive Plan (the 2014 Incentive Plan), the purposes of which are to align the interests of the Company’s non-employee directors, executive officers and other employees with those of the Company’s shareholders and to attract and retain personnel by providing incentives in the form of share-based awards. The 2014 Incentive Plan permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, deferred stock units, performance awards and other share-based or share-denominated awards with respect to the Company’s common stock. The Company has a policy of issuing new shares to settle the exercise of stock option awards and the vesting of other equity awards. In connection with the adoption of the 2014 Incentive Plan, The Travelers Companies, Inc. Amended and Restated 2004 Stock Incentive Plan, as amended (the 2004 Incentive Plan) was terminated, joining several other legacy share-based incentive compensation plans that had been terminated in prior years (together, the legacy plans). Outstanding grants were not affected by the termination of the legacy plans. The 2014 Incentive Plan is currently the only plan pursuant to which future stock-based awards may be granted. The number of shares of the Company’s common stock initially authorized for grant under the 2014 Incentive Plan was 10 million shares. In May 2021, 2019, 2017 and 2016, the Company’s shareholders authorized an additional 2.4 million, 3.1 million, 2.5 million and 4.4 million shares of the Company’s common stock, respectively, for grant under the 2014 Incentive Plan. The following are not counted towards the combined 22.4 million shares available and will be available for future grants under the 2014 Incentive Plan: (i) shares of common stock subject to awards that expire unexercised, that are forfeited, terminated or canceled, that are settled in cash or other forms of property, or otherwise do not result in the issuance of shares of common stock, in whole or in part; (ii) shares that are used to pay the exercise price of stock options and shares used to pay withholding taxes on awards generally; and (iii) shares purchased by the Company on the open market using cash option exercise proceeds; provided, however, that the increase in the number of shares of common stock available for grant pursuant to such market purchases shall not be greater than the number that could be repurchased at fair market value on the date of exercise of the stock option giving rise to such option proceeds. In addition, the 22.4 million shares authorized by shareholders for issuance under the 2014 Incentive Plan will be increased by any shares subject to awards under the 2004 Incentive Plan that were outstanding as of May 27, 2014 and subsequently expire, are forfeited, canceled, settled in cash or otherwise terminate without the issuance of shares. The Company also has a compensation program for non-employee directors (the Director Compensation Program). Under the Director Compensation Program, non-employee directors’ compensation consists of an annual retainer, a deferred stock award, committee chair fees and a lead director fee. Each non-employee director may choose to receive all or a portion of his or her annual retainer, committee chair fee and lead director fee, as applicable, in the form of cash or deferred stock units which vest upon grant. The annual deferred stock awards vest in full one day prior to the date of the Company’s annual meeting of shareholders occurring in the year following the year of the grant date, subject to continued service. The annual deferred stock awards, including dividend equivalents, accumulate until distribution either in a lump sum or, if the director so elects, in annual installments, in each case beginning at least six months following termination of service as a director. The deferred stock units issued under the Director Compensation Program are awarded under the 2014 Incentive Plan. Stock Option Awards Stock option awards granted to eligible officers and key employees have a ten-year term. All stock options are granted with an exercise price equal to the closing price of the Company’s common stock on the date of grant. The stock options granted generally vest upon meeting certain years of service criteria. Except as the Compensation Committee of the Board of Directors may allow in the future, stock options cannot be sold or transferred by the participant. Stock options outstanding under the 2014 Incentive Plan and the 2004 Incentive Plan generally vest three years after grant date (cliff vest). The fair value of each option award is estimated on the date of grant by application of a variation of the Black-Scholes option pricing model using the assumptions noted in the following table. The expected term of newly granted stock options is the time to vest plus half the remaining time to expiration. This considers the vesting restriction and represents an even pattern of exercise behavior over the remaining term. The expected volatility assumption is based on the historical volatility of the Company’s common stock for the same period as the estimated option term generally using the volatility of the week prior to the stock option grant. The expected dividend is based upon the Company’s current quarter dividend annualized and assumed to be constant over the expected option term. The risk-free interest rate for each option is the interpolated market yield of a U.S. Treasury bill with a term comparable to the expected option term for the same week used for measuring volatility. The following table provides information about options granted: (for the year ended December 31,) 2021 2020 2019 Assumptions used in estimating fair value of options on grant date Expected term of stock options 6 years 6 years 6 years Expected volatility of Company’s stock 24.22% - 24.53% 15.73 % 15.47% - 15.91% Weighted average volatility 24.22 % 15.73 % 15.48 % Expected annual dividend per share $3.40 - $3.52 $3.28 $3.08 - $3.28 Risk-free rate 0.59% - 1.08% 1.37 % 1.70% - 2.54% Additional information Weighted average grant-date fair value of options granted (per share) $ 23.32 $ 14.41 $ 16.64 Total intrinsic value of options exercised during the year (in millions) $ 94 $ 47 $ 88 A summary of stock option activity under the 2014 Incentive Plan and the legacy plans as of and for the year ended December 31, 2021 is as follows: Stock Options Number Weighted Weighted Aggregate Outstanding, beginning of year 10,075,758 $ 121.03 Original grants 1,599,841 139.88 Exercised (2,181,586) 110.39 Forfeited or expired (74,128) 131.29 Outstanding, end of year 9,419,885 $ 126.62 6.5 years $ 281 Vested at end of year (1) 7,225,469 $ 124.73 6.0 years $ 229 Exercisable at end of year 4,081,500 $ 118.75 4.4 years $ 154 ___________________________________________ (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. On February 8, 2022, the Company, under the 2014 Incentive Plan, granted 1,104,483 stock option awards with an exercise price of $172.50 per share. The fair value attributable to the stock option awards on the date of grant was $35.70 per share. Restricted Stock Units, Deferred Stock Units and Performance Share Award Programs The Company issues restricted stock unit awards to eligible officers and key employees under the Equity Awards program established pursuant to the 2014 Incentive Plan. A restricted stock unit represents the right to receive a share of common stock. These restricted stock unit awards are granted at market price, generally vest three years from the date of grant, do not have voting rights and the underlying shares of common stock are not issued until the vesting criteria is satisfied. In addition, members of the Company’s Board of Directors can be issued deferred stock units from (i) an annual award; (ii) deferred compensation (in lieu of cash retainer, committee chair fees and lead director fees); and (iii) dividend equivalents earned on outstanding deferred compensation. The Company also has a Performance Share Awards Program established pursuant to the 2004 Incentive Plan and which continues pursuant to the 2014 Incentive Plan. Under the program, the Company may issue performance share awards to certain employees of the Company who hold positions of Vice President (or its equivalent) or above. The performance share awards provide the recipient the right to earn shares of the Company’s common stock based upon the Company’s attainment of certain performance goals and the recipient meeting certain years of service criteria. The performance goals for performance share awards are based on the Company’s adjusted return on equity over a three-year performance period. Vesting of performance shares is contingent upon the Company attaining the relevant performance period minimum threshold return on equity and the recipient meeting certain years of service criteria, generally three years for full vesting. If the performance period return on equity is below the minimum threshold, none of the performance shares will vest. If performance meets or exceeds the minimum performance threshold, a range of performance shares will vest (50% to 150% for awards granted in 2020, 50% to 200% for awards granted in 2021 and 2022), depending on the actual return on equity attained. The fair value of restricted stock units, deferred stock units and performance shares is measured at the market price of the Company stock at date of grant. Under terms of the 2014 Incentive Plan, holders of deferred stock units and performance shares may receive dividend equivalents. The total fair value of shares that vested during the years ended December 31, 2021, 2020 and 2019 was $124 million, $127 million and $130 million, respectively. A summary of restricted stock units, deferred stock units and performance share activity under the 2014 Incentive Plan and the legacy plans as of and for the year ended December 31, 2021 is as follows: Restricted and Deferred Stock Performance Shares Other Equity Instruments Number Weighted Number Weighted Average Nonvested, beginning of year 1,086,784 $ 132.12 723,991 $ 129.45 Granted 605,188 141.22 367,299 139.83 Vested (513,226) (1) 138.57 (359,925) (2) 126.18 Forfeited (69,921) 132.93 (24,828) 131.20 Performance-based adjustment — — 224,020 (3) 138.56 Nonvested, end of year 1,108,825 $ 134.05 930,557 $ 136.96 ___________________________________________ (1) Represents awards for which the requisite service has been rendered. (2) Reflects the number of performance shares attributable to the performance goals attained over the completed performance period (three years) and for which service conditions have been met. (3) Represents the current year change in estimated performance shares to reflect the attainment of performance goals for the awards that were granted in each of the years 2019 through 2021. In addition to the nonvested shares presented in the above table, there are related nonvested dividend equivalent shares. The number of nonvested dividend equivalent shares related to deferred stock units was 394 at the beginning of the year and 280 at the end of the year and the number of nonvested dividend equivalent shares related to performance shares was 29,751 at the beginning of the year and 32,670 at the end of the year. The dividend equivalent shares are subject to the same vesting terms as the deferred stock units and performance shares. On February 8, 2022, the Company, under the 2014 Incentive Plan, granted 788,058 common stock awards in the form of restricted stock units, deferred stock units and performance share awards to participating officers, non-employee directors and other key employees. The restricted stock units and deferred stock units totaled 470,716 shares and the performance share awards totaled 317,342 shares. The fair value per share attributable to the common stock awards on the date of grant was $172.50. Share-Based Compensation Cost Recognition The amount of compensation cost for awards subject to a service condition is based on the number of shares expected to be issued and is recognized over the time period for which service is to be provided (requisite service period), generally the vesting period. Awards granted to retiree-eligible employees or to employees who become retiree-eligible before an award’s vesting date are considered to have met the requisite service condition if the vesting terms are accelerated upon retirement. The compensation cost for awards subject to a performance condition is based upon the probable outcome of the performance condition, which on the grant date reflects an estimate of attaining 100% of the performance shares granted. The compensation cost reflects an estimated annual forfeiture rate from 3.5% to 4.5% over the requisite service period of the awards. That estimate is revised if subsequent information indicates that the actual number of instruments expected to vest is likely to differ from previous estimates. Compensation costs for awards are recognized on a straight-line basis over the requisite service period. For awards that have graded vesting terms, the compensation cost is recognized on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in substance, multiple awards. The total compensation cost for all share-based incentive compensation awards recognized in earnings for the years ended December 31, 2021, 2020 and 2019 was $162 million, $148 million and $142 million, respectively. Included in these amounts are compensation cost adjustments of $12 million, $3 million and $2 million, for the years ended December 31, 2021, 2020 and 2019, respectively, that reflected the cost associated with the updated estimate of performance shares due to attaining certain performance levels from the date of the initial grant of the performance awards. The related tax benefits recognized in earnings were $28 million, $25 million and $26 million for the years ended December 31, 2021, 2020 and 2019, respectively. At December 31, 2021, there was $158 million of total unrecognized compensation cost related to all nonvested share-based incentive compensation awards. This includes stock options, restricted and deferred stock units and performance shares granted under the 2014 Incentive Plan. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.8 years. Cash received from the exercise of employee stock options under share-based compensation plans totaled $293 million, $127 million and $213 million in 2021, 2020 and 2019, respectively. The tax benefit for tax deductions from employee stock options exercised during 2021, 2020 and 2019 totaled $19 million, $10 million and $18 million, respectively. |
Pension Plans, Retirement Benef
Pension Plans, Retirement Benefits and Savings Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plans, Retirement Benefits and Savings Plans | PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The Company sponsors a qualified non-contributory defined benefit pension plan (the qualified domestic pension plan), which covers substantially all U.S. domestic employees and provides benefits under a cash balance formula, except that certain limited groups of legacy participants are covered by a prior traditional final average pay formula. In addition, the Company sponsors a nonqualified defined benefit pension plan which covers certain highly-compensated employees, pension plans for employees of its foreign subsidiaries, and a postretirement health and life insurance benefit plan for employees satisfying certain age and service requirements and for certain retirees. Obligations and Funded Status The following tables summarize the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company’s benefit plans. The Company uses a December 31 measurement date for its pension and postretirement benefit plans. (at and for the year ended December 31, in millions) Qualified Domestic Nonqualified and Foreign Total 2021 2020 2021 2020 2021 2020 Change in projected benefit obligation: Benefit obligation at beginning of year $ 4,326 $ 3,954 $ 265 $ 241 $ 4,591 $ 4,195 Benefits earned 135 128 6 5 141 133 Interest cost on benefit obligation 79 109 4 5 83 114 Actuarial (gain) loss (73) 336 (2) 20 (75) 356 Benefits paid (255) (201) (13) (11) (268) (212) Amendment — — — 1 — 1 Foreign currency exchange rate change — — (1) 4 (1) 4 Benefit obligation at end of year $ 4,212 $ 4,326 $ 259 $ 265 $ 4,471 $ 4,591 Change in plan assets: Fair value of plan assets at beginning of year $ 4,631 $ 4,270 $ 125 $ 115 $ 4,756 $ 4,385 Actual return on plan assets 526 562 11 8 537 570 Company contributions — — 12 9 12 9 Benefits paid (255) (201) (13) (11) (268) (212) Foreign currency exchange rate change — — (1) 4 (1) 4 Fair value of plan assets at end of year 4,902 4,631 134 125 5,036 4,756 Funded status of plan at end of year $ 690 $ 305 $ (125) $ (140) $ 565 $ 165 Amounts recognized in the consolidated balance sheet consist of: Accrued over-funded benefit plan assets $ 690 $ 305 $ 6 $ 1 $ 696 $ 306 Accrued under-funded benefit plan liabilities — — (131) (141) (131) (141) Total $ 690 $ 305 $ (125) $ (140) $ 565 $ 165 Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 618 $ 1,050 $ 49 $ 63 $ 667 $ 1,113 Prior service cost (benefit) (2) (2) 1 1 (1) (1) Total $ 616 $ 1,048 $ 50 $ 64 $ 666 $ 1,112 Postretirement (at and for the year ended December 31, in millions) 2021 2020 Change in accumulated benefit obligation: Benefit obligation at beginning of year $ 171 $ 171 Benefits earned — — Interest cost on benefit obligation 3 4 Actuarial (gain) loss (16) 5 Benefits paid (9) (10) Foreign currency exchange rate change — 1 Benefit obligation at end of year $ 149 $ 171 Change in plan assets: Fair value of plan assets at beginning of year $ 11 $ 12 Actual return on plan assets — 1 Company contributions 7 8 Benefits paid (9) (10) Fair value of plan assets at end of year 9 11 Funded status of plan at end of year $ (140) $ (160) Amounts recognized in the consolidated balance sheet consist of: Accrued under-funded benefit plan liability $ (140) $ (160) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial gain $ (54) $ (41) Prior service benefit (14) (18) Total $ (68) $ (59) The total accumulated benefit obligation for the Company’s defined benefit pension plans was $4.25 billion and $4.40 billion at December 31, 2021 and 2020, respectively. The qualified domestic pension plan accounted for $4.00 billion and $4.15 billion of the total accumulated benefit obligation at December 31, 2021 and 2020, respectively, whereas the nonqualified and foreign plans accounted for $246 million and $253 million of the total accumulated benefit obligation at December 31, 2021 and 2020, respectively. For pension plans with a projected benefit obligation in excess of plan assets, the aggregate projected benefit obligation was $131 million and $250 million at December 31, 2021 and 2020, respectively, and the aggregate plan assets were $0 million and $109 million at December 31, 2021 and 2020, respectively. For pension plans with an accumulated benefit obligation in excess of plan assets, the aggregate accumulated benefit obligation was $118 million and $239 million at December 31, 2021 and 2020, respectively, and the aggregate plan assets were $0 million and $109 million at December 31, 2021 and 2020, respectively. For postretirement benefit plans with an accumulated benefit obligation in excess of plan assets, the aggregate accumulated benefit obligation was $149 million and $171 million at December 31, 2021 and 2020, respectively, and the aggregate plan assets were $9 million and $11 million at December 31, 2021 and 2020, respectively. The $73 million actuarial gain experienced in 2021 for the qualified domestic pension plan was largely driven by the increase in the assumed discount rate from the prior year that was used to determine the projected benefit obligation at December 31, 2021. The $336 million actuarial loss experienced in 2020 for the qualified domestic pension plan was largely driven by the decrease in the assumed discount rate from the prior year that was used to determine the projected benefit obligation at December 31, 2020. The Company has discretion regarding whether to provide additional funding and when to provide such funding to its qualified domestic pension plan. In 2021, 2020 and 2019, there were no required or voluntary contributions to the qualified domestic pension plan. There is no required contribution to the qualified domestic pension plan during 2022, and the Company has not determined whether additional funding will be made during 2022. With respect to the Company’s foreign pension plans, there are no significant required contributions in 2022. The following table summarizes the components of net periodic benefit cost (benefit) and other amounts recognized in other comprehensive income (loss) related to the benefit plans. Pension Plans Postretirement Benefit (for the year ended December 31, in millions) 2021 2020 2019 2021 2020 2019 Net Periodic Benefit Cost (Benefit): Service cost $ 141 $ 133 $ 118 $ — $ — $ — Non-service cost (benefit): Interest cost on benefit obligation 83 114 141 3 4 7 Expected return on plan assets (274) (275) (275) — — (1) Amortization of unrecognized: Prior service benefit (1) (1) (1) (4) (3) (3) Net actuarial (gain) loss 109 93 56 (2) (4) — Total non-service cost (benefit) (83) (69) (79) (3) (3) 3 Net periodic benefit cost (benefit) 58 64 39 (3) (3) 3 Other Changes in Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Prior service benefit — 1 — — — — Net actuarial (gain) loss (338) 61 49 (16) 4 (31) Foreign currency exchange rate change — 1 1 — — — Amortization of prior service benefit 1 1 1 4 3 3 Amortization of net actuarial gain (loss) (109) (93) (56) 2 4 — Total other changes recognized in other comprehensive income (446) (29) (5) (10) 11 (28) Total other changes recognized in net periodic benefit cost and other comprehensive income $ (388) $ 35 $ 34 $ (13) $ 8 $ (25) The following table indicates the line items in which the respective service costs and non-service cost (benefit) are presented in the consolidated statement of income for the years ended December 31, 2021, 2020 and 2019. Pension Plans Postretirement Benefit (for the year ended December 31, in millions) 2021 2020 2019 2021 2020 2019 Service Cost: Net investment income $ 1 $ 1 $ 1 $ — $ — $ — Claims and claim adjustment expenses 57 55 48 — — — General and administrative expenses 83 77 69 — — — Total service cost 141 133 118 — — — Non-Service Cost (Benefit): Claims and claim adjustment expenses (34) (29) (33) (1) (1) 1 General and administrative expenses (49) (40) (46) (2) (2) 2 Total non-service cost (benefit) (83) (69) (79) (3) (3) 3 Net periodic benefit cost (benefit) $ 58 $ 64 $ 39 $ (3) $ (3) $ 3 Assumptions The following table summarizes assumptions used with regard to the Company’s qualified and nonqualified domestic pension plans and the domestic postretirement benefit plans. (at and for the year ended December 31,) 2021 2020 Assumptions used to determine benefit obligations Discount rate: Qualified domestic pension plan 2.96 % 2.60 % Nonqualified domestic pension plan 2.82 % 2.44 % Domestic postretirement benefit plan 2.62 % 2.27 % Cash balance interest crediting rate 4.01 % 4.01 % Future compensation increase rate 4.00 % 4.00 % Assumptions used to determine net periodic benefit cost Discount rate: Qualified domestic pension plan: Service cost 2.96 % 3.50 % Interest cost 1.88 % 2.84 % Nonqualified domestic pension plan: Service cost 2.58 % 3.30 % Interest cost 1.69 % 2.73 % Domestic postretirement benefit plan: Interest cost 1.57 % 2.67 % Expected long-term rate of return on assets: Pension plan 6.50 % 6.75 % Postretirement benefit plan 4.00 % 4.00 % Assumed health care cost trend rates Following year: Medical (before age 65) 6.50 % 6.75 % Medical (age 65 and older) 8.00 % 7.75 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate: Medical (before age 65) 2029 2026 Medical (age 65 and older) 2031 2027 The discount rate assumption used to determine the benefit obligation is based on a yield-curve approach. Under this approach, individual spot rates from the yield curve of a hypothetical portfolio of high quality fixed maturity corporate bonds (rated Aa) available at the year-end valuation date, for which the timing and amount of cash outflows correspond with the timing and amount of the estimated benefit payouts of the Company’s benefit plan, are applied to expected future benefits payments in measuring the projected benefit obligation . The discount rate assumption used to determine benefit obligations disclosed above represents the weighted average of the individual spot rates. The discount rate assumption used to determine the net periodic benefit cost is the single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the year. In choosing the expected long-term rate of return on plan assets, the Company selected the rate that was set as the return objective by the Company’s Benefit Plans Investment Committee, which had considered the historical returns of equity and fixed maturity markets in conjunction with prevailing economic and financial market conditions. The assumptions made for the Company’s foreign pension and foreign postretirement benefit plans are not materially different from those of the Company’s qualified domestic pension plan and the domestic postretirement benefit plan. Plan Assets The qualified domestic pension plan assets are invested for the exclusive benefit of the plan participants and beneficiaries and are intended, over time, to satisfy the benefit obligations under the plan. Risk tolerance is established through consideration of plan liabilities, plan funded status and corporate financial position. The asset mix guidelines have been established and are reviewed quarterly. These guidelines are intended to serve as tools to facilitate the investment of plan assets to maximize long-term total return and the ongoing oversight of the plan’s investment performance. Investment risk is measured and monitored on an ongoing basis through daily and monthly investment portfolio reviews, annual liability measurements and periodic asset/liability studies. The Company’s overall investment strategy for the qualified domestic pension plan is to achieve a mix of approximately 85% to 90% of investments for long-term growth and 10% to 15% for near-term benefit payments with a diversification of asset types, fund strategies and fund managers. The current target allocations for plan assets are 55% to 65% equity securities and 20% to 40% fixed income securities, with the remainder allocated to short-term securities. Equity securities primarily include investments in large, medium and small-cap companies primarily located in the United States. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, U.S. Treasury securities and debt securities issued by foreign governments. Assets of the Company’s foreign pension plans are not significant. Fair Value Measurement — Pension Plans and Other Postretirement Benefit Assets For a discussion of the methods employed by the Company to measure the fair value of invested assets, see note 4. The following discussion of fair value measurements applies exclusively to the Company’s pension plans and other postretirement benefit assets. Fair value estimates for equity and bond mutual funds held by the pension plans reflect prices received from an external pricing service that are based on observable market transactions. These estimates are primarily included in Level 1. Short-term securities are carried at fair value which approximates cost plus accrued interest or amortized discount. The fair value or market value of these is periodically compared to this amortized cost and is based on significant observable inputs as determined by an external pricing service. Accordingly, the estimates of fair value for such short-term securities, other than U.S. Treasury securities and money market mutual funds, provided by an external pricing service are included in the amount disclosed in Level 2 of the hierarchy. The estimated fair value of U.S. Treasury securities and money market mutual funds is included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices. Fair Value Hierarchy — Pension Plans The following tables present the level within the fair value hierarchy at which the financial assets of the Company’s pension plans are measured on a recurring basis. (at December 31, 2021, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities Obligations of states, municipalities and political subdivisions $ 26 $ — $ 26 $ — Debt securities issued by foreign governments 38 — 38 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 6 — 6 — All other corporate bonds 678 — 678 — Total fixed maturities 748 — 748 — Mutual funds Equity mutual funds 1,645 1,638 7 — Bond mutual funds 1,114 1,111 3 — Total mutual funds 2,759 2,749 10 — Equity securities 1,385 1,384 1 — Other investments 1 — — 1 Cash and short-term securities U.S. Treasury securities — — — — Other 143 106 37 — Total cash and short-term securities 143 106 37 — Total $ 5,036 $ 4,239 $ 796 $ 1 (at December 31, 2020, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities Obligations of states, municipalities and political subdivisions $ 27 $ — $ 27 $ — Debt securities issued by foreign governments 30 — 30 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 14 — 14 — All other corporate bonds 712 — 712 — Total fixed maturities 783 — 783 — Mutual funds Equity mutual funds 1,706 1,699 7 — Bond mutual funds 949 946 3 — Total mutual funds 2,655 2,645 10 — Equity securities 1,171 1,171 — — Other investments 1 — — 1 Cash and short-term securities U.S. Treasury securities — — — — Other 146 54 92 — Total cash and short-term securities 146 54 92 — Total $ 4,756 $ 3,870 $ 885 $ 1 Other Postretirement Benefit Plans The Company’s overall investment strategy is to achieve a mix of approximately 35% to 65% of investments for long-term growth and 35% to 65% for near-term insurance payments with a wide diversification of asset types, fund strategies and fund managers. The current target allocations for plan assets are 25% to 75% fixed income securities, with the remainder allocated to short-term securities. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities and U.S. Treasuries. Fair Value — Other Postretirement Benefit Plans The Company’s other postretirement benefit plans had financial assets of $9 million and $11 million at December 31, 2021 and 2020, respectively, which are measured at fair value on a recurring basis. The assets are primarily corporate bonds, which are categorized as level 2 in the fair value hierarchy. Estimated Future Benefit Payments The following table presents the estimated benefits expected to be paid by the Company’s pension and postretirement benefit plans for the next ten years (reflecting estimated future employee service). Benefits Expected to be Paid (in millions) Pension Plans Postretirement Benefit Plans 2022 $ 270 $ 10 2023 273 11 2024 273 11 2025 272 11 2026 279 11 2027 through 2031 1,372 49 Savings Plan Substantially all U.S. domestic Company employees are eligible to participate in The Travelers 401(k) Savings Plan (the Savings Plan). Eligible employees can contribute to the Savings Plan, and the Company makes a matching contribution into the employee's Savings Plan account, subject to limitations described below. In addition, starting on January 1, 2020, when an eligible U.S. employee makes a payment toward their student loans, the Company makes a contribution of that amount into the employee’s Savings Plan account, subject to limitations described below. The total annual amount of the Company's matching contributions, student loan repayment contributions or a combination of both is the lesser of 5% of eligible pay or $7,000, which becomes 100% vested after three years of service. All Company contributions to the Savings Plan are made in cash and invested according to the employee’s current investment elections and can be reinvested into other investment options in accordance with the terms of the Savings Plan. The Company’s non-U.S. employees and certain domestic employees participate in separate savings plans. The total expense related to all of the savings plans was $133 million, $132 million and $123 million for the years ended December 31, 2021, 2020 and 2019, respectively. All common shares held by the Savings Plan are considered outstanding for basic and diluted EPS computations and dividends paid on all shares are charged to retained earnings. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASESThe 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: (for the year ended December 31, in millions) 2021 2020 Lease cost Operating leases $ 89 $ 95 Short-term leases (1) 1 2 Lease expense 90 97 Less: sublease income (2) — — Net lease cost $ 90 $ 97 Other information on operating leases Cash payments to settle a lease liability reported in cash flows $ 104 $ 109 Right-of-use assets obtained in exchange for new lease liabilities $ 59 $ 67 Weighted average discount rate 2.25 % 2.51 % Weighted average remaining lease term 4.9 years 5.0 years _________________________________________________________ (1) Leases with a term of twelve months or less are not recorded on the consolidated balance sheet. (2) Sublease income consists of rent from third parties of office space and is recognized as part of other revenues in the consolidated statement of income. The following table presents the contractual maturities of the Company's lease liabilities: (in millions) Real Estate Lease Liability 2022 $ 93 2023 78 2024 63 2025 43 2026 37 Thereafter 43 Total undiscounted lease payments 357 Less: present value adjustment 26 Operating lease liability $ 331 |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 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 $1.70 billion and $1.76 billion at December 31, 2021 and 2020, respectively. Guarantees In the ordinary course of selling businesses to third parties, the Company has agreed to indemnify purchasers for losses arising out of breaches of representations and warranties, obligations arising from certain liabilities and any breach or failure to perform certain covenants with respect to the businesses being sold. Such indemnification provisions generally are applicable from the closing date to the expiration of the relevant statutes of limitations, although, in some cases, there may be agreed upon term limitations or no term limitations. Certain of these contingent obligations are subject to deductibles which have to be incurred by the obligee before the Company is obligated to make payments. The maximum amount of the Company’s contingent obligation for indemnifications related to the sale of businesses that are quantifiable was $351 million at December 31, 2021. The Company also has contingent obligations for guarantees related to certain investments, certain insurance policy obligations of former insurance subsidiaries and various other indemnifications. The Company also provides standard indemnifications that it utilizes with service providers in the normal course of business. The indemnification clauses are often standard contractual terms. 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 December 31, 2021, all of which is indemnified by a third party. Certain of the guarantees and indemnifications described above have no stated or notional amounts or limitation to the maximum potential future payments, and, accordingly, the Company is unable to provide an estimate of the maximum potential payments for such arrangements. |
Noncash Investing and Financing
Noncash Investing and Financing Activities | 12 Months Ended |
Dec. 31, 2021 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |
Noncash Investing and Financing Activities | NONCASH INVESTING AND FINANCING ACTIVITIESThere were no material noncash financing or investing activities during the years ended December 31, 2021, 2020 and 2019. |
Schedule II
Schedule II | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II | THE TRAVELERS COMPANIES, INC. (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in millions) CONDENSED STATEMENT OF INCOME For the year ended December 31, 2021 2020 2019 Revenues Net investment income $ 13 $ 19 $ 41 Net realized investment gains 28 27 33 Total revenues 41 46 74 Expenses Interest 292 292 297 Other 13 18 21 Total expenses 305 310 318 Loss before income taxes and net income of subsidiaries (264) (264) (244) Income tax benefit (59) (61) (77) Loss before net income of subsidiaries (205) (203) (167) Net income of subsidiaries 3,867 2,900 2,789 Net income $ 3,662 $ 2,697 $ 2,622 The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II THE TRAVELERS COMPANIES, INC. (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in millions) CONDENSED STATEMENT OF COMPREHENSIVE INCOME For the year ended December 31, 2021 2020 2019 Net income $ 3,662 $ 2,697 $ 2,622 Other comprehensive income (loss)—parent company: Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income (4) 3 4 Net changes in benefit plan assets and obligations 444 25 35 Other comprehensive income before income taxes and other comprehensive income (loss) of subsidiaries 440 28 39 Income tax expense 87 9 12 Other comprehensive income, net of taxes, before other comprehensive income (loss) of subsidiaries 353 19 27 Other comprehensive income (loss) of subsidiaries (1,662) 1,843 2,472 Other comprehensive income (loss) (1,309) 1,862 2,499 Comprehensive income $ 2,353 $ 4,559 $ 5,121 The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II THE TRAVELERS COMPANIES, INC. (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in millions) CONDENSED BALANCE SHEET At December 31, 2021 2020 Assets Fixed maturities $ 95 $ 94 Equity securities 279 241 Short-term securities 1,479 1,646 Investment in subsidiaries 33,298 33,015 Other assets 704 330 Total assets $ 35,855 $ 35,326 Liabilities Debt $ 6,596 $ 5,856 Other liabilities 366 262 Total liabilities 6,962 6,118 Shareholders’ equity Common stock (1,750.0 shares authorized; 241.2 and 252.4 shares issued and outstanding) 24,154 23,743 Retained earnings 41,561 38,778 Accumulated other comprehensive income 1,193 2,502 Treasury stock, at cost (541.5 and 527.3 shares) (38,015) (35,815) Total shareholders’ equity 28,893 29,208 Total liabilities and shareholders’ equity $ 35,855 $ 35,326 The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II THE TRAVELERS COMPANIES, INC. (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in millions) CONDENSED STATEMENT OF CASH FLOWS For the year ended December 31, 2021 2020 2019 Cash flows from operating activities Net income $ 3,662 $ 2,697 $ 2,622 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of subsidiaries (3,867) (2,900) (2,789) Dividends received from consolidated subsidiaries 2,149 1,964 2,459 Deferred federal income tax expense (benefit) 7 3 (2) Change in income taxes payable — (6) 3 Other (69) (79) (79) Net cash provided by operating activities 1,882 1,679 2,214 Cash flows from investing activities Net sales (purchases) of short-term securities 167 (256) (19) Other investments, net (11) (7) (8) Net cash provided by (used in) investing activities 156 (263) (27) Cash flows from financing activities Treasury stock acquired—share repurchase authorization (2,156) (625) (1,500) Treasury stock acquired—net employee share-based compensation (44) (47) (48) Dividends paid to shareholders (869) (861) (844) Payment of debt — (500) (500) Issuance of debt 739 490 492 Issuance of common stock—employee share options 293 127 213 Net cash used in financing activities (2,037) (1,416) (2,187) Net increase in cash 1 — — Cash at beginning of year — — — Cash at end of year $ 1 $ — $ — Supplemental disclosure of cash flow information Cash received during the year for taxes $ 66 $ 81 $ 78 Cash paid during the year for interest $ 289 $ 291 $ 291 The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II THE TRAVELERS COMPANIES, INC. (Parent Company Only) NOTES TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT 1. GUARANTEES The Travelers Companies, Inc. (TRV) fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and TIGHI. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033. TRV also has contingent obligations for guarantees in connection with the selling of businesses to third parties, certain insurance obligations of a subsidiary and various indemnifications including indemnifications that it utilizes with service providers in the normal course of business. The guarantees and indemnification clauses are often standard contractual terms and include indemnifications for breaches of representations and warranties and in some cases obligations arising from certain liabilities. The terms of these provisions vary in duration and nature. |
Schedule III
Schedule III | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III | THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES Supplementary Insurance Information 2019-2021 (in millions) Segment Deferred Claims and Unearned Earned Net Claims and Amortization Other Net 2021 Business Insurance $ 1,206 $ 45,358 $ 7,953 $ 15,734 $ 2,265 $ 10,398 $ 2,581 $ 2,746 $ 16,092 Bond & Specialty Insurance 375 4,247 2,360 3,138 247 1,473 570 532 3,376 Personal Insurance 961 7,292 6,156 11,983 521 8,427 1,892 1,370 12,491 Total—Reportable Segments 2,542 56,897 16,469 30,855 3,033 20,298 5,043 4,648 31,959 Other — 10 — — — — — 369 — Consolidated $ 2,542 $ 56,907 $ 16,469 $ 30,855 $ 3,033 $ 20,298 $ 5,043 $ 5,017 $ 31,959 2020 Business Insurance $ 1,152 $ 44,162 $ 7,556 $ 15,294 $ 1,633 $ 10,804 $ 2,518 $ 2,664 $ 15,431 Bond & Specialty Insurance 328 3,814 2,020 2,823 213 1,464 519 500 2,951 Personal Insurance 878 6,534 5,646 10,927 381 6,855 1,736 1,314 11,350 Total—Reportable Segments 2,358 54,510 15,222 29,044 2,227 19,123 4,773 4,478 29,732 Other — 11 — — — — — 370 — Consolidated $ 2,358 $ 54,521 $ 15,222 $ 29,044 $ 2,227 $ 19,123 $ 4,773 $ 4,848 $ 29,732 2019 Business Insurance $ 1,161 $ 42,252 $ 7,540 $ 15,300 $ 1,816 $ 10,963 $ 2,503 $ 2,627 $ 15,629 Bond & Specialty Insurance 309 3,316 1,845 2,565 233 1,094 478 483 2,739 Personal Insurance 803 6,268 5,219 10,407 419 7,076 1,620 1,220 10,783 Total—Reportable Segments 2,273 51,836 14,604 28,272 2,468 19,133 4,601 4,330 29,151 Other — 13 — — — — — 379 — Consolidated $ 2,273 $ 51,849 $ 14,604 $ 28,272 $ 2,468 $ 19,133 $ 4,601 $ 4,709 $ 29,151 ___________________________________________ (1) See note 2 of notes to the consolidated financial statements for discussion of the method used to allocate net investment income and invested assets to the identified segments. (2) Expense allocations are determined in accordance with prescribed statutory accounting practices. These practices make a reasonable allocation of all expenses to those product lines with which they are associated. See the Report of Independent Registered Public Accounting Firm. |
Schedule V
Schedule V | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V | THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES Valuation and Qualifying Accounts (in millions) Balance at Charged to Charged to Deductions (1) Balance at 2021 Reinsurance recoverables $ 146 $ (5) $ — $ — $ 141 Allowance for uncollectible: Premiums receivable from underwriting activities $ 105 $ 65 $ — $ 63 $ 107 Deductibles $ 27 $ 2 $ — $ — $ 29 2020 Reinsurance recoverables (2) $ 92 $ 1 $ 53 $ — $ 146 Allowance for uncollectible: Premiums receivable from underwriting activities $ 55 $ 95 $ 2 $ 47 $ 105 Deductibles $ 22 $ 7 $ (2) $ — $ 27 2019 Reinsurance recoverables $ 110 $ (18) $ — $ — $ 92 Allowance for uncollectible: Premiums receivable from underwriting activities $ 54 $ 59 $ — $ 58 $ 55 Deductibles $ 24 $ (2) $ — $ — $ 22 ___________________________________________ (1) Credited to the related asset account (2) The $53 million represents the cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2020 See the Report of Independent Registered Public Accounting Firm. |
Schedule VI
Schedule VI | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule VI | THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES Supplementary Information Concerning Property-Casualty Insurance Operations (1) 2019-2021 (in millions) Claims and Claim Amortization of Deferred Acquisition Costs Paid Claims and Claim Adjustment Expenses Affiliation with Registrant(2) Deferred Acquisition Costs Claims and Claim Adjustment Expense Reserves Discount From Reserves for Unpaid Claims(3) Unearned Premiums Earned Premiums Net Investment Income Current Year Prior Year Net Written Premiums 2021 $ 2,542 $ 56,897 $ 1,146 $ 16,469 $ 30,855 $ 3,033 $ 20,698 $ (484) $ 5,043 $ 17,871 $ 31,959 2020 $ 2,358 $ 54,510 $ 1,138 $ 15,222 $ 29,044 $ 2,227 $ 19,285 $ (267) $ 4,773 $ 16,589 $ 29,732 2019 $ 2,273 $ 51,836 $ 1,155 $ 14,604 $ 28,272 $ 2,468 $ 18,854 $ 164 $ 4,601 $ 17,794 $ 29,151 ___________________________________________ (1) Excludes accident and health insurance business. (2) Consolidated property-casualty insurance operations. (3) For a discussion of types of reserves discounted and discount rates used, see note 8 of notes to the consolidated financial statements. See the Report of Independent Registered Public Accounting Firm. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Policy Text Block] | Basis of Presentation The consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (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 consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. All material intercompany transactions and balances have been eliminated. Certain reclassifications have been made to the 2020 and 2019 financial statements to conform to the 2021 presentation. |
Adoption of Accounting Standards [Policy Text Block] | Adoption of Accounting Standards Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board (FASB) issued updated guidance for the accounting for credit losses for financial instruments. The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables and structured settlements that are recorded as part of reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the updated guidance for the quarter ended March 31, 2020. Income Taxes - Simplifying the Accounting for Income Taxes In December 2019, 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 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. |
Investments [Policy Text Block] | Investments Fixed Maturities Fixed maturities include bonds, notes and redeemable preferred stocks. Fixed maturities, including instruments subject to securities lending agreements, are classified as available for sale and reported at fair value, with unrealized investment gains and losses, net of income taxes, charged or credited directly to other comprehensive income. Equity Securities Equity securities, which include public and non-public common and non-redeemable preferred stocks, are reported at fair value with changes in fair value recognized in net realized investment gains (losses). Real Estate Investments The Company’s real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. Real estate is recorded on the purchase date at the purchase price, which generally represents fair value, and is supported by internal analysis or external appraisals that use discounted cash flow analyses and other acceptable valuation techniques. Real estate held for investment purposes is subsequently carried at cost less accumulated depreciation. Buildings are depreciated on a straight-line basis over the shorter of the expected useful life of the building or 39 years. Real estate held for sale is carried at lower of cost or fair value, less estimated costs to sell. Short-term Securities Short-term securities have an original maturity of less than one year and are carried at amortized cost, which approximates fair value. Other Investments Investments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships The Company uses the equity method of accounting for investments in private equity limited partnerships, hedge funds and real estate partnerships. The partnerships and the hedge funds generally report investments on their balance sheet at fair value. The financial statements prepared by the investee are received by the Company on a lag basis, with the lag period generally dependent upon the type of underlying investments. The private equity and real estate partnerships provide financial information quarterly which is generally available to investors, including the Company, within three months following the date of the reporting period. The hedge funds provide financial information monthly, which is generally available to investors within one month following the date of the reporting period. The Company regularly requests financial information from the partnerships prior to the receipt of the partnerships’ financial statements and records any material information obtained from these requests in its consolidated financial statements. Other Derivatives are also included in other investments. The Company’s derivative financial instruments are carried at fair value, with the changes in fair value reflected in the consolidated statement of income in net realized investment gains (losses). For a further discussion of the derivatives used by the Company, see note 3. |
Net Investment Income [Policy Text Block] | Net Investment Income Investment income from fixed maturities is recognized based on the constant effective yield method which includes an adjustment for estimated principal pre-payments, if any. The effective yield used to determine amortization for fixed maturities subject to prepayment risk (e.g., asset-backed, loan-backed and structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows, which are obtained from a widely-accepted securities data provider. The adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for non-highly rated prepayable fixed maturities are accounted for using the prospective method. Dividends on equity securities (including those with transfer restrictions) are recognized in income when declared. Rental income on real estate is recognized on a straight-line basis over the lease term. See the section titled: Real Estate in note 3 for further discussion. Investments in private equity limited partnerships, hedge funds, real estate partnerships and joint ventures are accounted for using the equity method of accounting, whereby the Company’s share of the investee’s earnings or losses in the fund is reported in net investment income. Accrual of income is suspended on non-securitized fixed maturities that are in default, or on which it is likely that future payments will not be made as scheduled. Interest income on investments in default is recognized only when payments are received. Investments included in the consolidated balance sheet that were not income-producing for the preceding 12 months were not material. |
Net Realized Investment Gains and Losses [Policy Text Block] | Net Realized Investment Gains and LossesNet realized investment gains and losses include net realized gains (losses) from the sale of investments, credit impairment losses on investment assets, changes in the fair value of equity securities, foreign currency transaction gains and losses and changes in the fair value of derivative financial instruments. Net realized investment gains (losses) on the sale of investments are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. |
Investment Impairments [Policy Text Block] | Investment Impairments The Company conducts a periodic review to identify and evaluate invested assets that may have credit impairments. Credit Impairments Related to Fixed Maturity Investments Some of the factors considered in assessing impairment of fixed maturity investments due to credit-related factors include: (1) the extent to which the fair value has been less than amortized cost; (2) the financial condition, near-term and long-term prospects for the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices; (3) the likelihood of the recoverability of principal and interest; and (4) whether it is more likely than not that the Company will be required to sell the investment prior to an anticipated recovery in value. Beginning on January 1, 2020, credit losses are recognized through an allowance account. See note 1 - Adoption of Accounting Standards - Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments for additional information. For fixed maturity investments that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component in net realized investment gains (losses). The impairment related to all other factors (non-credit factors) is reported in other comprehensive income. The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit loss, the cost basis is not adjusted. For fixed maturity investments where the Company records a credit loss, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. For fixed maturity investments where the Company expects a recovery in value, the constant effective yield method is utilized, and the investment is amortized to par. For fixed maturity investments the Company intends to sell or for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount of the impairment is included in net realized investment gains (losses). The new cost basis of the investment is the previous amortized cost basis less the impairment recognized in net realized investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair value. The Company reports investment income accrued separately from fixed maturity investments, available for sale, and has elected not to measure an allowance for credit losses for investment income accrued. Investment income accrued is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payments. Uncollectible available-for-sale debt securities are written-off when the Company determines that no additional payments of principal or interest will be received. Determination of Credit Loss — Fixed Maturities The Company determines the credit loss component of fixed maturity investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater than the present value of the expected cash flows, the difference is considered a credit loss and recognized as an impairment loss in net realized investment gains (losses). For non-structured fixed maturities (U.S. Treasury securities, obligations of U.S. government and government agencies and authorities, obligations of states, municipalities and political subdivisions, debt securities issued by foreign governments and certain corporate debt), the estimate of expected cash flows is determined by projecting a recovery value and a recovery time frame and assessing whether further principal and interest will be received. The determination of recovery value incorporates an issuer valuation assumption utilizing one or a combination of valuation methods as deemed appropriate by the Company. The Company determines the undiscounted recovery value by allocating the estimated value of the issuer to the Company’s assessment of the priority of claims. The present value of the cash flows is determined by applying the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment) and an estimated recovery time frame. Generally, that time frame for securities for which the issuer is in bankruptcy is 12 months. For securities for which the issuer is financially troubled but not in bankruptcy, that time frame is generally 24 months. Included in the present value calculation are expected principal and interest payments; however, for securities for which the issuer is classified as bankrupt or in default, the present value calculation assumes no interest payments and a single recovery amount. In estimating the recovery value, significant judgment is involved in the development of assumptions relating to a myriad of factors related to the issuer including, but not limited to, revenue, margin and earnings projections, the likely market or liquidation values of assets, potential additional debt to be incurred pre- or post-bankruptcy/restructuring, the ability to shift existing or new debt to different priority layers, the amount of restructuring/bankruptcy expenses, the size and priority of unfunded pension obligations, litigation or other contingent claims, the treatment of intercompany claims and the likely outcome with respect to inter-creditor conflicts. For structured fixed maturity securities (primarily residential and commercial mortgage-backed securities and asset-backed securities), the Company estimates the present value of the security by projecting future cash flows of the assets underlying the securitization, allocating the flows to the various tranches based on the structure of the securitization and determining the present value of the cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). The Company incorporates levels of delinquencies, defaults and severities as well as credit attributes of the remaining assets in the securitization, along with other economic data, to arrive at its estimate of the parameters applied to the assets underlying the securitization. Real Estate Investments On at least an annual basis, the Company obtains independent appraisals for substantially all of its real estate investments. In addition, the carrying value of all real estate investments is reviewed for impairment on a quarterly basis or when events or changes in circumstances indicate that the carrying amount may not be recoverable. The review for impairment considers the valuation from the independent appraisal, when applicable, and incorporates an estimate of the undiscounted cash flows expected to result from the use and eventual disposition of the real estate property. An impairment loss is recognized if the expected future undiscounted cash flows are less than the carrying value of the real estate property. The impairment loss is the amount by which the carrying amount exceeds fair value. Other Investments The Company reviews its investments in private equity limited partnerships, hedge funds and real estate partnerships for impairment no less frequently than quarterly and monitors the performance throughout the year through discussions with the managers/general partners. If the Company becomes aware of an impairment of a partnership’s investments at the balance sheet date prior to receiving the partnership’s financial statements, it will recognize an impairment by recording a reduction in the carrying value of the partnership with a corresponding charge to net investment income. Changes in Intent to Sell Temporarily Impaired Assets The Company may, from time to time, sell invested assets subsequent to the balance sheet date that it did not intend to sell at the balance sheet date. Conversely, the Company may not sell invested assets that it asserted that it intended to sell at the balance sheet date. Such changes in intent are due to events occurring subsequent to the balance sheet date. The types of events that may result in a change in intent include, but are not limited to, significant changes in the economic facts and circumstances related to the invested asset (e.g., a downgrade or upgrade from a rating agency), significant unforeseen changes in liquidity needs, or changes in tax laws or the regulatory environment. |
Securities Lending [Policy Text Block] | Securities Lending The Company has, from time to time, engaged in securities lending activities from which it generates net investment income by lending certain of its investments to other institutions for short periods of time. Borrowers of these securities provide collateral equal to at least 102% of the market value of the loaned securities plus accrued interest. This collateral is held by a third-party custodian, and the Company has the right to access the collateral only in the event that the institution borrowing the Company’s securities is in default under the lending agreement (i.e., the Company is not permitted to re-pledge or sell any such collateral). Therefore, the Company does not recognize the receipt of the collateral held by the third-party custodian or the obligation to return the collateral. The loaned securities remain a recorded asset of the Company. The Company accepts only cash as collateral for securities on loan and restricts the manner in which that cash is invested. |
Reinsurance Recoverables [Policy Text Block] | Reinsurance Recoverables Amounts recoverable from reinsurers are estimated in a manner consistent with the associated claim liability. Included in reinsurance recoverables are amounts related to certain structured settlements. The Company reports its reinsurance recoverables net of an allowance for amounts that are estimated to be uncollectible. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers. Amounts deemed to be uncollectible, including amounts due from known insolvent reinsurers, are written off against the allowance. Changes in the allowance, as well as any subsequent collections of amounts previously written off, are reported as part of claims and claim adjustment expenses. The Company evaluates and monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to minimize its exposure to significant losses from reinsurer insolvencies. |
Deferred Acquisition Costs [Policy Text Block] | Deferred Acquisition Costs Incremental direct costs of acquired, new and renewal insurance contracts, consisting of commissions (other than contingent commissions) and premium-related taxes, are capitalized and charged to expense pro rata over the contract periods in which the related premiums are earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income and, if not, are charged to expense. Future investment income attributable to related premiums is taken into account in measuring the recoverability of the carrying value of this asset. All other acquisition expenses are charged to operations as incurred. |
Contractholder Receivables and Payables [Policy Text Block] | Contractholder Receivables and Payables Under certain workers’ compensation insurance contracts with deductible features, the Company is obligated to pay the claimant for the full amount of the claim. The Company is subsequently reimbursed by the policyholder for the deductible amount. These amounts are included on a gross basis in the consolidated balance sheet in both contractholder payables and contractholder receivables. Contractholder receivables are reported net of an allowance for expected credit losses. The allowance is based upon the Company’s ongoing review of amounts outstanding, changes in policyholder credit standing, and other relevant factors. A probability-of-default methodology, which reflects current and forecasted economic conditions, is used to estimate the allowance for expected credit losses. |
Goodwill and Intangible Assets [Policy Text Block] | Goodwill and Other Intangible Assets The Company performs a review, on at least an annual basis, of goodwill held by the reporting units which are the Company’s three operating and reportable segments: Business Insurance; Bond & Specialty Insurance; and Personal Insurance. The Company estimates the fair value of its reporting units and compares it to their carrying value, including goodwill. If the carrying values of the reporting units were to exceed their fair value, the amount of the impairment would be calculated and goodwill adjusted accordingly. The Company uses a discounted cash flow model to estimate the fair value of its reporting units. The discounted cash flow model is an income approach to valuation that is based on a detailed cash flow analysis for deriving a current fair value of reporting units and is representative of the Company’s reporting units’ current and expected future financial performance. The discount rate assumptions reflect the Company’s assessment of the risks inherent in the projected future cash flows and the Company’s weighted-average cost of capital, and are compared against available market data for reasonableness. Other indefinite-lived intangible assets held by the Company are also reviewed for impairment on at least an annual basis. The classification of the asset as indefinite-lived is reassessed and an impairment is recognized if the carrying amount of the asset exceeds its fair value. Intangible assets that are deemed to have a finite useful life are amortized over their useful lives. The carrying amount of intangible assets with a finite useful life is regularly reviewed for indicators of impairment in value. Impairment is recognized only if the carrying amount of the intangible asset is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the fair value of the asset. As a result of the reviews performed for the years ended December 31, 2021, 2020 and 2019, the Company determined that the estimated fair value substantially exceeded the respective carrying value of its reporting units for those years and that goodwill was not impaired. The Company also determined during its reviews for each year that its other indefinite-lived intangible assets and finite-lived intangible assets were not impaired. |
Internal-Use Software [Policy Text Block] | Internal-Use SoftwareIn the ordinary course of business, the Company develops and purchases software as well as enters into arrangements to utilize software as a service under cloud computing arrangements. These software costs and any costs related to the implementation and set-up of the cloud computing arrangements are capitalized and reported within other assets in the consolidated balance sheet. |
Claims and Claims Adjustment Expense Reserves [Policy Text Block] | Claims and Claim Adjustment Expense Reserves Claims and claim adjustment expense reserves represent management's estimate of the ultimate liability for unpaid losses and loss adjustment expenses for claims that have been reported and claims that have been incurred but not yet reported (IBNR) as of the balance sheet date. The reserves are adjusted regularly based upon experience. Included in the claims and claim adjustment expense reserves in the consolidated balance sheet are reserves for long-term disability and annuity claim payments, primarily arising from workers’ compensation insurance and workers’ compensation excess insurance policies, that are discounted to the present value of estimated future payments. The Company performs a continuing review of its claims and claim adjustment expense reserves, including its reserving techniques and the impact of reinsurance. The reserves are also reviewed regularly by qualified actuaries employed by the Company. Since the reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are included in the results of operations in the period in which the estimates are changed. Such changes in estimates could occur in a future period and may be material to the Company’s results of operations and financial position in such period. |
Other Liabilities [Policy Text Block] | Other Liabilities Included in other liabilities in the consolidated balance sheet is the Company’s estimate of its liability for guaranty fund and other insurance-related assessments. The liability for expected state guaranty fund and other premium-based assessments is recognized as the Company writes or becomes obligated to write or renew the premiums on which the assessments are expected to be based. The liability for loss-based assessments is recognized as the related losses are incurred. At December 31, 2021 and 2020, the Company had a liability of $176 million and $178 million, respectively, for guaranty fund and other insurance-related assessments and related recoverables of $8 million and $10 million, respectively. The liability for such assessments and the related recoverables are not discounted for the time value of money. The loss-based assessments are expected to be paid over a period ranging from one year to the life expectancy of certain workers’ compensation claimants and the recoveries are expected to occur over the same period of time. |
Treasury Stock [Policy Text Block] | Treasury Stock The cost of common stock repurchased by the Company is reported as treasury stock and represents authorized and unissued shares of the Company under the Minnesota Business Corporation Act. |
Statutory Accounting Practices [Policy Text Block] | Statutory Accounting Practices The Company’s U.S. insurance subsidiaries, domiciled principally in the State of Connecticut, are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of the states of domicile. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. The State of Connecticut requires insurers domiciled in Connecticut to prepare their statutory financial statements in accordance with National Association of Insurance Commissioners’ (NAIC) statutory accounting practices. Permitted statutory accounting practices are those practices that differ either from state-prescribed statutory accounting practices or NAIC statutory accounting practices. The Company does not apply any statutory accounting practices that would be considered a prescribed or permitted statutory accounting practice that differs from NAIC statutory accounting practices. |
Premiums and Unearned Premium Reserves [Policy Text Block] | Premiums and Unearned Premium Reserves Premiums are recognized as revenues pro rata over the policy period. Unearned premium reserves represent the unexpired portion of policy premiums. Accrued retrospective premiums are included in premium balances receivable. Premium balances receivable are reported net of an allowance for expected credit losses. The allowance is based upon the Company’s ongoing review of amounts outstanding, historical loss data, including delinquencies and write-offs, current and forecasted economic conditions and other relevant factors. Credit risk is partially mitigated by the Company’s ability to cancel the policy if the policyholder does not pay the premium. However, the impact of extended payment terms and non-cancellation concessions granted to customers as a result of COVID-19 and related economic conditions is also considered in the Company's evaluation of the allowance. Ceded premiums are charged to income over the applicable term of the various reinsurance contracts with third party reinsurers. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers and are reported as part of other assets. |
Fee Income [Policy Text Block] | Fee IncomeFee income includes revenues from risk and claims management services provided to the Company’s insureds and third-party non-insureds, as well as policy issuance and claims management services to workers' compensation residual market pools. Fee income is earned over the policy period for the services provided to the Company’s insureds, and either over the contract period or as the Company completes its service obligations for the services provided to third-party non-insureds. |
Other Revenues [Policy Text Block] | Other Revenues Other revenues include revenues from premium installment charges, which are recognized as collected, gains and losses on dispositions of assets and redemption of debt, and other miscellaneous revenues, including gains recognized as a result of settlements of reinsurance disputes and claim-related legal matters. |
Income Taxes [Policy Text Block] | Income Taxes The Company recognizes deferred income tax assets and liabilities for the expected future tax effects attributable to temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. |
Foreign Currency [Policy Text Block] | Foreign Currency The Company assigns functional currencies to its foreign operations, which are generally the currencies of the local operating environment. Foreign currency amounts are remeasured to the functional currency, and the resulting foreign exchange gains or losses are reported in net realized investment gains (losses). Functional currency amounts are then translated into U.S. dollars. The foreign currency remeasurement and translation are calculated using current exchange rates for items reported in the balance sheet and average exchange rates for items recorded in earnings. The change in unrealized foreign currency translation gain or loss during the year, net of tax, is a component of other comprehensive income. Foreign currency gains and losses related to the changes in fair value of available-for-sale fixed maturities are reported in other comprehensive income. All other foreign currency transaction gains and losses are reported in earnings. |
Share-based Compensation [Policy Text Block] | Share-Based Compensation The Company has an employee stock incentive compensation plan that permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, deferred stock, stock units, performance awards and other share-based or share-denominated awards with respect to the Company’s common stock. Compensation cost is measured based on the grant-date fair value of an award , utilizing the assumptions discussed in note 14. Compensation cost is recognized for financial reporting purposes over the period in which the employee is required to provide service in exchange for the award (generally the vesting period). In connection with certain share-based awards, participants are entitled to receive dividends during the vesting period, either in cash or dividend equivalent shares, commensurate with the dividends paid to common shareholders. Dividends and dividend equivalent shares on awards that are expected to vest are recorded in retained earnings. Dividends paid on awards that are not expected to vest as part of the Company’s forfeiture estimate are recorded as compensation expense. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Company's revenues and income by segment [Table Text Block] | (for the year ended December 31, in millions) Business Bond & Personal Total 2021 Premiums $ 15,734 $ 3,138 $ 11,983 $ 30,855 Net investment income 2,265 247 521 3,033 Fee income 375 — 27 402 Other revenues 235 23 97 355 Total segment revenues (1) $ 18,609 $ 3,408 $ 12,628 $ 34,645 Amortization and depreciation $ 3,180 $ 643 $ 2,084 $ 5,907 Income tax expense 499 165 179 843 Segment income (1) 2,385 668 760 3,813 2020 Premiums $ 15,294 $ 2,823 $ 10,927 $ 29,044 Net investment income 1,633 213 381 2,227 Fee income 405 — 24 429 Other revenues 176 27 76 279 Total segment revenues (1) $ 17,508 $ 3,063 $ 11,408 $ 31,979 Amortization and depreciation $ 3,069 $ 579 $ 1,908 $ 5,556 Income tax expense 213 107 308 628 Segment income (1) 1,309 473 1,195 2,977 2019 Premiums $ 15,300 $ 2,565 $ 10,407 $ 28,272 Net investment income 1,816 233 419 2,468 Fee income 437 — 22 459 Other revenues 155 26 87 268 Total segment revenues (1) $ 17,708 $ 2,824 $ 10,935 $ 31,467 Amortization and depreciation $ 3,037 $ 533 $ 1,787 $ 5,357 Income tax expense 223 151 195 569 Segment income (1) 1,392 618 824 2,834 _________________________________________ |
Net written premiums by market [Table Text Block] | Net written premiums by market were as follows: (for the year ended December 31, in millions) 2021 2020 2019 Business Insurance: Domestic: Select Accounts $ 2,833 $ 2,821 $ 2,911 Middle Market 8,933 8,511 8,630 National Accounts 987 996 1,051 National Property and Other 2,265 2,086 1,965 Total Domestic 15,018 14,414 14,557 International 1,074 1,017 1,072 Total Business Insurance 16,092 15,431 15,629 Bond & Specialty Insurance: Domestic: Management Liability 1,983 1,769 1,605 Surety 888 845 866 Total Domestic 2,871 2,614 2,471 International 505 337 268 Total Bond & Specialty Insurance 3,376 2,951 2,739 Personal Insurance: Domestic: Automobile 5,827 5,369 5,412 Homeowners and Other 5,980 5,329 4,664 Total Domestic 11,807 10,698 10,076 International 684 652 707 Total Personal Insurance 12,491 11,350 10,783 Total consolidated net written premiums $ 31,959 $ 29,732 $ 29,151 |
Business segment reconciliations of revenue and income, net of tax [Table Text Block] | (for the year ended December 31, in millions) 2021 2020 2019 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 3,227 $ 3,378 $ 3,829 Commercial automobile 2,855 2,761 2,632 Commercial property 2,275 2,087 1,937 General liability 2,576 2,401 2,342 Commercial multi-peril 3,667 3,552 3,453 Other 65 54 40 Total Domestic 14,665 14,233 14,233 International 1,069 1,061 1,067 Total Business Insurance 15,734 15,294 15,300 Bond & Specialty Insurance: Domestic: Fidelity and surety 1,091 1,075 1,036 General liability 1,415 1,219 1,082 Other 220 237 216 Total Domestic 2,726 2,531 2,334 International 412 292 231 Total Bond & Specialty Insurance 3,138 2,823 2,565 Personal Insurance: Domestic Automobile 5,687 5,280 5,311 Homeowners and Other 5,608 4,988 4,393 Total Domestic 11,295 10,268 9,704 International 688 659 703 Total Personal Insurance 11,983 10,927 10,407 Total earned premiums 30,855 29,044 28,272 Net investment income 3,033 2,227 2,468 Fee income 402 429 459 Other revenues 355 279 268 Total segment revenues 34,645 31,979 31,467 Other revenues — — 1 Net realized investment gains 171 2 113 Total revenues $ 34,816 $ 31,981 $ 31,581 Income reconciliation, net of tax Total segment income $ 3,813 $ 2,977 $ 2,834 Interest Expense and Other (1) (291) (291) (297) Core income 3,522 2,686 2,537 Net realized investment gains 132 11 85 Impact of changes in tax laws and/or tax rates (2) 8 — — Net income $ 3,662 $ 2,697 $ 2,622 ______________________________________ (1) The primary component of Interest Expense and Other was after-tax interest expense of $269 million, $268 million and $272 million in 2021, 2020 and 2019, respectively. (2) Impact is recognized in the accounting period in which the change is enacted. |
Asset reconciliation [Table Text Block] | (at December 31, in millions) 2021 2020 Asset reconciliation: Business Insurance $ 90,353 $ 88,422 Bond & Specialty Insurance 10,146 9,420 Personal Insurance 18,983 18,328 Total assets for reportable segments 119,482 116,170 Other assets (1) 984 594 Total consolidated assets $ 120,466 $ 116,764 ___________________________________________ |
Revenues of the Company's operations based on location [Table Text Block] | The following table presents revenues of the Company’s operations based on location: (for the year ended December 31, in millions) 2021 2020 2019 U.S. $ 32,596 $ 30,123 $ 29,638 Non-U.S.: Canada 1,351 1,278 1,371 Other Non-U.S. 869 580 572 Total Non-U.S. 2,220 1,858 1,943 Total revenues $ 34,816 $ 31,981 $ 31,581 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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 Allowance for Expected Credit Losses Gross Unrealized Fair (at December 31, 2021, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 3,574 $ — $ 20 $ 32 $ 3,562 Obligations of states, municipalities and political subdivisions: Local general obligation 18,668 — 1,045 46 19,667 Revenue 11,274 — 693 27 11,940 State general obligation 1,158 — 67 2 1,223 Pre-refunded 3,825 — 207 — 4,032 Total obligations of states, municipalities and political subdivisions 34,925 — 2,012 75 36,862 Debt securities issued by foreign governments 1,041 — 7 7 1,041 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,754 — 68 5 1,817 All other corporate bonds 33,445 3 1,247 175 34,514 Redeemable preferred stock 12 — 2 — 14 Total $ 74,751 $ 3 $ 3,356 $ 294 $ 77,810 Amortized Allowance for Expected Credit Losses Gross Unrealized Fair (at December 31, 2020, in millions) Cost Gains Losses Value 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 |
Amortized cost and fair value of fixed maturities by contractual maturity [Table Text Block] | The amortized cost and fair value of fixed maturities by contractual maturity follow. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (at December 31, 2021, in millions) Amortized Fair Due in one year or less $ 4,592 $ 4,635 Due after 1 year through 5 years 18,081 18,833 Due after 5 years through 10 years 25,645 26,401 Due after 10 years 24,679 26,124 72,997 75,993 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,754 1,817 Total $ 74,751 $ 77,810 |
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: (at December 31, 2021, in millions) Cost Gross Gains Gross Losses Fair Value Common stock $ 694 $ 137 $ 4 $ 827 Non-redeemable preferred stock 55 11 — 66 Total $ 749 $ 148 $ 4 $ 893 (at December 31, 2020, in millions) Cost Gross Gains Gross Losses Fair Value Common stock $ 356 $ 72 $ 12 $ 416 Non-redeemable preferred stock 59 9 — 68 Total $ 415 $ 81 $ 12 $ 484 |
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 December 31, 2021 and 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. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1, in determining whether a credit loss impairment exists. Less than 12 months 12 months or longer Total (at December 31, 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 $ 2,438 $ 32 $ 5 $ — $ 2,443 $ 32 Obligations of states, municipalities and political subdivisions 3,873 69 153 6 4,026 75 Debt securities issued by foreign governments 452 7 7 — 459 7 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 426 5 1 — 427 5 All other corporate bonds 7,306 153 436 22 7,742 175 Total fixed maturities $ 14,495 $ 266 $ 602 $ 28 $ 15,097 $ 294 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 fixed maturities $ 1,045 $ 8 $ 98 $ 3 $ 1,143 $ 11 |
Credit impairment charges included in net realized investment gains [Table Text Block] | Credit impairment charges included in net realized investment gains in the consolidated statement of income were as follows: (for the year ended December 31, in millions) 2021 2020 2019 Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ — $ — $ — Obligations of states, municipalities and political subdivisions — — — Debt securities issued by foreign governments — — — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities — — — All other corporate bonds 2 15 4 Redeemable preferred stock — — — Total fixed maturities 2 15 4 Other investments — 40 — Total $ 2 $ 55 $ 4 |
Changes in the allowance for expected credit losses on fixed maturities classified as available for sale [Table Text Block] | The following table presents 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 All Other Corporate Bonds (in millions) At and For the Twelve Months Ended December 31, 2021 At and For the Twelve Months Ended December 31, 2020 Balance, beginning of period $ 2 $ — Additions for expected credit losses on securities where no credit losses were previously recognized 1 10 Additions (reductions) for expected credit losses on securities where credit losses were previously recognized 1 (6) 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 $ 3 $ 2 _________________________________________________________ (1) Credit impairment charges recognized in net realized investment gains included $0 million and $13 million for the twelve months ended December 31, 2021 and 2020, respectively, of credit losses on fixed maturity securities which the Company intends to sell. An allowance for expected credit losses was not previously recorded for these securities. |
Net investment income [Table Text Block] | (for the year ended December 31, in millions) 2021 2020 2019 Gross investment income Fixed maturities $ 1,989 $ 2,011 $ 2,070 Equity securities 19 15 15 Short-term securities 7 44 105 Real estate investments 59 48 55 Other investments 999 146 263 Gross investment income 3,073 2,264 2,508 Investment expenses 40 37 40 Net investment income $ 3,033 $ 2,227 $ 2,468 |
Change in net unrealized investments gains (losses) [Table Text Block] | Changes in net unrealized gains (losses) on investment securities that are included as a separate component of other comprehensive income (loss) were as follows: (at and for the year ended December 31, in millions) 2021 2020 2019 Changes in net unrealized investment gains (losses) Fixed maturities $ (2,113) $ 2,322 $ 2,990 Other investments (2) — — Change in net pre-tax unrealized gains (losses) on investment securities (2,115) 2,322 2,990 Related tax expense (benefit) (456) 494 631 Change in net unrealized gains (losses) on investment securities (1,659) 1,828 2,359 Balance, beginning of year 4,074 2,246 (113) Balance, end of year $ 2,415 $ 4,074 $ 2,246 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 3,562 $ 3,562 $ — $ — Obligations of states, municipalities and political subdivisions 36,862 — 36,858 4 Debt securities issued by foreign governments 1,041 — 1,041 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,817 — 1,762 55 All other corporate bonds 34,514 — 34,325 189 Redeemable preferred stock 14 — 14 — Total fixed maturities 77,810 3,562 74,000 248 Equity securities Common stock 827 509 — 318 Non-redeemable preferred stock 66 21 20 25 Total equity securities 893 530 20 343 Other investments 23 18 — 5 Total $ 78,726 $ 4,110 $ 74,020 $ 596 Other liabilities $ 3 $ — $ — $ 3 (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 Common stock 416 410 — 6 Non-redeemable preferred stock 68 18 25 25 Total equity securities 484 428 25 31 Other investments 21 17 — 4 Total $ 74,508 $ 2,597 $ 71,710 $ 201 Other liabilities $ 5 $ — $ — $ 5 |
Changes in the Level 3 fair value category [Table Text Block] | The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2021 and 2020. (in millions) Fixed Equity Securities Other Total Balance at December 31, 2020 $ 166 $ 31 $ 4 $ 201 Total realized and unrealized investment gains (losses): Reported in net realized investment gains (1) (1) 5 1 5 Reported in increases in other comprehensive income (loss) (3) — — (3) Purchases, sales and settlements/maturities: Purchases 227 307 — 534 Sales — — — — Settlements/maturities (48) — — (48) Gross transfers into Level 3 — — — — Gross transfers out of Level 3 (93) — — (93) Balance at December 31, 2021 $ 248 $ 343 $ 5 $ 596 Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date $ — $ 5 $ 1 $ 6 ___________________________________________ (1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. (in millions) Fixed Equity Securities Other Total Balance at December 31, 2019 $ 101 $ 13 $ 7 $ 121 Total realized and unrealized investment gains (losses): Reported in net realized investment gains (1) (1) 2 (2) (1) Reported in increases in other comprehensive income (loss) 2 — — 2 Purchases, sales and settlements/maturities: Purchases 79 16 — 95 Sales — — (1) (1) Settlements/maturities (15) — — (15) Gross transfers into Level 3 3 — — 3 Gross transfers out of Level 3 (3) — — (3) Balance at December 31, 2020 $ 166 $ 31 $ 4 $ 201 Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date $ — $ 2 $ (2) $ — ___________________________________________ (1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. |
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 December 31, 2021, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 3,836 $ 3,836 $ 1,163 $ 2,615 $ 58 Financial liabilities: Debt $ 7,190 $ 9,085 $ — $ 9,085 $ — 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) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Changes in the allowance for expected credit losses on premiums receivable [Table Text Block] | The following table presents the balances of premiums receivable, net of the allowance for expected credit losses, at December 31, 2021 and 2020, and the changes in the allowance for expected credit losses for the twelve months ended December 31, 2021 and 2020. At and For the Twelve Months Ended December 31, 2021 At and For the Twelve Months Ended December 31, 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 65 103 Write-offs of uncollectible premiums receivable 63 47 Balance, end of period $ 8,085 $ 107 $ 7,829 $ 105 |
Changes in the allowance for estimated uncollectible reinsurance [Table Text Block] | The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at December 31, 2021 and 2020, and the changes in the allowance for estimated uncollectible reinsurance for the twelve months ended December 31, 2021 and 2020. At and For the Twelve Months Ended December 31, 2021 At and For the Twelve Months Ended December 31, 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 (5) 1 Write-offs of uncollectible reinsurance recoverables — — Balance, end of period $ 8,452 $ 141 $ 8,350 $ 146 |
Changes in the allowance for expected credit losses on contractholder receivables [Table Text Block] | The following table presents the balances of contractholder receivables, net of the allowance for expected credit losses, at December 31, 2021 and 2020, and the changes in the allowance for expected credit losses for the twelve months ended December 31, 2021 and 2020. At and For the Twelve Months Ended December 31, 2021 At and For the Twelve Months Ended December 31, 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 1 Write-offs of uncollectible contractholder receivables — 2 Balance, end of period $ 3,890 $ 21 $ 4,242 $ 19 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Summary of reinsurance financial data [Table Text Block] | The following is a summary of reinsurance financial data reflected in the consolidated statement of income: (for the year ended December 31, in millions) 2021 2020 2019 Written premiums Direct $ 33,180 $ 30,762 $ 30,022 Assumed 1,064 1,001 1,041 Ceded (2,285) (2,031) (1,912) Total net written premiums $ 31,959 $ 29,732 $ 29,151 Earned premiums Direct $ 31,977 $ 29,978 $ 28,994 Assumed 1,032 1,010 1,076 Ceded (2,154) (1,944) (1,798) Total net earned premiums $ 30,855 $ 29,044 $ 28,272 Percentage of assumed earned premiums to net earned premiums 3.3 % 3.5 % 3.8 % Ceded claims and claim adjustment expenses incurred $ 1,184 $ 1,030 $ 1,089 |
Reinsurance recoverables [Table Text Block] | Reinsurance recoverables include amounts recoverable on both paid and unpaid claims and claim adjustment expenses and were as follows: (at December 31, in millions) 2021 2020 Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses $ 3,931 $ 3,731 Gross structured settlements 2,900 2,964 Mandatory pools and associations 1,762 1,801 Gross reinsurance recoverables 8,593 8,496 Allowance for estimated uncollectible reinsurance (141) (146) Net reinsurance recoverables $ 8,452 $ 8,350 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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. (at December 31, in millions) 2021 2020 Business Insurance $ 2,610 $ 2,613 Bond & Specialty Insurance 550 550 Personal Insurance (1) 822 787 Other 26 26 Total $ 4,008 $ 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 December 31, 2021, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 104 $ 41 $ 63 Contract-based (1) 205 188 17 Total subject to amortization 309 229 80 Not subject to amortization 226 — 226 Total $ 535 $ 229 $ 306 (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 December 31, 2021, in millions) Gross Accumulated Net Subject to amortization Customer-related $ 104 $ 41 $ 63 Contract-based (1) 205 188 17 Total subject to amortization 309 229 80 Not subject to amortization 226 — 226 Total $ 535 $ 229 $ 306 (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) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Loss Reserves [Abstract] | |
Claims and claim adjustment expense reserves [Table Text Block] | Claims and claim adjustment expense reserves were as follows: (at December 31, in millions) 2021 2020 Property-casualty $ 56,897 $ 54,510 Accident and health 10 11 Total $ 56,907 $ 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: (at and for the year ended December 31, in millions) 2021 2020 2019 Claims and claim adjustment expense reserves at beginning of year $ 54,510 $ 51,836 $ 50,653 Less reinsurance recoverables on unpaid losses 8,153 8,035 8,182 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 42,471 Estimated claims and claim adjustment expenses for claims arising in the current year 20,698 19,285 18,854 Estimated increase (decrease) in claims and claim adjustment expenses for claims arising in prior years (484) (267) 164 Total increases 20,214 19,018 19,018 Claims and claim adjustment expense payments for claims arising in: Current year 8,401 7,497 7,734 Prior years 9,470 9,092 10,060 Total payments 17,871 16,589 17,794 Unrealized foreign exchange loss (gain) (12) 74 106 Net reserves at end of year 48,688 46,357 43,801 Plus reinsurance recoverables on unpaid losses 8,209 8,153 8,035 Claims and claim adjustment expense reserves at end of year $ 56,897 $ 54,510 $ 51,836 |
Summary of claims and claim adjustment expense reserves, including certain components, for the Company's major product lines by reporting segment [Table Text Block] | The following is a summary of claims and claim adjustment expense reserves, including certain components, for the Company’s major product lines by reporting segment at December 31, 2021. (at December 31, 2021, in millions) Net Undiscounted Discount Subtotal: Reinsurance Claims and Claim Business Insurance General liability $ 8,893 $ (139) $ 8,754 $ 978 $ 9,732 Commercial property 997 — 997 513 1,510 Commercial multi-peril 4,427 — 4,427 225 4,652 Commercial automobile 3,740 — 3,740 303 4,043 Workers’ compensation (1) 16,623 (948) 15,675 665 16,340 Bond & Specialty Insurance General liability 2,297 — 2,297 173 2,470 Fidelity and surety 527 — 527 6 533 Personal Insurance Automobile 3,155 — 3,155 442 3,597 Homeowners (excluding Other) 1,661 — 1,661 210 1,871 International - Canada 745 — 745 21 766 Subtotal — claims and allocated claim adjustment expenses for the products presented in the development tables below 43,065 (1,087) 41,978 3,536 45,514 Other insurance contracts (2) 4,231 (4) 4,227 1,825 6,052 Unallocated loss adjustment expense reserves 2,383 — 2,383 15 2,398 Structured settlements (3) — — — 2,856 2,856 Other 100 — 100 (23) 77 Total property-casualty 49,779 (1,091) 48,688 8,209 56,897 Accident and health — — — 10 10 Total $ 49,779 $ (1,091) $ 48,688 $ 8,219 $ 56,907 ___________________________________________ (1) Net discount amount includes discount of $55 million on reinsurance recoverables for long-term disability and annuity claim payments. (2) Primarily includes residual market, international (other than operations in Canada within the Personal Insurance segment) and runoff assumed reinsurance business. (3) Includes structured settlements in cases where the Company did not receive a release from the claimant. (4) Total reinsurance recoverables (on paid and unpaid losses) at December 31, 2021 were $8.45 billion. |
Allocated claim adjustment expense, by accident year, on a historical basis for incurred and paid claims on an undiscounted, net of reinsurance basis [Table Text Block] | Business Insurance General Liability ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves Dec 31, 2021 Cumulative Number of Reported Claims 2012 $ 989 $ 985 $ 935 $ 913 $ 892 $ 905 $ 917 $ 920 $ 941 $ 927 $ 59 25,061 2013 965 975 958 940 927 933 975 975 963 72 22,775 2014 976 989 983 948 956 1,013 988 979 100 22,576 2015 998 956 923 967 1,057 1,087 1,072 113 21,689 2016 1,075 1,058 1,087 1,187 1,204 1,179 189 20,556 2017 1,133 1,143 1,196 1,234 1,226 266 19,262 2018 1,253 1,312 1,344 1,395 407 19,135 2019 1,447 1,486 1,498 682 17,717 2020 1,467 1,493 1,013 12,141 2021 1,591 1,365 9,119 Total $ 12,323 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 32 $ 150 $ 295 $ 489 $ 589 $ 699 $ 754 $ 811 $ 831 $ 837 2013 35 175 363 498 639 745 816 836 853 2014 37 163 321 515 640 750 805 832 2015 36 137 336 558 740 828 875 Liability for Claims 2016 35 191 421 649 758 858 And Allocated Claim 2017 40 180 378 552 724 Adjustment Expenses, 2018 42 202 441 709 Net of Reinsurance 2019 51 233 482 2020 61 244 2012 - Before 2021 67 2021 2012 Total $ 6,481 $ 5,842 $ 3,051 Total net liability $ 8,893 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 3.5 % 12.2 % 17.4 % 18.3 % 13.1 % 10.2 % 5.8 % 3.6 % 2.0 % 0.6 % Commercial Property ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2017 $ 1,209 $ 1,177 $ 1,151 $ 1,128 $ 1,117 $ 3 25,143 2018 1,093 1,079 1,070 1,068 20 25,077 2019 1,069 1,034 1,031 (12) 25,376 2020 1,107 1,025 38 25,434 2021 1,236 94 21,996 Total $ 5,477 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Liability for Claims Accident Year And Allocated Claim 2017 $ 618 $ 1,003 $ 1,073 $ 1,094 $ 1,103 Adjustment Expenses, 2018 561 928 981 1,005 Net of Reinsurance 2019 610 957 1,001 2020 580 857 2017 - Before 2021 645 2021 2017 Total $ 4,611 $ 866 $ 131 Total net liability $ 997 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 55.2 % 32.4 % 5.2 % 2.0 % 0.8 % Commercial Multi-Peril ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 1,885 $ 1,883 $ 1,903 $ 1,888 $ 1,888 $ 1,867 $ 1,859 $ 1,854 $ 1,853 $ 1,851 $ 21 105,054 2013 1,615 1,623 1,620 1,609 1,591 1,600 1,599 1,598 1,593 26 83,991 2014 1,663 1,627 1,625 1,617 1,626 1,627 1,627 1,622 32 78,465 2015 1,568 1,625 1,593 1,597 1,606 1,593 1,584 46 71,922 2016 1,662 1,623 1,598 1,590 1,601 1,587 63 69,368 2017 1,872 1,928 1,956 1,919 1,935 104 72,318 2018 1,976 2,114 2,092 2,112 163 72,853 2019 2,017 2,087 2,089 294 66,484 2020 2,142 2,141 575 67,796 2021 2,164 892 47,190 Total $ 18,678 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 795 $ 1,246 $ 1,424 $ 1,590 $ 1,699 $ 1,752 $ 1,780 $ 1,804 $ 1,811 $ 1,818 2013 644 987 1,167 1,304 1,410 1,475 1,516 1,532 1,544 2014 628 956 1,154 1,328 1,448 1,512 1,544 1,560 2015 595 970 1,144 1,310 1,409 1,452 1,489 Liability for Claims 2016 585 950 1,133 1,278 1,373 1,437 And Allocated Claim 2017 716 1,199 1,388 1,531 1,674 Adjustment Expenses, 2018 792 1,302 1,500 1,669 Net of Reinsurance 2019 707 1,187 1,423 2020 791 1,180 2012 - Before 2021 744 2021 2012 Total $ 14,538 $ 4,140 $ 287 Total net liability $ 4,427 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 37.6 % 22.6 % 10.8 % 9.0 % 6.6 % 3.5 % 2.1 % 1.1 % 0.6 % 0.4 % Commercial Automobile ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2017 $ 1,386 $ 1,501 $ 1,524 $ 1,522 $ 1,533 $ 53 192,155 2018 1,645 1,742 1,745 1,761 130 204,588 2019 1,835 1,951 1,976 321 206,533 2020 1,788 1,677 640 141,722 2021 1,741 941 132,893 Total $ 8,688 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Liability for Claims Accident Year And Allocated Claim 2017 $ 456 $ 746 $ 1,027 $ 1,226 $ 1,361 Adjustment Expenses, 2018 515 848 1,159 1,404 Net of Reinsurance 2019 539 934 1,269 2020 437 696 2017 - Before 2021 453 2021 2017 Total $ 5,183 $ 3,505 $ 235 Total net liability $ 3,740 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 27.6 % 18.3 % 17.6 % 13.4 % 8.8 % Workers’ Compensation ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 2,447 $ 2,456 $ 2,457 $ 2,456 $ 2,445 $ 2,453 $ 2,416 $ 2,387 $ 2,377 $ 2,375 $ 347 138,454 2013 2,553 2,545 2,540 2,506 2,463 2,423 2,354 2,321 2,304 344 134,573 2014 2,554 2,553 2,547 2,476 2,430 2,393 2,352 2,336 393 131,465 2015 2,644 2,585 2,505 2,441 2,372 2,279 2,220 462 130,920 2016 2,768 2,690 2,569 2,473 2,372 2,300 456 130,036 2017 2,779 2,681 2,584 2,483 2,439 638 122,110 2018 2,744 2,687 2,599 2,503 737 122,931 2019 2,680 2,714 2,699 844 119,678 2020 2,559 2,530 1,249 95,611 2021 2,356 1,420 83,546 Total $ 24,062 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 443 $ 940 $ 1,217 $ 1,394 $ 1,536 $ 1,629 $ 1,689 $ 1,735 $ 1,768 $ 1,793 2013 458 954 1,237 1,413 1,525 1,604 1,659 1,700 1,729 2014 455 944 1,224 1,399 1,505 1,581 1,634 1,672 2015 430 893 1,154 1,310 1,411 1,470 1,520 Liability for Claims 2016 421 873 1,118 1,272 1,367 1,433 And Allocated Claim 2017 433 890 1,154 1,314 1,418 Adjustment Expenses, 2018 440 919 1,169 1,330 Net of Reinsurance 2019 466 951 1,229 2020 389 794 2012 - Before 2021 427 2021 2012 Total $ 13,345 $ 10,717 $ 5,906 Total net liability $ 16,623 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 18.2 % 19.5 % 11.2 % 7.0 % 4.7 % 3.2 % 2.4 % 1.8 % 1.3 % 1.1 % Bond & Specialty Insurance General Liability ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 538 $ 591 $ 614 $ 605 $ 601 $ 599 $ 605 $ 593 $ 581 $ 605 $ 14 4,872 2013 510 565 606 630 654 607 586 575 564 (4) 4,467 2014 549 571 563 518 473 452 450 449 15 4,375 2015 528 524 486 437 395 414 413 21 4,226 2016 512 511 504 520 514 510 34 4,398 2017 534 517 526 493 524 65 4,585 2018 530 548 585 595 99 4,795 2019 588 653 665 214 5,290 2020 772 753 399 5,004 2021 812 613 3,847 Total $ 5,890 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 38 $ 160 $ 255 $ 342 $ 383 $ 419 $ 436 $ 453 $ 459 $ 493 2013 34 154 252 352 400 434 451 462 482 2014 38 150 239 312 367 407 418 426 2015 38 141 234 310 338 348 381 Liability for Claims 2016 30 141 233 313 378 446 And Allocated Claim 2017 38 155 262 340 404 Adjustment Expenses, 2018 49 182 290 383 Net of Reinsurance 2019 51 189 323 2020 52 210 2012 - Before 2021 78 2021 2012 Total $ 3,626 $ 2,264 $ 33 Total net liability $ 2,297 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 7.5 % 22.1 % 19.0 % 16.1 % 9.9 % 7.3 % 4.1 % 2.2 % 2.2 % 5.6 % Fidelity and Surety ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 244 $ 271 $ 240 $ 241 $ 226 $ 1 940 2018 220 235 220 220 2 907 2019 203 193 200 37 871 2020 274 203 93 754 2021 284 253 421 Total $ 1,133 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 70 $ 166 $ 194 $ 205 $ 210 Adjustment Expenses, 2018 64 171 202 206 Net of Reinsurance 2019 49 121 147 2020 50 79 2017 - Before 2021 25 2021 2017 Total $ 667 $ 466 $ 61 Total net liability $ 527 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 23.6 % 35.4 % 13.2 % 3.4 % 2.1 % Personal Insurance Automobile ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 3,323 $ 3,256 $ 3,221 $ 3,206 $ 3,199 $ 24 1,062,811 2018 3,281 3,269 3,233 3,220 60 1,051,415 2019 3,362 3,361 3,333 153 1,032,740 2020 2,829 2,764 353 808,338 2021 3,716 1,028 894,499 Total $ 16,232 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 1,912 $ 2,575 $ 2,887 $ 3,046 $ 3,121 Adjustment Expenses, 2018 1,889 2,582 2,880 3,040 Net of Reinsurance 2019 1,933 2,650 2,958 2020 1,571 2,126 2017 - Before 2021 2,062 2021 2017 Total $ 13,307 $ 2,925 $ 230 Total net liability $ 3,155 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 57.8 % 21.0 % 9.4 % 5.0 % 2.4 % Homeowners (excluding Other) ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 2,312 $ 2,340 $ 2,343 $ 2,170 $ 2,160 $ 14 170,198 2018 2,610 2,574 2,381 2,325 21 187,306 2019 2,297 2,344 2,343 26 181,209 2020 3,019 2,967 170 219,786 2021 3,463 774 203,280 Total $ 13,258 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 1,471 $ 2,059 $ 2,197 $ 2,089 $ 2,103 Adjustment Expenses, 2018 1,657 2,298 2,255 2,239 Net of Reinsurance 2019 1,613 2,179 2,269 2020 2,019 2,673 2017 - Before 2021 2,334 2021 2017 Total $ 11,618 $ 1,640 $ 21 Total net liability $ 1,661 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 68.7 % 25.2 % 2.8 % (2.8) % 0.7 % International - Canada ( dollars in millions ) For the Years Ended December 31, IBNR Reserves December 31, 2021 Cumulative 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Reported Year Unaudited Claims 2012 $ 446 $ 423 $ 425 $ 408 $ 407 $ 390 $ 383 $ 371 $ 372 $ 372 $ — 51,245 2013 497 490 481 469 456 454 444 439 436 (7) 54,268 2014 440 456 456 444 437 434 433 430 (10) 52,300 2015 370 369 369 366 367 366 361 (2) 45,220 2016 370 419 420 429 429 428 2 45,764 2017 355 391 414 414 413 5 46,825 2018 451 474 475 480 17 50,599 2019 456 451 473 53 48,179 2020 356 342 88 30,098 2021 357 136 26,606 Total $ 4,092 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2012 $ 170 $ 237 $ 268 $ 295 $ 324 $ 342 $ 351 $ 356 $ 362 $ 365 2013 199 278 311 345 378 397 415 423 430 2014 194 272 309 339 371 394 411 426 2015 166 232 260 290 315 330 344 Liability for Claims 2016 217 291 317 352 377 395 And Allocated Claim 2017 187 263 304 328 356 Adjustment Expenses, 2018 224 312 349 389 Net of Reinsurance 2019 221 296 333 2020 148 199 2012 - Before 2021 131 2021 2012 Total $ 3,368 $ 724 $ 21 Total net liability $ 745 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 45.1 % 17.5 % 8.0 % 7.5 % 7.1 % 4.6 % 3.6 % 2.3 % 1.6 % 0.7 % |
Historical average annual percentage payout of incurred claims by age of accident year [Table Text Block] | Business Insurance General Liability ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves Dec 31, 2021 Cumulative Number of Reported Claims 2012 $ 989 $ 985 $ 935 $ 913 $ 892 $ 905 $ 917 $ 920 $ 941 $ 927 $ 59 25,061 2013 965 975 958 940 927 933 975 975 963 72 22,775 2014 976 989 983 948 956 1,013 988 979 100 22,576 2015 998 956 923 967 1,057 1,087 1,072 113 21,689 2016 1,075 1,058 1,087 1,187 1,204 1,179 189 20,556 2017 1,133 1,143 1,196 1,234 1,226 266 19,262 2018 1,253 1,312 1,344 1,395 407 19,135 2019 1,447 1,486 1,498 682 17,717 2020 1,467 1,493 1,013 12,141 2021 1,591 1,365 9,119 Total $ 12,323 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 32 $ 150 $ 295 $ 489 $ 589 $ 699 $ 754 $ 811 $ 831 $ 837 2013 35 175 363 498 639 745 816 836 853 2014 37 163 321 515 640 750 805 832 2015 36 137 336 558 740 828 875 Liability for Claims 2016 35 191 421 649 758 858 And Allocated Claim 2017 40 180 378 552 724 Adjustment Expenses, 2018 42 202 441 709 Net of Reinsurance 2019 51 233 482 2020 61 244 2012 - Before 2021 67 2021 2012 Total $ 6,481 $ 5,842 $ 3,051 Total net liability $ 8,893 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 3.5 % 12.2 % 17.4 % 18.3 % 13.1 % 10.2 % 5.8 % 3.6 % 2.0 % 0.6 % Commercial Property ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2017 $ 1,209 $ 1,177 $ 1,151 $ 1,128 $ 1,117 $ 3 25,143 2018 1,093 1,079 1,070 1,068 20 25,077 2019 1,069 1,034 1,031 (12) 25,376 2020 1,107 1,025 38 25,434 2021 1,236 94 21,996 Total $ 5,477 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Liability for Claims Accident Year And Allocated Claim 2017 $ 618 $ 1,003 $ 1,073 $ 1,094 $ 1,103 Adjustment Expenses, 2018 561 928 981 1,005 Net of Reinsurance 2019 610 957 1,001 2020 580 857 2017 - Before 2021 645 2021 2017 Total $ 4,611 $ 866 $ 131 Total net liability $ 997 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 55.2 % 32.4 % 5.2 % 2.0 % 0.8 % Commercial Multi-Peril ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 1,885 $ 1,883 $ 1,903 $ 1,888 $ 1,888 $ 1,867 $ 1,859 $ 1,854 $ 1,853 $ 1,851 $ 21 105,054 2013 1,615 1,623 1,620 1,609 1,591 1,600 1,599 1,598 1,593 26 83,991 2014 1,663 1,627 1,625 1,617 1,626 1,627 1,627 1,622 32 78,465 2015 1,568 1,625 1,593 1,597 1,606 1,593 1,584 46 71,922 2016 1,662 1,623 1,598 1,590 1,601 1,587 63 69,368 2017 1,872 1,928 1,956 1,919 1,935 104 72,318 2018 1,976 2,114 2,092 2,112 163 72,853 2019 2,017 2,087 2,089 294 66,484 2020 2,142 2,141 575 67,796 2021 2,164 892 47,190 Total $ 18,678 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 795 $ 1,246 $ 1,424 $ 1,590 $ 1,699 $ 1,752 $ 1,780 $ 1,804 $ 1,811 $ 1,818 2013 644 987 1,167 1,304 1,410 1,475 1,516 1,532 1,544 2014 628 956 1,154 1,328 1,448 1,512 1,544 1,560 2015 595 970 1,144 1,310 1,409 1,452 1,489 Liability for Claims 2016 585 950 1,133 1,278 1,373 1,437 And Allocated Claim 2017 716 1,199 1,388 1,531 1,674 Adjustment Expenses, 2018 792 1,302 1,500 1,669 Net of Reinsurance 2019 707 1,187 1,423 2020 791 1,180 2012 - Before 2021 744 2021 2012 Total $ 14,538 $ 4,140 $ 287 Total net liability $ 4,427 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 37.6 % 22.6 % 10.8 % 9.0 % 6.6 % 3.5 % 2.1 % 1.1 % 0.6 % 0.4 % Commercial Automobile ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2017 $ 1,386 $ 1,501 $ 1,524 $ 1,522 $ 1,533 $ 53 192,155 2018 1,645 1,742 1,745 1,761 130 204,588 2019 1,835 1,951 1,976 321 206,533 2020 1,788 1,677 640 141,722 2021 1,741 941 132,893 Total $ 8,688 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Liability for Claims Accident Year And Allocated Claim 2017 $ 456 $ 746 $ 1,027 $ 1,226 $ 1,361 Adjustment Expenses, 2018 515 848 1,159 1,404 Net of Reinsurance 2019 539 934 1,269 2020 437 696 2017 - Before 2021 453 2021 2017 Total $ 5,183 $ 3,505 $ 235 Total net liability $ 3,740 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 27.6 % 18.3 % 17.6 % 13.4 % 8.8 % Workers’ Compensation ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 2,447 $ 2,456 $ 2,457 $ 2,456 $ 2,445 $ 2,453 $ 2,416 $ 2,387 $ 2,377 $ 2,375 $ 347 138,454 2013 2,553 2,545 2,540 2,506 2,463 2,423 2,354 2,321 2,304 344 134,573 2014 2,554 2,553 2,547 2,476 2,430 2,393 2,352 2,336 393 131,465 2015 2,644 2,585 2,505 2,441 2,372 2,279 2,220 462 130,920 2016 2,768 2,690 2,569 2,473 2,372 2,300 456 130,036 2017 2,779 2,681 2,584 2,483 2,439 638 122,110 2018 2,744 2,687 2,599 2,503 737 122,931 2019 2,680 2,714 2,699 844 119,678 2020 2,559 2,530 1,249 95,611 2021 2,356 1,420 83,546 Total $ 24,062 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 443 $ 940 $ 1,217 $ 1,394 $ 1,536 $ 1,629 $ 1,689 $ 1,735 $ 1,768 $ 1,793 2013 458 954 1,237 1,413 1,525 1,604 1,659 1,700 1,729 2014 455 944 1,224 1,399 1,505 1,581 1,634 1,672 2015 430 893 1,154 1,310 1,411 1,470 1,520 Liability for Claims 2016 421 873 1,118 1,272 1,367 1,433 And Allocated Claim 2017 433 890 1,154 1,314 1,418 Adjustment Expenses, 2018 440 919 1,169 1,330 Net of Reinsurance 2019 466 951 1,229 2020 389 794 2012 - Before 2021 427 2021 2012 Total $ 13,345 $ 10,717 $ 5,906 Total net liability $ 16,623 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 18.2 % 19.5 % 11.2 % 7.0 % 4.7 % 3.2 % 2.4 % 1.8 % 1.3 % 1.1 % Bond & Specialty Insurance General Liability ( dollars in millions ) For the Years Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Unaudited Accident Year IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims 2012 $ 538 $ 591 $ 614 $ 605 $ 601 $ 599 $ 605 $ 593 $ 581 $ 605 $ 14 4,872 2013 510 565 606 630 654 607 586 575 564 (4) 4,467 2014 549 571 563 518 473 452 450 449 15 4,375 2015 528 524 486 437 395 414 413 21 4,226 2016 512 511 504 520 514 510 34 4,398 2017 534 517 526 493 524 65 4,585 2018 530 548 585 595 99 4,795 2019 588 653 665 214 5,290 2020 772 753 399 5,004 2021 812 613 3,847 Total $ 5,890 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2012 $ 38 $ 160 $ 255 $ 342 $ 383 $ 419 $ 436 $ 453 $ 459 $ 493 2013 34 154 252 352 400 434 451 462 482 2014 38 150 239 312 367 407 418 426 2015 38 141 234 310 338 348 381 Liability for Claims 2016 30 141 233 313 378 446 And Allocated Claim 2017 38 155 262 340 404 Adjustment Expenses, 2018 49 182 290 383 Net of Reinsurance 2019 51 189 323 2020 52 210 2012 - Before 2021 78 2021 2012 Total $ 3,626 $ 2,264 $ 33 Total net liability $ 2,297 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 7.5 % 22.1 % 19.0 % 16.1 % 9.9 % 7.3 % 4.1 % 2.2 % 2.2 % 5.6 % Fidelity and Surety ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 244 $ 271 $ 240 $ 241 $ 226 $ 1 940 2018 220 235 220 220 2 907 2019 203 193 200 37 871 2020 274 203 93 754 2021 284 253 421 Total $ 1,133 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 70 $ 166 $ 194 $ 205 $ 210 Adjustment Expenses, 2018 64 171 202 206 Net of Reinsurance 2019 49 121 147 2020 50 79 2017 - Before 2021 25 2021 2017 Total $ 667 $ 466 $ 61 Total net liability $ 527 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 23.6 % 35.4 % 13.2 % 3.4 % 2.1 % Personal Insurance Automobile ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 3,323 $ 3,256 $ 3,221 $ 3,206 $ 3,199 $ 24 1,062,811 2018 3,281 3,269 3,233 3,220 60 1,051,415 2019 3,362 3,361 3,333 153 1,032,740 2020 2,829 2,764 353 808,338 2021 3,716 1,028 894,499 Total $ 16,232 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 1,912 $ 2,575 $ 2,887 $ 3,046 $ 3,121 Adjustment Expenses, 2018 1,889 2,582 2,880 3,040 Net of Reinsurance 2019 1,933 2,650 2,958 2020 1,571 2,126 2017 - Before 2021 2,062 2021 2017 Total $ 13,307 $ 2,925 $ 230 Total net liability $ 3,155 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 57.8 % 21.0 % 9.4 % 5.0 % 2.4 % Homeowners (excluding Other) ( dollars in millions ) For the Years Ended December 31, 2017 2018 2019 2020 2021 IBNR Reserves December 31, 2021 Cumulative Number of Reported Claims Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance Accident Year Unaudited 2017 $ 2,312 $ 2,340 $ 2,343 $ 2,170 $ 2,160 $ 14 170,198 2018 2,610 2,574 2,381 2,325 21 187,306 2019 2,297 2,344 2,343 26 181,209 2020 3,019 2,967 170 219,786 2021 3,463 774 203,280 Total $ 13,258 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Accident Year Unaudited Liability for Claims And Allocated Claim 2017 $ 1,471 $ 2,059 $ 2,197 $ 2,089 $ 2,103 Adjustment Expenses, 2018 1,657 2,298 2,255 2,239 Net of Reinsurance 2019 1,613 2,179 2,269 2020 2,019 2,673 2017 - Before 2021 2,334 2021 2017 Total $ 11,618 $ 1,640 $ 21 Total net liability $ 1,661 Average Annual Percentage Payout of Incurred Unaudited Years 1 2 3 4 5 68.7 % 25.2 % 2.8 % (2.8) % 0.7 % International - Canada ( dollars in millions ) For the Years Ended December 31, IBNR Reserves December 31, 2021 Cumulative 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Reported Year Unaudited Claims 2012 $ 446 $ 423 $ 425 $ 408 $ 407 $ 390 $ 383 $ 371 $ 372 $ 372 $ — 51,245 2013 497 490 481 469 456 454 444 439 436 (7) 54,268 2014 440 456 456 444 437 434 433 430 (10) 52,300 2015 370 369 369 366 367 366 361 (2) 45,220 2016 370 419 420 429 429 428 2 45,764 2017 355 391 414 414 413 5 46,825 2018 451 474 475 480 17 50,599 2019 456 451 473 53 48,179 2020 356 342 88 30,098 2021 357 136 26,606 Total $ 4,092 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2012 $ 170 $ 237 $ 268 $ 295 $ 324 $ 342 $ 351 $ 356 $ 362 $ 365 2013 199 278 311 345 378 397 415 423 430 2014 194 272 309 339 371 394 411 426 2015 166 232 260 290 315 330 344 Liability for Claims 2016 217 291 317 352 377 395 And Allocated Claim 2017 187 263 304 328 356 Adjustment Expenses, 2018 224 312 349 389 Net of Reinsurance 2019 221 296 333 2020 148 199 2012 - Before 2021 131 2021 2012 Total $ 3,368 $ 724 $ 21 Total net liability $ 745 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 45.1 % 17.5 % 8.0 % 7.5 % 7.1 % 4.6 % 3.6 % 2.3 % 1.6 % 0.7 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt outstanding [Table Text Block] | Debt outstanding was as follows: (at December 31, in millions) 2021 2020 Short-term: Commercial paper $ 100 $ 100 Total short-term debt 100 100 Long-term: 7.75% Senior notes due April 15, 2026 200 200 7.625% Junior subordinated debentures due December 15, 2027 125 125 6.375% Senior notes due March 15, 2033 500 500 6.75% Senior notes due June 20, 2036 400 400 6.25% Senior notes due June 15, 2037 800 800 5.35% Senior notes due November 1, 2040 750 750 4.60% Senior notes due August 1, 2043 500 500 4.30% Senior notes due August 25, 2045 400 400 8.50% Junior subordinated debentures due December 15, 2045 56 56 3.75% Senior notes due May 15, 2046 500 500 8.312% Junior subordinated debentures due July 1, 2046 73 73 4.00% Senior notes due May 30, 2047 700 700 4.05% Senior notes due March 7, 2048 500 500 4.10% Senior notes due March 4, 2049 500 500 2.55% Senior notes due April 27, 2050 500 500 3.05% Senior notes due June 8, 2051 750 — Total long-term debt 7,254 6,504 Total debt principal 7,354 6,604 Unamortized fair value adjustment 39 41 Unamortized debt issuance costs (103) (95) Total debt $ 7,290 $ 6,550 |
Merger-related unamortized fair value adjustments and the related effective interest rate [Table Text Block] | The following table presents merger-related unamortized fair value adjustments and the related effective interest rate: Unamortized Fair Value Effective Interest Rate to Maturity (in millions) Issue Rate Maturity Date 2021 2020 Junior subordinated debentures 7.625 % Dec. 2027 $ 8 $ 10 6.147 % 8.500 % Dec. 2045 14 14 6.362 % 8.312 % Jul. 2046 17 17 6.362 % Total $ 39 $ 41 |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income And Accumulated Other Comprehensive Income Disclosure [Abstract] | |
Changes in accumulated other comprehensive income (loss) (AOCI) [Table Text Block] | The following table presents the changes in the Company’s accumulated other comprehensive income (AOCI) for the years ended December 31, 2021, 2020 and 2019. Changes in Net Unrealized Gains (Losses) on (in millions) Having No Credit Having Credit Losses Net Benefit Plan Assets and Net Unrealized Total Accumulated Balance, December 31, 2018 $ (306) $ 193 $ (873) $ (873) $ (1,859) Other comprehensive income (loss) (OCI) before reclassifications, net of tax 2,406 (4) (14) 106 2,494 Amounts reclassified from AOCI, net of tax (43) — 41 7 5 Net OCI, current period 2,363 (4) 27 113 2,499 Balance, December 31, 2019 2,057 189 (846) (760) 640 OCI before reclassifications, net of tax 1,876 (7) (53) 21 1,837 Amounts reclassified from AOCI, net of tax (41) — 67 (1) 25 Net OCI, current period 1,835 (7) 14 20 1,862 Balance, December 31, 2020 3,892 182 (832) (740) 2,502 OCI before reclassifications, net of tax (1,606) — 278 (9) (1,337) Amounts reclassified from AOCI, net of tax (53) — 81 — 28 Net OCI, current period (1,659) — 359 (9) (1,309) Balance, December 31, 2021 $ 2,233 $ 182 $ (473) $ (749) $ 1,193 |
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). (for the year ended December 31, in millions) 2021 2020 2019 Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income $ (2,115) $ 2,331 $ 2,994 Income tax expense (benefit) (456) 496 631 Net of taxes (1,659) 1,835 2,363 Having credit losses recognized in the consolidated statement of income — (9) (4) Income tax benefit — (2) — Net of taxes — (7) (4) Net changes in benefit plan assets and obligations 455 18 33 Income tax expense 96 4 6 Net of taxes 359 14 27 Net changes in unrealized foreign currency translation (11) 12 117 Income tax expense (benefit) (2) (8) 4 Net of taxes (9) 20 113 Total other comprehensive income (loss) (1,671) 2,352 3,140 Total income tax expense (benefit) (362) 490 641 Total other comprehensive income (loss), net of taxes $ (1,309) $ 1,862 $ 2,499 |
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. (for the year ended December 31, in millions) 2021 2020 2019 Reclassification adjustments related to unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (67) $ (52) $ (55) Income tax expense (2) (14) (11) (12) Net of taxes (53) (41) (43) 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) 41 35 21 General and administrative expenses (3) 61 50 31 Total 102 85 52 Income tax benefit (2) 21 18 11 Net of taxes 81 67 41 Reclassification adjustment related to foreign currency translation (1) — (1) 7 Income tax benefit (2) — — — Net of taxes — (1) 7 Total reclassifications 35 32 4 Total income tax (expense) benefit 7 7 (1) Total reclassifications, net of taxes $ 28 $ 25 $ 5 ___________________________________________ (1) (Increases) decreases net realized investment gains 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) | 12 Months Ended |
Dec. 31, 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 year ended December 31, in millions, except per share amounts) 2021 2020 2019 Basic and Diluted Net income, as reported $ 3,662 $ 2,697 $ 2,622 Participating securities — allocated income (27) (19) (19) Net income available to common shareholders — basic and diluted $ 3,635 $ 2,678 $ 2,603 Common Shares Basic Weighted average shares outstanding 248.5 253.5 260.0 Diluted Weighted average shares outstanding 248.5 253.5 260.0 Weighted average effects of dilutive securities: Stock options and performance shares 2.3 1.1 2.3 Total 250.8 254.6 262.3 Net income Per Common Share 0 Basic $ 14.63 $ 10.56 $ 10.01 Diluted $ 14.49 $ 10.52 $ 9.92 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Composition of income tax expense included in consolidated statement of income and shareholders' equity [Table Text Block] | The following table presents the components of income tax expense included in the amounts reported in the Company’s consolidated financial statements: (for the year ended December 31, in millions) 2021 2020 2019 Composition of income tax expense included in the consolidated statement of income Current expense: Federal $ 659 $ 532 $ 546 Foreign 67 35 7 State 6 4 6 Total current tax expense 732 571 559 Deferred expense (benefit): Federal 62 (29) (33) Foreign 2 (2) (10) Total deferred tax expense (benefit) 64 (31) (43) Total income tax expense included in the consolidated statement of income 796 540 516 Composition of income tax expense (benefit) included in shareholders’ equity Expense (benefit) relating to changes in the unrealized gain (loss) on investments, unrealized loss on foreign exchange and other items in other comprehensive income (loss) (362) 490 641 Total income tax expense included in the consolidated financial statements $ 434 $ 1,030 $ 1,157 |
Effective tax rate [Table Text Block] | The following is a reconciliation of income tax expense at the U.S. federal statutory income tax rate to the income tax expense reported in the Company’s consolidated statement of income: (for the year ended December 31, in millions) 2021 2020 2019 Income (loss) before income taxes U.S. $ 4,107 $ 3,095 $ 3,211 Foreign 351 142 (73) Total income before income taxes 4,458 3,237 3,138 Effective tax rate Statutory tax rate 21 % 21 % 21 % Expected federal income tax expense 936 680 659 Tax effect of: Nontaxable investment income (147) (147) (149) Other, net 7 7 6 Total income tax expense $ 796 $ 540 $ 516 Effective tax rate 18 % 17 % 16 % |
Deferred tax assets and liabilities [Table Text Block] | The net deferred tax liability comprises the tax effects of temporary differences related to the following assets and liabilities: (at December 31, in millions) 2021 2020 Deferred tax assets Claims and claim adjustment expense reserves $ 601 $ 575 Unearned premium reserves 603 560 Compensation-related liabilities 35 110 Net operating losses 101 87 Other 152 180 Total gross deferred tax assets 1,492 1,512 Less: valuation allowance 23 21 Adjusted gross deferred tax assets 1,469 1,491 Deferred tax liabilities Deferred acquisition costs 479 445 Investments 940 1,225 Depreciation 112 130 Other 227 249 Total gross deferred tax liabilities 1,758 2,049 Net deferred tax liability $ 289 $ 558 |
Net operating loss amounts by jurisdiction and year of expiration [Table Text Block] | The NOL amounts by jurisdiction and year of expiration are as follows: (in millions) Amount Year of United States $ 2 2035 - 2036 Canada $ 25 2035 - 2041 Republic of Ireland $ 127 None United Kingdom $ 328 None |
Reconciliation of unrecognized tax benefits [Table Text Block] | The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2021 and 2020: (in millions) 2021 2020 Balance at January 1 $ 49 $ 37 Additions for tax positions of prior years 2 16 Reductions for tax positions of prior years (3) — Reductions based on tax positions related to current year — — Expiration of statute of limitations — (4) Balance at December 31 $ 48 $ 49 |
Share-Based Incentive Compens_2
Share-Based Incentive Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Assumptions used in estimating fair value of options on grant date [Table Text Block] | The following table provides information about options granted: (for the year ended December 31,) 2021 2020 2019 Assumptions used in estimating fair value of options on grant date Expected term of stock options 6 years 6 years 6 years Expected volatility of Company’s stock 24.22% - 24.53% 15.73 % 15.47% - 15.91% Weighted average volatility 24.22 % 15.73 % 15.48 % Expected annual dividend per share $3.40 - $3.52 $3.28 $3.08 - $3.28 Risk-free rate 0.59% - 1.08% 1.37 % 1.70% - 2.54% Additional information Weighted average grant-date fair value of options granted (per share) $ 23.32 $ 14.41 $ 16.64 Total intrinsic value of options exercised during the year (in millions) $ 94 $ 47 $ 88 |
Additional information regarding option grants [Table Text Block] | The following table provides information about options granted: (for the year ended December 31,) 2021 2020 2019 Assumptions used in estimating fair value of options on grant date Expected term of stock options 6 years 6 years 6 years Expected volatility of Company’s stock 24.22% - 24.53% 15.73 % 15.47% - 15.91% Weighted average volatility 24.22 % 15.73 % 15.48 % Expected annual dividend per share $3.40 - $3.52 $3.28 $3.08 - $3.28 Risk-free rate 0.59% - 1.08% 1.37 % 1.70% - 2.54% Additional information Weighted average grant-date fair value of options granted (per share) $ 23.32 $ 14.41 $ 16.64 Total intrinsic value of options exercised during the year (in millions) $ 94 $ 47 $ 88 |
Summary of stock option activity under the Company's 2014 Incentive Plan and legacy share-based incentive compensation plans [Table Text Block] | A summary of stock option activity under the 2014 Incentive Plan and the legacy plans as of and for the year ended December 31, 2021 is as follows: Stock Options Number Weighted Weighted Aggregate Outstanding, beginning of year 10,075,758 $ 121.03 Original grants 1,599,841 139.88 Exercised (2,181,586) 110.39 Forfeited or expired (74,128) 131.29 Outstanding, end of year 9,419,885 $ 126.62 6.5 years $ 281 Vested at end of year (1) 7,225,469 $ 124.73 6.0 years $ 229 Exercisable at end of year 4,081,500 $ 118.75 4.4 years $ 154 ___________________________________________ (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. |
Summary of restricted stock units, deferred stock units and performance share activity [Table Text Block] | A summary of restricted stock units, deferred stock units and performance share activity under the 2014 Incentive Plan and the legacy plans as of and for the year ended December 31, 2021 is as follows: Restricted and Deferred Stock Performance Shares Other Equity Instruments Number Weighted Number Weighted Average Nonvested, beginning of year 1,086,784 $ 132.12 723,991 $ 129.45 Granted 605,188 141.22 367,299 139.83 Vested (513,226) (1) 138.57 (359,925) (2) 126.18 Forfeited (69,921) 132.93 (24,828) 131.20 Performance-based adjustment — — 224,020 (3) 138.56 Nonvested, end of year 1,108,825 $ 134.05 930,557 $ 136.96 ___________________________________________ (1) Represents awards for which the requisite service has been rendered. (2) Reflects the number of performance shares attributable to the performance goals attained over the completed performance period (three years) and for which service conditions have been met. |
Pension Plans, Retirement Ben_2
Pension Plans, Retirement Benefits and Savings Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Summary of the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company's benefit plans [Table Text Block] | The following tables summarize the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company’s benefit plans. The Company uses a December 31 measurement date for its pension and postretirement benefit plans. (at and for the year ended December 31, in millions) Qualified Domestic Nonqualified and Foreign Total 2021 2020 2021 2020 2021 2020 Change in projected benefit obligation: Benefit obligation at beginning of year $ 4,326 $ 3,954 $ 265 $ 241 $ 4,591 $ 4,195 Benefits earned 135 128 6 5 141 133 Interest cost on benefit obligation 79 109 4 5 83 114 Actuarial (gain) loss (73) 336 (2) 20 (75) 356 Benefits paid (255) (201) (13) (11) (268) (212) Amendment — — — 1 — 1 Foreign currency exchange rate change — — (1) 4 (1) 4 Benefit obligation at end of year $ 4,212 $ 4,326 $ 259 $ 265 $ 4,471 $ 4,591 Change in plan assets: Fair value of plan assets at beginning of year $ 4,631 $ 4,270 $ 125 $ 115 $ 4,756 $ 4,385 Actual return on plan assets 526 562 11 8 537 570 Company contributions — — 12 9 12 9 Benefits paid (255) (201) (13) (11) (268) (212) Foreign currency exchange rate change — — (1) 4 (1) 4 Fair value of plan assets at end of year 4,902 4,631 134 125 5,036 4,756 Funded status of plan at end of year $ 690 $ 305 $ (125) $ (140) $ 565 $ 165 Amounts recognized in the consolidated balance sheet consist of: Accrued over-funded benefit plan assets $ 690 $ 305 $ 6 $ 1 $ 696 $ 306 Accrued under-funded benefit plan liabilities — — (131) (141) (131) (141) Total $ 690 $ 305 $ (125) $ (140) $ 565 $ 165 Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 618 $ 1,050 $ 49 $ 63 $ 667 $ 1,113 Prior service cost (benefit) (2) (2) 1 1 (1) (1) Total $ 616 $ 1,048 $ 50 $ 64 $ 666 $ 1,112 Postretirement (at and for the year ended December 31, in millions) 2021 2020 Change in accumulated benefit obligation: Benefit obligation at beginning of year $ 171 $ 171 Benefits earned — — Interest cost on benefit obligation 3 4 Actuarial (gain) loss (16) 5 Benefits paid (9) (10) Foreign currency exchange rate change — 1 Benefit obligation at end of year $ 149 $ 171 Change in plan assets: Fair value of plan assets at beginning of year $ 11 $ 12 Actual return on plan assets — 1 Company contributions 7 8 Benefits paid (9) (10) Fair value of plan assets at end of year 9 11 Funded status of plan at end of year $ (140) $ (160) Amounts recognized in the consolidated balance sheet consist of: Accrued under-funded benefit plan liability $ (140) $ (160) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial gain $ (54) $ (41) Prior service benefit (14) (18) Total $ (68) $ (59) |
Summary of the components of net periodic benefit cost (benefit) and other amounts recognized in other comprehensive income (loss) related to the benefit plans [Table Text Block] | The following table summarizes the components of net periodic benefit cost (benefit) and other amounts recognized in other comprehensive income (loss) related to the benefit plans. Pension Plans Postretirement Benefit (for the year ended December 31, in millions) 2021 2020 2019 2021 2020 2019 Net Periodic Benefit Cost (Benefit): Service cost $ 141 $ 133 $ 118 $ — $ — $ — Non-service cost (benefit): Interest cost on benefit obligation 83 114 141 3 4 7 Expected return on plan assets (274) (275) (275) — — (1) Amortization of unrecognized: Prior service benefit (1) (1) (1) (4) (3) (3) Net actuarial (gain) loss 109 93 56 (2) (4) — Total non-service cost (benefit) (83) (69) (79) (3) (3) 3 Net periodic benefit cost (benefit) 58 64 39 (3) (3) 3 Other Changes in Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Prior service benefit — 1 — — — — Net actuarial (gain) loss (338) 61 49 (16) 4 (31) Foreign currency exchange rate change — 1 1 — — — Amortization of prior service benefit 1 1 1 4 3 3 Amortization of net actuarial gain (loss) (109) (93) (56) 2 4 — Total other changes recognized in other comprehensive income (446) (29) (5) (10) 11 (28) Total other changes recognized in net periodic benefit cost and other comprehensive income $ (388) $ 35 $ 34 $ (13) $ 8 $ (25) |
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 costs and non-service cost (benefit) are presented in the consolidated statement of income for the years ended December 31, 2021, 2020 and 2019. Pension Plans Postretirement Benefit (for the year ended December 31, in millions) 2021 2020 2019 2021 2020 2019 Service Cost: Net investment income $ 1 $ 1 $ 1 $ — $ — $ — Claims and claim adjustment expenses 57 55 48 — — — General and administrative expenses 83 77 69 — — — Total service cost 141 133 118 — — — Non-Service Cost (Benefit): Claims and claim adjustment expenses (34) (29) (33) (1) (1) 1 General and administrative expenses (49) (40) (46) (2) (2) 2 Total non-service cost (benefit) (83) (69) (79) (3) (3) 3 Net periodic benefit cost (benefit) $ 58 $ 64 $ 39 $ (3) $ (3) $ 3 |
Benefit obligations assumptions, net periodic benefit cost assumptions and health care cost trend rates [Table Text Block] | The following table summarizes assumptions used with regard to the Company’s qualified and nonqualified domestic pension plans and the domestic postretirement benefit plans. (at and for the year ended December 31,) 2021 2020 Assumptions used to determine benefit obligations Discount rate: Qualified domestic pension plan 2.96 % 2.60 % Nonqualified domestic pension plan 2.82 % 2.44 % Domestic postretirement benefit plan 2.62 % 2.27 % Cash balance interest crediting rate 4.01 % 4.01 % Future compensation increase rate 4.00 % 4.00 % Assumptions used to determine net periodic benefit cost Discount rate: Qualified domestic pension plan: Service cost 2.96 % 3.50 % Interest cost 1.88 % 2.84 % Nonqualified domestic pension plan: Service cost 2.58 % 3.30 % Interest cost 1.69 % 2.73 % Domestic postretirement benefit plan: Interest cost 1.57 % 2.67 % Expected long-term rate of return on assets: Pension plan 6.50 % 6.75 % Postretirement benefit plan 4.00 % 4.00 % Assumed health care cost trend rates Following year: Medical (before age 65) 6.50 % 6.75 % Medical (age 65 and older) 8.00 % 7.75 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate: Medical (before age 65) 2029 2026 Medical (age 65 and older) 2031 2027 |
Level within the fair value hierarchy at which the financial assets of the Company's pension plans are measured [Table Text Block] | The following tables present the level within the fair value hierarchy at which the financial assets of the Company’s pension plans are measured on a recurring basis. (at December 31, 2021, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities Obligations of states, municipalities and political subdivisions $ 26 $ — $ 26 $ — Debt securities issued by foreign governments 38 — 38 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 6 — 6 — All other corporate bonds 678 — 678 — Total fixed maturities 748 — 748 — Mutual funds Equity mutual funds 1,645 1,638 7 — Bond mutual funds 1,114 1,111 3 — Total mutual funds 2,759 2,749 10 — Equity securities 1,385 1,384 1 — Other investments 1 — — 1 Cash and short-term securities U.S. Treasury securities — — — — Other 143 106 37 — Total cash and short-term securities 143 106 37 — Total $ 5,036 $ 4,239 $ 796 $ 1 (at December 31, 2020, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities Obligations of states, municipalities and political subdivisions $ 27 $ — $ 27 $ — Debt securities issued by foreign governments 30 — 30 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 14 — 14 — All other corporate bonds 712 — 712 — Total fixed maturities 783 — 783 — Mutual funds Equity mutual funds 1,706 1,699 7 — Bond mutual funds 949 946 3 — Total mutual funds 2,655 2,645 10 — Equity securities 1,171 1,171 — — Other investments 1 — — 1 Cash and short-term securities U.S. Treasury securities — — — — Other 146 54 92 — Total cash and short-term securities 146 54 92 — Total $ 4,756 $ 3,870 $ 885 $ 1 |
Estimated future benefit payments [Table Text Block] | The following table presents the estimated benefits expected to be paid by the Company’s pension and postretirement benefit plans for the next ten years (reflecting estimated future employee service). Benefits Expected to be Paid (in millions) Pension Plans Postretirement Benefit Plans 2022 $ 270 $ 10 2023 273 11 2024 273 11 2025 272 11 2026 279 11 2027 through 2031 1,372 49 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Additional information regarding real estate operating leases [Table Text Block] | 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: (for the year ended December 31, in millions) 2021 2020 Lease cost Operating leases $ 89 $ 95 Short-term leases (1) 1 2 Lease expense 90 97 Less: sublease income (2) — — Net lease cost $ 90 $ 97 Other information on operating leases Cash payments to settle a lease liability reported in cash flows $ 104 $ 109 Right-of-use assets obtained in exchange for new lease liabilities $ 59 $ 67 Weighted average discount rate 2.25 % 2.51 % Weighted average remaining lease term 4.9 years 5.0 years _________________________________________________________ (1) Leases with a term of twelve months or less are not recorded on the consolidated balance sheet. |
Contractual maturities of lease liabilities [Table Text Block] | The following table presents the contractual maturities of the Company's lease liabilities: (in millions) Real Estate Lease Liability 2022 $ 93 2023 78 2024 63 2025 43 2026 37 Thereafter 43 Total undiscounted lease payments 357 Less: present value adjustment 26 Operating lease liability $ 331 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - Updated Guidance - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 |
New Accounting Pronouncements | ||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||
Decrease in shareholders' equity | $ (25,943) | $ (28,887) | $ (29,201) | |
Retained earnings [Member] | ||||
New Accounting Pronouncements | ||||
Decrease in shareholders' equity | (36,977) | $ (41,555) | $ (38,771) | $ (35,204) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained earnings [Member] | ||||
New Accounting Pronouncements | ||||
Decrease in shareholders' equity | $ 43 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Policy Details | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Maximum useful life for buildings held in real estate investments | 39 years |
Maximum original maturity of short-term securities | 1 year |
Availability of financial information provided by private equity and real estate partnerships following the date of the reporting, maximum | 3 months |
Availability of financial information provided by hedge funds following the date of the reporting | 1 month |
Estimated recovery time for securities for which the issuer is in bankruptcy | 12 months |
Estimated recovery time for securities for which the issuer is financially troubled but not in bankruptcy | 24 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Additional Details $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segmentbusinesses | Dec. 31, 2020USD ($) | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Minimum collateral provided by borrowers of securities, as a percentage of the market value of the loaned securities plus accrued interest | 102.00% | ||
Number of reporting units for which the Company performs a review of goodwill held | segment | 3 | ||
Number of operating segments | segment | 3 | ||
Number of reportable segments | segment | 3 | ||
Liability for guaranty fund and other insurance-related assessments | $ | $ 176 | $ 178 | |
Recoverables for liability for guaranty fund and other insurance-related assessments | $ | $ 8 | $ 10 | |
Minimum expected payment period for loss-based assessments and recoveries | 1 year | 1 year | |
Net written premiums for participating dividend policies as a percent of total Company net written premiums | 1.00% | 1.00% | 1.00% |
Liability accrued for policyholder dividends | $ | $ 69 | $ 69 | |
Percentage of capital provided by International for its syndicate at Lloyd's | 100.00% | ||
Number of principal business units through which the Company's syndicate at Lloyd's writes business | businesses | 6 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Equity Method Investment | Dec. 31, 2021 |
Junto - Brazilian joint venture [Member] | |
Equity method investment | |
Percent of common stock owned | 49.50% |
Junto Holding Latam S.A. [Member] | |
Equity method investment | |
Percent of common stock owned | 49.50% |
Segment Information (Details)
Segment Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment reporting information | |||
Number of reportable business segments | segment | 3 | ||
Premiums | $ 30,855 | $ 29,044 | $ 28,272 |
Net investment income | 3,033 | 2,227 | 2,468 |
Fee income | 402 | 429 | 459 |
Other revenues | 355 | 279 | 269 |
Income tax expense | 796 | 540 | 516 |
Net realized investment gains | 171 | 2 | 113 |
Total revenues | 34,816 | 31,981 | 31,581 |
Core income (loss) | 3,522 | 2,686 | 2,537 |
Net realized investment gains, net of tax | 132 | 11 | 85 |
Impact of changes in tax laws and/or tax rates | 8 | 0 | 0 |
Net income | 3,662 | 2,697 | 2,622 |
Domestic [Member] | |||
Segment reporting information | |||
Total revenues | 32,596 | 30,123 | 29,638 |
International [Member] | |||
Segment reporting information | |||
Total revenues | 2,220 | 1,858 | 1,943 |
Reportable segments [Member] | |||
Segment reporting information | |||
Premiums | 30,855 | 29,044 | 28,272 |
Net investment income | 3,033 | 2,227 | 2,468 |
Fee income | 402 | 429 | 459 |
Other revenues | 355 | 279 | 268 |
Total segment revenues | 34,645 | 31,979 | 31,467 |
Amortization and depreciation | 5,907 | 5,556 | 5,357 |
Income tax expense | 843 | 628 | 569 |
Core income (loss) | 3,813 | 2,977 | 2,834 |
Reportable segments [Member] | Business Insurance [Member] | |||
Segment reporting information | |||
Premiums | 15,734 | 15,294 | 15,300 |
Net investment income | 2,265 | 1,633 | 1,816 |
Fee income | 375 | 405 | 437 |
Other revenues | 235 | 176 | 155 |
Total segment revenues | 18,609 | 17,508 | 17,708 |
Amortization and depreciation | 3,180 | 3,069 | 3,037 |
Income tax expense | 499 | 213 | 223 |
Core income (loss) | 2,385 | 1,309 | 1,392 |
Reportable segments [Member] | Business Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Premiums | 14,665 | 14,233 | 14,233 |
Reportable segments [Member] | Business Insurance [Member] | Domestic [Member] | Workers' compensation [Member] | |||
Segment reporting information | |||
Premiums | 3,227 | 3,378 | 3,829 |
Reportable segments [Member] | Business Insurance [Member] | Domestic [Member] | Automobile [Member] | |||
Segment reporting information | |||
Premiums | 2,855 | 2,761 | 2,632 |
Reportable segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial property [Member] | |||
Segment reporting information | |||
Premiums | 2,275 | 2,087 | 1,937 |
Reportable segments [Member] | Business Insurance [Member] | Domestic [Member] | General liability [Member] | |||
Segment reporting information | |||
Premiums | 2,576 | 2,401 | 2,342 |
Reportable segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial multi-peril [Member] | |||
Segment reporting information | |||
Premiums | 3,667 | 3,552 | 3,453 |
Reportable segments [Member] | Business Insurance [Member] | Domestic [Member] | Other [Member] | |||
Segment reporting information | |||
Premiums | 65 | 54 | 40 |
Reportable segments [Member] | Business Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Premiums | 1,069 | 1,061 | 1,067 |
Reportable segments [Member] | Bond & Specialty Insurance [Member] | |||
Segment reporting information | |||
Premiums | 3,138 | 2,823 | 2,565 |
Net investment income | 247 | 213 | 233 |
Fee income | 0 | 0 | 0 |
Other revenues | 23 | 27 | 26 |
Total segment revenues | 3,408 | 3,063 | 2,824 |
Amortization and depreciation | 643 | 579 | 533 |
Income tax expense | 165 | 107 | 151 |
Core income (loss) | 668 | 473 | 618 |
Reportable segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Premiums | 2,726 | 2,531 | 2,334 |
Reportable segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | General liability [Member] | |||
Segment reporting information | |||
Premiums | 1,415 | 1,219 | 1,082 |
Reportable segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Fidelity and surety [Member] | |||
Segment reporting information | |||
Premiums | 1,091 | 1,075 | 1,036 |
Reportable segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Other [Member] | |||
Segment reporting information | |||
Premiums | 220 | 237 | 216 |
Reportable segments [Member] | Bond & Specialty Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Premiums | 412 | 292 | 231 |
Reportable segments [Member] | Personal Insurance [Member] | |||
Segment reporting information | |||
Premiums | 11,983 | 10,927 | 10,407 |
Net investment income | 521 | 381 | 419 |
Fee income | 27 | 24 | 22 |
Other revenues | 97 | 76 | 87 |
Total segment revenues | 12,628 | 11,408 | 10,935 |
Amortization and depreciation | 2,084 | 1,908 | 1,787 |
Income tax expense | 179 | 308 | 195 |
Core income (loss) | 760 | 1,195 | 824 |
Reportable segments [Member] | Personal Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Premiums | 11,295 | 10,268 | 9,704 |
Reportable segments [Member] | Personal Insurance [Member] | Domestic [Member] | Automobile [Member] | |||
Segment reporting information | |||
Premiums | 5,687 | 5,280 | 5,311 |
Reportable segments [Member] | Personal Insurance [Member] | Domestic [Member] | Homeowners and Other [Member] | |||
Segment reporting information | |||
Premiums | 5,608 | 4,988 | 4,393 |
Reportable segments [Member] | Personal Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Premiums | 688 | 659 | 703 |
Other [Member] | |||
Segment reporting information | |||
Other revenues | 0 | 0 | 1 |
Core income (loss) | (291) | (291) | (297) |
After-tax interest expense | $ 269 | $ 268 | $ 272 |
Segment Information (Details) -
Segment Information (Details) - Net Written Premiums - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment reporting information | |||
Net written premiums | $ 31,959 | $ 29,732 | $ 29,151 |
Business Insurance [Member] | |||
Segment reporting information | |||
Net written premiums | 16,092 | 15,431 | 15,629 |
Business Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Net written premiums | 15,018 | 14,414 | 14,557 |
Business Insurance [Member] | Domestic [Member] | Select Accounts [Member] | |||
Segment reporting information | |||
Net written premiums | 2,833 | 2,821 | 2,911 |
Business Insurance [Member] | Domestic [Member] | Middle Market [Member] | |||
Segment reporting information | |||
Net written premiums | 8,933 | 8,511 | 8,630 |
Business Insurance [Member] | Domestic [Member] | National Accounts [Member] | |||
Segment reporting information | |||
Net written premiums | 987 | 996 | 1,051 |
Business Insurance [Member] | Domestic [Member] | National Property and Other [Member] | |||
Segment reporting information | |||
Net written premiums | 2,265 | 2,086 | 1,965 |
Business Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Net written premiums | 1,074 | 1,017 | 1,072 |
Bond & Specialty Insurance [Member] | |||
Segment reporting information | |||
Net written premiums | 3,376 | 2,951 | 2,739 |
Bond & Specialty Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Net written premiums | 2,871 | 2,614 | 2,471 |
Bond & Specialty Insurance [Member] | Domestic [Member] | Management Liability [Member] | |||
Segment reporting information | |||
Net written premiums | 1,983 | 1,769 | 1,605 |
Bond & Specialty Insurance [Member] | Domestic [Member] | Surety [Member] | |||
Segment reporting information | |||
Net written premiums | 888 | 845 | 866 |
Bond & Specialty Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Net written premiums | 505 | 337 | 268 |
Personal Insurance [Member] | |||
Segment reporting information | |||
Net written premiums | 12,491 | 11,350 | 10,783 |
Personal Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Net written premiums | 11,807 | 10,698 | 10,076 |
Personal Insurance [Member] | Domestic [Member] | Automobile [Member] | |||
Segment reporting information | |||
Net written premiums | 5,827 | 5,369 | 5,412 |
Personal Insurance [Member] | Domestic [Member] | Homeowners and Other [Member] | |||
Segment reporting information | |||
Net written premiums | 5,980 | 5,329 | 4,664 |
Personal Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Net written premiums | $ 684 | $ 652 | $ 707 |
Segment Information (Details)_2
Segment Information (Details) - Assets by Segment - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets by segment | ||
Total assets | $ 120,466 | $ 116,764 |
Reportable segments [Member] | ||
Assets by segment | ||
Total assets | 119,482 | 116,170 |
Reportable segments [Member] | Business Insurance [Member] | ||
Assets by segment | ||
Total assets | 90,353 | 88,422 |
Reportable segments [Member] | Bond & Specialty Insurance [Member] | ||
Assets by segment | ||
Total assets | 10,146 | 9,420 |
Reportable segments [Member] | Personal Insurance [Member] | ||
Assets by segment | ||
Total assets | 18,983 | 18,328 |
Other assets [Member] | ||
Assets by segment | ||
Total assets | $ 984 | $ 594 |
Segment Information (Details)_3
Segment Information (Details) - Enterprise-Wide Disclosures - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues based on location | |||
Benchmark percentage of revenue transactions from a single customer | 10.00% | 10.00% | 10.00% |
Total revenues | $ 34,816 | $ 31,981 | $ 31,581 |
United States [Member] | |||
Revenues based on location | |||
Total revenues | 32,596 | 30,123 | 29,638 |
Non-U.S. [Member] | |||
Revenues based on location | |||
Total revenues | 2,220 | 1,858 | 1,943 |
Canada [Member] | |||
Revenues based on location | |||
Total revenues | 1,351 | 1,278 | 1,371 |
Other Non-U.S. [Member] | |||
Revenues based on location | |||
Total revenues | $ 869 | $ 580 | $ 572 |
Investments (Details) - Fixed M
Investments (Details) - Fixed Maturities - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investment disclosure details | |||
Fixed maturities, amortized cost | $ 74,751 | $ 68,830 | |
Allowance for expected credit losses | 3 | 2 | |
Gross unrealized gains | 3,356 | 5,186 | |
Gross unrealized losses | 294 | 11 | |
Fixed maturities, at fair value | 77,810 | 74,003 | |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 3,574 | 2,111 | |
Allowance for expected credit losses | 0 | 0 | |
Gross unrealized gains | 20 | 38 | |
Gross unrealized losses | 32 | 0 | |
Fixed maturities, at fair value | 3,562 | 2,149 | |
Obligations of states, municipalities and political subdivisions [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 34,925 | 33,763 | |
Allowance for expected credit losses | 0 | 0 | |
Gross unrealized gains | 2,012 | 2,599 | |
Gross unrealized losses | 75 | 2 | |
Fixed maturities, at fair value | 36,862 | 36,360 | |
Obligations of states, municipalities and political subdivisions, local general obligation [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 18,668 | 17,289 | |
Allowance for expected credit losses | 0 | 0 | |
Gross unrealized gains | 1,045 | 1,370 | |
Gross unrealized losses | 46 | 2 | |
Fixed maturities, at fair value | 19,667 | 18,657 | |
Obligations of states, municipalities and political subdivisions, revenue [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 11,274 | 11,806 | |
Allowance for expected credit losses | 0 | 0 | |
Gross unrealized gains | 693 | 909 | |
Gross unrealized losses | 27 | 0 | |
Fixed maturities, at fair value | 11,940 | 12,715 | |
Obligations of states, municipalities and political subdivisions, state general obligation [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 1,158 | 1,343 | |
Allowance for expected credit losses | 0 | 0 | |
Gross unrealized gains | 67 | 101 | |
Gross unrealized losses | 2 | 0 | |
Fixed maturities, at fair value | 1,223 | 1,444 | |
Obligations of states, municipalities and political subdivisions, pre-refunded [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 3,825 | 3,325 | |
Allowance for expected credit losses | 0 | 0 | |
Gross unrealized gains | 207 | 219 | |
Gross unrealized losses | 0 | 0 | |
Fixed maturities, at fair value | 4,032 | 3,544 | |
Debt securities issued by foreign governments [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 1,041 | 1,028 | |
Allowance for expected credit losses | 0 | 0 | |
Gross unrealized gains | 7 | 26 | |
Gross unrealized losses | 7 | 0 | |
Fixed maturities, at fair value | 1,041 | 1,054 | |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 1,754 | 2,222 | |
Allowance for expected credit losses | 0 | 0 | |
Gross unrealized gains | 68 | 139 | |
Gross unrealized losses | 5 | 0 | |
Fixed maturities, at fair value | 1,817 | 2,361 | |
All other corporate bonds [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 33,445 | 29,683 | |
Allowance for expected credit losses | 3 | 2 | $ 0 |
Gross unrealized gains | 1,247 | 2,382 | |
Gross unrealized losses | 175 | 9 | |
Fixed maturities, at fair value | 34,514 | 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) - Contrac
Investments (Details) - Contractual Maturities - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
Fixed maturities, due in one year or less, amortized cost | $ 4,592 | |
Fixed maturities, due after 1 year through 5 years, amortized cost | 18,081 | |
Fixed maturities, due after 5 years through 10 years, amortized cost | 25,645 | |
Fixed maturities, due after 10 years, amortized cost | 24,679 | |
Fixed maturities excluding mortgage-backed securities, collateralized mortgage obligations and pass-through securities, amortized cost | 72,997 | |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities, amortized cost | 1,754 | |
Fixed maturities, amortized cost | 74,751 | $ 68,830 |
Fixed maturities, due in one year or less, fair value | 4,635 | |
Fixed maturities, due after 1 year through 5 years, fair value | 18,833 | |
Fixed maturities, due after 5 years through 10 years, fair value | 26,401 | |
Fixed maturities, due after 10 years, fair value | 26,124 | |
Fixed maturities excluding mortgage-backed securities, collateralized mortgage obligations and pass-through securities, fair value | 75,993 | |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities, fair value | 1,817 | |
Fixed maturities, at fair value | $ 77,810 | $ 74,003 |
Investments (Details) - Fixed_2
Investments (Details) - Fixed Maturities Narrative - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment disclosure details | |||
Fixed maturities, at fair value | $ 77,810 | $ 74,003 | |
Securities on loan as part of a tri-party lending agreement | 253 | 139 | |
Proceeds from sales of fixed maturities classified as available for sale | 3,165 | 3,057 | $ 2,187 |
Gross realized gains on sales of fixed maturities | 74 | 70 | 67 |
Gross realized losses on sales of fixed maturities | 5 | 3 | $ 8 |
Insurance subsidiaries' securities on deposit at financial institutions in certain states pursuant to the respective states' insurance regulatory requirements | 4,320 | 4,450 | |
Fair value of funds deposited with third parties to be used as collateral to secure various liabilities on behalf of insureds, cedants and other creditors | 58 | 52 | |
Fair value of other investments pledged as collateral securing outstanding letters of credit | 1 | 1 | |
Subsidiary [Member] | |||
Investment disclosure details | |||
Fair value of owned securities pledged into a Lloyd's trust account to support capital requirements for the Company's operations at Lloyd's | 33 | 119 | |
TRV [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 95 | 94 | |
Fair value of owned securities pledged into a Lloyd's trust account to support capital requirements for the Company's operations at Lloyd's | 34 | 35 | |
Obligations of states, municipalities and political subdivisions, pre-refunded [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 4,032 | 3,544 | |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 1,817 | 2,361 | |
Residential mortgage-backed pass-through securities classified as available-for-sale, GNMA, FNMA, FHLMC and Canadian Government [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 846 | 1,240 | |
Residential collateralized mortgage obligations [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | $ 971 | $ 1,120 | |
Percent guaranteed by or fully collateralized by securities issued by GNMA, FNMA or FHLMC | 47.00% | 65.00% | |
Non-guaranteed residential collateralized mortgage obligations [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | $ 511 | $ 396 | |
Commercial mortgage-backed securities [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 1,300 | 1,420 | |
Commercial mortgage-backed securities, containing guarantees by the U.S. government or a government-sponsored enterprise [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 207 | 392 | |
Commercial mortgage-backed securities, non-guaranteed securities [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | $ 1,090 | $ 1,030 |
Investments (Details) - Equity
Investments (Details) - Equity Securities - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investment disclosure details | ||
Equity securities, cost | $ 749 | $ 415 |
Gross gains | 148 | 81 |
Gross losses | 4 | 12 |
Equity securities, at fair value | 893 | 484 |
Net recognized gains on equity securities still held | 78 | 27 |
Common stock [Member] | ||
Investment disclosure details | ||
Equity securities, cost | 694 | 356 |
Gross gains | 137 | 72 |
Gross losses | 4 | 12 |
Equity securities, at fair value | 827 | 416 |
Non-redeemable preferred stock [Member] | ||
Investment disclosure details | ||
Equity securities, cost | 55 | 59 |
Gross gains | 11 | 9 |
Gross losses | 0 | 0 |
Equity securities, at fair value | $ 66 | $ 68 |
Investments (Details) - Additio
Investments (Details) - Additional Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments [Abstract] | |||
Proceeds from sales of real estate investments | $ 31 | $ 0 | $ 0 |
Gains realized on sales of real estate investments | 8 | ||
Accumulated depreciation on real estate held for investment purposes | 497 | 462 | |
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2022 | 117 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2023 | 93 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2024 | 75 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2025 | 51 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2026 | 36 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2027 and thereafter | $ 67 | ||
Combined average days to maturity of short-term securities (in days) | 29 days | ||
Amortized cost of short-term securities (which approximates fair value) | $ 3,836 | $ 5,511 | |
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 | ||
Minimum percentage of equity interest that must be held by the Company in order for the investment in a VIE to be considered significant | 20.00% |
Investments (Details) - Unreali
Investments (Details) - Unrealized Losses - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | $ 14,495 | $ 1,045 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 266 | 8 |
Continuous unrealized loss position, 12 months or longer, fair value | 602 | 98 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 28 | 3 |
Continuous unrealized loss position, total, fair value | 15,097 | 1,143 |
Continuous unrealized loss position, total, gross unrealized losses | 294 | 11 |
Unrealized investment losses on fixed maturity investments for which fair value is less than 80% of amortized cost, total | 0 | |
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 | 2,438 | 92 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 32 | 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 | 2,443 | 92 |
Continuous unrealized loss position, total, gross unrealized losses | 32 | 0 |
Obligations of states, municipalities and political subdivisions [Member] | ||
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | 3,873 | 245 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 69 | 2 |
Continuous unrealized loss position, 12 months or longer, fair value | 153 | 0 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 6 | 0 |
Continuous unrealized loss position, total, fair value | 4,026 | 245 |
Continuous unrealized loss position, total, gross unrealized losses | 75 | 2 |
Debt securities issued by foreign governments [Member] | ||
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | 452 | 7 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 7 | 0 |
Continuous unrealized loss position, 12 months or longer, fair value | 7 | 0 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 0 | 0 |
Continuous unrealized loss position, total, fair value | 459 | 7 |
Continuous unrealized loss position, total, gross unrealized losses | 7 | 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 | 426 | 20 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 5 | 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 | 427 | 21 |
Continuous unrealized loss position, total, gross unrealized losses | 5 | 0 |
All other corporate bonds [Member] | ||
Investment disclosure details | ||
Continuous unrealized loss position, less than 12 months, fair value | 7,306 | 681 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 153 | 6 |
Continuous unrealized loss position, 12 months or longer, fair value | 436 | 97 |
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 22 | 3 |
Continuous unrealized loss position, total, fair value | 7,742 | 778 |
Continuous unrealized loss position, total, gross unrealized losses | $ 175 | $ 9 |
Investments (Details) - Impairm
Investments (Details) - Impairment Charges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Information | |||
Fixed maturities credit impairment charges | $ 2 | $ 15 | $ 4 |
Other investments credit impairment charges | 0 | 40 | 0 |
Total investments credit impairment charges | 2 | 55 | 4 |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | |||
Investment Information | |||
Fixed maturities credit impairment charges | 0 | 0 | 0 |
Obligations of states, municipalities and political subdivisions [Member] | |||
Investment Information | |||
Fixed maturities credit impairment charges | 0 | 0 | 0 |
Debt securities issued by foreign governments [Member] | |||
Investment Information | |||
Fixed maturities credit impairment charges | 0 | 0 | 0 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||
Investment Information | |||
Fixed maturities credit impairment charges | 0 | 0 | 0 |
All other corporate bonds [Member] | |||
Investment Information | |||
Fixed maturities credit impairment charges | 2 | 15 | 4 |
Redeemable preferred stock [Member] | |||
Investment Information | |||
Fixed maturities credit impairment charges | $ 0 | $ 0 | $ 0 |
Investments (Details) - Allowan
Investments (Details) - Allowance for Expected Credit Losses - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 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 | 3 | $ 2 |
Credit impairment charges recognized in net realized investment gains on securities which the Company intends to sell and for which an allowance for credit loss was not previously recorded | $ 0 | $ 13 |
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% |
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% |
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 | $ 0 |
Additions for expected credit losses on securities where no credit losses were previously recognized | 1 | 10 |
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized | 1 | (6) |
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 | 0 | 0 |
Allowance for expected credit losses on fixed maturities classified as available-for-sale, balance, end of period | $ 3 | $ 2 |
Investments (Details) - Concent
Investments (Details) - Concentrations and Credit Quality - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investment disclosure details | ||
Fixed maturities, at fair value | $ 77,810 | $ 74,003 |
Below investment grade [Member] | ||
Investment disclosure details | ||
Fixed maturities, at fair value | 1,110 | 1,340 |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Investment disclosure details | ||
Fixed maturities, at fair value | $ 3,562 | $ 2,149 |
Credit Concentration Risk [Member] | Shareholders' equity, total [Member] | U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | Minimum [Member] | ||
Investment disclosure details | ||
Concentration risk as a percentage of shareholders' equity | 5.00% | 5.00% |
Investments (Details) - Net Inv
Investments (Details) - Net Investment Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net investment income | |||
Gross investment income | $ 3,073 | $ 2,264 | $ 2,508 |
Investment expenses | 40 | 37 | 40 |
Net investment income | 3,033 | 2,227 | 2,468 |
Fixed maturities [Member] | |||
Net investment income | |||
Gross investment income | 1,989 | 2,011 | 2,070 |
Equity securities [Member] | |||
Net investment income | |||
Gross investment income | 19 | 15 | 15 |
Short-term securities [Member] | |||
Net investment income | |||
Gross investment income | 7 | 44 | 105 |
Real estate [Member] | |||
Net investment income | |||
Gross investment income | 59 | 48 | 55 |
Other investments [Member] | |||
Net investment income | |||
Gross investment income | $ 999 | $ 146 | $ 263 |
Investments (Details) - Net Unr
Investments (Details) - Net Unrealized Investment Gains - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in net unrealized investment gains (losses) [Roll Forward] | |||
Changes in net unrealized investment gains (losses) | $ (1,671) | $ 2,352 | $ 3,140 |
Income tax expense (benefit) | (362) | 490 | 641 |
Change in net unrealized gains (losses) on investment securities, net of tax | (1,309) | 1,862 | 2,499 |
Balance, beginning of year | 2,502 | ||
Balance, end of year | 1,193 | 2,502 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in net unrealized investment gains (losses) [Roll Forward] | |||
Changes in net unrealized investment gains (losses) | (1,671) | 2,352 | 3,140 |
Income tax expense (benefit) | (362) | 490 | 641 |
Change in net unrealized gains (losses) on investment securities, net of tax | (1,309) | 1,862 | 2,499 |
Changes in Net Unrealized Gains (Losses) on Investment Securities [Member] | |||
Changes in net unrealized investment gains (losses) [Roll Forward] | |||
Changes in net unrealized investment gains (losses) | (2,115) | 2,322 | 2,990 |
Income tax expense (benefit) | (456) | 494 | 631 |
Change in net unrealized gains (losses) on investment securities, net of tax | (1,659) | 1,828 | 2,359 |
Balance, beginning of year | 4,074 | 2,246 | (113) |
Balance, end of year | 2,415 | 4,074 | 2,246 |
Changes in Net Unrealized Gains (Losses) on Investment Securities [Member] | Fixed maturities [Member] | |||
Changes in net unrealized investment gains (losses) [Roll Forward] | |||
Changes in net unrealized investment gains (losses) | (2,113) | 2,322 | 2,990 |
Changes in Net Unrealized Gains (Losses) on Investment Securities [Member] | Other investments [Member] | |||
Changes in net unrealized investment gains (losses) [Roll Forward] | |||
Changes in net unrealized investment gains (losses) | $ (2) | $ 0 | $ 0 |
Investments (Details) - Derivat
Investments (Details) - Derivatives - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Futures [Member] | U.S. Treasury notes contracts [Member] | ||
Derivatives | ||
Notional value of open contracts | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Additional Information | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Percent of fixed maturities for which a pricing service estimates fair value | 99.00% | 99.00% |
Percent change in monthly price at which securities are further evaluated | 10.00% |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Fair Value Hierarchy - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured | ||
Estimated fair value of put/call option reported in other liabilities | $ 3 | $ 5 |
Recurring basis [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 | 78,726 | 74,508 |
Other liabilities measured on a recurring basis | 3 | 5 |
Recurring basis [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 | 77,810 | 74,003 |
Recurring basis [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 | 3,562 | 2,149 |
Recurring basis [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 | 36,862 | 36,360 |
Recurring basis [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 | 1,041 | 1,054 |
Recurring basis [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 | 1,817 | 2,361 |
Recurring basis [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 | 34,514 | 32,054 |
Recurring basis [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 | 25 |
Recurring basis [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 | 893 | 484 |
Recurring basis [Member] | 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 | 827 | 416 |
Recurring basis [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 | 66 | 68 |
Recurring basis [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 | 23 | 21 |
Recurring basis [Member] | 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 | 4,110 | 2,597 |
Other liabilities measured on a recurring basis | 0 | 0 |
Recurring basis [Member] | 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 | 3,562 | 2,152 |
Recurring basis [Member] | 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 | 3,562 | 2,149 |
Recurring basis [Member] | 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 | 0 | 0 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 | 0 | 0 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 | 530 | 428 |
Recurring basis [Member] | Level 1 [Member] | 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 | 509 | 410 |
Recurring basis [Member] | 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 | 21 | 18 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | Level 1 [Member] | Investments in various publicly-traded securities, including mutual funds and other small holdings [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 |
Recurring basis [Member] | 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 | 74,020 | 71,710 |
Other liabilities measured on a recurring basis | 0 | 0 |
Recurring basis [Member] | 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 | 74,000 | 71,685 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 | 36,858 | 36,349 |
Recurring basis [Member] | 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 | 1,041 | 1,054 |
Recurring basis [Member] | 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 | 1,762 | 2,361 |
Recurring basis [Member] | 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 | 34,325 | 31,899 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 | 20 | 25 |
Recurring basis [Member] | Level 2 [Member] | 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 |
Recurring basis [Member] | 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 | 20 | 25 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 | 596 | 201 |
Other liabilities measured on a recurring basis | 3 | 5 |
Estimated fair value of put/call option reported in other liabilities | 3 | 5 |
Recurring basis [Member] | 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 | 248 | 166 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 | 55 | 0 |
Recurring basis [Member] | 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 | 189 | 155 |
Recurring basis [Member] | 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 |
Recurring basis [Member] | 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 | 343 | 31 |
Recurring basis [Member] | Level 3 [Member] | 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 | 318 | 6 |
Recurring basis [Member] | 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 | 25 | 25 |
Recurring basis [Member] | 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 | 31 |
Recurring basis [Member] | 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 | $ 5 | $ 4 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Changes in Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in Level 3 fair value category [Roll Forward] | ||
Level 3 fair value category, beginning balance | $ 201 | $ 121 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains | 5 | (1) |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases in other comprehensive income (loss) | (3) | 2 |
Level 3 fair value category purchases | 534 | 95 |
Level 3 fair value category sales | 0 | (1) |
Level 3 fair value category settlements/maturities | (48) | (15) |
Gross transfers into Level 3 | 0 | 3 |
Gross transfers out of Level 3 | (93) | (3) |
Level 3 fair value category, ending balance | 596 | 201 |
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | 6 | 0 |
Fixed maturities [Member] | ||
Changes in Level 3 fair value category [Roll Forward] | ||
Level 3 fair value category, beginning balance | 166 | 101 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains | (1) | (1) |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases in other comprehensive income (loss) | (3) | 2 |
Level 3 fair value category purchases | 227 | 79 |
Level 3 fair value category sales | 0 | 0 |
Level 3 fair value category settlements/maturities | (48) | (15) |
Gross transfers into Level 3 | 0 | 3 |
Gross transfers out of Level 3 | (93) | (3) |
Level 3 fair value category, ending balance | 248 | 166 |
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | 0 | 0 |
Equity securities [Member] | ||
Changes in Level 3 fair value category [Roll Forward] | ||
Level 3 fair value category, beginning balance | 31 | 13 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains | 5 | 2 |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases in other comprehensive income (loss) | 0 | 0 |
Level 3 fair value category purchases | 307 | 16 |
Level 3 fair value category sales | 0 | 0 |
Level 3 fair value category settlements/maturities | 0 | 0 |
Gross transfers into Level 3 | 0 | 0 |
Gross transfers out of Level 3 | 0 | 0 |
Level 3 fair value category, ending balance | 343 | 31 |
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | 5 | 2 |
Other investments [Member] | ||
Changes in Level 3 fair value category [Roll Forward] | ||
Level 3 fair value category, beginning balance | 4 | 7 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains | 1 | (2) |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases in other comprehensive income (loss) | 0 | 0 |
Level 3 fair value category purchases | 0 | 0 |
Level 3 fair value category sales | 0 | (1) |
Level 3 fair value category settlements/maturities | 0 | 0 |
Gross transfers into Level 3 | 0 | 0 |
Gross transfers out of Level 3 | 0 | 0 |
Level 3 fair value category, ending balance | 5 | 4 |
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | $ 1 | $ (2) |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details) - Financial Instruments - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments | ||
Short-term securities | $ 3,836 | $ 5,511 |
Commercial paper | 100 | 100 |
Carrying Value [Member] | ||
Financial Instruments | ||
Short-term securities | 3,836 | 5,511 |
Debt | 7,190 | 6,450 |
Commercial paper | 100 | 100 |
Fair Value [Member] | ||
Financial Instruments | ||
Short-term securities | 3,836 | 5,511 |
Debt | 9,085 | 8,976 |
Commercial paper | 100 | 100 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Instruments | ||
Short-term securities | 1,163 | 630 |
Debt | 0 | 0 |
Commercial paper | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Instruments | ||
Short-term securities | 2,615 | 4,829 |
Debt | 9,085 | 8,976 |
Commercial paper | 100 | 100 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Instruments | ||
Short-term securities | 58 | 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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | ||
Premiums receivable (net of allowance for expected credit losses), balance, beginning of period | $ 7,829 | $ 7,909 |
Premiums receivable (net of allowance for expected credit losses), balance, end of period | 8,085 | 7,829 |
Premiums receivable, allowance for expected credit losses [Roll Forward] | ||
Premiums receivable, allowance for expected credit losses, beginning balance | 105 | 49 |
Current period change for expected credit losses | 65 | 103 |
Write-offs of uncollectible premiums receivable | 63 | 47 |
Premiums receivable, allowance for expected credit losses, ending balance | $ 107 | $ 105 |
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 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 |
Reinsurance recoverables, allowance for uncollectible reinsurance | ||||
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance), balance, beginning of period | $ 8,350 | $ 8,235 | ||
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance), balance, end of period | $ 8,235 | 8,452 | 8,350 | |
Reinsurance recoverables, allowance for uncollectible reinsurance [Roll Forward] | ||||
Reinsurance recoverables, allowance for uncollectible reinsurance, beginning balance | 146 | 92 | ||
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | $ 92 | 141 | 146 | |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||
Current period change for estimated uncollectible reinsurance | (5) | 1 | ||
Write-offs of uncollectible reinsurance recoverables | 0 | 0 | ||
Reinsurance recoverables, allowance for uncollectible reinsurance, ending balance | $ 92 | $ 141 | 146 | |
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 | $ 53 | ||
Reinsurance recoverables, allowance for uncollectible reinsurance, ending balance | $ 53 |
Allowance for Expected Credit_5
Allowance for Expected Credit Losses (Details) - Narrative - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reinsurance recoverables, credit quality indicator | ||
Reinsurance recoverables, after deducting mandatory pools and associations and before allowances for expected credit losses | $ 8,593 | $ 8,496 |
Reinsurer Concentration Risk [Member] | 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 | $ 5,930 | |
Concentration risk percentage | 87.00% | |
Reinsurer Concentration Risk [Member] | Reinsurance Recoverables [Member] | Reinsurer Group Not Rated by A.M. Best [Member] | ||
Reinsurance recoverables, credit quality indicator | ||
Concentration risk percentage | 13.00% | |
Reinsurer Concentration Risk [Member] | Reinsurance Recoverables [Member] | Captive Insurance Companies [Member] | ||
Reinsurance recoverables, credit quality indicator | ||
Concentration risk percentage | 6.00% | |
Reinsurer Concentration Risk [Member] | Reinsurance Recoverables [Member] | Voluntary Pools [Member] | ||
Reinsurance recoverables, credit quality indicator | ||
Concentration risk percentage | 1.00% | |
Reinsurer Concentration Risk [Member] | Reinsurance Recoverables [Member] | Other Companies [Member] | ||
Reinsurance recoverables, credit quality indicator | ||
Concentration risk percentage | 6.00% | |
Reinsurer Concentration Risk [Member] | 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 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | ||
Contractholder receivables (net of the allowance for expected credit losses), balance, beginning of period | $ 4,242 | $ 4,599 |
Contractholder receivables (net of the allowance for expected credit losses), balance, end of period | 3,890 | 4,242 |
Contractholder receivables, allowance for expected credit losses [Roll Forward] | ||
Contractholder receivables, allowance for expected credit losses, beginning balance | 19 | 20 |
Current period change for expected credit losses | 2 | 1 |
Write-offs of uncollectible contractholder receivables | 0 | 2 |
Contractholder receivables, allowance for expected credit losses, ending balance | $ 21 | $ 19 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |||
Percentage of residual market business written directly by the Company for mandatory pools and associations and then ceded to the mandatory pool | 100.00% | ||
Written premiums, direct | $ 33,180 | $ 30,762 | $ 30,022 |
Written premiums, assumed | 1,064 | 1,001 | 1,041 |
Written premiums, ceded | (2,285) | (2,031) | (1,912) |
Total net written premiums | 31,959 | 29,732 | 29,151 |
Earned premiums, direct | 31,977 | 29,978 | 28,994 |
Earned premiums, assumed | 1,032 | 1,010 | 1,076 |
Earned premiums, ceded | (2,154) | (1,944) | (1,798) |
Total net earned premiums | $ 30,855 | $ 29,044 | $ 28,272 |
Percentage of assumed earned premiums to net earned premiums | 3.30% | 3.50% | 3.80% |
Ceded claims and claim adjustment expenses incurred | $ 1,184 | $ 1,030 | $ 1,089 |
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses excluding structured settlements and mandatory pools and associations | 3,931 | 3,731 | |
Gross structured settlements | 2,900 | 2,964 | |
Mandatory pools and associations | 1,762 | 1,801 | |
Gross reinsurance recoverables | 8,593 | 8,496 | |
Allowance for uncollectible reinsurance | (141) | (146) | (92) |
Net reinsurance recoverables | 8,452 | $ 8,350 | $ 8,235 |
Terrorism Risk Insurance Program, annual aggregate industry loss minimum in order for a loss to be covered | $ 200 | ||
Terrorism Risk Insurance Program, percentage of subject losses reimbursed by the Federal Government, after insurer deductible, subject to annual cap | 80.00% | ||
Terrorism Risk Insurance Program, percentage of insurer's direct earned premiums for covered lines for the preceding calendar year at which the deductible is set | 20.00% | ||
Terrorism Risk Insurance Program, Company's estimated deductible for the next fiscal year | $ 2,710 | ||
Terrorism Risk Insurance Program, annual cap limiting amount of aggregate subject losses for all participating insurers | 100,000 | ||
Terrorism Risk Insurance Program, terrorism-related losses triggering program coverage since program was established | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - Goodwill - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill by segment | ||
Goodwill | $ 4,008 | $ 3,976 |
Reportable segments [Member] | Business Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 2,610 | 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 | 822 | 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other intangible assets by major asset class | |||
Intangible assets subject to amortization, gross carrying amount | $ 309 | $ 306 | |
Intangible assets subject to amortization, accumulated amortization | 229 | 215 | |
Intangible assets subject to amortization, net | 80 | 91 | |
Intangible assets not subject to amortization | 226 | 226 | |
Total other intangible assets, gross carrying amount | 535 | 532 | |
Total other intangible assets, net | 306 | 317 | |
Amortization expense of intangible assets | 14 | 14 | $ 15 |
Estimated intangible asset amortization expense, 2022 | 14 | ||
Estimated intangible asset amortization expense, 2023 | 13 | ||
Estimated intangible asset amortization expense, 2024 | 12 | ||
Estimated intangible asset amortization expense, 2025 | 12 | ||
Estimated intangible asset amortization expense, 2026 | 11 | ||
Customer-related [Member] | |||
Other intangible assets by major asset class | |||
Intangible assets subject to amortization, gross carrying amount | 104 | 101 | |
Intangible assets subject to amortization, accumulated amortization | 41 | 31 | |
Intangible assets subject to amortization, net | 63 | 70 | |
Contract-based [Member] | |||
Other intangible assets by major asset class | |||
Intangible assets subject to amortization, gross carrying amount | 205 | 205 | |
Intangible assets subject to amortization, accumulated amortization | 188 | 184 | |
Intangible assets subject to amortization, net | 17 | $ 21 | |
Insurance Contracts Acquired in Business Combination [Member] | |||
Other intangible assets by major asset class | |||
Estimated intangible asset amortization expense, 2022 | 3 | ||
Estimated intangible asset amortization expense, 2023 | 3 | ||
Estimated intangible asset amortization expense, 2024 | 2 | ||
Estimated intangible asset amortization expense, 2025 | 2 | ||
Estimated intangible asset amortization expense, 2026 | $ 1 |
Insurance Claim Reserves (Detai
Insurance Claim Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 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 | 141 | $ 146 | $ 92 | |
Net reserves at end of year | 48,688 | ||||
Reinsurance recoverables on unpaid losses | 8,219 | ||||
Claims and claim adjustment expense reserves at end of year | 56,907 | 54,521 | |||
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 | 53 | $ 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 | 50,653 | ||
Reinsurance recoverables on unpaid losses | 8,153 | 8,035 | 8,182 | ||
Net reserves at beginning of year | 46,357 | 43,801 | 42,471 | ||
Estimated claims and claim adjustment expenses for claims arising in the current year | 20,698 | 19,285 | 18,854 | ||
Estimated increase (decrease) in claims and claim adjustment expenses for claims arising in prior years | (484) | (267) | 164 | ||
Total increases | 20,214 | 19,018 | 19,018 | ||
Claims and claim adjustment expense payments for claims arising in current year | 8,401 | 7,497 | 7,734 | ||
Claims and claim adjustment expense payments for claims arising in prior years | 9,470 | 9,092 | 10,060 | ||
Total payments | 17,871 | 16,589 | 17,794 | ||
Unrealized foreign exchange loss (gain) | (12) | 74 | 106 | ||
Net reserves at end of year | 43,801 | 48,688 | 46,357 | 43,801 | |
Reinsurance recoverables on unpaid losses | 8,035 | 8,209 | 8,153 | 8,035 | |
Claims and claim adjustment expense reserves at end of year | 51,836 | 56,897 | 54,510 | 51,836 | |
Amount of increase in gross claims and claim adjustment expense reserves | 2,390 | 2,670 | |||
Amount of increase in reinsurance recoverables on unpaid losses | 56 | 118 | |||
Subrogation benefit recognized in earnings | 403 | ||||
Reserves for long-term disability and annuity claim payments primarily arising from workers' compensation insurance and workers' compensation excess insurance policies, net of discount | 2,740 | 2,690 | |||
Discount included in reserves for long-term disability and annuity claim payments primarily arising from workers' compensation insurance and workers' compensation excess insurance policies | 1,150 | 1,140 | |||
Accretion expense | $ 48 | 49 | 49 | ||
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 | 53 | |||
Property-casualty [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | |||||
Net reserves at beginning of year | $ 43,854 | ||||
Net reserves at end of year | $ 43,854 | $ 43,854 | |||
Property-casualty [Member] | Minimum [Member] | |||||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | |||||
Reserves for long-term disability and annuity claim payments primarily arising from workers' compensation insurance and workers' compensation excess insurance policies, discount rate (percent) | 3.50% | 3.50% | |||
Property-casualty [Member] | Maximum [Member] | |||||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | |||||
Reserves for long-term disability and annuity claim payments primarily arising from workers' compensation insurance and workers' compensation excess insurance policies, discount rate (percent) | 5.00% | 5.00% | |||
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 | ||||
Net reserves at end of year | 0 | ||||
Reinsurance recoverables on unpaid losses | 10 | ||||
Claims and claim adjustment expense reserves at end of year | $ 10 | $ 11 |
Insurance Claim Reserves (Det_2
Insurance Claim Reserves (Details) - Prior Year Reserve Development - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asbestos reserves [Member] | |||
Liability for claims and claim adjustment expense | |||
Increase to reserves | $ 225 | $ 295 | $ 220 |
Environmental reserves [Member] | |||
Liability for claims and claim adjustment expense | |||
Increase to reserves | 89 | 54 | 76 |
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 | 484 | 267 | (164) |
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | 538 | 351 | (60) |
Accretion expense | 48 | 49 | 49 |
Subrogation recoveries | 403 | ||
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 | 173 | (91) | (258) |
Subrogation recoveries | 81 | ||
Property-casualty [Member] | Business Insurance [Member] | Asbestos reserves [Member] | |||
Liability for claims and claim adjustment expense | |||
Increase to reserves | 225 | 295 | 220 |
Property-casualty [Member] | Business Insurance [Member] | Environmental reserves [Member] | |||
Liability for claims and claim adjustment expense | |||
Increase to reserves | 76 | ||
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 | 105 | (1) | 65 |
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 | $ 260 | 443 | $ 133 |
Subrogation recoveries | $ 322 |
Insurance Claim Reserves (Det_3
Insurance Claim Reserves (Details) - Claims and Claim Adjustment Expenses Reserves Summary - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | $ 49,779 | |||
Discount (Net of Reinsurance) | (1,091) | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 48,688 | |||
Reinsurance Recoverables on Unpaid Losses | 8,219 | |||
Claims and Claim Adjustment Expense Reserves | 56,907 | $ 54,521 | ||
Discount on reinsurance recoverables for long-term disability and annuity claim payments included in discount (net of reinsurance) | 55 | |||
Reinsurance recoverables | 8,452 | 8,350 | $ 8,235 | |
Property-casualty [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 49,779 | |||
Discount (Net of Reinsurance) | (1,091) | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 48,688 | 46,357 | 43,801 | $ 42,471 |
Reinsurance Recoverables on Unpaid Losses | 8,209 | 8,153 | 8,035 | 8,182 |
Claims and Claim Adjustment Expense Reserves | 56,897 | 54,510 | $ 51,836 | $ 50,653 |
Accident and health [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 0 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 0 | |||
Reinsurance Recoverables on Unpaid Losses | 10 | |||
Claims and Claim Adjustment Expense Reserves | 10 | $ 11 | ||
Business Insurance [Member] | General liability [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 8,893 | |||
Business Insurance [Member] | Commercial property [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 997 | |||
Business Insurance [Member] | Commercial multi-peril [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 4,427 | |||
Business Insurance [Member] | Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 3,740 | |||
Business Insurance [Member] | Workers' compensation [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 16,623 | |||
Bond & Specialty Insurance [Member] | General liability [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,297 | |||
Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 527 | |||
Personal Insurance [Member] | Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 3,155 | |||
Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 1,661 | |||
Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 745 | |||
Reportable segments [Member] | Property-casualty [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 43,065 | |||
Discount (Net of Reinsurance) | (1,087) | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 41,978 | |||
Reinsurance Recoverables on Unpaid Losses | 3,536 | |||
Claims and Claim Adjustment Expense Reserves | 45,514 | |||
Reportable segments [Member] | Business Insurance [Member] | General liability [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 8,893 | |||
Discount (Net of Reinsurance) | (139) | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 8,754 | |||
Reinsurance Recoverables on Unpaid Losses | 978 | |||
Claims and Claim Adjustment Expense Reserves | 9,732 | |||
Reportable segments [Member] | Business Insurance [Member] | Commercial property [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 997 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 997 | |||
Reinsurance Recoverables on Unpaid Losses | 513 | |||
Claims and Claim Adjustment Expense Reserves | 1,510 | |||
Reportable segments [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 4,427 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 4,427 | |||
Reinsurance Recoverables on Unpaid Losses | 225 | |||
Claims and Claim Adjustment Expense Reserves | 4,652 | |||
Reportable segments [Member] | Business Insurance [Member] | Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 3,740 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 3,740 | |||
Reinsurance Recoverables on Unpaid Losses | 303 | |||
Claims and Claim Adjustment Expense Reserves | 4,043 | |||
Reportable segments [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 16,623 | |||
Discount (Net of Reinsurance) | (948) | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 15,675 | |||
Reinsurance Recoverables on Unpaid Losses | 665 | |||
Claims and Claim Adjustment Expense Reserves | 16,340 | |||
Reportable segments [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,297 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 2,297 | |||
Reinsurance Recoverables on Unpaid Losses | 173 | |||
Claims and Claim Adjustment Expense Reserves | 2,470 | |||
Reportable segments [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 527 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 527 | |||
Reinsurance Recoverables on Unpaid Losses | 6 | |||
Claims and Claim Adjustment Expense Reserves | 533 | |||
Reportable segments [Member] | Personal Insurance [Member] | Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 3,155 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 3,155 | |||
Reinsurance Recoverables on Unpaid Losses | 442 | |||
Claims and Claim Adjustment Expense Reserves | 3,597 | |||
Reportable segments [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 1,661 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 1,661 | |||
Reinsurance Recoverables on Unpaid Losses | 210 | |||
Claims and Claim Adjustment Expense Reserves | 1,871 | |||
Reportable segments [Member] | Personal Insurance [Member] | International - Canada [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 745 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 745 | |||
Reinsurance Recoverables on Unpaid Losses | 21 | |||
Claims and Claim Adjustment Expense Reserves | 766 | |||
Reconciling Items [Member] | Other insurance contracts [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 4,231 | |||
Discount (Net of Reinsurance) | (4) | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 4,227 | |||
Reinsurance Recoverables on Unpaid Losses | 1,825 | |||
Claims and Claim Adjustment Expense Reserves | 6,052 | |||
Reconciling Items [Member] | Unallocated loss adjustment expense reserves [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,383 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 2,383 | |||
Reinsurance Recoverables on Unpaid Losses | 15 | |||
Claims and Claim Adjustment Expense Reserves | 2,398 | |||
Reconciling Items [Member] | Structured settlements [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 0 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 0 | |||
Reinsurance Recoverables on Unpaid Losses | 2,856 | |||
Claims and Claim Adjustment Expense Reserves | 2,856 | |||
Reconciling Items [Member] | Other [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 100 | |||
Discount (Net of Reinsurance) | 0 | |||
Subtotal: Net Claims and Claim Adjustment Expense Reserves | 100 | |||
Reinsurance Recoverables on Unpaid Losses | (23) | |||
Claims and Claim Adjustment Expense Reserves | $ 77 |
Insurance Claim Reserves (Det_4
Insurance Claim Reserves (Details) - Claim Development $ in Millions | Dec. 31, 2021USD ($)claims | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development | ||||||||||
Total net liability (Audited) | $ 49,779 | |||||||||
Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Total net liability (Audited) | 49,779 | |||||||||
Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 12,323 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 6,481 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 5,842 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 3,051 | |||||||||
Total net liability (Audited) | 8,893 | |||||||||
Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 5,477 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 4,611 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 866 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 131 | |||||||||
Total net liability (Audited) | 997 | |||||||||
Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 18,678 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 14,538 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 4,140 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 287 | |||||||||
Total net liability (Audited) | 4,427 | |||||||||
Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 8,688 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 5,183 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 3,505 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 235 | |||||||||
Total net liability (Audited) | 3,740 | |||||||||
Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 24,062 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 13,345 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 10,717 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 5,906 | |||||||||
Total net liability (Audited) | 16,623 | |||||||||
Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 5,890 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 3,626 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 2,264 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 33 | |||||||||
Total net liability (Audited) | 2,297 | |||||||||
Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,133 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 667 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 466 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 61 | |||||||||
Total net liability (Audited) | 527 | |||||||||
Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 16,232 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 13,307 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 2,925 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 230 | |||||||||
Total net liability (Audited) | 3,155 | |||||||||
Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 13,258 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 11,618 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 1,640 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 21 | |||||||||
Total net liability (Audited) | 1,661 | |||||||||
Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 4,092 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 3,368 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 724 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 21 | |||||||||
Total net liability (Audited) | 745 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 927 | $ 941 | $ 920 | $ 917 | $ 905 | $ 892 | $ 913 | $ 935 | $ 985 | $ 989 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 837 | 831 | 811 | 754 | 699 | 589 | 489 | 295 | 150 | 32 |
IBNR Reserves Dec. 31, 2021 (Audited) | $ 59 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 25,061 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,851 | 1,853 | 1,854 | 1,859 | 1,867 | 1,888 | 1,888 | 1,903 | 1,883 | 1,885 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,818 | 1,811 | 1,804 | 1,780 | 1,752 | 1,699 | 1,590 | 1,424 | 1,246 | 795 |
IBNR Reserves Dec. 31, 2021 (Audited) | $ 21 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 105,054 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,375 | 2,377 | 2,387 | 2,416 | 2,453 | 2,445 | 2,456 | 2,457 | 2,456 | 2,447 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,793 | 1,768 | 1,735 | 1,689 | 1,629 | 1,536 | 1,394 | 1,217 | 940 | 443 |
IBNR Reserves Dec. 31, 2021 (Audited) | $ 347 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 138,454 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 605 | 581 | 593 | 605 | 599 | 601 | 605 | 614 | 591 | 538 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 493 | 459 | 453 | 436 | 419 | 383 | 342 | 255 | 160 | 38 |
IBNR Reserves Dec. 31, 2021 (Audited) | $ 14 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 4,872 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 372 | 372 | 371 | 383 | 390 | 407 | 408 | 425 | 423 | 446 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 365 | 362 | 356 | 351 | 342 | 324 | 295 | 268 | 237 | $ 170 |
IBNR Reserves Dec. 31, 2021 (Audited) | $ 0 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 51,245 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 963 | 975 | 975 | 933 | 927 | 940 | 958 | 975 | 965 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 853 | 836 | 816 | 745 | 639 | 498 | 363 | 175 | 35 | |
IBNR Reserves Dec. 31, 2021 (Audited) | $ 72 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 22,775 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,593 | 1,598 | 1,599 | 1,600 | 1,591 | 1,609 | 1,620 | 1,623 | 1,615 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,544 | 1,532 | 1,516 | 1,475 | 1,410 | 1,304 | 1,167 | 987 | 644 | |
IBNR Reserves Dec. 31, 2021 (Audited) | $ 26 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 83,991 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,304 | 2,321 | 2,354 | 2,423 | 2,463 | 2,506 | 2,540 | 2,545 | 2,553 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,729 | 1,700 | 1,659 | 1,604 | 1,525 | 1,413 | 1,237 | 954 | 458 | |
IBNR Reserves Dec. 31, 2021 (Audited) | $ 344 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 134,573 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 564 | 575 | 586 | 607 | 654 | 630 | 606 | 565 | 510 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 482 | 462 | 451 | 434 | 400 | 352 | 252 | 154 | 34 | |
IBNR Reserves Dec. 31, 2021 (Audited) | $ (4) | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 4,467 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 436 | 439 | 444 | 454 | 456 | 469 | 481 | 490 | 497 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 430 | 423 | 415 | 397 | 378 | 345 | 311 | 278 | $ 199 | |
IBNR Reserves Dec. 31, 2021 (Audited) | $ (7) | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 54,268 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 979 | 988 | 1,013 | 956 | 948 | 983 | 989 | 976 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 832 | 805 | 750 | 640 | 515 | 321 | 163 | 37 | ||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 100 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 22,576 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,622 | 1,627 | 1,627 | 1,626 | 1,617 | 1,625 | 1,627 | 1,663 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,560 | 1,544 | 1,512 | 1,448 | 1,328 | 1,154 | 956 | 628 | ||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 32 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 78,465 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,336 | 2,352 | 2,393 | 2,430 | 2,476 | 2,547 | 2,553 | 2,554 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,672 | 1,634 | 1,581 | 1,505 | 1,399 | 1,224 | 944 | 455 | ||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 393 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 131,465 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 449 | 450 | 452 | 473 | 518 | 563 | 571 | 549 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 426 | 418 | 407 | 367 | 312 | 239 | 150 | 38 | ||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 15 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 4,375 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 430 | 433 | 434 | 437 | 444 | 456 | 456 | 440 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 426 | 411 | 394 | 371 | 339 | 309 | 272 | $ 194 | ||
IBNR Reserves Dec. 31, 2021 (Audited) | $ (10) | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 52,300 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,072 | 1,087 | 1,057 | 967 | 923 | 956 | 998 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 875 | 828 | 740 | 558 | 336 | 137 | 36 | |||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 113 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 21,689 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,584 | 1,593 | 1,606 | 1,597 | 1,593 | 1,625 | 1,568 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,489 | 1,452 | 1,409 | 1,310 | 1,144 | 970 | 595 | |||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 46 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 71,922 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,220 | 2,279 | 2,372 | 2,441 | 2,505 | 2,585 | 2,644 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,520 | 1,470 | 1,411 | 1,310 | 1,154 | 893 | 430 | |||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 462 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 130,920 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 413 | 414 | 395 | 437 | 486 | 524 | 528 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 381 | 348 | 338 | 310 | 234 | 141 | 38 | |||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 21 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 4,226 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 361 | 366 | 367 | 366 | 369 | 369 | 370 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 344 | 330 | 315 | 290 | 260 | 232 | $ 166 | |||
IBNR Reserves Dec. 31, 2021 (Audited) | $ (2) | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 45,220 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,179 | 1,204 | 1,187 | 1,087 | 1,058 | 1,075 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 858 | 758 | 649 | 421 | 191 | 35 | ||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 189 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 20,556 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,587 | 1,601 | 1,590 | 1,598 | 1,623 | 1,662 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,437 | 1,373 | 1,278 | 1,133 | 950 | 585 | ||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 63 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 69,368 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,300 | 2,372 | 2,473 | 2,569 | 2,690 | 2,768 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,433 | 1,367 | 1,272 | 1,118 | 873 | 421 | ||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 456 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 130,036 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 510 | 514 | 520 | 504 | 511 | 512 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 446 | 378 | 313 | 233 | 141 | 30 | ||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 34 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 4,398 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 428 | 429 | 429 | 420 | 419 | 370 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 395 | 377 | 352 | 317 | 291 | $ 217 | ||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 2 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 45,764 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,226 | 1,234 | 1,196 | 1,143 | 1,133 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 724 | 552 | 378 | 180 | 40 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 266 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 19,262 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,117 | 1,128 | 1,151 | 1,177 | 1,209 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,103 | 1,094 | 1,073 | 1,003 | 618 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 3 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 25,143 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,935 | 1,919 | 1,956 | 1,928 | 1,872 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,674 | 1,531 | 1,388 | 1,199 | 716 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 104 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 72,318 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,533 | 1,522 | 1,524 | 1,501 | 1,386 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,361 | 1,226 | 1,027 | 746 | 456 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 53 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 192,155 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,439 | 2,483 | 2,584 | 2,681 | 2,779 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,418 | 1,314 | 1,154 | 890 | 433 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 638 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 122,110 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 524 | 493 | 526 | 517 | 534 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 404 | 340 | 262 | 155 | 38 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 65 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 4,585 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 226 | 241 | 240 | 271 | 244 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 210 | 205 | 194 | 166 | 70 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 1 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 940 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 3,199 | 3,206 | 3,221 | 3,256 | 3,323 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 3,121 | 3,046 | 2,887 | 2,575 | 1,912 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 24 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 1,062,811 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,160 | 2,170 | 2,343 | 2,340 | 2,312 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 2,103 | 2,089 | 2,197 | 2,059 | 1,471 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 14 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 170,198 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 413 | 414 | 414 | 391 | 355 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 356 | 328 | 304 | 263 | $ 187 | |||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 5 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 46,825 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,395 | 1,344 | 1,312 | 1,253 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 709 | 441 | 202 | 42 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 407 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 19,135 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,068 | 1,070 | 1,079 | 1,093 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,005 | 981 | 928 | 561 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 20 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 25,077 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,112 | 2,092 | 2,114 | 1,976 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,669 | 1,500 | 1,302 | 792 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 163 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 72,853 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,761 | 1,745 | 1,742 | 1,645 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,404 | 1,159 | 848 | 515 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 130 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 204,588 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,503 | 2,599 | 2,687 | 2,744 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,330 | 1,169 | 919 | 440 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 737 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 122,931 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 595 | 585 | 548 | 530 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 383 | 290 | 182 | 49 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 99 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 4,795 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 220 | 220 | 235 | 220 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 206 | 202 | 171 | 64 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 2 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 907 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 3,220 | 3,233 | 3,269 | 3,281 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 3,040 | 2,880 | 2,582 | 1,889 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 60 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 1,051,415 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,325 | 2,381 | 2,574 | 2,610 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 2,239 | 2,255 | 2,298 | 1,657 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 21 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 187,306 | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 480 | 475 | 474 | 451 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 389 | 349 | 312 | $ 224 | ||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 17 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 50,599 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,498 | 1,486 | 1,447 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 482 | 233 | 51 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 682 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 17,717 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,031 | 1,034 | 1,069 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,001 | 957 | 610 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ (12) | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 25,376 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,089 | 2,087 | 2,017 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,423 | 1,187 | 707 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 294 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 66,484 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,976 | 1,951 | 1,835 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,269 | 934 | 539 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 321 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 206,533 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,699 | 2,714 | 2,680 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,229 | 951 | 466 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 844 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 119,678 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 665 | 653 | 588 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 323 | 189 | 51 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 214 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 5,290 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 200 | 193 | 203 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 147 | 121 | 49 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 37 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 871 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 3,333 | 3,361 | 3,362 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 2,958 | 2,650 | 1,933 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 153 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 1,032,740 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,343 | 2,344 | 2,297 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 2,269 | 2,179 | 1,613 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 26 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 181,209 | |||||||||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 473 | 451 | 456 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 333 | 296 | $ 221 | |||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 53 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 48,179 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,493 | 1,467 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 244 | 61 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 1,013 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 12,141 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,025 | 1,107 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 857 | 580 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 38 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 25,434 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,141 | 2,142 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 1,180 | 791 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 575 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 67,796 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,677 | 1,788 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 696 | 437 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 640 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 141,722 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,530 | 2,559 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 794 | 389 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 1,249 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 95,611 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 753 | 772 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 210 | 52 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 399 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 5,004 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 203 | 274 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 79 | 50 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 93 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 754 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,764 | 2,829 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 2,126 | 1,571 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 353 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 808,338 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,967 | 3,019 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 2,673 | 2,019 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 170 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 219,786 | |||||||||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 342 | 356 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 199 | $ 148 | ||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 88 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 30,098 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,591 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 67 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 1,365 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 9,119 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,236 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 645 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 94 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 21,996 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,164 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 744 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 892 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 47,190 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 1,741 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 453 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 941 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 132,893 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 2,356 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 427 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 1,420 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 83,546 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 812 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 78 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 613 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 3,847 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 284 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 25 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 253 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 421 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 3,716 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 2,062 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 1,028 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 894,499 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 3,463 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 2,334 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 774 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 203,280 | |||||||||
Short-duration Insurance Contracts, Accident Year 2021 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | $ 357 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2021) | 131 | |||||||||
IBNR Reserves Dec. 31, 2021 (Audited) | $ 136 | |||||||||
Cumulative Number of Reported Claims (Audited) | claims | 26,606 |
Insurance Claim Reserves (Det_5
Insurance Claim Reserves (Details) - Historical Claim Duration | Dec. 31, 2021 |
Business Insurance [Member] | General liability [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 3.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 12.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 17.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 18.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 13.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 10.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 5.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 3.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 2.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.60% |
Business Insurance [Member] | Commercial property [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 55.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 32.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 5.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 2.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.80% |
Business Insurance [Member] | Commercial multi-peril [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 37.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 22.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 10.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 9.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 6.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 3.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 2.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 1.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.40% |
Business Insurance [Member] | Automobile [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 27.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 18.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 17.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 13.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 8.80% |
Business Insurance [Member] | Workers' compensation [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 18.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 19.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 11.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 7.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 4.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 3.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 2.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 1.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 1.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.10% |
Bond & Specialty Insurance [Member] | General liability [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 7.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 22.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 19.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 16.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 9.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 7.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 4.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 2.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 2.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 5.60% |
Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 23.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 35.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 13.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 3.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.10% |
Personal Insurance [Member] | Automobile [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 57.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 21.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 9.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 5.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.40% |
Personal Insurance [Member] | Homeowners (excluding Other) [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 68.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 25.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 2.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | (2.80%) |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.70% |
Personal Insurance [Member] | International - Canada [Member] | Property-casualty [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 45.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 17.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 8.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 7.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 7.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 4.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 3.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 2.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 1.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.70% |
Insurance Claim Reserves Insura
Insurance Claim Reserves Insurance Claim Reserves (Details) - Asbestos and Environmental Reserves - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for claims and claim adjustment expense | |||
Asbestos and environmental claims reserves, balance | $ 1,660 | $ 1,650 | |
Asbestos reserves [Member] | |||
Liability for claims and claim adjustment expense | |||
Increase to reserves | 225 | 295 | $ 220 |
Net losses paid | $ 221 | $ 237 | $ 224 |
Percent of total asbestos net paid losses related to policyholders with whom the Company had entered into settlement agreements limiting the Company's liability | 9.00% | 1.00% | 4.00% |
Environmental reserves [Member] | |||
Liability for claims and claim adjustment expense | |||
Increase to reserves | $ 89 | $ 54 | $ 76 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 08, 2021 | Dec. 31, 2020 | Apr. 27, 2020 | Mar. 04, 2019 |
Schedule of debt | |||||
Commercial paper | $ 100 | $ 100 | |||
Total short-term debt | 100 | 100 | |||
Total long-term debt | 7,254 | 6,504 | |||
Total debt principal | 7,354 | 6,604 | |||
Unamortized fair value adjustment | 39 | 41 | |||
Unamortized debt issuance costs | (103) | (95) | |||
Total debt | 7,290 | 6,550 | |||
Senior Notes [Member] | 7.75% Senior notes due April 15, 2026 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 200 | $ 200 | |||
Interest rate (percent) | 7.75% | 7.75% | |||
Senior Notes [Member] | 6.375% Senior notes due March 15, 2033 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 500 | $ 500 | |||
Interest rate (percent) | 6.375% | 6.375% | |||
Senior Notes [Member] | 6.75% Senior notes due June 20, 2036 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 400 | $ 400 | |||
Interest rate (percent) | 6.75% | 6.75% | |||
Senior Notes [Member] | 6.25% Senior notes due June 15, 2037 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 800 | $ 800 | |||
Interest rate (percent) | 6.25% | 6.25% | |||
Senior Notes [Member] | 5.35% Senior notes due November 1, 2040 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 750 | $ 750 | |||
Interest rate (percent) | 5.35% | 5.35% | |||
Senior Notes [Member] | 4.60% Senior notes due August 1, 2043 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 500 | $ 500 | |||
Interest rate (percent) | 4.60% | 4.60% | |||
Senior Notes [Member] | 4.30% Senior notes due August 25, 2045 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 400 | $ 400 | |||
Interest rate (percent) | 4.30% | 4.30% | |||
Senior Notes [Member] | 3.75% Senior notes due May 15, 2046 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 500 | $ 500 | |||
Interest rate (percent) | 3.75% | 3.75% | |||
Senior Notes [Member] | 4.00% Senior notes due May 30, 2047 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 700 | $ 700 | |||
Interest rate (percent) | 4.00% | 4.00% | |||
Senior Notes [Member] | 4.05% Senior notes due March 7, 2048 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 500 | $ 500 | |||
Interest rate (percent) | 4.05% | 4.05% | |||
Senior Notes [Member] | 4.10% Senior notes due March 4, 2049 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 500 | $ 500 | |||
Interest rate (percent) | 4.10% | 4.10% | 4.10% | ||
Senior Notes [Member] | 2.55% Senior notes due April 27, 2050 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 500 | $ 500 | |||
Interest rate (percent) | 2.55% | 2.55% | |||
Senior Notes [Member] | 3.050% Senior notes due June 8, 2051 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 750 | ||||
Interest rate (percent) | 3.05% | 3.05% | |||
Junior Subordinated Debt [Member] | 7.625% Junior subordinated debentures due December 15, 2027 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 125 | 125 | |||
Unamortized fair value adjustment | $ 8 | $ 10 | |||
Interest rate (percent) | 7.625% | 7.625% | |||
Junior Subordinated Debt [Member] | 8.50% Junior subordinated debentures due December 15, 2045 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 56 | $ 56 | |||
Unamortized fair value adjustment | $ 14 | $ 14 | |||
Interest rate (percent) | 8.50% | 8.50% | |||
Junior Subordinated Debt [Member] | 8.312% Junior subordinated debentures due July 1, 2046 [Member] | |||||
Schedule of debt | |||||
Total long-term debt | $ 73 | $ 73 | |||
Unamortized fair value adjustment | $ 17 | $ 17 | |||
Interest rate (percent) | 8.312% | 8.312% |
Debt (Details) - Debt Issuance
Debt (Details) - Debt Issuance - USD ($) $ in Millions | Jun. 08, 2021 | Apr. 27, 2020 | Mar. 04, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||||||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 739 | $ 490 | $ 492 | |||
Senior Notes [Member] | 3.050% Senior notes due June 8, 2051 [Member] | ||||||
Debt Instrument | ||||||
Debt, principal amount | $ 750 | |||||
Interest rate (percent) | 3.05% | 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% | |||||
Senior Notes [Member] | 2.55% Senior notes due April 27, 2050 [Member] | ||||||
Debt Instrument | ||||||
Debt, principal amount | $ 500 | |||||
Interest rate (percent) | 2.55% | 2.55% | ||||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 490 | |||||
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 | 0.25% | |||||
Senior Notes [Member] | 4.10% Senior notes due March 4, 2049 [Member] | ||||||
Debt Instrument | ||||||
Debt, principal amount | $ 500 | |||||
Interest rate (percent) | 4.10% | 4.10% | 4.10% | |||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 492 | |||||
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 | 0.20% |
Debt (Details) - Repayment
Debt (Details) - Repayment - USD ($) $ in Millions | Nov. 01, 2020 | Jun. 02, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | |||||
Debt, principal amount repaid | $ 0 | $ 500 | $ 500 | ||
Senior Notes [Member] | 3.90% Senior notes due November 1, 2020 [Member] | |||||
Debt Instrument | |||||
Debt, principal amount repaid | $ 500 | ||||
Interest rate (percent) | 3.90% | ||||
Senior Notes [Member] | 5.90% Senior notes due June 2, 2019 [Member] | |||||
Debt Instrument | |||||
Debt, principal amount repaid | $ 500 | ||||
Interest rate (percent) | 5.90% |
Debt (Details) - Commercial Pap
Debt (Details) - Commercial Paper - Commercial Paper [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility | ||
Credit agreement, maximum borrowing capacity | $ 800 | |
Minimum [Member] | ||
Line of Credit Facility | ||
Interest rate on commercial paper | 0.09% | 0.12% |
Maximum [Member] | ||
Line of Credit Facility | ||
Interest rate on commercial paper | 0.12% | 1.62% |
Debt (Details) - Junior Subordi
Debt (Details) - Junior Subordinated Debt $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)debenture_instrumentstrusts | Dec. 31, 2020USD ($) | |
Debt Instrument | ||
Unamortized fair value adjustment | $ 39 | $ 41 |
Junior Subordinated Debt [Member] | ||
Debt Instrument | ||
Number of junior subordinated debentures that are all similar in nature | debenture_instruments | 3 | |
Number of separate trusts that issued preferred securities and used proceeds to purchase the Company's subordinated debentures | trusts | 3 | |
Impact of amortization of the fair value adjustment on interest expense | $ 2 | $ 2 |
Junior Subordinated Debt [Member] | 7.625% Junior subordinated debentures due December 15, 2027 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 7.625% | 7.625% |
Effective interest rate (percent) | 6.147% | |
Unamortized fair value adjustment | $ 8 | $ 10 |
Junior Subordinated Debt [Member] | 8.50% Junior subordinated debentures due December 15, 2045 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 8.50% | 8.50% |
Effective interest rate (percent) | 6.362% | |
Unamortized fair value adjustment | $ 14 | $ 14 |
Junior Subordinated Debt [Member] | 8.312% Junior subordinated debentures due July 1, 2046 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 8.312% | 8.312% |
Effective interest rate (percent) | 6.362% | |
Unamortized fair value adjustment | $ 17 | $ 17 |
Senior Notes [Member] | 7.75% Senior notes due April 15, 2026 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 7.75% | 7.75% |
Amount of certain debt obligations of Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings, Inc. (TIGHI) that are fully and unconditionally guaranteed by The Travelers Companies, Inc. | $ 200 | |
Senior Notes [Member] | 6.375% Senior notes due March 15, 2033 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 6.375% | 6.375% |
Amount of certain debt obligations of Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings, Inc. (TIGHI) that are fully and unconditionally guaranteed by The Travelers Companies, Inc. | $ 500 |
Debt (Details) - Maturities
Debt (Details) - Maturities | Dec. 31, 2021USD ($) |
Maturities of long-term debt | |
Amount of debt obligations, other than commercial paper, due in 2022 | $ 0 |
Amount of debt obligations, other than commercial paper, due in 2023 | 0 |
Amount of debt obligations, other than commercial paper, due in 2024 | 0 |
Amount of debt obligations, other than commercial paper, due in 2025 | 0 |
Amount of debt obligations, other than commercial paper, due in 2026 | $ 200,000,000 |
Debt (Details) - Line of Credit
Debt (Details) - Line of Credit $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Line of credit [Member] | Revolving Credit Agreement Due to Expire on June 4, 2023 [Member] | |
Line of Credit Facility | |
Credit agreement, term (in years) | 5 years |
Credit agreement, maximum borrowing capacity | $ 1,000 |
Credit agreement, covenant terms | Pursuant to the credit agreement covenants, the Company must maintain a minimum consolidated net worth, defined as shareholders’ equity determined in accordance with GAAP (excluding accumulated other comprehensive income (loss)) plus (a) trust preferred securities (not to exceed 15% of total capital) and (b) mandatorily convertible securities (combined with trust preferred securities, not to exceed 25% of total capital) less goodwill and other intangible assets, of $12.494 billion. In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change in control, which is defined to include the acquisition of 35% or more of the Company’s voting stock and certain changes in the composition of the Company’s Board of Directors. |
Maximum percentage of trust preferred securities relative to total capital in determining consolidated net worth | 15.00% |
Maximum percentage of trust preferred securities and mandatorily convertible securities relative to total capital in determining consolidated net worth | 25.00% |
Credit agreement, compliance | At December 31, 2021, the Company was in compliance with these covenants. |
Line of credit [Member] | Revolving Credit Agreement Due to Expire on June 4, 2023 [Member] | Minimum [Member] | |
Line of Credit Facility | |
Credit agreement, threshold of consolidated net worth | $ 12,494 |
Percentage of Company's voting stock acquired by outside entity that would be considered a change in control | 35.00% |
Line of credit [Member] | Revolving Credit Agreement Due to Expire on June 4, 2023 [Member] | LIBOR [Member] | |
Line of Credit Facility | |
Credit agreement, cost of borrowing, basis points above LIBOR | 1.00% |
Line of credit [Member] | Revolving Credit Agreement Due to Expire on June 4, 2023 [Member] | LIBOR [Member] | Minimum [Member] | |
Line of Credit Facility | |
Credit agreement, cost of borrowing, basis points above LIBOR | 0.75% |
Line of credit [Member] | Revolving Credit Agreement Due to Expire on June 4, 2023 [Member] | LIBOR [Member] | Maximum [Member] | |
Line of Credit Facility | |
Credit agreement, cost of borrowing, basis points above LIBOR | 1.375% |
Letter of credit [Member] | Unsecured Debt [Member] | |
Line of Credit Facility | |
Credit agreement, maximum borrowing capacity | $ 319 |
Credit agreement, maximum borrowing capacity, portion utilized to support obligations at Lloyd's | $ 279 |
Shareholders' Equity and Divi_2
Shareholders' Equity and Dividend Availability (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |||
Number of authorized shares (in shares) | 1,755 | ||
Number of authorized shares, preferred shares (in shares) | 5 | ||
Number of authorized shares, voting common stock (in shares) | 1,745 | ||
Number of authorized shares, undesignated shares (in shares) | 5 | ||
Additional share repurchase authorization | $ 5,000 | ||
Number of shares repurchased (in shares) | 13.9 | ||
Cost of shares repurchased | $ 2,160 | ||
Average cost per share repurchased (in dollars per share) | $ 154.79 | ||
Remaining capacity under share repurchase authorization | $ 4,010 | ||
Cost of shares acquired to cover tax withholding costs and exercise costs | $ 44 | $ 47 |
Shareholders' Equity and Divi_3
Shareholders' Equity and Dividend Availability (Details) - Business Acquisition | 1 Months Ended |
Aug. 31, 2020shares | |
Simply Business [Member] | Restricted common stock [Member] | |
Business Acquisition | |
Shares vested and distributed | 41,997 |
Shareholders' Equity and Divi_4
Shareholders' Equity and Dividend Availability (Details) - Dividend Availability $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)companies$ / shares | Dec. 31, 2020USD ($)companies$ / shares | Dec. 31, 2019USD ($)companies$ / shares | |
Statutory accounting principles | |||
Dividends received by TRV and its two non-insurance holding companies from their U.S. insurance subsidiaries | $ 2,180 | $ 2,000 | $ 2,500 |
Cash dividends paid | 869 | 861 | 844 |
Insurance subsidiaries [Member] | |||
Statutory accounting principles | |||
Statutory net income of the Company's domestic and international insurance subsidiaries | 3,410 | 2,980 | $ 2,740 |
Statutory capital and surplus of the Company's domestic and international insurance subsidiaries | $ 23,910 | $ 22,180 | |
Travelers [Member] | |||
Statutory accounting principles | |||
Number of non-insurance holding companies underneath TRV | companies | 2 | 2 | 2 |
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 3.49 | $ 3.37 | $ 3.23 |
Cash dividends paid | $ 869 | $ 861 | $ 844 |
Connecticut Insurance Department [Member] | Insurance subsidiaries [Member] | |||
Statutory accounting principles | |||
Maximum amount of dividends available to be paid by subsidiaries to their parent without prior approval of the Connecticut Insurance Department | $ 3,080 |
Other Comprehensive Income an_3
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated other comprehensive income [Roll Forward] | |||
Balance, beginning of year | $ 29,201 | $ 25,943 | |
Other comprehensive income (loss), net of taxes | (1,309) | 1,862 | $ 2,499 |
Balance, end of year | 28,887 | 29,201 | 25,943 |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | |||
Other comprehensive income (loss), before income taxes | (1,671) | 2,352 | 3,140 |
Income tax expense (benefit) | (362) | 490 | 641 |
Other comprehensive income (loss), net of taxes | (1,309) | 1,862 | 2,499 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Balance, beginning of year | 2,502 | 640 | (1,859) |
Other comprehensive income (loss) before reclassifications | (1,337) | 1,837 | 2,494 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 28 | 25 | 5 |
Other comprehensive income (loss), net of taxes | (1,309) | 1,862 | 2,499 |
Balance, end of year | 1,193 | 2,502 | 640 |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | |||
Other comprehensive income (loss), before income taxes | (1,671) | 2,352 | 3,140 |
Income tax expense (benefit) | (362) | 490 | 641 |
Other comprehensive income (loss), net of taxes | (1,309) | 1,862 | 2,499 |
Changes in Net Unrealized Gains (Losses) on Investment Securities Having No Credit Losses Recognized in the Consolidated Statement of Income [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Balance, beginning of year | 3,892 | 2,057 | (306) |
Other comprehensive income (loss) before reclassifications | (1,606) | 1,876 | 2,406 |
Amounts reclassified from accumulated other comprehensive income, net of tax | (53) | (41) | (43) |
Other comprehensive income (loss), net of taxes | (1,659) | 1,835 | 2,363 |
Balance, end of year | 2,233 | 3,892 | 2,057 |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | |||
Other comprehensive income (loss), before income taxes | (2,115) | 2,331 | 2,994 |
Income tax expense (benefit) | (456) | 496 | 631 |
Other comprehensive income (loss), net of taxes | (1,659) | 1,835 | 2,363 |
Changes in Net Unrealized Gains (Losses) on Investment Securities Having Credit Losses Recognized in the Consolidated Statement of Income [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Balance, beginning of year | 182 | 189 | 193 |
Other comprehensive income (loss) before reclassifications | 0 | (7) | (4) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 0 |
Other comprehensive income (loss), net of taxes | 0 | (7) | (4) |
Balance, end of year | 182 | 182 | 189 |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | |||
Other comprehensive income (loss), before income taxes | 0 | (9) | (4) |
Income tax expense (benefit) | 0 | (2) | 0 |
Other comprehensive income (loss), net of taxes | 0 | (7) | (4) |
Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Balance, beginning of year | (832) | (846) | (873) |
Other comprehensive income (loss) before reclassifications | 278 | (53) | (14) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 81 | 67 | 41 |
Other comprehensive income (loss), net of taxes | 359 | 14 | 27 |
Balance, end of year | (473) | (832) | (846) |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | |||
Other comprehensive income (loss), before income taxes | 455 | 18 | 33 |
Income tax expense (benefit) | 96 | 4 | 6 |
Other comprehensive income (loss), net of taxes | 359 | 14 | 27 |
Net Unrealized Foreign Currency Translation [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Balance, beginning of year | (740) | (760) | (873) |
Other comprehensive income (loss) before reclassifications | (9) | 21 | 106 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | (1) | 7 |
Other comprehensive income (loss), net of taxes | (9) | 20 | 113 |
Balance, end of year | (749) | (740) | (760) |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) | |||
Other comprehensive income (loss), before income taxes | (11) | 12 | 117 |
Income tax expense (benefit) | (2) | (8) | 4 |
Other comprehensive income (loss), net of taxes | $ (9) | $ 20 | $ 113 |
Other Comprehensive Income an_4
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - Reclassifications - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Reclassification adjustment impacting net realized investment gains on the income statement | $ (171) | $ (2) | $ (113) |
Reclassification adjustment impacting claims and claim adjustment expenses on the income statement | 20,298 | 19,123 | 19,133 |
Reclassification adjustment impacting general and administrative expense on the income statement | 4,677 | 4,509 | 4,365 |
Total reclassifications | (4,458) | (3,237) | (3,138) |
Income tax (expense) benefit | (796) | (540) | (516) |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (3,662) | (2,697) | (2,622) |
Accumulated Other Comprehensive Income (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Total reclassifications | 35 | 32 | 4 |
Income tax (expense) benefit | 7 | 7 | (1) |
Amounts reclassified from accumulated other comprehensive income, net of taxes | 28 | 25 | 5 |
Changes in Net Unrealized Gains (Losses) 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 on the income statement | (67) | (52) | (55) |
Income tax (expense) benefit | (14) | (11) | (12) |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (53) | (41) | (43) |
Changes in Net Unrealized Gains (Losses) 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 on the income statement | 0 | 0 | 0 |
Income tax (expense) benefit | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income, net of taxes | 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 | 41 | 35 | 21 |
Reclassification adjustment impacting general and administrative expense on the income statement | 61 | 50 | 31 |
Total reclassifications | 102 | 85 | 52 |
Income tax (expense) benefit | 21 | 18 | 11 |
Amounts reclassified from accumulated other comprehensive income, net of taxes | 81 | 67 | 41 |
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 on the income statement | 0 | (1) | 7 |
Income tax (expense) benefit | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income, net of taxes | $ 0 | $ (1) | $ 7 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |||
Net income | $ 3,662 | $ 2,697 | $ 2,622 |
Participating securities — allocated income | (27) | (19) | (19) |
Net income available to common shareholders -- basic | 3,635 | 2,678 | 2,603 |
Net income available to common shareholders -- diluted | $ 3,635 | $ 2,678 | $ 2,603 |
Weighted average shares outstanding, basic (in shares) | 248.5 | 253.5 | 260 |
Weighted average effects of dilutive securities - stock options and performance shares (in shares) | 2.3 | 1.1 | 2.3 |
Weighted average shares outstanding, diluted (in shares) | 250.8 | 254.6 | 262.3 |
Net income per common share, basic (in dollars per share) | $ 14.63 | $ 10.56 | $ 10.01 |
Net income per common share, diluted (in dollars per share) | $ 14.49 | $ 10.52 | $ 9.92 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense included in consolidated statement of income, federal | $ 659 | $ 532 | $ 546 |
Current income tax expense included in consolidated statement of income, foreign | 67 | 35 | 7 |
Current income tax expense included in consolidated statement of income, state | 6 | 4 | 6 |
Total current tax expense | 732 | 571 | 559 |
Deferred income tax expense (benefit) included in consolidated statement of income, federal | 62 | (29) | (33) |
Deferred income tax expense (benefit) included in consolidated statement of income, foreign | 2 | (2) | (10) |
Total deferred tax expense (benefit) | 64 | (31) | (43) |
Total income tax expense included in the consolidated statement of income | 796 | 540 | 516 |
Expense (benefit) relating to changes in the unrealized gain (loss) on investments, unrealized loss on foreign exchange and other items in other comprehensive income (loss) | (362) | 490 | 641 |
Total income tax expense included in the consolidated financial statements | $ 434 | $ 1,030 | $ 1,157 |
Income Taxes (Details) - Effect
Income Taxes (Details) - Effective Tax Rate - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. income before income taxes | $ 4,107 | $ 3,095 | $ 3,211 |
Foreign income (loss) before income taxes | 351 | 142 | (73) |
Income before income taxes | $ 4,458 | $ 3,237 | $ 3,138 |
Statutory tax rate (percent) | 21.00% | 21.00% | 21.00% |
Expected federal income tax expense | $ 936 | $ 680 | $ 659 |
Tax effect of nontaxable investment income | (147) | (147) | (149) |
Tax effect of other, net | 7 | 7 | 6 |
Total income tax expense included in the consolidated statement of income | $ 796 | $ 540 | $ 516 |
Effective tax rate (percent) | 18.00% | 17.00% | 16.00% |
Income taxes paid | $ 707 | $ 578 | $ 428 |
Current income tax payable | $ 119 | $ 131 |
Income Taxes (Details) - Deferr
Income Taxes (Details) - Deferred Tax Asset and Liability - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, claims and claim adjustment expense reserves | $ 601 | $ 575 |
Deferred tax assets, unearned premium reserves | 603 | 560 |
Deferred tax assets, compensation-related liabilities | 35 | 110 |
Deferred tax assets, net operating losses | 101 | 87 |
Deferred tax assets, other | 152 | 180 |
Total gross deferred tax assets | 1,492 | 1,512 |
Less: valuation allowance | 23 | 21 |
Adjusted gross deferred tax assets | 1,469 | 1,491 |
Deferred tax liabilities, deferred acquisition costs | 479 | 445 |
Deferred tax liabilities, investments | 940 | 1,225 |
Deferred tax liabilities, depreciation | 112 | 130 |
Deferred tax liabilities, other | 227 | 249 |
Total gross deferred tax liabilities | 1,758 | 2,049 |
Net deferred tax liability | $ 289 | $ 558 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - Valuation Allowance $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Valuation Allowance | |
Increase (decrease) in valuation allowance | $ 2 |
Subsidiary [Member] | Canada [Member] | |
Valuation Allowance | |
Increase (decrease) in valuation allowance | 3 |
Subsidiary [Member] | Republic of Ireland [Member] | |
Valuation Allowance | |
Increase (decrease) in valuation allowance | $ (1) |
Income Taxes (Details) - NOL Ca
Income Taxes (Details) - NOL Carryforwards $ in Millions | Dec. 31, 2021USD ($) |
United States [Member] | |
Net Operating Loss Carryforward | |
Net operating loss carryforward | $ 2 |
Canada [Member] | |
Net Operating Loss Carryforward | |
Net operating loss carryforward | 25 |
Republic of Ireland [Member] | |
Net Operating Loss Carryforward | |
Net operating loss carryforward | 127 |
United Kingdom [Member] | |
Net Operating Loss Carryforward | |
Net operating loss carryforward | $ 328 |
Income Taxes (Details) - Unreco
Income Taxes (Details) - Unrecognized Tax Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | |||
Unrecognized tax benefits, balance at January 1 | $ 49 | $ 37 | |
Additions for tax positions of prior years | 2 | 16 | |
Reductions for tax positions of prior years | (3) | 0 | |
Reductions based on tax positions related to current year | 0 | 0 | |
Expiration of statute of limitations | 0 | (4) | |
Unrecognized tax benefits, balance at December 31 | 48 | 49 | $ 37 |
Unrecognized tax benefits that, if recognized, would affect the annual effective tax rate | 48 | 48 | |
Amount of unrecognized tax benefits that are tax positions for which the ultimate deductibility is certain, but for which there is uncertainty about the timing of deductibility | 0 | 1 | |
Amount of interest recognized on unrecognized tax benefits in income taxes | 3 | 0 | |
Amount of interest benefit recognized on unrecognized tax benefits in income taxes | $ (1) | ||
Accrued payment of interest balance for unrecognized tax benefits | $ 16 | $ 13 |
Income Taxes (Details) - IRS Ex
Income Taxes (Details) - IRS Exams - Settlement with Taxing Authority [Member] $ in Millions | Dec. 31, 2021USD ($) |
Minimum [Member] | |
Significant change in unrecognized tax benefits is reasonably possible | |
Decrease in unrecognized tax benefits is reasonably possible | $ 40 |
Maximum [Member] | |
Significant change in unrecognized tax benefits is reasonably possible | |
Decrease in unrecognized tax benefits is reasonably possible | $ 50 |
Share-based Incentive Compens_3
Share-based Incentive Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 08, 2022 | May 31, 2021 | May 31, 2019 | May 31, 2017 | May 31, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of stock option activity [Roll Forward] | ||||||||
Stock options outstanding, beginning of year, number (in shares) | 10,075,758 | |||||||
Stock options granted, number (in shares) | 1,599,841 | |||||||
Stock options exercised, number (in shares) | (2,181,586) | |||||||
Stock options forfeited or expired, number (in shares) | (74,128) | |||||||
Stock options outstanding, end of year, number (in shares) | 9,419,885 | 10,075,758 | ||||||
Stock options outstanding, beginning of year, weighted average exercise price (in dollars per share) | $ 121.03 | |||||||
Stock options granted, weighted average exercise price (in dollars per share) | 139.88 | |||||||
Stock options exercised, weighted average exercise price (in dollars per share) | 110.39 | |||||||
Stock options forfeited or expired, weighted average exercise price (in dollars per share) | 131.29 | |||||||
Stock options outstanding, end of year, weighted average exercise price (in dollars per share) | $ 126.62 | $ 121.03 | ||||||
Stock options outstanding, weighted average contractual life remaining (in years) | 6 years 6 months | |||||||
Stock options outstanding, aggregate intrinsic value | $ 281 | |||||||
Stock options vested at end of year, number (in shares) | 7,225,469 | |||||||
Stock options vested at end of year, weighted average exercise price (in dollars per share) | $ 124.73 | |||||||
Stock options vested at end of year, weighted average contractual life remaining (in years) | 6 years | |||||||
Stock options vested at end of year, aggregate intrinsic value | $ 229 | |||||||
Stock options exercisable at end of year, number (in shares) | 4,081,500 | |||||||
Stock options exercisable at end of year, weighted average exercise price (in dollars per share) | $ 118.75 | |||||||
Stock options exercisable at end of year, weighted average contractual life remaining (in years) | 4 years 4 months 24 days | |||||||
Stock options exercisable at end of year, aggregate intrinsic value | $ 154 | |||||||
Stock option grants [Member] | ||||||||
Assumptions used in estimating fair value of options | ||||||||
Expected term of stock options | 6 years | 6 years | 6 years | |||||
Expected volatility of Company’s stock (percent) | 15.73% | |||||||
Weighted average volatility (percent) | 24.22% | 15.73% | 15.48% | |||||
Expected annual dividend per share (in dollars per share) | $ 3.28 | |||||||
Risk-free rate | 1.37% | |||||||
Stock options granted, weighted average grant-date fair value of options granted (in dollars per share) | $ 23.32 | $ 14.41 | $ 16.64 | |||||
Total intrinsic value of options exercised during the year | $ 94 | $ 47 | $ 88 | |||||
Stock option grants [Member] | Minimum [Member] | ||||||||
Assumptions used in estimating fair value of options | ||||||||
Expected volatility of Company’s stock (percent) | 24.22% | 15.47% | ||||||
Expected annual dividend per share (in dollars per share) | $ 3.40 | $ 3.08 | ||||||
Risk-free rate | 0.59% | 1.70% | ||||||
Stock option grants [Member] | Maximum [Member] | ||||||||
Assumptions used in estimating fair value of options | ||||||||
Expected volatility of Company’s stock (percent) | 24.53% | 15.91% | ||||||
Expected annual dividend per share (in dollars per share) | $ 3.52 | $ 3.28 | ||||||
Risk-free rate | 1.08% | 2.54% | ||||||
The Travelers Companies, Inc 2014 Stock Incentive Plan [Member] | ||||||||
Share-based compensation plan description | ||||||||
Number of shares of the Company's common stock originally authorized for grant under the 2014 Incentive Plan (in shares) | 10,000,000 | |||||||
Additional number of shares of the Company's common stock authorized for grant under the 2014 Incentive plan (in shares) | 2,400,000 | 3,100,000 | 2,500,000 | 4,400,000 | ||||
Number of shares of the Company's common stock authorized for grant under the 2014 Incentive Plan, total (in shares) | 22,400,000 | |||||||
The Travelers Companies, Inc 2014 Stock Incentive Plan [Member] | Stock option grants [Member] | ||||||||
Share-based compensation plan description | ||||||||
Option term | 10 years | |||||||
Award vesting period | 3 years | |||||||
The Travelers Companies, Inc 2014 Stock Incentive Plan [Member] | Stock option grants [Member] | Subsequent event [Member] | ||||||||
Assumptions used in estimating fair value of options | ||||||||
Stock options granted, weighted average grant-date fair value of options granted (in dollars per share) | $ 35.70 | |||||||
Summary of stock option activity [Roll Forward] | ||||||||
Stock options granted, number (in shares) | 1,104,483 | |||||||
Stock options granted, weighted average exercise price (in dollars per share) | $ 172.50 | |||||||
The Travelers Companies, Inc 2014 Stock Incentive Plan [Member] | Director deferred stock awards [Member] | ||||||||
Share-based compensation plan description | ||||||||
Number of days prior to date of annual meeting in year following date of grant in which annual deferred stock awards vest in full | 1 day | |||||||
Number of months after termination of service as a director before distributions of deferred stock awards begin | 6 months |
Share-Based Incentive Compens_4
Share-Based Incentive Compensation (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | Feb. 08, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted stock units, deferred stock units and performance share awards [Member] | ||||
Share-based compensation | ||||
Fair value of shares that vested during the year | $ 124 | $ 127 | $ 130 | |
Restricted stock units, deferred stock units and performance share awards [Member] | Subsequent event [Member] | ||||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, granted, number (in shares) | 788,058 | |||
Other equity instruments, granted, weighted average grant-date fair value (in dollars per share) | $ 172.50 | |||
Restricted and deferred stock units [Member] | ||||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, nonvested, number, beginning of year (in shares) | 1,086,784 | |||
Other equity instruments, granted, number (in shares) | 605,188 | |||
Other equity instruments, vested, number (in shares) | (513,226) | |||
Other equity instruments, forfeited, number (in shares) | (69,921) | |||
Other equity instruments, nonvested, number, end of year (in shares) | 1,108,825 | 1,086,784 | ||
Other equity instruments, nonvested, weighted average grant-date fair value, beginning of year (in dollars per share) | $ 132.12 | |||
Other equity instruments, granted, weighted average grant-date fair value (in dollars per share) | 141.22 | |||
Other equity instruments, vested, weighted average grant-date fair value (in dollars per share) | 138.57 | |||
Other equity instruments, forfeited, weighted average grant-date fair value (in dollars per share) | 132.93 | |||
Other equity instruments, nonvested, weighted average grant-date fair value, end of year (in dollars per share) | $ 134.05 | $ 132.12 | ||
Other equity instruments, nonvested dividend equivalents, number, beginning of year (in shares) | 394 | |||
Other equity instruments, nonvested dividend equivalents, number, end of year (in shares) | 280 | 394 | ||
Restricted and deferred stock units [Member] | Subsequent event [Member] | ||||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, granted, number (in shares) | 470,716 | |||
Restricted stock units [Member] | ||||
Share-based compensation | ||||
Award vesting period | 3 years | |||
Performance shares [Member] | ||||
Share-based compensation | ||||
Performance period | 3 years | |||
Award vesting period | 3 years | |||
Percentage of performance shares to vest if minimum performance threshold is not met | 0.00% | |||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, nonvested, number, beginning of year (in shares) | 723,991 | |||
Other equity instruments, granted, number (in shares) | 367,299 | |||
Other equity instruments, vested, number (in shares) | (359,925) | |||
Other equity instruments, forfeited, number (in shares) | (24,828) | |||
Other equity instruments, performance-based adjustment, number (in shares) | 224,020 | |||
Other equity instruments, nonvested, number, end of year (in shares) | 930,557 | 723,991 | ||
Other equity instruments, nonvested, weighted average grant-date fair value, beginning of year (in dollars per share) | $ 129.45 | |||
Other equity instruments, granted, weighted average grant-date fair value (in dollars per share) | 139.83 | |||
Other equity instruments, vested, weighted average grant-date fair value (in dollars per share) | 126.18 | |||
Other equity instruments, forfeited, weighted average grant-date fair value (in dollars per share) | 131.20 | |||
Other equity instruments, performance-based adjustment, weighted average grant-date fair value (in dollars per share) | 138.56 | |||
Other equity instruments, nonvested, weighted average grant-date fair value, end of year (in dollars per share) | $ 136.96 | $ 129.45 | ||
Other equity instruments, nonvested dividend equivalents, number, beginning of year (in shares) | 29,751 | |||
Other equity instruments, nonvested dividend equivalents, number, end of year (in shares) | 32,670 | 29,751 | ||
Performance shares [Member] | Subsequent event [Member] | ||||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, granted, number (in shares) | 317,342 | |||
Performance shares [Member] | February 2020 Awards [Member] | Minimum [Member] | ||||
Share-based compensation | ||||
Percentage of performance shares to vest if minimum performance threshold is met or exceeded | 50.00% | |||
Performance shares [Member] | February 2020 Awards [Member] | Maximum [Member] | ||||
Share-based compensation | ||||
Percentage of performance shares to vest if minimum performance threshold is met or exceeded | 150.00% | |||
Performance shares [Member] | February 2021 and 2022 Awards [Member] | Minimum [Member] | ||||
Share-based compensation | ||||
Percentage of performance shares to vest if minimum performance threshold is met or exceeded | 50.00% | |||
Performance shares [Member] | February 2021 and 2022 Awards [Member] | Maximum [Member] | ||||
Share-based compensation | ||||
Percentage of performance shares to vest if minimum performance threshold is met or exceeded | 200.00% |
Share-Based Incentive Compens_5
Share-Based Incentive Compensation (Details) - Cost Recognition - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based compensation | |||
Total compensation cost recognized in earnings for all share-based incentive compensation awards | $ 162 | $ 148 | $ 142 |
Tax benefit recognized in earnings related to compensation costs | 28 | 25 | 26 |
Total unrecognized compensation cost related to all nonvested share-based incentive compensation awards | $ 158 | ||
Weighted-average period of recognition for unrecognized compensation cost (in years) | 1 year 9 months 18 days | ||
Cash received from the exercise of employee stock options under share-based compensation plans | $ 293 | 127 | 213 |
Tax benefit for tax deductions from employee stock options exercised | $ 19 | 10 | 18 |
Minimum [Member] | |||
Share-based compensation | |||
Estimated annual forfeiture rate reflected in share-based compensation cost (percent) | 3.50% | ||
Maximum [Member] | |||
Share-based compensation | |||
Estimated annual forfeiture rate reflected in share-based compensation cost (percent) | 4.50% | ||
Performance shares [Member] | |||
Share-based compensation | |||
Estimated attainment of performance shares at grant date (percent) | 100.00% | ||
Compensation cost adjustments for the updated estimate of performance shares due to attaining certain performance levels | $ 12 | $ 3 | $ 2 |
Pension Plans, Retirement Ben_3
Pension Plans, Retirement Benefits and Savings Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, balance, beginning of year | $ 4,591 | $ 4,195 | |
Benefits earned | 141 | 133 | $ 118 |
Interest cost on benefit obligation | 83 | 114 | 141 |
Actuarial (gain) loss | (75) | 356 | |
Benefits paid | (268) | (212) | |
Amendment | 0 | 1 | |
Foreign currency exchange rate change, change in projected benefit obligation | (1) | 4 | |
Benefit obligation, balance, end of year | 4,471 | 4,591 | 4,195 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, balance, beginning of year | 4,756 | 4,385 | |
Actual return on plan assets | 537 | 570 | |
Company contributions | 12 | 9 | |
Benefits paid | (268) | (212) | |
Foreign currency exchange rate change, change in plan assets | (1) | 4 | |
Fair value of plan assets, balance, end of year | 5,036 | 4,756 | 4,385 |
Funded status of plan at end of year | 565 | 165 | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Accrued over-funded benefit plan assets | 696 | 306 | |
Accrued under-funded benefit plan liabilities | (131) | (141) | |
Total amount recognized in the consolidated balance sheet | 565 | 165 | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net actuarial loss (gain) | 667 | 1,113 | |
Prior service cost (benefit) | (1) | (1) | |
Total amount recognized in accumulated other comprehensive income | 666 | 1,112 | |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, balance, beginning of year | 4,326 | 3,954 | |
Benefits earned | 135 | 128 | |
Interest cost on benefit obligation | 79 | 109 | |
Actuarial (gain) loss | (73) | 336 | |
Benefits paid | (255) | (201) | |
Amendment | 0 | 0 | |
Foreign currency exchange rate change, change in projected benefit obligation | 0 | 0 | |
Benefit obligation, balance, end of year | 4,212 | 4,326 | 3,954 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, balance, beginning of year | 4,631 | 4,270 | |
Actual return on plan assets | 526 | 562 | |
Company contributions | 0 | 0 | 0 |
Benefits paid | (255) | (201) | |
Foreign currency exchange rate change, change in plan assets | 0 | 0 | |
Fair value of plan assets, balance, end of year | 4,902 | 4,631 | 4,270 |
Funded status of plan at end of year | 690 | 305 | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Accrued over-funded benefit plan assets | 690 | 305 | |
Accrued under-funded benefit plan liabilities | 0 | 0 | |
Total amount recognized in the consolidated balance sheet | 690 | 305 | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net actuarial loss (gain) | 618 | 1,050 | |
Prior service cost (benefit) | (2) | (2) | |
Total amount recognized in accumulated other comprehensive income | 616 | 1,048 | |
Nonqualified and Foreign Pension Plans [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, balance, beginning of year | 265 | 241 | |
Benefits earned | 6 | 5 | |
Interest cost on benefit obligation | 4 | 5 | |
Actuarial (gain) loss | (2) | 20 | |
Benefits paid | (13) | (11) | |
Amendment | 0 | 1 | |
Foreign currency exchange rate change, change in projected benefit obligation | (1) | 4 | |
Benefit obligation, balance, end of year | 259 | 265 | 241 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, balance, beginning of year | 125 | 115 | |
Actual return on plan assets | 11 | 8 | |
Company contributions | 12 | 9 | |
Benefits paid | (13) | (11) | |
Foreign currency exchange rate change, change in plan assets | (1) | 4 | |
Fair value of plan assets, balance, end of year | 134 | 125 | 115 |
Funded status of plan at end of year | (125) | (140) | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Accrued over-funded benefit plan assets | 6 | 1 | |
Accrued under-funded benefit plan liabilities | (131) | (141) | |
Total amount recognized in the consolidated balance sheet | (125) | (140) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net actuarial loss (gain) | 49 | 63 | |
Prior service cost (benefit) | 1 | 1 | |
Total amount recognized in accumulated other comprehensive income | 50 | 64 | |
Postretirement Benefit Plans [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, balance, beginning of year | 171 | 171 | |
Benefits earned | 0 | 0 | 0 |
Interest cost on benefit obligation | 3 | 4 | 7 |
Actuarial (gain) loss | (16) | 5 | |
Benefits paid | (9) | (10) | |
Foreign currency exchange rate change, change in projected benefit obligation | 0 | 1 | |
Benefit obligation, balance, end of year | 149 | 171 | 171 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, balance, beginning of year | 11 | 12 | |
Actual return on plan assets | 0 | 1 | |
Company contributions | 7 | 8 | |
Benefits paid | (9) | (10) | |
Fair value of plan assets, balance, end of year | 9 | 11 | $ 12 |
Funded status of plan at end of year | (140) | (160) | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Accrued under-funded benefit plan liabilities | (140) | (160) | |
Total amount recognized in the consolidated balance sheet | (140) | (160) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net actuarial loss (gain) | (54) | (41) | |
Prior service cost (benefit) | (14) | (18) | |
Total amount recognized in accumulated other comprehensive income | $ (68) | $ (59) |
Pension Plans, Retirement Ben_4
Pension Plans, Retirement Benefits and Savings Plans (Details) - Additional Pension Disclosures - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income: | |||
Total other changes in benefit plan assets and benefit obligations recognized in other comprehensive income | $ (455) | $ (18) | $ (33) |
Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Total accumulated benefit obligation | 4,250 | 4,400 | |
Aggregate projected benefit obligation for plans with a projected benefit obligation in excess of plan assets | 131 | 250 | |
Aggregate plan assets for plans with a projected benefit obligation in excess of plan assets | 0 | 109 | |
Aggregate accumulated benefit obligation for plans with an accumulated benefit obligation in excess of plan assets | 118 | 239 | |
Aggregate plan assets for plans with an accumulated benefit obligation in excess of plan assets | 0 | 109 | |
Actuarial gain (loss) | 75 | (356) | |
Company contributions | 12 | 9 | |
Components of net periodic benefit cost (benefit) | |||
Service cost | 141 | 133 | 118 |
Interest cost on benefit obligation | 83 | 114 | 141 |
Expected return on plan assets | (274) | (275) | (275) |
Net periodic benefit cost (benefit), amortization of unrecognized prior service benefit | (1) | (1) | (1) |
Net periodic benefit cost (benefit), amortization of unrecognized net actuarial (gain) loss | 109 | 93 | 56 |
Total non-service cost (benefit) | (83) | (69) | (79) |
Net periodic benefit cost (benefit) | 58 | 64 | 39 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income: | |||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, prior service benefit | 0 | 1 | 0 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, net actuarial (gain) loss | (338) | 61 | 49 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, foreign currency exchange rate change | 0 | 1 | 1 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, amortization of prior service benefit | 1 | 1 | 1 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, amortization of net actuarial gain (loss) | (109) | (93) | (56) |
Total other changes in benefit plan assets and benefit obligations recognized in other comprehensive income | (446) | (29) | (5) |
Total other changes recognized in net periodic benefit cost and other comprehensive income | (388) | 35 | 34 |
Pension Plans [Member] | Net investment income [Member] | |||
Components of net periodic benefit cost (benefit) | |||
Service cost | 1 | 1 | 1 |
Pension Plans [Member] | Claims and claim adjustment expenses [Member] | |||
Components of net periodic benefit cost (benefit) | |||
Service cost | 57 | 55 | 48 |
Total non-service cost (benefit) | (34) | (29) | (33) |
Pension Plans [Member] | General and administrative expenses [Member] | |||
Components of net periodic benefit cost (benefit) | |||
Service cost | 83 | 77 | 69 |
Total non-service cost (benefit) | (49) | (40) | (46) |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | |||
Defined benefit plan disclosure | |||
Total accumulated benefit obligation | 4,000 | 4,150 | |
Actuarial gain (loss) | 73 | (336) | |
Required contributions made | 0 | 0 | 0 |
Company contributions | 0 | 0 | 0 |
Required contributions during next fiscal year | 0 | ||
Components of net periodic benefit cost (benefit) | |||
Service cost | 135 | 128 | |
Interest cost on benefit obligation | 79 | 109 | |
Nonqualified and Foreign Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Total accumulated benefit obligation | 246 | 253 | |
Actuarial gain (loss) | 2 | (20) | |
Company contributions | 12 | 9 | |
Components of net periodic benefit cost (benefit) | |||
Service cost | 6 | 5 | |
Interest cost on benefit obligation | 4 | 5 | |
Postretirement Benefit Plans [Member] | |||
Defined benefit plan disclosure | |||
Aggregate accumulated benefit obligation for plans with an accumulated benefit obligation in excess of plan assets | 149 | 171 | |
Aggregate plan assets for plans with an accumulated benefit obligation in excess of plan assets | 9 | 11 | |
Actuarial gain (loss) | 16 | (5) | |
Company contributions | 7 | 8 | |
Components of net periodic benefit cost (benefit) | |||
Service cost | 0 | 0 | 0 |
Interest cost on benefit obligation | 3 | 4 | 7 |
Expected return on plan assets | 0 | 0 | (1) |
Net periodic benefit cost (benefit), amortization of unrecognized prior service benefit | (4) | (3) | (3) |
Net periodic benefit cost (benefit), amortization of unrecognized net actuarial (gain) loss | (2) | (4) | 0 |
Total non-service cost (benefit) | (3) | (3) | 3 |
Net periodic benefit cost (benefit) | (3) | (3) | 3 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income: | |||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, prior service benefit | 0 | 0 | 0 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, net actuarial (gain) loss | (16) | 4 | (31) |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, foreign currency exchange rate change | 0 | 0 | 0 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, amortization of prior service benefit | 4 | 3 | 3 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, amortization of net actuarial gain (loss) | 2 | 4 | 0 |
Total other changes in benefit plan assets and benefit obligations recognized in other comprehensive income | (10) | 11 | (28) |
Total other changes recognized in net periodic benefit cost and other comprehensive income | (13) | 8 | (25) |
Postretirement Benefit Plans [Member] | Net investment income [Member] | |||
Components of net periodic benefit cost (benefit) | |||
Service cost | 0 | 0 | 0 |
Postretirement Benefit Plans [Member] | Claims and claim adjustment expenses [Member] | |||
Components of net periodic benefit cost (benefit) | |||
Service cost | 0 | 0 | 0 |
Total non-service cost (benefit) | (1) | (1) | 1 |
Postretirement Benefit Plans [Member] | General and administrative expenses [Member] | |||
Components of net periodic benefit cost (benefit) | |||
Service cost | 0 | 0 | 0 |
Total non-service cost (benefit) | $ (2) | $ (2) | $ 2 |
Pension Plans, Retirement Ben_5
Pension Plans, Retirement Benefits and Savings Plans (Details) - Assumptions - United States [Member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plans [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine benefit obligations, cash balance interest crediting rate (percent) | 4.01% | 4.01% |
Assumptions used to determine benefit obligations, future compensation increase rate (percent) | 4.00% | 4.00% |
Assumptions used to determine net periodic benefit cost, expected long-term rate of return on assets (percent) | 6.50% | 6.75% |
Pension Plans [Member] | Qualified Plan [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine benefit obligations, discount rate (percent) | 2.96% | 2.60% |
Assumptions used to determine net periodic benefit cost, discount rate used to measure service cost (percent) | 2.96% | 3.50% |
Assumptions used to determine net periodic benefit cost, discount rate used to measure interest cost (percent) | 1.88% | 2.84% |
Pension Plans [Member] | Nonqualified Plan [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine benefit obligations, discount rate (percent) | 2.82% | 2.44% |
Assumptions used to determine net periodic benefit cost, discount rate used to measure service cost (percent) | 2.58% | 3.30% |
Assumptions used to determine net periodic benefit cost, discount rate used to measure interest cost (percent) | 1.69% | 2.73% |
Postretirement Benefit Plans [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine benefit obligations, discount rate (percent) | 2.62% | 2.27% |
Assumptions used to determine net periodic benefit cost, discount rate used to measure interest cost (percent) | 1.57% | 2.67% |
Assumptions used to determine net periodic benefit cost, expected long-term rate of return on assets (percent) | 4.00% | 4.00% |
Assumed health care cost trend rates, rate to which the cost trend rate is assumed to decline (ultimate trend rate) (percent) | 4.50% | 4.50% |
Postretirement Benefit Plan Before Age 65 [Member] | ||
Defined benefit plan disclosure | ||
Assumed health care cost trend rates, medical, following year (percent) | 6.50% | 6.75% |
Assumed health care cost trend rates, medical, year that the rate reaches the ultimate trend rate | 2029 | 2026 |
Postretirement Benefit Plan Age 65 and Older [Member] | ||
Defined benefit plan disclosure | ||
Assumed health care cost trend rates, medical, following year (percent) | 8.00% | 7.75% |
Assumed health care cost trend rates, medical, year that the rate reaches the ultimate trend rate | 2031 | 2027 |
Pension Plans, Retirement Ben_6
Pension Plans, Retirement Benefits and Savings Plans (Details) - Additional Information | Dec. 31, 2021 |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | Equity securities [Member] | Minimum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 55.00% |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | Equity securities [Member] | Maximum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 65.00% |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | Fixed income securities [Member] | Minimum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 20.00% |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | Fixed income securities [Member] | Maximum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 40.00% |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | Long-term growth [Member] | Minimum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 85.00% |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | Long-term growth [Member] | Maximum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 90.00% |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | Near-term benefit payments [Member] | Minimum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 10.00% |
Pension Plans [Member] | United States [Member] | Qualified Plan [Member] | Near-term benefit payments [Member] | Maximum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 15.00% |
Postretirement Benefit Plans [Member] | Fixed income securities [Member] | Minimum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 25.00% |
Postretirement Benefit Plans [Member] | Fixed income securities [Member] | Maximum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 75.00% |
Postretirement Benefit Plans [Member] | Long-term growth [Member] | Minimum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 35.00% |
Postretirement Benefit Plans [Member] | Long-term growth [Member] | Maximum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 65.00% |
Postretirement Benefit Plans [Member] | Near-term benefit payments [Member] | Minimum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 35.00% |
Postretirement Benefit Plans [Member] | Near-term benefit payments [Member] | Maximum [Member] | |
Defined benefit plan disclosure | |
Investment in class of securities (as a percentage) | 65.00% |
Pension Plans, Retirement Ben_7
Pension Plans, Retirement Benefits and Savings Plans (Details) - Fair Value - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | $ 5,036 | $ 4,756 | $ 4,385 |
Pension Plans [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 4,239 | 3,870 | |
Pension Plans [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 796 | 885 | |
Pension Plans [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | 1 | |
Pension Plans [Member] | Fixed maturities [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 748 | 783 | |
Pension Plans [Member] | Fixed maturities [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Fixed maturities [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 748 | 783 | |
Pension Plans [Member] | Fixed maturities [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Obligations of states, municipalities and political subdivisions [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 26 | 27 | |
Pension Plans [Member] | Obligations of states, municipalities and political subdivisions [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Obligations of states, municipalities and political subdivisions [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 26 | 27 | |
Pension Plans [Member] | Obligations of states, municipalities and political subdivisions [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Debt securities issued by foreign governments [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 38 | 30 | |
Pension Plans [Member] | Debt securities issued by foreign governments [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Debt securities issued by foreign governments [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 38 | 30 | |
Pension Plans [Member] | Debt securities issued by foreign governments [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 6 | 14 | |
Pension Plans [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 6 | 14 | |
Pension Plans [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | All other corporate bonds [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 678 | 712 | |
Pension Plans [Member] | All other corporate bonds [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | All other corporate bonds [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 678 | 712 | |
Pension Plans [Member] | All other corporate bonds [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Total mutual funds [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 2,759 | 2,655 | |
Pension Plans [Member] | Total mutual funds [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 2,749 | 2,645 | |
Pension Plans [Member] | Total mutual funds [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 10 | 10 | |
Pension Plans [Member] | Total mutual funds [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Equity mutual funds [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,645 | 1,706 | |
Pension Plans [Member] | Equity mutual funds [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,638 | 1,699 | |
Pension Plans [Member] | Equity mutual funds [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 7 | 7 | |
Pension Plans [Member] | Equity mutual funds [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Bond mutual funds [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,114 | 949 | |
Pension Plans [Member] | Bond mutual funds [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,111 | 946 | |
Pension Plans [Member] | Bond mutual funds [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 3 | 3 | |
Pension Plans [Member] | Bond mutual funds [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Equity securities [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,385 | 1,171 | |
Pension Plans [Member] | Equity securities [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,384 | 1,171 | |
Pension Plans [Member] | Equity securities [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | 0 | |
Pension Plans [Member] | Equity securities [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Other investments [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | 1 | |
Pension Plans [Member] | Other investments [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Other investments [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Other investments [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | 1 | |
Pension Plans [Member] | Cash and short-term securities [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 143 | 146 | |
Pension Plans [Member] | Cash and short-term securities [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 106 | 54 | |
Pension Plans [Member] | Cash and short-term securities [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 37 | 92 | |
Pension Plans [Member] | Cash and short-term securities [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Cash and short-term securities, U.S. Treasury securities [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Cash and short-term securities, U.S. Treasury securities [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Cash and short-term securities, U.S. Treasury securities [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Cash and short-term securities, U.S. Treasury securities [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Pension Plans [Member] | Cash and short-term securities, other [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 143 | 146 | |
Pension Plans [Member] | Cash and short-term securities, other [Member] | Level 1 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 106 | 54 | |
Pension Plans [Member] | Cash and short-term securities, other [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 37 | 92 | |
Pension Plans [Member] | Cash and short-term securities, other [Member] | Level 3 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefit Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 9 | 11 | $ 12 |
Postretirement Benefit Plans [Member] | Level 2 [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | $ 9 | $ 11 |
Pension Plans, Retirement Ben_8
Pension Plans, Retirement Benefits and Savings Plans (Details) - Future Payments $ in Millions | Dec. 31, 2021USD ($) |
Pension Plans [Member] | |
Estimated Future Benefit Payments | |
Benefits expected to be paid, 2022 | $ 270 |
Benefits expected to be paid, 2023 | 273 |
Benefits expected to be paid, 2024 | 273 |
Benefits expected to be paid, 2025 | 272 |
Benefits expected to be paid, 2026 | 279 |
Benefits expected to be paid, 2027 through 2031 | 1,372 |
Postretirement Benefit Plans [Member] | |
Estimated Future Benefit Payments | |
Benefits expected to be paid, 2022 | 10 |
Benefits expected to be paid, 2023 | 11 |
Benefits expected to be paid, 2024 | 11 |
Benefits expected to be paid, 2025 | 11 |
Benefits expected to be paid, 2026 | 11 |
Benefits expected to be paid, 2027 through 2031 | $ 49 |
Pension Plans, Retirement Ben_9
Pension Plans, Retirement Benefits and Savings Plans (Details) - Savings Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Savings Plan | |||
Expense related to all savings plans | $ 133,000,000 | $ 132,000,000 | $ 123,000,000 |
The Travelers 401(k) Savings Plan [Member] | |||
Savings Plan | |||
Maximum annual match | $ 7,000 | ||
Vesting percentage of employer match after vesting period | 100.00% | ||
Vesting period | 3 years | ||
The Travelers 401(k) Savings Plan [Member] | Maximum [Member] | |||
Savings Plan | |||
Matching contribution as a percent of eligible pay | 5.00% |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating leases | $ 89 | $ 95 |
Short-term leases | 1 | 2 |
Lease expense | 90 | 97 |
Less: sublease income | 0 | 0 |
Net lease cost | 90 | 97 |
Cash payments to settle a lease liability reported in cash flows | 104 | 109 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 59 | $ 67 |
Weighted average discount rate (percent) | 2.25% | 2.51% |
Weighted average remaining lease term (in years) | 4 years 10 months 24 days | 5 years |
Leases (Details) - Contractual
Leases (Details) - Contractual Maturities $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
Lease payments due, 2022 | $ 93 |
Lease payments due, 2023 | 78 |
Lease payments due, 2024 | 63 |
Lease payments due, 2025 | 43 |
Lease payments due, 2026 | 37 |
Lease payments due, thereafter | 43 |
Total undiscounted lease payments | 357 |
Less: present value adjustment | $ 26 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities |
Operating lease liability | $ 331 |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Details) - Commitments - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Contingencies, Commitments and Guarantees [Abstract] | ||
Unfunded commitments to private equity limited partnerships, real estate partnerships and others | $ 1,700 | $ 1,760 |
Contingencies, Commitments an_3
Contingencies, Commitments and Guarantees (Details) - Guarantees $ in Millions | Dec. 31, 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 |
Schedule II (Details) - Condens
Schedule II (Details) - Condensed Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement of Income | |||
Net investment income | $ 3,033 | $ 2,227 | $ 2,468 |
Net realized investment gains | 171 | 2 | 113 |
Total revenues | 34,816 | 31,981 | 31,581 |
Interest expense | 340 | 339 | 344 |
Other | 4,677 | 4,509 | 4,365 |
Total claims and expenses | 30,358 | 28,744 | 28,443 |
Income before income taxes | 4,458 | 3,237 | 3,138 |
Income tax expense (benefit) | 796 | 540 | 516 |
Net income | 3,662 | 2,697 | 2,622 |
Travelers [Member] | |||
Condensed Statement of Income | |||
Net investment income | 13 | 19 | 41 |
Net realized investment gains | 28 | 27 | 33 |
Total revenues | 41 | 46 | 74 |
Interest expense | 292 | 292 | 297 |
Other | 13 | 18 | 21 |
Total claims and expenses | 305 | 310 | 318 |
Income before income taxes | (264) | (264) | (244) |
Income tax expense (benefit) | (59) | (61) | (77) |
Loss before net income of subsidiaries | (205) | (203) | (167) |
Net income of subsidiaries | 3,867 | 2,900 | 2,789 |
Net income | $ 3,662 | $ 2,697 | $ 2,622 |
Schedule II (Details) - Conde_2
Schedule II (Details) - Condensed Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement of Comprehensive Income | |||
Net income | $ 3,662 | $ 2,697 | $ 2,622 |
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income | (2,115) | 2,331 | 2,994 |
Net changes in benefit plan assets and obligations | 455 | 18 | 33 |
Other comprehensive income (loss) before income taxes | (1,671) | 2,352 | 3,140 |
Income tax expense (benefit) | (362) | 490 | 641 |
Other comprehensive income (loss), net of taxes | (1,309) | 1,862 | 2,499 |
Comprehensive income | 2,353 | 4,559 | 5,121 |
Travelers [Member] | |||
Condensed Statement of Comprehensive Income | |||
Net income | 3,662 | 2,697 | 2,622 |
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income | (4) | 3 | 4 |
Net changes in benefit plan assets and obligations | 444 | 25 | 35 |
Other comprehensive income (loss) before income taxes | 440 | 28 | 39 |
Income tax expense (benefit) | 87 | 9 | 12 |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | 353 | 19 | 27 |
Other comprehensive income (loss) of subsidiaries | (1,662) | 1,843 | 2,472 |
Other comprehensive income (loss), net of taxes | (1,309) | 1,862 | 2,499 |
Comprehensive income | $ 2,353 | $ 4,559 | $ 5,121 |
Schedule II (Details) - Conde_3
Schedule II (Details) - Condensed Balance Sheet - USD ($) shares in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet | |||
Fixed maturities, at fair value | $ 77,810 | $ 74,003 | |
Equity securities, at fair value | 893 | 484 | |
Short-term securities | 3,836 | 5,511 | |
Total assets | 120,466 | 116,764 | |
Debt | 7,290 | 6,550 | |
Total liabilities | 91,579 | 87,563 | |
Common stock (1,750.0 shares authorized; 241.2 and 252.4 shares issued and outstanding) | 24,154 | 23,743 | |
Retained earnings | 41,555 | 38,771 | |
Accumulated other comprehensive income | 1,193 | 2,502 | |
Treasury stock, at cost (541.5 and 527.3 shares) | (38,015) | (35,815) | |
Total shareholders’ equity | 28,887 | 29,201 | $ 25,943 |
Total liabilities and shareholders’ equity | $ 120,466 | $ 116,764 | |
Common stock, shares authorized (in shares) | 1,750 | 1,750 | |
Common stock, shares issued (in shares) | 241.2 | 252.4 | |
Common stock, shares outstanding (in shares) | 241.2 | 252.4 | |
Treasury stock, at cost (in shares) | 541.5 | 527.3 | |
Travelers [Member] | |||
Condensed Balance Sheet | |||
Fixed maturities, at fair value | $ 95 | $ 94 | |
Equity securities, at fair value | 279 | 241 | |
Short-term securities | 1,479 | 1,646 | |
Investment in subsidiaries | 33,298 | 33,015 | |
Other assets | 704 | 330 | |
Total assets | 35,855 | 35,326 | |
Debt | 6,596 | 5,856 | |
Other liabilities | 366 | 262 | |
Total liabilities | 6,962 | 6,118 | |
Common stock (1,750.0 shares authorized; 241.2 and 252.4 shares issued and outstanding) | 24,154 | 23,743 | |
Retained earnings | 41,561 | 38,778 | |
Accumulated other comprehensive income | 1,193 | 2,502 | |
Treasury stock, at cost (541.5 and 527.3 shares) | (38,015) | (35,815) | |
Total shareholders’ equity | 28,893 | 29,208 | |
Total liabilities and shareholders’ equity | $ 35,855 | $ 35,326 | |
Common stock, shares authorized (in shares) | 1,750 | 1,750 | |
Common stock, shares issued (in shares) | 241.2 | 252.4 | |
Common stock, shares outstanding (in shares) | 241.2 | 252.4 | |
Treasury stock, at cost (in shares) | 541.5 | 527.3 |
Schedule II (Details) - Conde_4
Schedule II (Details) - Condensed Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement of Cash Flows | |||
Net income | $ 3,662 | $ 2,697 | $ 2,622 |
Deferred federal income tax expense (benefit) | 62 | (29) | (33) |
Other operating activities | 750 | 129 | 535 |
Net cash provided by operating activities | 7,274 | 6,519 | 5,205 |
Net sales (purchases) of short-term securities | 1,671 | (566) | (957) |
Net cash used in investing activities | (5,196) | (4,892) | (2,902) |
Treasury stock acquired — share repurchase authorization | (2,156) | (625) | (1,500) |
Treasury stock acquired — net employee share-based compensation | (44) | (47) | (48) |
Dividends paid to shareholders | (869) | (861) | (844) |
Payment of debt | 0 | (500) | (500) |
Issuance of debt | 739 | 490 | 492 |
Issuance of common stock -- employee share options | 293 | 127 | 213 |
Net cash used in financing activities | (2,037) | (1,416) | (2,187) |
Net increase in cash | 40 | 227 | 121 |
Cash at beginning of year | 721 | 494 | 373 |
Cash at end of year | 761 | 721 | 494 |
Cash received during the year for taxes | (707) | (578) | (428) |
Cash paid during the year for interest | 337 | 339 | 338 |
Travelers [Member] | |||
Condensed Statement of Cash Flows | |||
Net income | 3,662 | 2,697 | 2,622 |
Equity in net income of subsidiaries | (3,867) | (2,900) | (2,789) |
Dividends received from consolidated subsidiaries | 2,149 | 1,964 | 2,459 |
Deferred federal income tax expense (benefit) | 7 | 3 | (2) |
Change in income taxes payable | 0 | (6) | 3 |
Other operating activities | (69) | (79) | (79) |
Net cash provided by operating activities | 1,882 | 1,679 | 2,214 |
Net sales (purchases) of short-term securities | 167 | (256) | (19) |
Other investments, net | (11) | (7) | (8) |
Net cash used in investing activities | 156 | (263) | (27) |
Treasury stock acquired — share repurchase authorization | (2,156) | (625) | (1,500) |
Treasury stock acquired — net employee share-based compensation | (44) | (47) | (48) |
Dividends paid to shareholders | (869) | (861) | (844) |
Payment of debt | 0 | (500) | (500) |
Issuance of debt | 739 | 490 | 492 |
Issuance of common stock -- employee share options | 293 | 127 | 213 |
Net cash used in financing activities | (2,037) | (1,416) | (2,187) |
Net increase in cash | 1 | 0 | 0 |
Cash at beginning of year | 0 | 0 | 0 |
Cash at end of year | 1 | 0 | 0 |
Cash received during the year for taxes | 66 | 81 | 78 |
Cash paid during the year for interest | $ 289 | $ 291 | $ 291 |
Schedule II (Details) - Guarant
Schedule II (Details) - Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II Guarantees Footnote | GUARANTEES The Travelers Companies, Inc. (TRV) fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and TIGHI. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033. TRV also has contingent obligations for guarantees in connection with the selling of businesses to third parties, certain insurance obligations of a subsidiary and various indemnifications including indemnifications that it utilizes with service providers in the normal course of business. The guarantees and indemnification clauses are often standard contractual terms and include indemnifications for breaches of representations and warranties and in some cases obligations arising from certain liabilities. The terms of these provisions vary in duration and nature. |
Schedule II (Details) - Guara_2
Schedule II (Details) - Guarantees Schedule - Senior Notes [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
7.75% Senior notes due April 15, 2026 [Member] | ||
Guarantor obligations | ||
Amount of certain debt obligations of Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings, Inc. (TIGHI) that are fully and unconditionally guaranteed by The Travelers Companies, Inc. | $ 200 | |
Interest rate (percent) | 7.75% | 7.75% |
6.375% Senior notes due March 15, 2033 [Member] | ||
Guarantor obligations | ||
Amount of certain debt obligations of Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings, Inc. (TIGHI) that are fully and unconditionally guaranteed by The Travelers Companies, Inc. | $ 500 | |
Interest rate (percent) | 6.375% | 6.375% |
Guarantees on payment of principal, premiums and interest on certain debt obligations [Member] | Travelers [Member] | 7.75% Senior notes due April 15, 2026 [Member] | ||
Guarantor obligations | ||
Amount of certain debt obligations of Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings, Inc. (TIGHI) that are fully and unconditionally guaranteed by The Travelers Companies, Inc. | $ 200 | |
Interest rate (percent) | 7.75% | |
Guarantees on payment of principal, premiums and interest on certain debt obligations [Member] | Travelers [Member] | 6.375% Senior notes due March 15, 2033 [Member] | ||
Guarantor obligations | ||
Amount of certain debt obligations of Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings, Inc. (TIGHI) that are fully and unconditionally guaranteed by The Travelers Companies, Inc. | $ 500 | |
Interest rate (percent) | 6.375% |
Schedule III (Details)
Schedule III (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule III | |||
Deferred acquisition costs | $ 2,542 | $ 2,358 | $ 2,273 |
Claims and claim adjustment expense reserves | 56,907 | 54,521 | 51,849 |
Unearned premiums | 16,469 | 15,222 | 14,604 |
Earned premiums | 30,855 | 29,044 | 28,272 |
Net investment income | 3,033 | 2,227 | 2,468 |
Claims and claim adjustment expenses | 20,298 | 19,123 | 19,133 |
Amortization of deferred acquisition costs | 5,043 | 4,773 | 4,601 |
Other operating expenses | 5,017 | 4,848 | 4,709 |
Net written premiums | 31,959 | 29,732 | 29,151 |
Reportable segments [Member] | |||
Schedule III | |||
Deferred acquisition costs | 2,542 | 2,358 | 2,273 |
Claims and claim adjustment expense reserves | 56,897 | 54,510 | 51,836 |
Unearned premiums | 16,469 | 15,222 | 14,604 |
Earned premiums | 30,855 | 29,044 | 28,272 |
Net investment income | 3,033 | 2,227 | 2,468 |
Claims and claim adjustment expenses | 20,298 | 19,123 | 19,133 |
Amortization of deferred acquisition costs | 5,043 | 4,773 | 4,601 |
Other operating expenses | 4,648 | 4,478 | 4,330 |
Net written premiums | 31,959 | 29,732 | 29,151 |
Reportable segments [Member] | Business Insurance [Member] | |||
Schedule III | |||
Deferred acquisition costs | 1,206 | 1,152 | 1,161 |
Claims and claim adjustment expense reserves | 45,358 | 44,162 | 42,252 |
Unearned premiums | 7,953 | 7,556 | 7,540 |
Earned premiums | 15,734 | 15,294 | 15,300 |
Net investment income | 2,265 | 1,633 | 1,816 |
Claims and claim adjustment expenses | 10,398 | 10,804 | 10,963 |
Amortization of deferred acquisition costs | 2,581 | 2,518 | 2,503 |
Other operating expenses | 2,746 | 2,664 | 2,627 |
Net written premiums | 16,092 | 15,431 | 15,629 |
Reportable segments [Member] | Bond & Specialty Insurance [Member] | |||
Schedule III | |||
Deferred acquisition costs | 375 | 328 | 309 |
Claims and claim adjustment expense reserves | 4,247 | 3,814 | 3,316 |
Unearned premiums | 2,360 | 2,020 | 1,845 |
Earned premiums | 3,138 | 2,823 | 2,565 |
Net investment income | 247 | 213 | 233 |
Claims and claim adjustment expenses | 1,473 | 1,464 | 1,094 |
Amortization of deferred acquisition costs | 570 | 519 | 478 |
Other operating expenses | 532 | 500 | 483 |
Net written premiums | 3,376 | 2,951 | 2,739 |
Reportable segments [Member] | Personal Insurance [Member] | |||
Schedule III | |||
Deferred acquisition costs | 961 | 878 | 803 |
Claims and claim adjustment expense reserves | 7,292 | 6,534 | 6,268 |
Unearned premiums | 6,156 | 5,646 | 5,219 |
Earned premiums | 11,983 | 10,927 | 10,407 |
Net investment income | 521 | 381 | 419 |
Claims and claim adjustment expenses | 8,427 | 6,855 | 7,076 |
Amortization of deferred acquisition costs | 1,892 | 1,736 | 1,620 |
Other operating expenses | 1,370 | 1,314 | 1,220 |
Net written premiums | 12,491 | 11,350 | 10,783 |
Other [Member] | |||
Schedule III | |||
Deferred acquisition costs | 0 | 0 | 0 |
Claims and claim adjustment expense reserves | 10 | 11 | 13 |
Unearned premiums | 0 | 0 | 0 |
Earned premiums | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Claims and claim adjustment expenses | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 |
Other operating expenses | 369 | 370 | 379 |
Net written premiums | $ 0 | $ 0 | $ 0 |
Schedule V (Details)
Schedule V (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 |
Schedule V [Roll Forward] | |||||
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | $ 92 | $ 141 | $ 146 | $ 92 | |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Schedule V [Roll Forward] | |||||
Reinsurance recoverables, allowance for estimated uncollectible reinsurance | $ 53 | 53 | $ 53 | ||
Reinsurance recoverables [Member] | |||||
Schedule V [Roll Forward] | |||||
Valuation and qualifying accounts, balance at beginning of period | 146 | 92 | 110 | ||
Valuation and qualifying accounts, charged to costs and expenses | (5) | 1 | (18) | ||
Valuation and qualifying accounts, charged to other accounts | 0 | 53 | 0 | ||
Valuation and qualifying accounts, deductions | 0 | 0 | 0 | ||
Valuation and qualifying accounts, balance at end of period | 92 | 141 | 146 | 92 | |
Allowance for uncollectible premiums receivable from underwriting activities [Member] | |||||
Schedule V [Roll Forward] | |||||
Valuation and qualifying accounts, balance at beginning of period | 105 | 55 | 54 | ||
Valuation and qualifying accounts, charged to costs and expenses | 65 | 95 | 59 | ||
Valuation and qualifying accounts, charged to other accounts | 0 | 2 | 0 | ||
Valuation and qualifying accounts, deductions | 63 | 47 | 58 | ||
Valuation and qualifying accounts, balance at end of period | 55 | 107 | 105 | 55 | |
Allowance for uncollectible deductibles [Member] | |||||
Schedule V [Roll Forward] | |||||
Valuation and qualifying accounts, balance at beginning of period | 27 | 22 | 24 | ||
Valuation and qualifying accounts, charged to costs and expenses | 2 | 7 | (2) | ||
Valuation and qualifying accounts, charged to other accounts | 0 | (2) | 0 | ||
Valuation and qualifying accounts, deductions | 0 | 0 | 0 | ||
Valuation and qualifying accounts, balance at end of period | $ 22 | $ 29 | $ 27 | $ 22 |
Schedule VI (Details)
Schedule VI (Details) - Consolidated Property and Casualty Insurance Entity [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplementary Information Concerning Property-Casualty Insurance Operations | |||
Deferred acquisition costs | $ 2,542 | $ 2,358 | $ 2,273 |
Claims and claim adjustment expense reserves | 56,897 | 54,510 | 51,836 |
Discount from reserves for unpaid claims | 1,146 | 1,138 | 1,155 |
Unearned premiums | 16,469 | 15,222 | 14,604 |
Earned premiums | 30,855 | 29,044 | 28,272 |
Net investment income | 3,033 | 2,227 | 2,468 |
Claims and claim adjustment expenses incurred related to current year | 20,698 | 19,285 | 18,854 |
Claims and claim adjustment expenses incurred related to prior year | (484) | (267) | 164 |
Amortization of deferred acquisition costs | 5,043 | 4,773 | 4,601 |
Paid claims and claim adjustment expenses | 17,871 | 16,589 | 17,794 |
Net written premiums | $ 31,959 | $ 29,732 | $ 29,151 |