|
|
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
|
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
|
|
Delaware
|
|
36-6169860
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
151 N. Franklin
|
|
60606
|
|
Chicago,
|
Illinois
|
|
(Zip Code)
|
(Address of principal executive offices)
|
|
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, Par value $2.50
|
|
"CNA"
|
|
New York Stock Exchange
|
|
|
|
|
Chicago Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Item Number
|
|
Page
Number
|
|
|
|
1.
|
||
1A.
|
||
1B.
|
||
2.
|
||
3.
|
||
4.
|
||
|
PART II
|
|
5.
|
||
6.
|
||
7.
|
||
7A.
|
||
8.
|
||
9.
|
||
9A.
|
||
9B.
|
||
|
PART III
|
|
10.
|
||
11.
|
||
12.
|
||
13.
|
||
14.
|
||
|
PART IV
|
|
15.
|
Period
|
|
(a) Total number of shares purchased
|
|
(b) Average price paid per share
|
|
(c) Total number of shares purchased as part of publicly announced plans or programs
|
|
(d) Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions)
|
|||
October 1, 2019 - October 31, 2019
|
|
111,759
|
|
|
$
|
44.58
|
|
|
N/A
|
|
N/A
|
Total
|
|
111,759
|
|
|
|
|
|
N/A
|
|
N/A
|
Company / Index
|
Base Period
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
||||||||||||
CNA Financial Corporation
|
$
|
100.00
|
|
|
$
|
97.69
|
|
|
$
|
127.22
|
|
|
$
|
174.22
|
|
|
$
|
154.77
|
|
|
$
|
169.45
|
|
S&P 500 Index
|
100.00
|
|
|
101.38
|
|
|
113.51
|
|
|
138.29
|
|
|
132.23
|
|
|
173.86
|
|
||||||
S&P 500 Property & Casualty Insurance Index
|
100.00
|
|
|
109.53
|
|
|
126.73
|
|
|
155.10
|
|
|
147.83
|
|
|
186.07
|
|
|
Page No.
|
Long Term Care Active Life Reserve - Change in estimated reserve margin (In millions)
|
|
||
September 30, 2018 Estimated Margin
|
$
|
182
|
|
Changes in underlying discount rate assumptions
|
(280
|
)
|
|
Changes in underlying morbidity assumptions
|
32
|
|
|
Changes in underlying persistency assumptions and inforce policy inventory
|
(234
|
)
|
|
Changes in underlying premium rate action assumptions
|
58
|
|
|
Changes in underlying expense and other assumptions
|
26
|
|
|
September 30, 2019 Premium Deficiency
|
$
|
(216
|
)
|
2019 GPV
|
|
||
|
Estimated reduction to pretax income
|
||
Hypothetical revisions (In millions)
|
|||
Morbidity:
|
|
||
5% increase in morbidity
|
$
|
664
|
|
10% increase in morbidity
|
1,329
|
|
|
Persistency:
|
|
||
5% decrease in active life mortality and lapse
|
$
|
208
|
|
10% decrease in active life mortality and lapse
|
427
|
|
|
Discount Rates:
|
|
||
50 basis point decline in new money interest rates
|
$
|
309
|
|
100 basis point decline in new money interest rates
|
675
|
|
|
Premium Rate Actions:
|
|
||
25% decrease in anticipated future premium rate increases
|
$
|
58
|
|
50% decrease in anticipated future premium rate increases
|
115
|
|
Years ended December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Operating Revenues
|
|
|
|
||||
Net earned premiums
|
$
|
7,428
|
|
|
$
|
7,312
|
|
Net investment income
|
2,118
|
|
|
1,817
|
|
||
Non-insurance warranty revenue
|
1,161
|
|
|
1,007
|
|
||
Other revenues
|
31
|
|
|
50
|
|
||
Total operating revenues
|
10,738
|
|
|
10,186
|
|
||
Claims, Benefits and Expenses
|
|
|
|
||||
Net incurred claims and benefits
|
5,783
|
|
|
5,547
|
|
||
Policyholders' dividends
|
23
|
|
|
25
|
|
||
Amortization of deferred acquisition costs
|
1,383
|
|
|
1,335
|
|
||
Non-insurance warranty expense
|
1,082
|
|
|
923
|
|
||
Other insurance related expenses
|
1,038
|
|
|
1,039
|
|
||
Other expenses
|
235
|
|
|
301
|
|
||
Total claims, benefits and expenses
|
9,544
|
|
|
9,170
|
|
||
Core income before income tax
|
1,194
|
|
|
1,016
|
|
||
Income tax expense on core income
|
(215
|
)
|
|
(171
|
)
|
||
Core income
|
979
|
|
|
845
|
|
||
Net investment gains (losses)
|
29
|
|
|
(52
|
)
|
||
Income tax (expense) benefit on net investment gains (losses)
|
(8
|
)
|
|
14
|
|
||
Net investment gains (losses), after tax
|
21
|
|
|
(38
|
)
|
||
Net deferred tax asset remeasurement
|
—
|
|
|
6
|
|
||
Net income
|
$
|
1,000
|
|
|
$
|
813
|
|
•
|
Professional liability coverages and risk management services to various professional firms, including architects, real estate agents, accounting firms, and law firms.
|
•
|
D&O, employment practices, fiduciary and fidelity coverages. Specific areas of focus include small and mid-size firms, public as well as privately held firms and not-for-profit organizations.
|
•
|
Insurance products to serve the healthcare industry, including professional and general liability as well as associated standard property and casualty coverages. Key customer groups include aging services, allied medical facilities, dentists, physicians, hospitals, nurses and other medical practitioners.
|
Years ended December 31
|
|
|
|
||||
(In millions, except ratios, rate, renewal premium change and retention)
|
2019
|
|
2018
|
||||
Gross written premiums
|
$
|
6,900
|
|
|
$
|
6,904
|
|
Gross written premiums excluding third party captives
|
3,015
|
|
|
2,834
|
|
||
Net written premiums
|
2,848
|
|
|
2,744
|
|
||
Net earned premiums
|
2,773
|
|
|
2,732
|
|
||
Net investment income
|
556
|
|
|
439
|
|
||
Core income
|
671
|
|
|
629
|
|
||
|
|
|
|
||||
Other performance metrics:
|
|
|
|
||||
Loss and loss adjustment expense ratio
|
57.5
|
%
|
|
55.9
|
%
|
||
Expense ratio
|
32.5
|
|
|
32.1
|
|
||
Dividend ratio
|
0.2
|
|
|
0.2
|
|
||
Combined ratio
|
90.2
|
%
|
|
88.2
|
%
|
||
|
|
|
|
||||
Rate
|
5
|
%
|
|
2
|
%
|
||
Renewal premium change
|
6
|
|
|
5
|
|
||
Retention
|
87
|
|
|
85
|
|
||
New business
|
$
|
367
|
|
|
$
|
353
|
|
December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Gross case reserves
|
$
|
1,481
|
|
|
$
|
1,623
|
|
Gross IBNR reserves
|
3,757
|
|
|
3,842
|
|
||
Total gross carried claim and claim adjustment expense reserves
|
$
|
5,238
|
|
|
$
|
5,465
|
|
Net case reserves
|
$
|
1,343
|
|
|
$
|
1,483
|
|
Net IBNR reserves
|
3,333
|
|
|
3,348
|
|
||
Total net carried claim and claim adjustment expense reserves
|
$
|
4,676
|
|
|
$
|
4,831
|
|
Years ended December 31
|
|
|
|
||||
(In millions, except ratios, rate, renewal premium change and retention)
|
2019
|
|
2018
|
||||
Gross written premiums
|
$
|
3,693
|
|
|
$
|
3,350
|
|
Gross written premiums excluding third party captives
|
3,609
|
|
|
3,267
|
|
||
Net written premiums
|
3,315
|
|
|
3,060
|
|
||
Net earned premiums
|
3,162
|
|
|
3,050
|
|
||
Net investment income
|
654
|
|
|
500
|
|
||
Core income
|
489
|
|
|
357
|
|
||
|
|
|
|
||||
Other performance metrics:
|
|
|
|
||||
Loss and loss adjustment expense ratio
|
67.3
|
%
|
|
67.3
|
%
|
||
Expense ratio
|
32.9
|
|
|
33.1
|
|
||
Dividend ratio
|
0.6
|
|
|
0.7
|
|
||
Combined ratio
|
100.8
|
%
|
|
101.1
|
%
|
||
|
|
|
|
||||
Rate
|
3
|
%
|
|
1
|
%
|
||
Renewal premium change
|
5
|
|
|
5
|
|
||
Retention
|
86
|
|
|
85
|
|
||
New business
|
$
|
683
|
|
|
$
|
566
|
|
December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Gross case reserves
|
$
|
3,937
|
|
|
$
|
4,181
|
|
Gross IBNR reserves
|
4,719
|
|
|
4,562
|
|
||
Total gross carried claim and claim adjustment expense reserves
|
$
|
8,656
|
|
|
$
|
8,743
|
|
Net case reserves
|
$
|
3,543
|
|
|
$
|
3,831
|
|
Net IBNR reserves
|
4,306
|
|
|
4,167
|
|
||
Total net carried claim and claim adjustment expense reserves
|
$
|
7,849
|
|
|
$
|
7,998
|
|
December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Gross case reserves
|
$
|
858
|
|
|
$
|
867
|
|
Gross IBNR reserves
|
1,018
|
|
|
883
|
|
||
Total gross carried claim and claim adjustment expense reserves
|
$
|
1,876
|
|
|
$
|
1,750
|
|
Net case reserves
|
$
|
759
|
|
|
$
|
749
|
|
Net IBNR reserves
|
869
|
|
|
775
|
|
||
Total net carried claim and claim adjustment expense reserves
|
$
|
1,628
|
|
|
$
|
1,524
|
|
Years ended December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Net earned premiums
|
$
|
520
|
|
|
$
|
530
|
|
Net investment income
|
820
|
|
|
801
|
|
||
Core loss before income tax
|
(199
|
)
|
|
(14
|
)
|
||
Income tax benefit on core loss
|
90
|
|
|
57
|
|
||
Core (loss) income
|
(109
|
)
|
|
43
|
|
December 31, 2019
|
|
|
|
|
|
||||||
(In millions)
|
Claim and claim adjustment expenses
|
|
Future policy benefits
|
|
Total
|
||||||
Long term care
|
$
|
2,863
|
|
|
$
|
9,470
|
|
|
$
|
12,333
|
|
Structured settlement annuities
|
515
|
|
|
—
|
|
|
515
|
|
|||
Other
|
12
|
|
|
—
|
|
|
12
|
|
|||
Total
|
3,390
|
|
|
9,470
|
|
|
12,860
|
|
|||
Shadow adjustments (1)
|
167
|
|
|
2,615
|
|
|
2,782
|
|
|||
Ceded reserves (2)
|
159
|
|
|
226
|
|
|
385
|
|
|||
Total gross reserves
|
$
|
3,716
|
|
|
$
|
12,311
|
|
|
$
|
16,027
|
|
December 31, 2018
|
|
|
|
|
|
||||||
(In millions)
|
Claim and claim adjustment expenses
|
|
Future policy benefits
|
|
Total
|
||||||
Long term care
|
$
|
2,761
|
|
|
$
|
9,113
|
|
|
$
|
11,874
|
|
Structured settlement annuities
|
530
|
|
|
—
|
|
|
530
|
|
|||
Other
|
14
|
|
|
—
|
|
|
14
|
|
|||
Total
|
3,305
|
|
|
9,113
|
|
|
12,418
|
|
|||
Shadow adjustments (1)
|
115
|
|
|
1,250
|
|
|
1,365
|
|
|||
Ceded reserves (2)
|
181
|
|
|
234
|
|
|
415
|
|
|||
Total gross reserves
|
$
|
3,601
|
|
|
$
|
10,597
|
|
|
$
|
14,198
|
|
Years ended December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Net investment income
|
$
|
25
|
|
|
$
|
20
|
|
Interest expense
|
131
|
|
|
135
|
|
||
Core loss
|
(102
|
)
|
|
(165
|
)
|
December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Gross case reserves
|
$
|
1,137
|
|
|
$
|
1,208
|
|
Gross IBNR reserves
|
1,097
|
|
|
1,217
|
|
||
Total gross carried claim and claim adjustment expense reserves
|
$
|
2,234
|
|
|
$
|
2,425
|
|
Net case reserves
|
$
|
92
|
|
|
$
|
96
|
|
Net IBNR reserves
|
83
|
|
|
96
|
|
||
Total net carried claim and claim adjustment expense reserves
|
$
|
175
|
|
|
$
|
192
|
|
Years ended December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Fixed income securities:
|
|
|
|
||||
Taxable fixed income securities
|
$
|
1,538
|
|
|
$
|
1,449
|
|
Tax-exempt fixed income securities
|
318
|
|
|
384
|
|
||
Total fixed income securities
|
1,856
|
|
|
1,833
|
|
||
Limited partnership and common stock investments
|
226
|
|
|
(42
|
)
|
||
Other, net of investment expense
|
36
|
|
|
26
|
|
||
Pretax net investment income
|
$
|
2,118
|
|
|
$
|
1,817
|
|
Fixed income securities, after tax
|
$
|
1,520
|
|
|
$
|
1,512
|
|
Net investment income, after tax
|
1,727
|
|
|
1,500
|
|
||
|
|
|
|
||||
Effective income yield for the fixed income securities portfolio, pretax
|
4.8 %
|
|
|
4.7
|
%
|
||
Effective income yield for the fixed income securities portfolio, after tax
|
3.9 %
|
|
|
3.9
|
%
|
||
Limited partnership and common stock return
|
11.7 %
|
|
|
(1.9
|
)%
|
Years ended December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Fixed maturity securities:
|
|
|
|
||||
Corporate and other bonds
|
$
|
(8
|
)
|
|
$
|
26
|
|
States, municipalities and political subdivisions
|
13
|
|
|
36
|
|
||
Asset-backed
|
(11
|
)
|
|
(58
|
)
|
||
Total fixed maturity securities
|
(6
|
)
|
|
4
|
|
||
Non-redeemable preferred stock
|
66
|
|
|
(74
|
)
|
||
Short term and other
|
(31
|
)
|
|
18
|
|
||
Net investment gains (losses)
|
29
|
|
|
(52
|
)
|
||
Income tax (expense) benefit on net investment gains (losses)
|
(8
|
)
|
|
14
|
|
||
Net investment gains (losses), after tax
|
$
|
21
|
|
|
$
|
(38
|
)
|
December 31
|
2019
|
|
2018
|
||||||||||||
(In millions)
|
Estimated Fair Value
|
|
Net Unrealized Gains (Losses)
|
|
Estimated Fair Value
|
|
Net Unrealized Gains (Losses)
|
||||||||
U.S. Government, Government agencies and Government-sponsored enterprises
|
$
|
4,136
|
|
|
$
|
95
|
|
|
$
|
4,334
|
|
|
$
|
(24
|
)
|
AAA
|
3,254
|
|
|
349
|
|
|
3,027
|
|
|
245
|
|
||||
AA
|
6,663
|
|
|
801
|
|
|
6,510
|
|
|
512
|
|
||||
A
|
9,062
|
|
|
1,051
|
|
|
8,768
|
|
|
527
|
|
||||
BBB
|
16,839
|
|
|
1,684
|
|
|
14,205
|
|
|
274
|
|
||||
Non-investment grade
|
2,253
|
|
|
101
|
|
|
2,702
|
|
|
(73
|
)
|
||||
Total
|
$
|
42,207
|
|
|
$
|
4,081
|
|
|
$
|
39,546
|
|
|
$
|
1,461
|
|
|
December 31, 2019
|
||||||
(In millions)
|
Estimated Fair Value
|
|
Gross Unrealized Losses
|
||||
U.S. Government, Government agencies and Government-sponsored enterprises
|
$
|
271
|
|
|
$
|
3
|
|
AAA
|
91
|
|
|
2
|
|
||
AA
|
165
|
|
|
1
|
|
||
A
|
667
|
|
|
6
|
|
||
BBB
|
832
|
|
|
13
|
|
||
Non-investment grade
|
394
|
|
|
20
|
|
||
Total
|
$
|
2,420
|
|
|
$
|
45
|
|
|
December 31, 2019
|
||||||
(In millions)
|
Estimated Fair Value
|
|
Gross Unrealized Losses
|
||||
Due in one year or less
|
$
|
77
|
|
|
$
|
1
|
|
Due after one year through five years
|
613
|
|
|
15
|
|
||
Due after five years through ten years
|
1,367
|
|
|
16
|
|
||
Due after ten years
|
363
|
|
|
13
|
|
||
Total
|
$
|
2,420
|
|
|
$
|
45
|
|
December 31
|
2019
|
|
2018
|
||||||||||
(In millions)
|
Estimated Fair Value
|
|
Effective
Duration
(In years)
|
|
Estimated Fair Value
|
|
Effective
Duration
(In years)
|
||||||
Investments supporting Life & Group
|
$
|
18,015
|
|
|
8.9
|
|
|
$
|
16,212
|
|
|
8.4
|
|
Other investments
|
26,813
|
|
|
4.1
|
|
|
25,428
|
|
|
4.4
|
|
||
Total
|
$
|
44,828
|
|
|
6.0
|
|
|
$
|
41,640
|
|
|
6.0
|
|
December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Short term investments:
|
|
|
|
||||
Commercial paper
|
$
|
1,181
|
|
|
$
|
705
|
|
U.S. Treasury securities
|
364
|
|
|
185
|
|
||
Other
|
316
|
|
|
396
|
|
||
Total short term investments
|
$
|
1,861
|
|
|
$
|
1,286
|
|
•
|
In 2019, we repurchased 527,454 shares of our common stock at an aggregate cost of $23 million.
|
•
|
In 2019, we paid dividends of $929 million.
|
•
|
In the second quarter of 2019, we issued $500 million of 3.90% senior notes due May 1, 2029 and redeemed the $500 million outstanding aggregate principal balance of our 5.875% senior notes due August 15, 2020.
|
•
|
In 2018, we paid dividends of $896 million.
|
•
|
In the third quarter of 2018, we redeemed the $30 million of subordinated variable rate debt of Hardy due September 15, 2036.
|
•
|
In the first quarter of 2018, we redeemed the $150 million outstanding aggregate principal balance of our 6.950% senior notes due January 15, 2018.
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions)
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
||||||||||
Debt (1)
|
$
|
3,357
|
|
|
$
|
123
|
|
|
$
|
615
|
|
|
$
|
960
|
|
|
$
|
1,659
|
|
Lease obligations (2)
|
368
|
|
|
38
|
|
|
83
|
|
|
63
|
|
|
184
|
|
|||||
Claim and claim adjustment expense reserves (3)
|
22,814
|
|
|
5,512
|
|
|
5,928
|
|
|
2,994
|
|
|
8,380
|
|
|||||
Future policy benefit reserves (4)
|
27,539
|
|
|
(350
|
)
|
|
55
|
|
|
813
|
|
|
27,021
|
|
|||||
Total (5)
|
$
|
54,078
|
|
|
$
|
5,323
|
|
|
$
|
6,681
|
|
|
$
|
4,830
|
|
|
$
|
37,244
|
|
(1)
|
Includes estimated future interest payments.
|
(2)
|
The lease obligations reflected above are not discounted.
|
(3)
|
The Claim and claim adjustment expense reserves reflected above are not discounted and represent our estimate of the amount and timing of the ultimate settlement and administration of gross claims based on our assessment of facts and circumstances known as of December 31, 2019. See the Reserves - Estimates and Uncertainties section of this MD&A for further information.
|
(4)
|
The Future policy benefit reserves reflected above are not discounted and represent our estimate of the ultimate amount and timing of the settlement of benefits based on our assessment of facts and circumstances known as of December 31, 2019. See the Reserves - Estimates and Uncertainties section of this MD&A for further information.
|
(5)
|
Does not include investment commitments of approximately $945 million related to limited partnerships, privately placed debt securities and mortgage loans.
|
December 31, 2019
|
Insurer Financial Strength Ratings
|
|
Long Term Issuer Credit Ratings
|
A.M. Best
|
A
|
|
bbb+
|
Moody's
|
A2
|
|
Baa2
|
S&P
|
A+
|
|
A-
|
•
|
the risks and uncertainties associated with our insurance reserves, as outlined in the Critical Accounting Estimates and the Reserves - Estimates and Uncertainties sections of this report, including the sufficiency of the reserves and the possibility for future increases, which would be reflected in the results of operations in the period that the need for such adjustment is determined;
|
•
|
the risk that the other parties to the transaction in which, subject to certain limitations, we ceded our legacy A&EP liabilities will not fully perform their obligations to CNA, the uncertainty in estimating loss reserves for A&EP liabilities and the possible continued exposure of CNA to liabilities for A&EP claims that are not covered under the terms of the transaction;
|
•
|
the performance of reinsurance companies under reinsurance contracts with us; and
|
•
|
the risks and uncertainties associated with potential acquisitions and divestitures, including the consummation of such transactions, the successful integration of acquired operations and the potential for subsequent impairment of goodwill or intangible assets.
|
•
|
the impact of competitive products, policies and pricing and the competitive environment in which we operate, including changes in our book of business;
|
•
|
product and policy availability and demand and market responses, including the level of ability to obtain rate increases and decline or non-renew underpriced accounts, to achieve premium targets and profitability and to realize growth and retention estimates;
|
•
|
general economic and business conditions, including recessionary conditions that may decrease the size and number of our insurance customers and create additional losses to our lines of business, especially those that provide management and professional liability insurance, as well as surety bonds, to businesses engaged in real estate, financial services and professional services and inflationary pressures on medical care costs, construction costs and other economic sectors that increase the severity of claims;
|
•
|
conditions in the capital and credit markets, including uncertainty and instability in these markets, as well as the overall economy, and their impact on the returns, types, liquidity and valuation of our investments;
|
•
|
conditions in the capital and credit markets that may limit our ability to raise significant amounts of capital on favorable terms; and
|
•
|
the possibility of changes in our ratings by ratings agencies, including the inability to access certain markets or distribution channels and the required collateralization of future payment obligations as a result of such changes, and changes in rating agency policies and practices.
|
•
|
regulatory and legal initiatives and compliance with governmental regulations and other legal requirements, including with respect to cyber security protocols, legal inquiries by state authorities, judicial interpretations within the regulatory framework, including interpretation of policy provisions, decisions regarding coverage and theories of liability, legislative actions that increase claimant activity, including those revising applicability of statutes of limitations, trends in litigation and the outcome of any litigation involving us and rulings and changes in tax laws and regulations;
|
•
|
regulatory limitations, impositions and restrictions upon us, including with respect to our ability to increase premium rates, and the effects of assessments and other surcharges for guaranty funds and second-injury funds, other mandatory pooling arrangements and future assessments levied on insurance companies; and
|
•
|
regulatory limitations and restrictions, including limitations upon our ability to receive dividends from our insurance subsidiaries, imposed by regulatory authorities, including regulatory capital adequacy standards.
|
•
|
weather and other natural physical events, including the severity and frequency of storms, hail, snowfall and other winter conditions, natural disasters such as hurricanes and earthquakes, as well as climate change, including effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, rain, hail and snow;
|
•
|
regulatory requirements imposed by coastal state regulators in the wake of hurricanes or other natural disasters, including limitations on the ability to exit markets or to non-renew, cancel or change terms and conditions in policies, as well as mandatory assessments to fund any shortfalls arising from the inability of quasi-governmental insurers to pay claims;
|
•
|
man-made disasters, including the possible occurrence of terrorist attacks, the unpredictability of the nature, targets, severity or frequency of such events, and the effect of the absence or insufficiency of applicable terrorism legislation on coverages;
|
•
|
the occurrence of epidemics; and
|
•
|
mass tort claims, including, but not limited to, those related to exposure to potentially harmful products or substances such as glyphosate, lead paint and opioids; and claims arising from changes that repeal or weaken tort reforms, such as those related to abuse reviver statutes.
|
•
|
in 2016, the U.K. approved an exit from the E.U., commonly referred to as "Brexit.” While the withdrawal of the U.K. from the E.U. was official as of January 31, 2020, until the transition period ends, there remains a lack of specificity and detail regarding the long term relationship between the two sides and how businesses operating in both jurisdictions may be affected. In any event, effective January 1, 2019, our E.U. business is no longer handled out of our U.K.-domiciled subsidiary, but through our European subsidiary in Luxembourg, which was established specifically to address the departure of the U.K. from the E.U. and to ensure the Company’s ability to operate effectively throughout the E.U. As a result, the complexity and cost of regulatory compliance of our European business has increased and will likely continue to result in elevated expenses.
|
December 31, 2019
|
|
|
Increase (Decrease)
|
||||||||||||
(In millions)
|
Estimated Fair Value
|
|
Interest Rate Risk
|
|
Foreign Currency Risk
|
|
Equity Price Risk
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities (1)
|
$
|
42,207
|
|
|
$
|
(2,669
|
)
|
|
$
|
(229
|
)
|
|
$
|
—
|
|
Equity securities
|
865
|
|
|
(28
|
)
|
|
(1
|
)
|
|
(18
|
)
|
||||
Limited partnership investments
|
1,752
|
|
|
—
|
|
|
—
|
|
|
(70
|
)
|
||||
Other invested assets
|
65
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
||||
Mortgage loans (2)
|
1,025
|
|
|
(45
|
)
|
|
—
|
|
|
—
|
|
||||
Short term investments
|
1,861
|
|
|
(1
|
)
|
|
(13
|
)
|
|
—
|
|
||||
Total assets
|
47,775
|
|
|
(2,743
|
)
|
|
(249
|
)
|
|
(88
|
)
|
||||
Derivative financial instruments, included in Other liabilities
|
(7
|
)
|
|
16
|
|
|
—
|
|
|
—
|
|
||||
Total securities
|
$
|
47,768
|
|
|
$
|
(2,727
|
)
|
|
$
|
(249
|
)
|
|
$
|
(88
|
)
|
Long term debt (2)
|
$
|
2,906
|
|
|
$
|
(142
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
From a financial reporting perspective, Shadow Adjustments related to Life & Group reserves would reduce the impact of the decrease in fixed maturity securities.
|
(2)
|
Reported at amortized value in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
|
December 31, 2018
|
|
|
Increase (Decrease)
|
||||||||||||
(In millions)
|
Estimated Fair Value
|
|
Interest Rate Risk
|
|
Foreign Currency Risk
|
|
Equity Price Risk
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities (1)
|
$
|
39,546
|
|
|
$
|
(2,440
|
)
|
|
$
|
(203
|
)
|
|
$
|
—
|
|
Equity securities
|
780
|
|
|
(29
|
)
|
|
(2
|
)
|
|
(18
|
)
|
||||
Limited partnership investments
|
1,982
|
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
||||
Other invested assets
|
53
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Mortgage loans (2)
|
827
|
|
|
(36
|
)
|
|
—
|
|
|
—
|
|
||||
Short term investments
|
1,286
|
|
|
(1
|
)
|
|
(12
|
)
|
|
—
|
|
||||
Total assets
|
44,474
|
|
|
(2,506
|
)
|
|
(221
|
)
|
|
(97
|
)
|
||||
Derivative financial instruments, included in Other liabilities
|
4
|
|
|
15
|
|
|
—
|
|
|
—
|
|
||||
Total securities
|
$
|
44,478
|
|
|
$
|
(2,491
|
)
|
|
$
|
(221
|
)
|
|
$
|
(97
|
)
|
Long term debt (2)
|
$
|
2,731
|
|
|
$
|
(120
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
From a financial reporting perspective, Shadow Adjustments related to Life & Group reserves would reduce the impact of the decrease in fixed maturity securities.
|
(2)
|
Reported at amortized value in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
|
December 31, 2019
|
|
|
Increase (Decrease)
|
||||||||||||
(In millions)
|
Estimated Fair Value
|
|
Interest Rate Risk
|
|
Foreign Currency Risk
|
|
Equity Price Risk
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities (1)
|
$
|
42,207
|
|
|
$
|
(4,003
|
)
|
|
$
|
(458
|
)
|
|
$
|
—
|
|
Equity securities
|
865
|
|
|
(42
|
)
|
|
(3
|
)
|
|
(45
|
)
|
||||
Limited partnership investments
|
1,752
|
|
|
—
|
|
|
—
|
|
|
(175
|
)
|
||||
Other invested assets
|
65
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
||||
Mortgage loans (2)
|
1,025
|
|
|
(67
|
)
|
|
—
|
|
|
—
|
|
||||
Short term investments
|
1,861
|
|
|
(2
|
)
|
|
(27
|
)
|
|
—
|
|
||||
Total assets
|
47,775
|
|
|
(4,114
|
)
|
|
(499
|
)
|
|
(220
|
)
|
||||
Derivative financial instruments, included in Other liabilities
|
(7
|
)
|
|
24
|
|
|
—
|
|
|
—
|
|
||||
Total securities
|
$
|
47,768
|
|
|
$
|
(4,090
|
)
|
|
$
|
(499
|
)
|
|
$
|
(220
|
)
|
Long term debt (2)
|
$
|
2,906
|
|
|
$
|
(213
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
From a financial reporting perspective, Shadow Adjustments related to Life & Group reserves would reduce the impact of the decrease in fixed maturity securities.
|
(2)
|
Reported at amortized value in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
|
December 31, 2018
|
|
|
Increase (Decrease)
|
||||||||||||
(In millions)
|
Estimated Fair Value
|
|
Interest Rate Risk
|
|
Foreign Currency Risk
|
|
Equity Price Risk
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities (1)
|
$
|
39,546
|
|
|
$
|
(3,659
|
)
|
|
$
|
(406
|
)
|
|
$
|
—
|
|
Equity securities
|
780
|
|
|
(43
|
)
|
|
(3
|
)
|
|
(46
|
)
|
||||
Limited partnership investments
|
1,982
|
|
|
—
|
|
|
—
|
|
|
(198
|
)
|
||||
Other invested assets
|
53
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
||||
Mortgage loans (2)
|
827
|
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
||||
Short term investments
|
1,286
|
|
|
(2
|
)
|
|
(24
|
)
|
|
—
|
|
||||
Total assets
|
44,474
|
|
|
(3,758
|
)
|
|
(442
|
)
|
|
(244
|
)
|
||||
Derivative financial instruments, included in Other liabilities
|
4
|
|
|
22
|
|
|
—
|
|
|
—
|
|
||||
Total securities
|
$
|
44,478
|
|
|
$
|
(3,736
|
)
|
|
$
|
(442
|
)
|
|
$
|
(244
|
)
|
Long term debt (2)
|
$
|
2,731
|
|
|
$
|
(180
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
From a financial reporting perspective, Shadow Adjustments related to Life & Group reserves would reduce the impact of the decrease in fixed maturity securities.
|
(2)
|
Reported at amortized value in the Consolidated Balance Sheets included under Item 8 and not adjusted for fair value changes.
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
|
|
|
|
|
||||||
Net earned premiums
|
$
|
7,428
|
|
|
$
|
7,312
|
|
|
$
|
6,988
|
|
Net investment income
|
2,118
|
|
|
1,817
|
|
|
2,034
|
|
|||
Net investment gains (losses):
|
|
|
|
|
|
|
|||||
Other-than-temporary impairment losses
|
(44
|
)
|
|
(21
|
)
|
|
(14
|
)
|
|||
Other net investment gains (losses)
|
73
|
|
|
(31
|
)
|
|
107
|
|
|||
Net investment gains (losses)
|
29
|
|
|
(52
|
)
|
|
93
|
|
|||
Non-insurance warranty revenue
|
1,161
|
|
|
1,007
|
|
|
390
|
|
|||
Other revenues
|
31
|
|
|
50
|
|
|
37
|
|
|||
Total revenues
|
10,767
|
|
|
10,134
|
|
|
9,542
|
|
|||
Claims, Benefits and Expenses
|
|
|
|
|
|
||||||
Insurance claims and policyholders’ benefits
|
5,806
|
|
|
5,572
|
|
|
5,310
|
|
|||
Amortization of deferred acquisition costs
|
1,383
|
|
|
1,335
|
|
|
1,233
|
|
|||
Non-insurance warranty expense
|
1,082
|
|
|
923
|
|
|
299
|
|
|||
Other operating expenses
|
1,142
|
|
|
1,202
|
|
|
1,229
|
|
|||
Interest
|
131
|
|
|
138
|
|
|
161
|
|
|||
Total claims, benefits and expenses
|
9,544
|
|
|
9,170
|
|
|
8,232
|
|
|||
Income before income tax
|
1,223
|
|
|
964
|
|
|
1,310
|
|
|||
Income tax expense
|
(223
|
)
|
|
(151
|
)
|
|
(411
|
)
|
|||
Net income
|
$
|
1,000
|
|
|
$
|
813
|
|
|
$
|
899
|
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
3.68
|
|
|
$
|
2.99
|
|
|
$
|
3.32
|
|
|
|
|
|
|
|
||||||
Diluted earnings per share
|
$
|
3.67
|
|
|
$
|
2.98
|
|
|
$
|
3.30
|
|
|
|
|
|
|
|
||||||
Weighted Average Outstanding Common Stock and Common Stock Equivalents
|
|
|
|
|
|
||||||
Basic
|
271.6
|
|
|
271.5
|
|
|
271.1
|
|
|||
Diluted
|
272.5
|
|
|
272.5
|
|
|
272.1
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Comprehensive Income (Loss)
|
|
|
|
|
|
||||||
Net income
|
$
|
1,000
|
|
|
$
|
813
|
|
|
$
|
899
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
||||||
Changes in:
|
|
|
|
|
|
||||||
Net unrealized gains on investments with other-than-temporary impairments
|
(1
|
)
|
|
(14
|
)
|
|
(5
|
)
|
|||
Net unrealized gains on other investments
|
949
|
|
|
(798
|
)
|
|
108
|
|
|||
Net unrealized gains on investments
|
948
|
|
|
(812
|
)
|
|
103
|
|
|||
Foreign currency translation adjustment
|
39
|
|
|
(82
|
)
|
|
100
|
|
|||
Pension and postretirement benefits
|
(58
|
)
|
|
—
|
|
|
2
|
|
|||
Other comprehensive income (loss), net of tax
|
929
|
|
|
(894
|
)
|
|
205
|
|
|||
Total comprehensive income (loss)
|
$
|
1,929
|
|
|
$
|
(81
|
)
|
|
$
|
1,104
|
|
December 31
|
|
|
|
||||
(In millions, except share data)
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085)
|
$
|
42,207
|
|
|
$
|
39,546
|
|
Equity securities at fair value (cost of $820 and $844)
|
865
|
|
|
780
|
|
||
Limited partnership investments
|
1,752
|
|
|
1,982
|
|
||
Other invested assets
|
65
|
|
|
53
|
|
||
Mortgage loans
|
994
|
|
|
839
|
|
||
Short term investments
|
1,861
|
|
|
1,286
|
|
||
Total investments
|
47,744
|
|
|
44,486
|
|
||
Cash
|
242
|
|
|
310
|
|
||
Reinsurance receivables (less allowance for uncollectible receivables of $25 and $29)
|
4,179
|
|
|
4,426
|
|
||
Insurance receivables (less allowance for uncollectible receivables of $32 and $42)
|
2,449
|
|
|
2,323
|
|
||
Accrued investment income
|
395
|
|
|
391
|
|
||
Deferred acquisition costs
|
662
|
|
|
633
|
|
||
Deferred income taxes
|
199
|
|
|
392
|
|
||
Property and equipment at cost (less accumulated depreciation of $215 and $216)
|
282
|
|
|
324
|
|
||
Goodwill
|
147
|
|
|
146
|
|
||
Deferred non-insurance warranty acquisition expense
|
2,840
|
|
|
2,513
|
|
||
Other assets (includes $21 and $8 due from Loews Corporation)
|
1,473
|
|
|
1,208
|
|
||
Total assets
|
$
|
60,612
|
|
|
$
|
57,152
|
|
Liabilities
|
|
|
|
|
|
||
Insurance reserves:
|
|
|
|
|
|||
Claim and claim adjustment expenses
|
$
|
21,720
|
|
|
$
|
21,984
|
|
Unearned premiums
|
4,583
|
|
|
4,183
|
|
||
Future policy benefits
|
12,311
|
|
|
10,597
|
|
||
Long term debt
|
2,679
|
|
|
2,680
|
|
||
Deferred non-insurance warranty revenue
|
3,779
|
|
|
3,402
|
|
||
Other liabilities (includes $21 and $23 due to Loews Corporation)
|
3,325
|
|
|
3,089
|
|
||
Total liabilities
|
48,397
|
|
|
45,935
|
|
||
Commitments and contingencies (Notes B and F)
|
|
|
|
|
|
||
Stockholders' Equity
|
|
|
|
|
|
||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,412,591 and 271,456,978 shares outstanding)
|
683
|
|
|
683
|
|
||
Additional paid-in capital
|
2,203
|
|
|
2,192
|
|
||
Retained earnings
|
9,348
|
|
|
9,277
|
|
||
Accumulated other comprehensive income (loss)
|
51
|
|
|
(878
|
)
|
||
Treasury stock (1,627,652 and 1,583,265 shares), at cost
|
(70
|
)
|
|
(57
|
)
|
||
Total stockholders’ equity
|
12,215
|
|
|
11,217
|
|
||
Total liabilities and stockholders' equity
|
$
|
60,612
|
|
|
$
|
57,152
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,000
|
|
|
$
|
813
|
|
|
$
|
899
|
|
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
|
|
|
|
|
||||||
Deferred income tax (benefit) expense
|
(46
|
)
|
|
(20
|
)
|
|
168
|
|
|||
Trading portfolio activity
|
(16
|
)
|
|
—
|
|
|
9
|
|
|||
Net investment (gains) losses
|
(29
|
)
|
|
52
|
|
|
(93
|
)
|
|||
Equity method investees
|
11
|
|
|
330
|
|
|
84
|
|
|||
Net amortization of investments
|
(89
|
)
|
|
(70
|
)
|
|
(40
|
)
|
|||
Depreciation and amortization
|
68
|
|
|
79
|
|
|
88
|
|
|||
Changes in:
|
|
|
|
|
|
||||||
Receivables, net
|
137
|
|
|
(229
|
)
|
|
92
|
|
|||
Accrued investment income
|
(3
|
)
|
|
19
|
|
|
(4
|
)
|
|||
Deferred acquisition costs
|
(26
|
)
|
|
(6
|
)
|
|
(24
|
)
|
|||
Insurance reserves
|
358
|
|
|
482
|
|
|
22
|
|
|||
Other, net
|
(225
|
)
|
|
(223
|
)
|
|
53
|
|
|||
Net cash flows provided by operating activities
|
1,140
|
|
|
1,227
|
|
|
1,254
|
|
|||
Cash Flows from Investing Activities
|
|
|
|
|
|
|
|
||||
Dispositions:
|
|
|
|
|
|
||||||
Fixed maturity securities - sales
|
5,842
|
|
|
8,408
|
|
|
5,438
|
|
|||
Fixed maturity securities - maturities, calls and redemptions
|
2,997
|
|
|
2,370
|
|
|
3,641
|
|
|||
Equity securities
|
214
|
|
|
89
|
|
|
46
|
|
|||
Limited partnerships
|
479
|
|
|
343
|
|
|
192
|
|
|||
Mortgage loans
|
143
|
|
|
128
|
|
|
26
|
|
|||
Purchases:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
(8,661
|
)
|
|
(10,785
|
)
|
|
(9,065
|
)
|
|||
Equity securities
|
(186
|
)
|
|
(258
|
)
|
|
(166
|
)
|
|||
Limited partnerships
|
(198
|
)
|
|
(419
|
)
|
|
(171
|
)
|
|||
Mortgage loans
|
(298
|
)
|
|
(128
|
)
|
|
(274
|
)
|
|||
Change in other investments
|
(11
|
)
|
|
(12
|
)
|
|
(3
|
)
|
|||
Change in short term investments
|
(535
|
)
|
|
168
|
|
|
(6
|
)
|
|||
Purchases of property and equipment
|
(26
|
)
|
|
(99
|
)
|
|
(102
|
)
|
|||
Other, net
|
15
|
|
|
18
|
|
|
20
|
|
|||
Net cash flows used by investing activities
|
(225
|
)
|
|
(177
|
)
|
|
(424
|
)
|
|||
Cash Flows from Financing Activities
|
|
|
|
|
|
||||||
Dividends paid to common stockholders
|
(929
|
)
|
|
(896
|
)
|
|
(842
|
)
|
|||
Proceeds from the issuance of debt
|
496
|
|
|
—
|
|
|
496
|
|
|||
Repayment of debt
|
(520
|
)
|
|
(180
|
)
|
|
(391
|
)
|
|||
Purchase of treasury stock
|
(23
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(12
|
)
|
|
(9
|
)
|
|
(18
|
)
|
|||
Net cash flows used by financing activities
|
(988
|
)
|
|
(1,085
|
)
|
|
(755
|
)
|
|||
Effect of foreign exchange rate changes on cash
|
5
|
|
|
(10
|
)
|
|
9
|
|
|||
Net change in cash
|
(68
|
)
|
|
(45
|
)
|
|
84
|
|
|||
Cash, beginning of year
|
310
|
|
|
355
|
|
|
271
|
|
|||
Cash, end of period
|
$
|
242
|
|
|
$
|
310
|
|
|
$
|
355
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Common Stock
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
683
|
|
|
$
|
683
|
|
|
$
|
683
|
|
Balance, end of year
|
683
|
|
|
683
|
|
|
683
|
|
|||
Additional Paid-in Capital
|
|
|
|
|
|
||||||
Balance, beginning of year
|
2,192
|
|
|
2,175
|
|
|
2,173
|
|
|||
Stock-based compensation
|
11
|
|
|
17
|
|
|
2
|
|
|||
Balance, end of year
|
2,203
|
|
|
2,192
|
|
|
2,175
|
|
|||
Retained Earnings
|
|
|
|
|
|
||||||
Balance, beginning of year, as previously reported
|
9,277
|
|
|
9,414
|
|
|
9,359
|
|
|||
Cumulative effect adjustments from changes in accounting guidance, net of tax
|
—
|
|
|
(50
|
)
|
|
—
|
|
|||
Balance, beginning of year, as adjusted
|
9,277
|
|
|
9,364
|
|
|
9,359
|
|
|||
Dividends to common stockholders ($3.40, $3.30, and $3.10 per share)
|
(929
|
)
|
|
(900
|
)
|
|
(844
|
)
|
|||
Net income
|
1,000
|
|
|
813
|
|
|
899
|
|
|||
Balance, end of year
|
9,348
|
|
|
9,277
|
|
|
9,414
|
|
|||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
||||||
Balance, beginning of year, as previously reported
|
(878
|
)
|
|
32
|
|
|
(173
|
)
|
|||
Cumulative effect adjustments from changes in accounting guidance, net of tax
|
—
|
|
|
(16
|
)
|
|
—
|
|
|||
Balance, beginning of year, as adjusted
|
(878
|
)
|
|
16
|
|
|
(173
|
)
|
|||
Other comprehensive income (loss)
|
929
|
|
|
(894
|
)
|
|
205
|
|
|||
Balance, end of year
|
51
|
|
|
(878
|
)
|
|
32
|
|
|||
Treasury Stock
|
|
|
|
|
|
||||||
Balance, beginning of year
|
(57
|
)
|
|
(60
|
)
|
|
(73
|
)
|
|||
Stock-based compensation
|
10
|
|
|
3
|
|
|
13
|
|
|||
Purchase of treasury stock
|
(23
|
)
|
|
—
|
|
|
—
|
|
|||
Balance, end of year
|
(70
|
)
|
|
(57
|
)
|
|
(60
|
)
|
|||
Total stockholders' equity
|
$
|
12,215
|
|
|
$
|
11,217
|
|
|
$
|
12,244
|
|
(In millions)
|
Balance as of December 31, 2018
|
|
Adjustments Due to Adoption of Topic 842
|
|
Balance as of January 1, 2019
|
||||||
Property and equipment at cost (less accumulated depreciation)
|
$
|
324
|
|
|
$
|
2
|
|
|
$
|
326
|
|
Other assets
|
1,208
|
|
|
237
|
|
|
1,445
|
|
|||
Other liabilities
|
3,089
|
|
|
239
|
|
|
3,328
|
|
(In millions)
|
Balance as of December 31, 2017
|
|
Adjustments Due to Adoption of Topic 606
|
|
Balance as of January 1, 2018
|
||||||
Deferred non-insurance warranty acquisition expense
|
$
|
212
|
|
|
$
|
1,882
|
|
|
$
|
2,094
|
|
Deferred non-insurance warranty revenue
|
972
|
|
|
1,969
|
|
|
2,941
|
|
|||
Deferred income taxes
|
137
|
|
|
21
|
|
|
158
|
|
|||
Retained earnings
|
9,414
|
|
|
(66
|
)
|
|
9,348
|
|
Year ended December 31, 2018
|
|
|
|
|
|
||||||
|
Prior to Adoption
|
|
Effect of Adoption
|
|
As Reported
|
||||||
(In millions)
|
|||||||||||
Statement of operations:
|
|
|
|
|
|
||||||
Non-insurance warranty revenue
|
$
|
420
|
|
|
$
|
587
|
|
|
$
|
1,007
|
|
Total revenues
|
9,547
|
|
|
587
|
|
|
10,134
|
|
|||
|
|
|
|
|
|
||||||
Non-insurance warranty expense
|
328
|
|
|
595
|
|
|
923
|
|
|||
Total claims, benefits and expenses
|
8,575
|
|
|
595
|
|
|
9,170
|
|
|||
|
|
|
|
|
|
||||||
Income before income tax
|
972
|
|
|
(8
|
)
|
|
964
|
|
|||
Income tax expense
|
(153
|
)
|
|
2
|
|
|
(151
|
)
|
|||
Net income
|
819
|
|
|
(6
|
)
|
|
813
|
|
|||
|
|
|
|
|
|
||||||
Balance sheet(1) at December 31, 2018:
|
|
|
|
|
|
||||||
Deferred non-insurance warranty acquisition expense
|
$
|
2,116
|
|
|
$
|
397
|
|
|
$
|
2,513
|
|
Deferred non-insurance warranty revenue
|
2,997
|
|
|
405
|
|
|
3,402
|
|
|||
Deferred income taxes
|
390
|
|
|
2
|
|
|
392
|
|
|||
Retained earnings
|
9,283
|
|
|
(6
|
)
|
|
9,277
|
|
(1)
|
The Prior to Adoption amounts presented in this table include the cumulative effect adjustment at adoption presented in the prior table.
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Fixed maturity securities
|
$
|
1,817
|
|
|
$
|
1,795
|
|
|
$
|
1,812
|
|
Equity securities
|
85
|
|
|
18
|
|
|
12
|
|
|||
Limited partnership investments
|
180
|
|
|
(22
|
)
|
|
207
|
|
|||
Mortgage loans
|
51
|
|
|
50
|
|
|
34
|
|
|||
Short term investments
|
34
|
|
|
26
|
|
|
15
|
|
|||
Trading portfolio
|
9
|
|
|
7
|
|
|
12
|
|
|||
Other
|
5
|
|
|
4
|
|
|
1
|
|
|||
Gross investment income
|
2,181
|
|
|
1,878
|
|
|
2,093
|
|
|||
Investment expense
|
(63
|
)
|
|
(61
|
)
|
|
(59
|
)
|
|||
Net investment income
|
$
|
2,118
|
|
|
$
|
1,817
|
|
|
$
|
2,034
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net investment gains (losses):
|
|
|
|
|
|
||||||
Fixed maturity securities:
|
|
|
|
|
|
||||||
Gross gains
|
$
|
125
|
|
|
$
|
168
|
|
|
$
|
186
|
|
Gross losses
|
(131
|
)
|
|
(164
|
)
|
|
(64
|
)
|
|||
Net investment gains (losses) on fixed maturity securities
|
(6
|
)
|
|
4
|
|
|
122
|
|
|||
Equity securities
|
66
|
|
|
(74
|
)
|
|
—
|
|
|||
Derivatives
|
(11
|
)
|
|
9
|
|
|
(4
|
)
|
|||
Short term investments and other
|
(20
|
)
|
|
9
|
|
|
(25
|
)
|
|||
Net investment gains (losses)
|
$
|
29
|
|
|
$
|
(52
|
)
|
|
$
|
93
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net change in unrealized gains on investments:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
$
|
2,620
|
|
|
$
|
(1,811
|
)
|
|
$
|
728
|
|
Equity securities (1)
|
—
|
|
|
—
|
|
|
32
|
|
|||
Other
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||
Total net change in unrealized gains on investments
|
$
|
2,620
|
|
|
$
|
(1,811
|
)
|
|
$
|
758
|
|
(1)
|
As of January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The change in fair value of equity securities is now recognized through the income statement. See Note A to the Consolidated Financial Statements for additional information.
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Fixed maturity securities available-for-sale:
|
|
|
|
|
|
||||||
Corporate and other bonds
|
$
|
33
|
|
|
$
|
12
|
|
|
$
|
12
|
|
Asset-backed
|
11
|
|
|
9
|
|
|
1
|
|
|||
Total fixed maturity securities available-for-sale
|
44
|
|
|
21
|
|
|
13
|
|
|||
Equity securities available-for-sale
|
—
|
|
|
—
|
|
|
1
|
|
|||
OTTI losses recognized in earnings
|
$
|
44
|
|
|
$
|
21
|
|
|
$
|
14
|
|
December 31, 2019
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Estimated
Fair Value |
|
Unrealized
OTTI Losses (Gains) |
||||||||||
(In millions)
|
|
|
|
|
|||||||||||||||
Fixed maturity securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate and other bonds
|
$
|
19,789
|
|
|
$
|
2,292
|
|
|
$
|
32
|
|
|
$
|
22,049
|
|
|
$
|
—
|
|
States, municipalities and political subdivisions
|
9,093
|
|
|
1,559
|
|
|
—
|
|
|
10,652
|
|
|
—
|
|
|||||
Asset-backed:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
4,387
|
|
|
133
|
|
|
1
|
|
|
4,519
|
|
|
(17
|
)
|
|||||
Commercial mortgage-backed
|
2,265
|
|
|
86
|
|
|
5
|
|
|
2,346
|
|
|
1
|
|
|||||
Other asset-backed
|
1,925
|
|
|
41
|
|
|
4
|
|
|
1,962
|
|
|
(3
|
)
|
|||||
Total asset-backed
|
8,577
|
|
|
260
|
|
|
10
|
|
|
8,827
|
|
|
(19
|
)
|
|||||
U.S. Treasury and obligations of government-sponsored enterprises
|
146
|
|
|
1
|
|
|
2
|
|
|
145
|
|
|
—
|
|
|||||
Foreign government
|
491
|
|
|
14
|
|
|
1
|
|
|
504
|
|
|
—
|
|
|||||
Redeemable preferred stock
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|||||
Total fixed maturity securities available-for-sale
|
38,106
|
|
|
4,126
|
|
|
45
|
|
|
42,187
|
|
|
$
|
(19
|
)
|
||||
Total fixed maturity securities trading
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
|
||||||
Total fixed maturity securities
|
$
|
38,126
|
|
|
$
|
4,126
|
|
|
$
|
45
|
|
|
$
|
42,207
|
|
|
|
December 31, 2018
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Unrealized
OTTI
Losses (Gains)
|
||||||||||
(In millions)
|
|
|
|
|
|||||||||||||||
Fixed maturity securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate and other bonds
|
$
|
18,764
|
|
|
$
|
791
|
|
|
$
|
395
|
|
|
$
|
19,160
|
|
|
$
|
—
|
|
States, municipalities and political subdivisions
|
9,681
|
|
|
1,076
|
|
|
9
|
|
|
10,748
|
|
|
—
|
|
|||||
Asset-backed:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
4,815
|
|
|
68
|
|
|
57
|
|
|
4,826
|
|
|
(20
|
)
|
|||||
Commercial mortgage-backed
|
2,200
|
|
|
28
|
|
|
32
|
|
|
2,196
|
|
|
—
|
|
|||||
Other asset-backed
|
1,975
|
|
|
11
|
|
|
24
|
|
|
1,962
|
|
|
—
|
|
|||||
Total asset-backed
|
8,990
|
|
|
107
|
|
|
113
|
|
|
8,984
|
|
|
(20
|
)
|
|||||
U.S. Treasury and obligations of government-sponsored enterprises
|
156
|
|
|
3
|
|
|
—
|
|
|
159
|
|
|
—
|
|
|||||
Foreign government
|
480
|
|
|
5
|
|
|
4
|
|
|
481
|
|
|
—
|
|
|||||
Redeemable preferred stock
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|||||
Total fixed maturity securities available-for-sale
|
38,081
|
|
|
1,982
|
|
|
521
|
|
|
39,542
|
|
|
$
|
(20
|
)
|
||||
Total fixed maturity securities trading
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
|
||||||
Total fixed maturity securities
|
$
|
38,085
|
|
|
$
|
1,982
|
|
|
$
|
521
|
|
|
$
|
39,546
|
|
|
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
December 31, 2019
|
Estimated
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
(In millions)
|
|
|
|
|
|
||||||||||||||||||
Fixed maturity securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate and other bonds
|
$
|
914
|
|
|
$
|
21
|
|
|
$
|
186
|
|
|
$
|
11
|
|
|
$
|
1,100
|
|
|
$
|
32
|
|
States, municipalities and political subdivisions
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
||||||
Asset-backed:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed
|
249
|
|
|
1
|
|
|
30
|
|
|
—
|
|
|
279
|
|
|
1
|
|
||||||
Commercial mortgage-backed
|
381
|
|
|
3
|
|
|
20
|
|
|
2
|
|
|
401
|
|
|
5
|
|
||||||
Other asset-backed
|
449
|
|
|
3
|
|
|
33
|
|
|
1
|
|
|
482
|
|
|
4
|
|
||||||
Total asset-backed
|
1,079
|
|
|
7
|
|
|
83
|
|
|
3
|
|
|
1,162
|
|
|
10
|
|
||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
62
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
64
|
|
|
2
|
|
||||||
Foreign government
|
59
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
60
|
|
|
1
|
|
||||||
Total
|
$
|
2,148
|
|
|
$
|
31
|
|
|
$
|
272
|
|
|
$
|
14
|
|
|
$
|
2,420
|
|
|
$
|
45
|
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
December 31, 2018
|
Estimated
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
(In millions)
|
|
|
|
|
|
||||||||||||||||||
Fixed maturity securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate and other bonds
|
$
|
8,543
|
|
|
$
|
340
|
|
|
$
|
825
|
|
|
$
|
55
|
|
|
$
|
9,368
|
|
|
$
|
395
|
|
States, municipalities and political subdivisions
|
517
|
|
|
8
|
|
|
5
|
|
|
1
|
|
|
522
|
|
|
9
|
|
||||||
Asset-backed:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed
|
1,932
|
|
|
23
|
|
|
1,119
|
|
|
34
|
|
|
3,051
|
|
|
57
|
|
||||||
Commercial mortgage-backed
|
728
|
|
|
10
|
|
|
397
|
|
|
22
|
|
|
1,125
|
|
|
32
|
|
||||||
Other asset-backed
|
834
|
|
|
21
|
|
|
125
|
|
|
3
|
|
|
959
|
|
|
24
|
|
||||||
Total asset-backed
|
3,494
|
|
|
54
|
|
|
1,641
|
|
|
59
|
|
|
5,135
|
|
|
113
|
|
||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
21
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
40
|
|
|
—
|
|
||||||
Foreign government
|
114
|
|
|
2
|
|
|
124
|
|
|
2
|
|
|
238
|
|
|
4
|
|
||||||
Total
|
$
|
12,689
|
|
|
$
|
404
|
|
|
$
|
2,614
|
|
|
$
|
117
|
|
|
$
|
15,303
|
|
|
$
|
521
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance of credit losses on fixed maturity securities
|
$
|
18
|
|
|
$
|
27
|
|
|
$
|
36
|
|
Reductions for securities sold during the period
|
(8
|
)
|
|
(9
|
)
|
|
(9
|
)
|
|||
Ending balance of credit losses on fixed maturity securities
|
$
|
10
|
|
|
$
|
18
|
|
|
$
|
27
|
|
December 31
|
2019
|
|
2018
|
||||||||||||
(In millions)
|
Cost or
Amortized
Cost
|
|
Estimated
Fair
Value
|
|
Cost or
Amortized
Cost
|
|
Estimated
Fair
Value
|
||||||||
Due in one year or less
|
$
|
1,334
|
|
|
$
|
1,356
|
|
|
$
|
1,350
|
|
|
$
|
1,359
|
|
Due after one year through five years
|
9,746
|
|
|
10,186
|
|
|
7,979
|
|
|
8,139
|
|
||||
Due after five years through ten years
|
14,892
|
|
|
15,931
|
|
|
16,859
|
|
|
16,870
|
|
||||
Due after ten years
|
12,134
|
|
|
14,714
|
|
|
11,893
|
|
|
13,174
|
|
||||
Total
|
$
|
38,106
|
|
|
$
|
42,187
|
|
|
$
|
38,081
|
|
|
$
|
39,542
|
|
December 31, 2019
|
|
|
|
|
|
|
Total
Assets/Liabilities
at Fair Value
|
||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds and other
|
$
|
175
|
|
|
$
|
22,085
|
|
|
$
|
468
|
|
|
$
|
22,728
|
|
States, municipalities and political subdivisions
|
—
|
|
|
10,652
|
|
|
—
|
|
|
10,652
|
|
||||
Asset-backed
|
—
|
|
|
8,662
|
|
|
165
|
|
|
8,827
|
|
||||
Total fixed maturity securities
|
175
|
|
|
41,399
|
|
|
633
|
|
|
42,207
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
135
|
|
|
—
|
|
|
7
|
|
|
142
|
|
||||
Non-redeemable preferred stock
|
54
|
|
|
658
|
|
|
11
|
|
|
723
|
|
||||
Total equity securities
|
189
|
|
|
658
|
|
|
18
|
|
|
865
|
|
||||
Short term and other
|
397
|
|
|
1,344
|
|
|
—
|
|
|
1,741
|
|
||||
Total assets
|
$
|
761
|
|
|
$
|
43,401
|
|
|
$
|
651
|
|
|
$
|
44,813
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Total liabilities
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
December 31, 2018
|
|
|
|
|
|
|
Total
Assets/Liabilities
at Fair Value
|
||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds and other
|
$
|
196
|
|
|
$
|
19,396
|
|
|
$
|
222
|
|
|
$
|
19,814
|
|
States, municipalities and political subdivisions
|
—
|
|
|
10,748
|
|
|
—
|
|
|
10,748
|
|
||||
Asset-backed
|
—
|
|
|
8,787
|
|
|
197
|
|
|
8,984
|
|
||||
Total fixed maturity securities
|
196
|
|
|
38,931
|
|
|
419
|
|
|
39,546
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
144
|
|
|
—
|
|
|
4
|
|
|
148
|
|
||||
Non-redeemable preferred stock
|
48
|
|
|
570
|
|
|
14
|
|
|
632
|
|
||||
Total equity securities
|
192
|
|
|
570
|
|
|
18
|
|
|
780
|
|
||||
Short term and other
|
216
|
|
|
949
|
|
|
—
|
|
|
1,165
|
|
||||
Total assets
|
$
|
604
|
|
|
$
|
40,450
|
|
|
$
|
437
|
|
|
$
|
41,491
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
Total liabilities
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
Level 3
(In millions)
|
Corporate bonds and other
|
|
States, municipalities and political subdivisions
|
|
Asset-backed
|
|
Equity securities
|
|
Total
|
||||||||||
Balance as of January 1, 2019
|
$
|
222
|
|
|
$
|
—
|
|
|
$
|
197
|
|
|
$
|
18
|
|
|
$
|
437
|
|
Total realized and unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported in Net investment gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||||
Reported in Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Reported in Other comprehensive income (loss)
|
33
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
41
|
|
|||||
Total realized and unrealized investment gains (losses)
|
33
|
|
|
—
|
|
|
8
|
|
|
(2
|
)
|
|
39
|
|
|||||
Purchases
|
256
|
|
|
—
|
|
|
48
|
|
|
2
|
|
|
306
|
|
|||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Settlements
|
(11
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(27
|
)
|
|||||
Transfers into Level 3
|
—
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
45
|
|
|||||
Transfers out of Level 3
|
(32
|
)
|
|
—
|
|
|
(117
|
)
|
|
—
|
|
|
(149
|
)
|
|||||
Balance as of December 31, 2019
|
$
|
468
|
|
|
$
|
—
|
|
|
$
|
165
|
|
|
$
|
18
|
|
|
$
|
651
|
|
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period
|
28
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
35
|
|
Level 3
(In millions)
|
Corporate bonds and other
|
|
States, municipalities and political subdivisions
|
|
Asset-backed
|
|
Equity securities
|
|
Total
|
||||||||||
Balance as of January 1, 2018
|
$
|
98
|
|
|
$
|
1
|
|
|
$
|
335
|
|
|
$
|
20
|
|
|
$
|
454
|
|
Total realized and unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reported in Net investment gains (losses)
|
(1
|
)
|
|
—
|
|
|
5
|
|
|
(2
|
)
|
|
2
|
|
|||||
Reported in Net investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Reported in Other comprehensive income (loss)
|
(4
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(12
|
)
|
|||||
Total realized and unrealized investment gains (losses)
|
(5
|
)
|
|
—
|
|
|
(3
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|||||
Purchases
|
117
|
|
|
—
|
|
|
162
|
|
|
—
|
|
|
279
|
|
|||||
Sales
|
(5
|
)
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
(77
|
)
|
|||||
Settlements
|
(9
|
)
|
|
(1
|
)
|
|
(64
|
)
|
|
—
|
|
|
(74
|
)
|
|||||
Transfers into Level 3
|
35
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
77
|
|
|||||
Transfers out of Level 3
|
(9
|
)
|
|
—
|
|
|
(203
|
)
|
|
—
|
|
|
(212
|
)
|
|||||
Balance as of December 31, 2018
|
$
|
222
|
|
|
$
|
—
|
|
|
$
|
197
|
|
|
$
|
18
|
|
|
$
|
437
|
|
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2018 recognized in Net income (loss) in the period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
(4
|
)
|
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2018 recognized in Other comprehensive income (loss) in the period
|
(5
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(9
|
)
|
December 31, 2019
|
Estimated Fair Value
(In millions)
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
(Weighted Average)
|
||
Fixed maturity securities
|
$
|
525
|
|
|
Discounted cash flow
|
|
Credit spread
|
|
1% - 6% (2%)
|
December 31, 2018
|
Estimated Fair Value
(In millions) |
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
(Weighted Average)
|
||
Fixed maturity securities
|
$
|
228
|
|
|
Discounted cash flow
|
|
Credit spread
|
|
1% - 12% (3%)
|
December 31, 2019
|
Carrying
Amount
|
|
Estimated Fair Value
|
||||||||||||||||
(In millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
$
|
994
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,025
|
|
|
$
|
1,025
|
|
Note receivable
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
21
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Long term debt
|
$
|
2,679
|
|
|
$
|
—
|
|
|
$
|
2,906
|
|
|
$
|
—
|
|
|
$
|
2,906
|
|
December 31, 2018
|
Carrying
Amount |
|
Estimated Fair Value
|
||||||||||||||||
(In millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
$
|
839
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
827
|
|
|
$
|
827
|
|
Note receivable
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
35
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Long term debt
|
$
|
2,680
|
|
|
$
|
—
|
|
|
$
|
2,731
|
|
|
$
|
—
|
|
|
$
|
2,731
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Income tax expense at statutory rates
|
$
|
(257
|
)
|
|
$
|
(203
|
)
|
|
$
|
(459
|
)
|
Tax benefit from tax exempt income
|
53
|
|
|
63
|
|
|
131
|
|
|||
Foreign taxes and credits
|
(1
|
)
|
|
(1
|
)
|
|
3
|
|
|||
State income taxes
|
(14
|
)
|
|
(13
|
)
|
|
(7
|
)
|
|||
Net deferred tax asset remeasurement
|
—
|
|
|
6
|
|
|
(83
|
)
|
|||
Other tax expense
|
(4
|
)
|
|
(3
|
)
|
|
4
|
|
|||
Income tax expense
|
$
|
(223
|
)
|
|
$
|
(151
|
)
|
|
$
|
(411
|
)
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Current tax expense
|
$
|
(269
|
)
|
|
$
|
(171
|
)
|
|
$
|
(243
|
)
|
Deferred tax benefit (expense)
|
46
|
|
|
20
|
|
|
(168
|
)
|
|||
Total income tax expense
|
$
|
(223
|
)
|
|
$
|
(151
|
)
|
|
$
|
(411
|
)
|
December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Deferred Tax Assets:
|
|
|
|
||||
Insurance reserves:
|
|
|
|
||||
Property and casualty claim and claim adjustment expense reserves
|
$
|
129
|
|
|
$
|
108
|
|
Unearned premium reserves
|
153
|
|
|
108
|
|
||
Receivables
|
11
|
|
|
15
|
|
||
Employee benefits
|
127
|
|
|
143
|
|
||
Deferred retroactive reinsurance benefit
|
82
|
|
|
79
|
|
||
Other assets
|
132
|
|
|
131
|
|
||
Gross deferred tax assets
|
634
|
|
|
584
|
|
||
Deferred Tax Liabilities:
|
|
|
|
||||
Investment valuation differences
|
40
|
|
|
44
|
|
||
Deferred acquisition costs
|
83
|
|
|
78
|
|
||
Net unrealized gains
|
264
|
|
|
14
|
|
||
Software and hardware
|
34
|
|
|
44
|
|
||
Other liabilities
|
14
|
|
|
12
|
|
||
Gross deferred tax liabilities
|
435
|
|
|
192
|
|
||
Net deferred tax asset
|
$
|
199
|
|
|
$
|
392
|
|
As of December 31
|
|
||
(In millions)
|
2019
|
||
Net liability for unpaid claim and claim adjustment expenses:
|
|
||
Specialty
|
$
|
4,676
|
|
Commercial
|
7,849
|
|
|
International
|
1,628
|
|
|
Corporate & Other
|
175
|
|
|
Life & Group (1)
|
3,557
|
|
|
Total net claim and claim adjustment expenses
|
17,885
|
|
|
Reinsurance receivables: (2)
|
|
||
Specialty
|
562
|
|
|
Commercial
|
807
|
|
|
International
|
248
|
|
|
Corporate & Other (3)
|
2,059
|
|
|
Life & Group
|
159
|
|
|
Total reinsurance receivables
|
3,835
|
|
|
Total gross liability for unpaid claim and claim adjustment expenses
|
$
|
21,720
|
|
As of or for the years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Reserves, beginning of year:
|
|
|
|
|
|
||||||
Gross
|
$
|
21,984
|
|
|
$
|
22,004
|
|
|
$
|
22,343
|
|
Ceded
|
4,019
|
|
|
3,934
|
|
|
4,094
|
|
|||
Net reserves, beginning of year
|
17,965
|
|
|
18,070
|
|
|
18,249
|
|
|||
Net incurred claim and claim adjustment expenses:
|
|
|
|
|
|
||||||
Provision for insured events of current year
|
5,356
|
|
|
5,358
|
|
|
5,201
|
|
|||
Increase (decrease) in provision for insured events of prior years
|
(127
|
)
|
|
(179
|
)
|
|
(381
|
)
|
|||
Amortization of discount
|
184
|
|
|
176
|
|
|
179
|
|
|||
Total net incurred (1)
|
5,413
|
|
|
5,355
|
|
|
4,999
|
|
|||
Net payments attributable to:
|
|
|
|
|
|
||||||
Current year events
|
(992
|
)
|
|
(1,046
|
)
|
|
(975
|
)
|
|||
Prior year events
|
(4,584
|
)
|
|
(4,285
|
)
|
|
(4,366
|
)
|
|||
Total net payments
|
(5,576
|
)
|
|
(5,331
|
)
|
|
(5,341
|
)
|
|||
Foreign currency translation adjustment and other
|
83
|
|
|
(129
|
)
|
|
163
|
|
|||
Net reserves, end of year
|
17,885
|
|
|
17,965
|
|
|
18,070
|
|
|||
Ceded reserves, end of year
|
3,835
|
|
|
4,019
|
|
|
3,934
|
|
|||
Gross reserves, end of year
|
$
|
21,720
|
|
|
$
|
21,984
|
|
|
$
|
22,004
|
|
(1)
|
Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above.
|
•
|
Paid development: The paid development method estimates ultimate losses by reviewing paid loss patterns and applying them to accident years with further expected changes in paid loss.
|
•
|
Incurred development: The incurred development method is similar to the paid development method, but it uses case incurred losses instead of paid losses.
|
•
|
Loss ratio: The loss ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year.
|
•
|
Bornhuetter-Ferguson using premiums and paid loss: The Bornhuetter-Ferguson using premiums and paid loss method is a combination of the paid development approach and the loss ratio approach. This method normally determines expected loss ratios similar to the approach used to estimate the expected loss ratio for the loss ratio method.
|
•
|
Bornhuetter-Ferguson using premiums and incurred loss: The Bornhuetter-Ferguson using premiums and incurred loss method is similar to the Bornhuetter-Ferguson using premiums and paid loss method except that it uses case incurred losses.
|
•
|
Frequency times severity: The frequency times severity method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident year to produce ultimate loss estimates.
|
•
|
Stochastic modeling: The stochastic modeling produces a range of possible outcomes based on varying assumptions related to the particular product being modeled.
|
December 31, 2019
|
Specialty
|
|
Commercial
|
|
International
|
|
Life & Group
|
|
Corporate & Other
|
|
Total
|
||||||||||||
(In millions)
|
|
|
|
|
|
||||||||||||||||||
Gross Case Reserves
|
$
|
1,481
|
|
|
$
|
3,937
|
|
|
$
|
858
|
|
|
$
|
3,576
|
|
|
$
|
1,137
|
|
|
$
|
10,989
|
|
Gross IBNR Reserves
|
3,757
|
|
|
4,719
|
|
|
1,018
|
|
|
140
|
|
|
1,097
|
|
|
10,731
|
|
||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves
|
$
|
5,238
|
|
|
$
|
8,656
|
|
|
$
|
1,876
|
|
|
$
|
3,716
|
|
|
$
|
2,234
|
|
|
$
|
21,720
|
|
Net Case Reserves
|
$
|
1,343
|
|
|
$
|
3,543
|
|
|
$
|
759
|
|
|
$
|
3,441
|
|
|
$
|
92
|
|
|
$
|
9,178
|
|
Net IBNR Reserves
|
3,333
|
|
|
4,306
|
|
|
869
|
|
|
116
|
|
|
83
|
|
|
8,707
|
|
||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves
|
$
|
4,676
|
|
|
$
|
7,849
|
|
|
$
|
1,628
|
|
|
$
|
3,557
|
|
|
$
|
175
|
|
|
$
|
17,885
|
|
December 31, 2018
|
Specialty
|
|
Commercial
|
|
International
|
|
Life &
Group
|
|
Corporate
& Other
|
|
Total
|
||||||||||||
(In millions)
|
|
|
|
|
|
||||||||||||||||||
Gross Case Reserves
|
$
|
1,623
|
|
|
$
|
4,181
|
|
|
$
|
867
|
|
|
$
|
3,516
|
|
|
$
|
1,208
|
|
|
$
|
11,395
|
|
Gross IBNR Reserves
|
3,842
|
|
|
4,562
|
|
|
883
|
|
|
85
|
|
|
1,217
|
|
|
10,589
|
|
||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves
|
$
|
5,465
|
|
|
$
|
8,743
|
|
|
$
|
1,750
|
|
|
$
|
3,601
|
|
|
$
|
2,425
|
|
|
$
|
21,984
|
|
Net Case Reserves
|
$
|
1,483
|
|
|
$
|
3,831
|
|
|
$
|
749
|
|
|
$
|
3,364
|
|
|
$
|
96
|
|
|
$
|
9,523
|
|
Net IBNR Reserves
|
3,348
|
|
|
4,167
|
|
|
775
|
|
|
56
|
|
|
96
|
|
|
8,442
|
|
||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves
|
$
|
4,831
|
|
|
$
|
7,998
|
|
|
$
|
1,524
|
|
|
$
|
3,420
|
|
|
$
|
192
|
|
|
$
|
17,965
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Pretax (favorable) unfavorable development:
|
|
|
|
|
|
||||||
Specialty
|
$
|
(92
|
)
|
|
$
|
(150
|
)
|
|
$
|
(174
|
)
|
Commercial
|
(2
|
)
|
|
(25
|
)
|
|
(115
|
)
|
|||
International
|
21
|
|
|
(4
|
)
|
|
(9
|
)
|
|||
Corporate & Other
|
—
|
|
|
(2
|
)
|
|
(10
|
)
|
|||
Total pretax (favorable) unfavorable development
|
$
|
(73
|
)
|
|
$
|
(181
|
)
|
|
$
|
(308
|
)
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Pretax (favorable) unfavorable development:
|
|
|
|
|
|
||||||
Medical Professional Liability
|
$
|
75
|
|
|
$
|
47
|
|
|
$
|
30
|
|
Other Professional Liability and Management Liability
|
(69
|
)
|
|
(127
|
)
|
|
(126
|
)
|
|||
Surety
|
(92
|
)
|
|
(70
|
)
|
|
(84
|
)
|
|||
Warranty
|
(15
|
)
|
|
(10
|
)
|
|
4
|
|
|||
Other
|
9
|
|
|
10
|
|
|
2
|
|
|||
Total pretax (favorable) unfavorable development
|
$
|
(92
|
)
|
|
$
|
(150
|
)
|
|
$
|
(174
|
)
|
As of December 31
|
|
||
(In millions)
|
2019
|
||
Net liability for unpaid claim and claim adjustment expenses:
|
|
||
Medical Professional Liability
|
$
|
1,429
|
|
Other Professional Liability and Management Liability
|
2,739
|
|
|
Surety
|
369
|
|
|
Warranty
|
29
|
|
|
Other
|
110
|
|
|
Total net liability for unpaid claim and claim adjustment expenses
|
$
|
4,676
|
|
As of December 31
|
Calendar Year
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
IBNR
|
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2010
|
$
|
402
|
|
|
$
|
412
|
|
|
$
|
423
|
|
|
$
|
426
|
|
|
$
|
415
|
|
|
$
|
395
|
|
|
$
|
365
|
|
|
$
|
360
|
|
|
$
|
356
|
|
|
$
|
369
|
|
|
$
|
1
|
|
|
14,624
|
|
2011
|
|
|
429
|
|
|
437
|
|
|
443
|
|
|
468
|
|
|
439
|
|
|
434
|
|
|
437
|
|
|
437
|
|
|
439
|
|
|
2
|
|
|
16,526
|
|
||||||||||||
2012
|
|
|
|
|
464
|
|
|
469
|
|
|
508
|
|
|
498
|
|
|
493
|
|
|
484
|
|
|
493
|
|
|
499
|
|
|
8
|
|
|
17,724
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
462
|
|
|
479
|
|
|
500
|
|
|
513
|
|
|
525
|
|
|
535
|
|
|
545
|
|
|
27
|
|
|
19,510
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
450
|
|
|
489
|
|
|
537
|
|
|
530
|
|
|
535
|
|
|
529
|
|
|
16
|
|
|
19,723
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
433
|
|
|
499
|
|
|
510
|
|
|
494
|
|
|
488
|
|
|
29
|
|
|
18,029
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
427
|
|
|
487
|
|
|
485
|
|
|
499
|
|
|
63
|
|
|
15,823
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
412
|
|
|
449
|
|
|
458
|
|
|
127
|
|
|
14,636
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
404
|
|
|
429
|
|
|
216
|
|
|
13,760
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
430
|
|
|
364
|
|
|
10,467
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
4,685
|
|
|
$
|
853
|
|
|
|
As of December 31
|
Calendar Year
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
$
|
10
|
|
|
$
|
86
|
|
|
$
|
173
|
|
|
$
|
257
|
|
|
$
|
306
|
|
|
$
|
326
|
|
|
$
|
337
|
|
|
$
|
346
|
|
|
$
|
350
|
|
|
$
|
353
|
|
2011
|
|
|
17
|
|
|
109
|
|
|
208
|
|
|
295
|
|
|
347
|
|
|
375
|
|
|
398
|
|
|
409
|
|
|
414
|
|
|||||||||||
2012
|
|
|
|
|
14
|
|
|
117
|
|
|
221
|
|
|
323
|
|
|
388
|
|
|
427
|
|
|
457
|
|
|
479
|
|
||||||||||||
2013
|
|
|
|
|
|
|
17
|
|
|
119
|
|
|
255
|
|
|
355
|
|
|
414
|
|
|
462
|
|
|
495
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
23
|
|
|
136
|
|
|
258
|
|
|
359
|
|
|
417
|
|
|
472
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
22
|
|
|
101
|
|
|
230
|
|
|
313
|
|
|
384
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
121
|
|
|
246
|
|
|
339
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
107
|
|
|
235
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
115
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
3,303
|
|
|||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented
|
|
|
$
|
1,382
|
|
||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010
|
|
|
22
|
|
|||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
|
|
25
|
|
|||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses
|
|
|
$
|
1,429
|
|
For the years ended December 31
|
|
|
Calendar Year
|
|
|
||||||||||||||||||||||||||||||||||||
(In millions)
|
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
Total
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
|
|
$
|
10
|
|
|
$
|
11
|
|
|
$
|
3
|
|
|
$
|
(11
|
)
|
|
$
|
(20
|
)
|
|
$
|
(30
|
)
|
|
$
|
(5
|
)
|
|
$
|
(4
|
)
|
|
$
|
13
|
|
|
$
|
(33
|
)
|
2011
|
|
|
|
|
|
8
|
|
|
6
|
|
|
25
|
|
|
(29
|
)
|
|
(5
|
)
|
|
3
|
|
|
—
|
|
|
2
|
|
|
10
|
|
||||||||||
2012
|
|
|
|
|
|
|
|
5
|
|
|
39
|
|
|
(10
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|
9
|
|
|
6
|
|
|
35
|
|
|||||||||||
2013
|
|
|
|
|
|
|
|
|
|
17
|
|
|
21
|
|
|
13
|
|
|
12
|
|
|
10
|
|
|
10
|
|
|
83
|
|
||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
39
|
|
|
48
|
|
|
(7
|
)
|
|
5
|
|
|
(6
|
)
|
|
79
|
|
|||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
|
|
11
|
|
|
(16
|
)
|
|
(6
|
)
|
|
55
|
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60
|
|
|
(2
|
)
|
|
14
|
|
|
72
|
|
|||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37
|
|
|
9
|
|
|
46
|
|
||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25
|
|
|
25
|
|
|||||||||||||||||
Total net development for the accident years presented above
|
|
|
65
|
|
|
39
|
|
|
67
|
|
|
|
|||||||||||||||||||||||||||||
Total net development for accident years prior to 2010
|
|
|
(28
|
)
|
|
9
|
|
|
6
|
|
|
|
|||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development
|
|
|
(7
|
)
|
|
(1
|
)
|
|
2
|
|
|
|
|||||||||||||||||||||||||||||
Total
|
|
|
$
|
30
|
|
|
$
|
47
|
|
|
$
|
75
|
|
|
|
As of December 31
|
Calendar Year
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
IBNR
|
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2010
|
$
|
828
|
|
|
$
|
828
|
|
|
$
|
848
|
|
|
$
|
848
|
|
|
$
|
847
|
|
|
$
|
837
|
|
|
$
|
824
|
|
|
$
|
827
|
|
|
$
|
821
|
|
|
$
|
821
|
|
|
$
|
9
|
|
|
17,891
|
|
2011
|
|
|
880
|
|
|
908
|
|
|
934
|
|
|
949
|
|
|
944
|
|
|
911
|
|
|
899
|
|
|
888
|
|
|
885
|
|
|
21
|
|
|
18,738
|
|
||||||||||||
2012
|
|
|
|
|
923
|
|
|
909
|
|
|
887
|
|
|
878
|
|
|
840
|
|
|
846
|
|
|
833
|
|
|
831
|
|
|
18
|
|
|
18,499
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
884
|
|
|
894
|
|
|
926
|
|
|
885
|
|
|
866
|
|
|
863
|
|
|
850
|
|
|
45
|
|
|
17,928
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
878
|
|
|
898
|
|
|
885
|
|
|
831
|
|
|
835
|
|
|
854
|
|
|
74
|
|
|
17,553
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
888
|
|
|
892
|
|
|
877
|
|
|
832
|
|
|
807
|
|
|
120
|
|
|
17,390
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
901
|
|
|
900
|
|
|
900
|
|
|
904
|
|
|
188
|
|
|
17,890
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
847
|
|
|
845
|
|
|
813
|
|
|
308
|
|
|
18,015
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
850
|
|
|
864
|
|
|
460
|
|
|
19,468
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
837
|
|
|
714
|
|
|
16,722
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
8,466
|
|
|
$
|
1,957
|
|
|
|
As of December 31
|
Calendar Year
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
$
|
31
|
|
|
$
|
204
|
|
|
$
|
405
|
|
|
$
|
541
|
|
|
$
|
630
|
|
|
$
|
670
|
|
|
$
|
721
|
|
|
$
|
752
|
|
|
$
|
784
|
|
|
$
|
790
|
|
2011
|
|
|
71
|
|
|
314
|
|
|
503
|
|
|
605
|
|
|
683
|
|
|
726
|
|
|
781
|
|
|
796
|
|
|
828
|
|
|||||||||||
2012
|
|
|
|
|
56
|
|
|
248
|
|
|
400
|
|
|
573
|
|
|
651
|
|
|
711
|
|
|
755
|
|
|
792
|
|
||||||||||||
2013
|
|
|
|
|
|
|
54
|
|
|
249
|
|
|
447
|
|
|
618
|
|
|
702
|
|
|
754
|
|
|
771
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
51
|
|
|
223
|
|
|
392
|
|
|
515
|
|
|
647
|
|
|
707
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
60
|
|
|
234
|
|
|
404
|
|
|
542
|
|
|
612
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
|
|
248
|
|
|
466
|
|
|
625
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
|
|
|
222
|
|
|
394
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
|
|
|
282
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
5,865
|
|
|||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented
|
|
|
$
|
2,601
|
|
||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010
|
|
|
88
|
|
|||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
|
|
50
|
|
|||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses
|
|
|
$
|
2,739
|
|
For the years ended December 31
|
|
|
Calendar Year
|
|
|
||||||||||||||||||||||||||||||||||||
(In millions)
|
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
Total
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(10
|
)
|
|
$
|
(13
|
)
|
|
$
|
3
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
2011
|
|
|
|
|
|
28
|
|
|
26
|
|
|
15
|
|
|
(5
|
)
|
|
(33
|
)
|
|
(12
|
)
|
|
(11
|
)
|
|
(3
|
)
|
|
5
|
|
||||||||||
2012
|
|
|
|
|
|
|
|
(14
|
)
|
|
(22
|
)
|
|
(9
|
)
|
|
(38
|
)
|
|
6
|
|
|
(13
|
)
|
|
(2
|
)
|
|
(92
|
)
|
|||||||||||
2013
|
|
|
|
|
|
|
|
|
|
10
|
|
|
32
|
|
|
(41
|
)
|
|
(19
|
)
|
|
(3
|
)
|
|
(13
|
)
|
|
(34
|
)
|
||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
(13
|
)
|
|
(54
|
)
|
|
4
|
|
|
19
|
|
|
(24
|
)
|
|||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
(15
|
)
|
|
(45
|
)
|
|
(25
|
)
|
|
(81
|
)
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
3
|
|
|||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
(32
|
)
|
|
(34
|
)
|
||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
|
|
|
14
|
|
|||||||||||||||||
Total net development for the accident years presented above
|
|
|
(92
|
)
|
|
(76
|
)
|
|
(38
|
)
|
|
|
|
||||||||||||||||||||||||||||
Total net development for accident years prior to 2010
|
|
|
(27
|
)
|
|
(44
|
)
|
|
(17
|
)
|
|
|
|||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development
|
|
|
(7
|
)
|
|
(7
|
)
|
|
(14
|
)
|
|
|
|||||||||||||||||||||||||||||
Total
|
|
|
$
|
(126
|
)
|
|
$
|
(127
|
)
|
|
$
|
(69
|
)
|
|
|
As of December 31
|
Calendar Year
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
IBNR
|
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2010
|
$
|
112
|
|
|
$
|
112
|
|
|
$
|
111
|
|
|
$
|
84
|
|
|
$
|
76
|
|
|
$
|
66
|
|
|
$
|
63
|
|
|
$
|
59
|
|
|
$
|
61
|
|
|
$
|
61
|
|
|
$
|
—
|
|
|
5,982
|
|
2011
|
|
|
120
|
|
|
121
|
|
|
116
|
|
|
87
|
|
|
75
|
|
|
70
|
|
|
66
|
|
|
62
|
|
|
62
|
|
|
2
|
|
|
5,813
|
|
||||||||||||
2012
|
|
|
|
|
120
|
|
|
122
|
|
|
98
|
|
|
70
|
|
|
52
|
|
|
45
|
|
|
39
|
|
|
38
|
|
|
1
|
|
|
5,568
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
120
|
|
|
121
|
|
|
115
|
|
|
106
|
|
|
91
|
|
|
87
|
|
|
83
|
|
|
3
|
|
|
5,062
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
123
|
|
|
124
|
|
|
94
|
|
|
69
|
|
|
60
|
|
|
45
|
|
|
4
|
|
|
5,078
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
131
|
|
|
131
|
|
|
104
|
|
|
79
|
|
|
63
|
|
|
11
|
|
|
4,976
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
124
|
|
|
124
|
|
|
109
|
|
|
84
|
|
|
36
|
|
|
5,379
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
120
|
|
|
115
|
|
|
103
|
|
|
54
|
|
|
5,496
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114
|
|
|
108
|
|
|
76
|
|
|
5,451
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
119
|
|
|
102
|
|
|
3,549
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
766
|
|
|
$
|
289
|
|
|
|
As of December 31
|
Calendar Year
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
$
|
13
|
|
|
$
|
34
|
|
|
$
|
50
|
|
|
$
|
55
|
|
|
$
|
57
|
|
|
$
|
58
|
|
|
$
|
55
|
|
|
$
|
52
|
|
|
$
|
52
|
|
|
$
|
53
|
|
2011
|
|
|
19
|
|
|
42
|
|
|
55
|
|
|
58
|
|
|
60
|
|
|
60
|
|
|
56
|
|
|
57
|
|
|
57
|
|
|||||||||||
2012
|
|
|
|
|
5
|
|
|
32
|
|
|
34
|
|
|
35
|
|
|
35
|
|
|
36
|
|
|
37
|
|
|
37
|
|
||||||||||||
2013
|
|
|
|
|
|
|
16
|
|
|
40
|
|
|
69
|
|
|
78
|
|
|
78
|
|
|
78
|
|
|
77
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
7
|
|
|
30
|
|
|
38
|
|
|
36
|
|
|
38
|
|
|
38
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
26
|
|
|
38
|
|
|
40
|
|
|
42
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
37
|
|
|
45
|
|
|
45
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23
|
|
|
37
|
|
|
41
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
25
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
427
|
|
|||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented
|
|
|
$
|
339
|
|
||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010
|
|
|
10
|
|
|||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
|
|
20
|
|
|||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses
|
|
|
$
|
369
|
|
For the years ended December 31
|
|
|
Calendar Year
|
|
|
||||||||||||||||||||||||||||||||||||
(In millions)
|
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
Total
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(27
|
)
|
|
$
|
(8
|
)
|
|
$
|
(10
|
)
|
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
(51
|
)
|
2011
|
|
|
|
|
1
|
|
|
(5
|
)
|
|
(29
|
)
|
|
(12
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
(58
|
)
|
|||||||||||
2012
|
|
|
|
|
|
|
2
|
|
|
(24
|
)
|
|
(28
|
)
|
|
(18
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
(82
|
)
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
1
|
|
|
(6
|
)
|
|
(9
|
)
|
|
(15
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
(37
|
)
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
(30
|
)
|
|
(25
|
)
|
|
(9
|
)
|
|
(15
|
)
|
|
(78
|
)
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(27
|
)
|
|
(25
|
)
|
|
(16
|
)
|
|
(68
|
)
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(15
|
)
|
|
(25
|
)
|
|
(40
|
)
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
|
(12
|
)
|
|
(17
|
)
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||||||||||||||
Total net development for the accident years presented above
|
|
|
(82
|
)
|
|
(66
|
)
|
|
(79
|
)
|
|
|
|||||||||||||||||||||||||||||
Total net development for accident years prior to 2010
|
|
|
1
|
|
|
(4
|
)
|
|
(3
|
)
|
|
|
|||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development
|
|
|
(3
|
)
|
|
—
|
|
|
(10
|
)
|
|
|
|||||||||||||||||||||||||||||
Total
|
|
|
$
|
(84
|
)
|
|
$
|
(70
|
)
|
|
$
|
(92
|
)
|
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Pretax (favorable) unfavorable development:
|
|
|
|
|
|
||||||
Commercial Auto
|
$
|
(25
|
)
|
|
$
|
1
|
|
|
$
|
(35
|
)
|
General Liability
|
54
|
|
|
32
|
|
|
(24
|
)
|
|||
Workers' Compensation
|
(13
|
)
|
|
(32
|
)
|
|
(63
|
)
|
|||
Property and Other
|
(18
|
)
|
|
(26
|
)
|
|
7
|
|
|||
Total pretax (favorable) unfavorable development
|
$
|
(2
|
)
|
|
$
|
(25
|
)
|
|
$
|
(115
|
)
|
As of December 31
|
|
||
(In millions)
|
2019
|
||
Net Claim and claim adjustment expenses:
|
|
||
Commercial Auto
|
$
|
404
|
|
General Liability
|
3,176
|
|
|
Workers' Compensation
|
3,932
|
|
|
Property and Other
|
337
|
|
|
Total net liability for claim and claim adjustment expenses
|
$
|
7,849
|
|
As of December 31
|
Calendar Year
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
IBNR
|
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2010
|
$
|
267
|
|
|
$
|
283
|
|
|
$
|
287
|
|
|
$
|
291
|
|
|
$
|
298
|
|
|
$
|
293
|
|
|
$
|
289
|
|
|
$
|
288
|
|
|
$
|
288
|
|
|
$
|
288
|
|
|
$
|
1
|
|
|
48,035
|
|
2011
|
|
|
268
|
|
|
281
|
|
|
288
|
|
|
302
|
|
|
300
|
|
|
294
|
|
|
294
|
|
|
294
|
|
|
291
|
|
|
—
|
|
|
47,909
|
|
||||||||||||
2012
|
|
|
|
|
275
|
|
|
289
|
|
|
299
|
|
|
303
|
|
|
307
|
|
|
299
|
|
|
299
|
|
|
297
|
|
|
3
|
|
|
46,288
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
246
|
|
|
265
|
|
|
265
|
|
|
249
|
|
|
245
|
|
|
245
|
|
|
241
|
|
|
2
|
|
|
39,429
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
234
|
|
|
223
|
|
|
212
|
|
|
205
|
|
|
205
|
|
|
201
|
|
|
3
|
|
|
33,622
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
201
|
|
|
199
|
|
|
190
|
|
|
190
|
|
|
183
|
|
|
7
|
|
|
30,418
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
198
|
|
|
186
|
|
|
186
|
|
|
186
|
|
|
7
|
|
|
30,414
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
199
|
|
|
198
|
|
|
200
|
|
|
9
|
|
|
30,850
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
229
|
|
|
227
|
|
|
47
|
|
|
33,959
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
257
|
|
|
128
|
|
|
31,455
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
2,371
|
|
|
$
|
207
|
|
|
|
As of December 31
|
Calendar Year
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
$
|
74
|
|
|
$
|
141
|
|
|
$
|
203
|
|
|
$
|
246
|
|
|
$
|
271
|
|
|
$
|
281
|
|
|
$
|
286
|
|
|
$
|
287
|
|
|
$
|
287
|
|
|
$
|
287
|
|
2011
|
|
|
79
|
|
|
145
|
|
|
199
|
|
|
248
|
|
|
274
|
|
|
284
|
|
|
287
|
|
|
289
|
|
|
289
|
|
|||||||||||
2012
|
|
|
|
|
78
|
|
|
160
|
|
|
220
|
|
|
259
|
|
|
282
|
|
|
285
|
|
|
290
|
|
|
291
|
|
||||||||||||
2013
|
|
|
|
|
|
|
74
|
|
|
135
|
|
|
168
|
|
|
200
|
|
|
225
|
|
|
234
|
|
|
238
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
64
|
|
|
102
|
|
|
137
|
|
|
166
|
|
|
187
|
|
|
196
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
96
|
|
|
130
|
|
|
153
|
|
|
172
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
93
|
|
|
126
|
|
|
154
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58
|
|
|
107
|
|
|
150
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
|
|
128
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
1,982
|
|
|||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented
|
|
|
$
|
389
|
|
||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010
|
|
|
1
|
|
|||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
|
|
14
|
|
|||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses
|
|
|
$
|
404
|
|
For the years ended December 31
|
|
|
Calendar Year
|
|
|
||||||||||||||||||||||||||||||||||||
(In millions)
|
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
Total
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
|
|
$
|
16
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
(5
|
)
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21
|
|
2011
|
|
|
|
|
13
|
|
|
7
|
|
|
14
|
|
|
(2
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
23
|
|
|||||||||||
2012
|
|
|
|
|
|
|
14
|
|
|
10
|
|
|
4
|
|
|
4
|
|
|
(8
|
)
|
|
—
|
|
|
(2
|
)
|
|
22
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
19
|
|
|
—
|
|
|
(16
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
(5
|
)
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
(11
|
)
|
|
(11
|
)
|
|
(7
|
)
|
|
—
|
|
|
(4
|
)
|
|
(33
|
)
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
(9
|
)
|
|
—
|
|
|
(7
|
)
|
|
(18
|
)
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
2
|
|
|
1
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||||||||||||
Total net development for the accident years presented above
|
|
|
(41
|
)
|
|
(1
|
)
|
|
(20
|
)
|
|
|
|
||||||||||||||||||||||||||||
Total net development for accident years prior to 2010
|
|
|
4
|
|
|
1
|
|
|
(4
|
)
|
|
|
|||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development
|
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|
|
|||||||||||||||||||||||||||||
Total
|
|
|
$
|
(35
|
)
|
|
$
|
1
|
|
|
$
|
(25
|
)
|
|
|
As of December 31
|
Calendar Year
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
IBNR
|
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2010
|
$
|
646
|
|
|
$
|
664
|
|
|
$
|
658
|
|
|
$
|
709
|
|
|
$
|
750
|
|
|
$
|
726
|
|
|
$
|
697
|
|
|
$
|
691
|
|
|
$
|
691
|
|
|
$
|
690
|
|
|
$
|
19
|
|
|
44,229
|
|
2011
|
|
|
591
|
|
|
589
|
|
|
631
|
|
|
677
|
|
|
676
|
|
|
681
|
|
|
670
|
|
|
669
|
|
|
667
|
|
|
20
|
|
|
39,361
|
|
||||||||||||
2012
|
|
|
|
|
587
|
|
|
611
|
|
|
639
|
|
|
636
|
|
|
619
|
|
|
635
|
|
|
635
|
|
|
630
|
|
|
31
|
|
|
35,219
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
650
|
|
|
655
|
|
|
650
|
|
|
655
|
|
|
613
|
|
|
623
|
|
|
620
|
|
|
27
|
|
|
33,570
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
653
|
|
|
658
|
|
|
654
|
|
|
631
|
|
|
635
|
|
|
658
|
|
|
57
|
|
|
27,877
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
581
|
|
|
576
|
|
|
574
|
|
|
589
|
|
|
600
|
|
|
73
|
|
|
23,834
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
623
|
|
|
659
|
|
|
667
|
|
|
671
|
|
|
166
|
|
|
23,817
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
632
|
|
|
632
|
|
|
632
|
|
|
226
|
|
|
21,114
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
653
|
|
|
644
|
|
|
408
|
|
|
17,889
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
680
|
|
|
602
|
|
|
12,916
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
6,492
|
|
|
$
|
1,629
|
|
|
|
As of December 31
|
Calendar Year
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
$
|
27
|
|
|
$
|
145
|
|
|
$
|
280
|
|
|
$
|
429
|
|
|
$
|
561
|
|
|
$
|
611
|
|
|
$
|
642
|
|
|
$
|
652
|
|
|
$
|
656
|
|
|
$
|
667
|
|
2011
|
|
|
28
|
|
|
148
|
|
|
273
|
|
|
411
|
|
|
517
|
|
|
568
|
|
|
602
|
|
|
622
|
|
|
638
|
|
|||||||||||
2012
|
|
|
|
|
28
|
|
|
132
|
|
|
247
|
|
|
374
|
|
|
454
|
|
|
510
|
|
|
559
|
|
|
579
|
|
||||||||||||
2013
|
|
|
|
|
|
|
31
|
|
|
128
|
|
|
240
|
|
|
352
|
|
|
450
|
|
|
510
|
|
|
551
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
31
|
|
|
119
|
|
|
247
|
|
|
376
|
|
|
481
|
|
|
547
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
110
|
|
|
230
|
|
|
357
|
|
|
446
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
|
163
|
|
|
279
|
|
|
407
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23
|
|
|
118
|
|
|
250
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
|
|
|
107
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
4,217
|
|
|||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented
|
|
|
$
|
2,275
|
|
||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010
|
|
|
836
|
|
|||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
|
|
65
|
|
|||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses
|
|
|
$
|
3,176
|
|
For the years ended December 31
|
|
|
Calendar Year
|
|
|
||||||||||||||||||||||||||||||||||||
(In millions)
|
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
Total
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
|
|
$
|
18
|
|
|
$
|
(6
|
)
|
|
$
|
51
|
|
|
$
|
41
|
|
|
$
|
(24
|
)
|
|
$
|
(29
|
)
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
44
|
|
2011
|
|
|
|
|
(2
|
)
|
|
42
|
|
|
46
|
|
|
(1
|
)
|
|
5
|
|
|
(11
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
76
|
|
|||||||||||
2012
|
|
|
|
|
|
|
24
|
|
|
28
|
|
|
(3
|
)
|
|
(17
|
)
|
|
16
|
|
|
—
|
|
|
(5
|
)
|
|
43
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
5
|
|
|
(5
|
)
|
|
5
|
|
|
(42
|
)
|
|
10
|
|
|
(3
|
)
|
|
(30
|
)
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
(4
|
)
|
|
(23
|
)
|
|
4
|
|
|
23
|
|
|
5
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
|
(2
|
)
|
|
15
|
|
|
11
|
|
|
19
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
|
|
|
8
|
|
|
4
|
|
|
48
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9
|
)
|
|
(9
|
)
|
||||||||||||||||||
Total net development for the accident years presented above
|
|
|
(32
|
)
|
|
36
|
|
|
18
|
|
|
|
|
||||||||||||||||||||||||||||
Total net development for accident years prior to 2010
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
|
|||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development
|
|
|
8
|
|
|
(4
|
)
|
|
7
|
|
|
|
|||||||||||||||||||||||||||||
Total
|
|
|
$
|
(24
|
)
|
|
$
|
32
|
|
|
$
|
54
|
|
|
|
As of December 31
|
Calendar Year
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
IBNR
|
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2010
|
$
|
583
|
|
|
$
|
632
|
|
|
$
|
654
|
|
|
$
|
676
|
|
|
$
|
698
|
|
|
$
|
710
|
|
|
$
|
730
|
|
|
$
|
733
|
|
|
$
|
732
|
|
|
$
|
735
|
|
|
$
|
55
|
|
|
49,333
|
|
2011
|
|
|
607
|
|
|
641
|
|
|
647
|
|
|
659
|
|
|
651
|
|
|
676
|
|
|
676
|
|
|
674
|
|
|
688
|
|
|
40
|
|
|
45,959
|
|
||||||||||||
2012
|
|
|
|
|
601
|
|
|
627
|
|
|
659
|
|
|
669
|
|
|
678
|
|
|
673
|
|
|
671
|
|
|
668
|
|
|
67
|
|
|
42,586
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
537
|
|
|
572
|
|
|
592
|
|
|
618
|
|
|
593
|
|
|
582
|
|
|
561
|
|
|
93
|
|
|
38,688
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
467
|
|
|
480
|
|
|
479
|
|
|
452
|
|
|
450
|
|
|
446
|
|
|
99
|
|
|
33,480
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
422
|
|
|
431
|
|
|
406
|
|
|
408
|
|
|
394
|
|
|
130
|
|
|
31,861
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
426
|
|
|
405
|
|
|
396
|
|
|
382
|
|
|
144
|
|
|
31,945
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
440
|
|
|
432
|
|
|
421
|
|
|
138
|
|
|
33,029
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
450
|
|
|
440
|
|
|
185
|
|
|
34,647
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
452
|
|
|
257
|
|
|
29,795
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
5,187
|
|
|
$
|
1,208
|
|
|
|
As of December 31
|
Calendar Year
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
$
|
97
|
|
|
$
|
251
|
|
|
$
|
359
|
|
|
$
|
442
|
|
|
$
|
510
|
|
|
$
|
542
|
|
|
$
|
577
|
|
|
$
|
615
|
|
|
$
|
625
|
|
|
$
|
631
|
|
2011
|
|
|
99
|
|
|
249
|
|
|
358
|
|
|
438
|
|
|
478
|
|
|
522
|
|
|
564
|
|
|
571
|
|
|
581
|
|
|||||||||||
2012
|
|
|
|
|
87
|
|
|
232
|
|
|
342
|
|
|
416
|
|
|
470
|
|
|
509
|
|
|
524
|
|
|
536
|
|
||||||||||||
2013
|
|
|
|
|
|
|
80
|
|
|
213
|
|
|
300
|
|
|
370
|
|
|
417
|
|
|
419
|
|
|
411
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
61
|
|
|
159
|
|
|
215
|
|
|
258
|
|
|
282
|
|
|
290
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
51
|
|
|
131
|
|
|
180
|
|
|
212
|
|
|
231
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
53
|
|
|
129
|
|
|
169
|
|
|
198
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63
|
|
|
151
|
|
|
207
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68
|
|
|
163
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
3,319
|
|
|||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented
|
|
|
$
|
1,868
|
|
||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010
|
|
|
2,061
|
|
|||||||||||||||||||||||||||||||||||
Other (2)
|
|
|
(22
|
)
|
|||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
|
|
25
|
|
|||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses
|
|
|
$
|
3,932
|
|
For the years ended December 31
|
|
|
Calendar Year
|
|
|
||||||||||||||||||||||||||||||||||||
(In millions)
|
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
Total
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
|
|
$
|
49
|
|
|
$
|
22
|
|
|
$
|
22
|
|
|
$
|
22
|
|
|
$
|
12
|
|
|
$
|
20
|
|
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
$
|
152
|
|
2011
|
|
|
|
|
34
|
|
|
6
|
|
|
12
|
|
|
(8
|
)
|
|
25
|
|
|
—
|
|
|
(2
|
)
|
|
14
|
|
|
81
|
|
|||||||||||
2012
|
|
|
|
|
|
|
26
|
|
|
32
|
|
|
10
|
|
|
9
|
|
|
(5
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
67
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
35
|
|
|
20
|
|
|
26
|
|
|
(25
|
)
|
|
(11
|
)
|
|
(21
|
)
|
|
24
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
(1
|
)
|
|
(27
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(21
|
)
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
|
(25
|
)
|
|
2
|
|
|
(14
|
)
|
|
(28
|
)
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21
|
)
|
|
(9
|
)
|
|
(14
|
)
|
|
(44
|
)
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8
|
)
|
|
(11
|
)
|
|
(19
|
)
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||||||||||||||
Total net development for the accident years presented above
|
|
|
(100
|
)
|
|
(33
|
)
|
|
(60
|
)
|
|
|
|
||||||||||||||||||||||||||||
Adjustment for development on a discounted basis
|
|
|
(3
|
)
|
|
—
|
|
|
3
|
|
|
|
|||||||||||||||||||||||||||||
Total net development for accident years prior to 2010
|
|
|
39
|
|
|
8
|
|
|
21
|
|
|
|
|||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development
|
|
|
1
|
|
|
(7
|
)
|
|
23
|
|
|
|
|||||||||||||||||||||||||||||
Total
|
|
|
$
|
(63
|
)
|
|
$
|
(32
|
)
|
|
$
|
(13
|
)
|
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Pretax (favorable) unfavorable development:
|
|
|
|
|
|
||||||
Casualty
|
$
|
(20
|
)
|
|
$
|
(17
|
)
|
|
$
|
9
|
|
Property
|
23
|
|
|
19
|
|
|
(12
|
)
|
|||
Energy and Marine
|
2
|
|
|
(19
|
)
|
|
(12
|
)
|
|||
Specialty(1)
|
16
|
|
|
13
|
|
|
6
|
|
|||
Total pretax (favorable) unfavorable development
|
$
|
21
|
|
|
$
|
(4
|
)
|
|
$
|
(9
|
)
|
As of December 31
|
|
||
(In millions)
|
2019
|
||
Net Claim and claim adjustment expenses:
|
|
||
International excluding Hardy
|
$
|
1,155
|
|
Hardy
|
473
|
|
|
Total net liability for claim and claim adjustment expenses
|
$
|
1,628
|
|
As of December 31
|
Calendar Year
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
IBNR
|
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2010
|
$
|
238
|
|
|
$
|
234
|
|
|
$
|
228
|
|
|
$
|
223
|
|
|
$
|
213
|
|
|
$
|
207
|
|
|
$
|
200
|
|
|
$
|
194
|
|
|
$
|
190
|
|
|
$
|
187
|
|
|
$
|
6
|
|
|
21,952
|
|
2011
|
|
|
271
|
|
|
272
|
|
|
264
|
|
|
244
|
|
|
233
|
|
|
226
|
|
|
224
|
|
|
221
|
|
|
214
|
|
|
3
|
|
|
24,589
|
|
||||||||||||
2012
|
|
|
|
|
272
|
|
|
279
|
|
|
264
|
|
|
256
|
|
|
256
|
|
|
249
|
|
|
242
|
|
|
236
|
|
|
19
|
|
|
24,978
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
294
|
|
|
295
|
|
|
287
|
|
|
267
|
|
|
263
|
|
|
255
|
|
|
246
|
|
|
18
|
|
|
23,932
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
282
|
|
|
297
|
|
|
297
|
|
|
285
|
|
|
277
|
|
|
294
|
|
|
31
|
|
|
24,912
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
296
|
|
|
311
|
|
|
310
|
|
|
292
|
|
|
286
|
|
|
37
|
|
|
23,305
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
290
|
|
|
309
|
|
|
294
|
|
|
292
|
|
|
59
|
|
|
17,626
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
306
|
|
|
371
|
|
|
393
|
|
|
133
|
|
|
18,176
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
376
|
|
|
394
|
|
|
132
|
|
|
19,756
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
350
|
|
|
185
|
|
|
13,415
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
2,892
|
|
|
$
|
623
|
|
|
|
As of December 31
|
Calendar Year
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
2010(1)
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
$
|
49
|
|
|
$
|
99
|
|
|
$
|
122
|
|
|
$
|
137
|
|
|
$
|
151
|
|
|
$
|
160
|
|
|
$
|
169
|
|
|
$
|
172
|
|
|
$
|
174
|
|
|
$
|
178
|
|
2011
|
|
|
45
|
|
|
116
|
|
|
139
|
|
|
152
|
|
|
166
|
|
|
178
|
|
|
186
|
|
|
190
|
|
|
193
|
|
|||||||||||
2012
|
|
|
|
|
45
|
|
|
115
|
|
|
148
|
|
|
168
|
|
|
184
|
|
|
196
|
|
|
205
|
|
|
209
|
|
||||||||||||
2013
|
|
|
|
|
|
|
50
|
|
|
114
|
|
|
141
|
|
|
158
|
|
|
173
|
|
|
183
|
|
|
202
|
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
52
|
|
|
123
|
|
|
151
|
|
|
169
|
|
|
186
|
|
|
207
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
57
|
|
|
135
|
|
|
165
|
|
|
186
|
|
|
209
|
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
67
|
|
|
134
|
|
|
161
|
|
|
184
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65
|
|
|
149
|
|
|
190
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91
|
|
|
169
|
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
|
|
|||||||||||||||||||
Total
|
|
|
$
|
1,816
|
|
||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented
|
|
|
$
|
1,076
|
|
||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010
|
|
|
52
|
|
|||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
|
|
27
|
|
|||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses
|
|
|
$
|
1,155
|
|
For the years ended December 31
|
|
Calendar Year
|
|
|
|||||||||||||||||||||||||||||||||||||
(In millions)
|
|
|
2011(1)
|
|
2012(1)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
Total (2)
|
|||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2010
|
|
|
$
|
(4
|
)
|
|
$
|
(6
|
)
|
|
$
|
(5
|
)
|
|
$
|
(10
|
)
|
|
$
|
(6
|
)
|
|
$
|
(7
|
)
|
|
$
|
(6
|
)
|
|
$
|
(4
|
)
|
|
$
|
(3
|
)
|
|
$
|
(51
|
)
|
2011
|
|
|
|
|
1
|
|
|
(8
|
)
|
|
(20
|
)
|
|
(11
|
)
|
|
(7
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(7
|
)
|
|
(57
|
)
|
|||||||||||
2012
|
|
|
|
|
|
|
7
|
|
|
(15
|
)
|
|
(8
|
)
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
(36
|
)
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
1
|
|
|
(8
|
)
|
|
(20
|
)
|
|
(4
|
)
|
|
(8
|
)
|
|
(9
|
)
|
|
(48
|
)
|
|||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
—
|
|
|
(12
|
)
|
|
(8
|
)
|
|
17
|
|
|
12
|
|
||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
(1
|
)
|
|
(18
|
)
|
|
(6
|
)
|
|
(10
|
)
|
|||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
(15
|
)
|
|
(2
|
)
|
|
2
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65
|
|
|
22
|
|
|
87
|
|
|||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
18
|
|
As of December 31
|
|
|
|
|
|
Calendar Year
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data)
|
Net Claim and Allocated Claim Adjustment Expense Reserves at Acquisition
|
|
Net Incurred Claim and Allocated Claim Adjustment Expenses in 2012(1)(2)
|
|
Total Acquired Net Claim and Allocated Claim Adjustment Expense Reserves and 2012 Incurreds
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
IBNR
|
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2010
|
$
|
48
|
|
|
$
|
(10
|
)
|
|
$
|
39
|
|
|
$
|
48
|
|
|
$
|
52
|
|
|
$
|
46
|
|
|
$
|
53
|
|
|
$
|
52
|
|
|
$
|
51
|
|
|
$
|
51
|
|
|
$
|
(1
|
)
|
|
4,565
|
|
2011
|
126
|
|
|
(1
|
)
|
|
125
|
|
|
136
|
|
|
136
|
|
|
140
|
|
|
139
|
|
|
139
|
|
|
142
|
|
|
142
|
|
|
(1
|
)
|
|
6,292
|
|
|||||||||||
2012
|
33
|
|
|
71
|
|
|
104
|
|
|
105
|
|
|
112
|
|
|
119
|
|
|
113
|
|
|
113
|
|
|
116
|
|
|
115
|
|
|
1
|
|
|
6,950
|
|
|||||||||||
2013
|
|
|
|
|
|
|
131
|
|
|
146
|
|
|
138
|
|
|
140
|
|
|
141
|
|
|
144
|
|
|
145
|
|
|
2
|
|
|
7,724
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
185
|
|
|
183
|
|
|
177
|
|
|
171
|
|
|
171
|
|
|
172
|
|
|
—
|
|
|
8,242
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
191
|
|
|
180
|
|
|
179
|
|
|
179
|
|
|
178
|
|
|
1
|
|
|
9,274
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
229
|
|
|
247
|
|
|
236
|
|
|
225
|
|
|
18
|
|
|
10,152
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
245
|
|
|
255
|
|
|
244
|
|
|
15
|
|
|
11,837
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
273
|
|
|
305
|
|
|
43
|
|
|
12,646
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
223
|
|
|
120
|
|
|
6,271
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
1,800
|
|
|
$
|
198
|
|
|
|
As of December 31
|
|
|
|
|
Calendar Year
|
||||||||||||||||||||||||||||||
(In millions)
|
|
|
|
|
2012(1)(2)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2010
|
|
|
|
|
$
|
19
|
|
|
$
|
36
|
|
|
$
|
43
|
|
|
$
|
45
|
|
|
$
|
48
|
|
|
$
|
49
|
|
|
$
|
47
|
|
|
$
|
47
|
|
2011
|
|
|
|
|
31
|
|
|
84
|
|
|
124
|
|
|
129
|
|
|
133
|
|
|
134
|
|
|
136
|
|
|
137
|
|
||||||||
2012
|
|
|
|
|
14
|
|
|
80
|
|
|
100
|
|
|
109
|
|
|
107
|
|
|
109
|
|
|
110
|
|
|
111
|
|
||||||||
2013
|
|
|
|
|
|
|
38
|
|
|
102
|
|
|
121
|
|
|
127
|
|
|
131
|
|
|
134
|
|
|
138
|
|
|||||||||
2014
|
|
|
|
|
|
|
|
|
56
|
|
|
123
|
|
|
142
|
|
|
151
|
|
|
157
|
|
|
162
|
|
||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
30
|
|
|
98
|
|
|
130
|
|
|
145
|
|
|
158
|
|
|||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
63
|
|
|
145
|
|
|
172
|
|
|
182
|
|
||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53
|
|
|
151
|
|
|
184
|
|
|||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55
|
|
|
176
|
|
||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
|
|
|||||||||||||||
Total
|
$
|
1,339
|
|
||||||||||||||||||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented
|
$
|
461
|
|
||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010
|
3
|
|
|||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
9
|
|
|||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses
|
$
|
473
|
|
For the years ended December 31
|
Calendar Year
|
|
|
||||||||||||||||||||||||||||||||
(In millions)
|
2012(1)(2)
|
|
2013(1)
|
|
2014(1)
|
|
2015(1)
|
|
2016(1)
|
|
2017(1)
|
|
2018(1)
|
|
2019
|
|
Total(3)
|
||||||||||||||||||
Accident Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
2010
|
$
|
(9
|
)
|
|
$
|
9
|
|
|
$
|
4
|
|
|
$
|
(6
|
)
|
|
$
|
7
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
3
|
|
2011
|
(1
|
)
|
|
11
|
|
|
—
|
|
|
4
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
16
|
|
|||||||||
2012
|
|
|
1
|
|
|
7
|
|
|
7
|
|
|
(6
|
)
|
|
—
|
|
|
3
|
|
|
(1
|
)
|
|
11
|
|
||||||||||
2013
|
|
|
|
|
15
|
|
|
(8
|
)
|
|
2
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
14
|
|
|||||||||||
2014
|
|
|
|
|
|
|
(2
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|
1
|
|
|
(13
|
)
|
||||||||||||
2015
|
|
|
|
|
|
|
|
|
(11
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(13
|
)
|
|||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
(11
|
)
|
|
(11
|
)
|
|
(4
|
)
|
||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
(11
|
)
|
|
(1
|
)
|
|||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
|
32
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Additional amounts ceded under LPT:
|
|
|
|
|
|
||||||
Net A&EP adverse development before consideration of LPT
|
$
|
150
|
|
|
$
|
178
|
|
|
$
|
60
|
|
Provision for uncollectible third-party reinsurance on A&EP
|
(25
|
)
|
|
(16
|
)
|
|
—
|
|
|||
Total additional amounts ceded under LPT
|
125
|
|
|
162
|
|
|
60
|
|
|||
Retroactive reinsurance benefit recognized
|
(107
|
)
|
|
(114
|
)
|
|
(68
|
)
|
|||
Pretax impact of deferred retroactive reinsurance
|
$
|
18
|
|
|
$
|
48
|
|
|
$
|
(8
|
)
|
December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Reinsurance receivables related to insurance reserves:
|
|
|
|
||||
Ceded claim and claim adjustment expenses
|
$
|
3,835
|
|
|
$
|
4,019
|
|
Ceded future policy benefits
|
226
|
|
|
233
|
|
||
Reinsurance receivables related to paid losses
|
143
|
|
|
203
|
|
||
Reinsurance receivables
|
4,204
|
|
|
4,455
|
|
||
Allowance for uncollectible reinsurance
|
(25
|
)
|
|
(29
|
)
|
||
Reinsurance receivables, net of allowance for uncollectible reinsurance
|
$
|
4,179
|
|
|
$
|
4,426
|
|
(In millions)
|
Direct
|
|
Assumed
|
|
Ceded
|
|
Net
|
|
Assumed/
Net %
|
|||||||||
2019 Earned Premiums
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
$
|
11,021
|
|
|
$
|
288
|
|
|
$
|
4,401
|
|
|
$
|
6,908
|
|
|
4.2
|
%
|
Long term care
|
470
|
|
|
50
|
|
|
—
|
|
|
520
|
|
|
9.6
|
%
|
||||
Total earned premiums
|
$
|
11,491
|
|
|
$
|
338
|
|
|
$
|
4,401
|
|
|
$
|
7,428
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2018 Earned Premiums
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
$
|
10,857
|
|
|
$
|
305
|
|
|
$
|
4,380
|
|
|
$
|
6,782
|
|
|
4.5
|
%
|
Long term care
|
480
|
|
|
50
|
|
|
—
|
|
|
530
|
|
|
9.4
|
%
|
||||
Total earned premiums
|
$
|
11,337
|
|
|
$
|
355
|
|
|
$
|
4,380
|
|
|
$
|
7,312
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2017 Earned Premiums
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
$
|
10,447
|
|
|
$
|
317
|
|
|
$
|
4,315
|
|
|
$
|
6,449
|
|
|
4.9
|
%
|
Long term care
|
489
|
|
|
50
|
|
|
—
|
|
|
539
|
|
|
9.3
|
%
|
||||
Total earned premiums
|
$
|
10,936
|
|
|
$
|
367
|
|
|
$
|
4,315
|
|
|
$
|
6,988
|
|
|
5.3
|
%
|
(In millions)
|
Direct
|
|
Assumed
|
|
Ceded
|
|
Net
|
|
Assumed/
Net %
|
|||||||||
2019 Written Premiums
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
$
|
11,421
|
|
|
$
|
281
|
|
|
$
|
4,569
|
|
|
$
|
7,133
|
|
|
3.9
|
%
|
Long term care
|
473
|
|
|
50
|
|
|
—
|
|
|
523
|
|
|
9.6
|
%
|
||||
Total written premiums
|
$
|
11,894
|
|
|
$
|
331
|
|
|
$
|
4,569
|
|
|
$
|
7,656
|
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2018 Written Premiums
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
$
|
11,094
|
|
|
$
|
310
|
|
|
$
|
4,583
|
|
|
$
|
6,821
|
|
|
4.5
|
%
|
Long term care
|
474
|
|
|
50
|
|
|
—
|
|
|
524
|
|
|
9.5
|
%
|
||||
Total written premiums
|
$
|
11,568
|
|
|
$
|
360
|
|
|
$
|
4,583
|
|
|
$
|
7,345
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2017 Written Premiums
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
$
|
10,655
|
|
|
$
|
327
|
|
|
$
|
4,449
|
|
|
$
|
6,533
|
|
|
5.0
|
%
|
Long term care
|
486
|
|
|
50
|
|
|
—
|
|
|
536
|
|
|
9.3
|
%
|
||||
Total written premiums
|
$
|
11,141
|
|
|
$
|
377
|
|
|
$
|
4,449
|
|
|
$
|
7,069
|
|
|
5.3
|
%
|
December 31
|
|
|
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Senior notes of CNAF:
|
|
|
|
||||
5.875%, face amount of $500, due August 15, 2020(1)
|
$
|
—
|
|
|
$
|
499
|
|
5.750%, face amount of $400, due August 15, 2021
|
399
|
|
|
399
|
|
||
3.950%, face amount of $550, due May 15, 2024
|
548
|
|
|
547
|
|
||
4.500%, face amount of $500, due March 1, 2026
|
498
|
|
|
498
|
|
||
3.450%, face amount of $500, due August 15, 2027
|
496
|
|
|
495
|
|
||
3.900%, face amount of $500, due May 1, 2029
|
496
|
|
|
—
|
|
||
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023
|
242
|
|
|
242
|
|
||
Total
|
$
|
2,679
|
|
|
$
|
2,680
|
|
(In millions)
|
|
||
2020
|
$
|
—
|
|
2021
|
400
|
|
|
2022
|
—
|
|
|
2023
|
243
|
|
|
2024
|
550
|
|
|
Thereafter
|
1,500
|
|
|
Less discount
|
(14
|
)
|
|
Total
|
$
|
2,679
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Benefit obligation as of January 1
|
$
|
2,466
|
|
|
$
|
2,749
|
|
|
$
|
9
|
|
|
$
|
11
|
|
Changes in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest cost
|
100
|
|
|
93
|
|
|
—
|
|
|
—
|
|
||||
Participants' contributions
|
—
|
|
|
—
|
|
|
4
|
|
|
3
|
|
||||
Actuarial (gain) loss
|
261
|
|
|
(187
|
)
|
|
1
|
|
|
—
|
|
||||
Benefits paid
|
(169
|
)
|
|
(166
|
)
|
|
(6
|
)
|
|
(5
|
)
|
||||
Foreign currency translation and other
|
3
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
||||
Settlements
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
||||
Benefit obligation as of December 31
|
2,661
|
|
|
2,466
|
|
|
8
|
|
|
9
|
|
||||
Fair value of plan assets as of January 1
|
2,025
|
|
|
2,261
|
|
|
—
|
|
|
—
|
|
||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Actual return on plan assets
|
292
|
|
|
(69
|
)
|
|
—
|
|
|
—
|
|
||||
Company contributions
|
134
|
|
|
23
|
|
|
2
|
|
|
2
|
|
||||
Participants' contributions
|
—
|
|
|
—
|
|
|
4
|
|
|
3
|
|
||||
Benefits paid
|
(169
|
)
|
|
(166
|
)
|
|
(6
|
)
|
|
(5
|
)
|
||||
Foreign currency translation and other
|
3
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||
Settlements
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
||||
Fair value of plan assets as of December 31
|
2,285
|
|
|
2,025
|
|
|
—
|
|
|
—
|
|
||||
Funded status
|
$
|
(376
|
)
|
|
$
|
(441
|
)
|
|
$
|
(8
|
)
|
|
$
|
(9
|
)
|
Amounts recognized on the Consolidated Balance Sheets as of December 31:
|
|
|
|
|
|
|
|
||||||||
Other assets
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other liabilities
|
(381
|
)
|
|
(450
|
)
|
|
(8
|
)
|
|
(9
|
)
|
||||
Net amount recognized
|
$
|
(376
|
)
|
|
$
|
(441
|
)
|
|
$
|
(8
|
)
|
|
$
|
(9
|
)
|
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit):
|
|
|
|
|
|
|
|
||||||||
Prior service credit
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net actuarial (gain) loss
|
1,056
|
|
|
984
|
|
|
(2
|
)
|
|
(3
|
)
|
||||
Net amount recognized
|
$
|
1,056
|
|
|
$
|
984
|
|
|
$
|
(2
|
)
|
|
$
|
(3
|
)
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net periodic pension cost (benefit)
|
|
|
|
|
|
||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-service cost (benefit):
|
|
|
|
|
|
||||||
Interest cost on projected benefit obligation
|
100
|
|
|
93
|
|
|
103
|
|
|||
Expected return on plan assets
|
(142
|
)
|
|
(159
|
)
|
|
(154
|
)
|
|||
Amortization of net actuarial (gain) loss
|
39
|
|
|
37
|
|
|
35
|
|
|||
Settlement loss
|
—
|
|
|
6
|
|
|
9
|
|
|||
Total non-service cost (benefit)
|
(3
|
)
|
|
(23
|
)
|
|
(7
|
)
|
|||
Total net periodic pension cost (benefit)
|
$
|
(3
|
)
|
|
$
|
(23
|
)
|
|
$
|
(7
|
)
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Pension and postretirement benefits
|
|
|
|
|
|
||||||
Amounts arising during the period
|
$
|
(112
|
)
|
|
$
|
(41
|
)
|
|
$
|
(31
|
)
|
Settlement
|
—
|
|
|
6
|
|
|
9
|
|
|||
Reclassification adjustment relating to prior service credit
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Reclassification adjustment relating to actuarial loss
|
39
|
|
|
36
|
|
|
35
|
|
|||
Total increase (decrease) in Other comprehensive income
|
$
|
(73
|
)
|
|
$
|
(1
|
)
|
|
$
|
11
|
|
Years ended December 31
|
2019
|
|
2018
|
|
2017
|
|||
Pension benefits
|
|
|
|
|
|
|||
Discount rate
|
4.250
|
%
|
|
3.550
|
%
|
|
3.950
|
%
|
Expected long term rate of return
|
7.500
|
|
|
7.500
|
|
|
7.500
|
|
Interest crediting rate
|
5.000
|
|
|
5.000
|
|
|
5.000
|
|
Postretirement benefits
|
|
|
|
|
|
|||
Discount rate
|
3.550
|
%
|
|
2.750
|
%
|
|
2.750
|
%
|
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds and other
|
|
$
|
—
|
|
|
$
|
587
|
|
|
$
|
10
|
|
|
$
|
597
|
|
States, municipalities and political subdivisions
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
||||
Asset-backed
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
||||
Total fixed maturity securities
|
|
—
|
|
|
792
|
|
|
10
|
|
|
802
|
|
||||
Equity securities
|
|
458
|
|
|
128
|
|
|
—
|
|
|
586
|
|
||||
Short term investments
|
|
55
|
|
|
7
|
|
|
—
|
|
|
62
|
|
||||
Other assets
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||
Cash
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||
Total assets measured at fair value
|
|
$
|
526
|
|
|
$
|
936
|
|
|
$
|
10
|
|
|
1,472
|
|
|
Total limited partnerships measured at net asset value (1)
|
|
|
|
|
|
|
|
813
|
|
|||||||
Total
|
|
|
|
|
|
|
|
$
|
2,285
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds and other
|
|
$
|
—
|
|
|
$
|
472
|
|
|
$
|
10
|
|
|
$
|
482
|
|
States, municipalities and political subdivisions
|
|
—
|
|
|
58
|
|
|
—
|
|
|
58
|
|
||||
Asset-backed
|
|
—
|
|
|
165
|
|
|
—
|
|
|
165
|
|
||||
Total fixed maturity securities
|
|
—
|
|
|
695
|
|
|
10
|
|
|
705
|
|
||||
Equity securities
|
|
331
|
|
|
110
|
|
|
—
|
|
|
441
|
|
||||
Short term investments
|
|
27
|
|
|
54
|
|
|
—
|
|
|
81
|
|
||||
Other assets
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||
Cash
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value
|
|
$
|
358
|
|
|
$
|
868
|
|
|
$
|
10
|
|
|
1,236
|
|
|
Total limited partnerships measured at net asset value (1)
|
|
|
|
|
|
|
|
789
|
|
|||||||
Total
|
|
|
|
|
|
|
|
$
|
2,025
|
|
(In millions)
|
Pension Benefits
|
|
Postretirement Benefits
|
||||
2020
|
$
|
178
|
|
|
$
|
1
|
|
2021
|
176
|
|
|
1
|
|
||
2022
|
180
|
|
|
1
|
|
||
2023
|
178
|
|
|
1
|
|
||
2024
|
178
|
|
|
1
|
|
||
2025-2029
|
841
|
|
|
2
|
|
|
Number of Awards
|
|
Weighted Average Grant Date Fair Value
|
|||
Balance as of January 1, 2019
|
2,204,148
|
|
|
$
|
43.98
|
|
Awards granted
|
1,051,053
|
|
|
43.86
|
|
|
Awards vested
|
(801,504
|
)
|
|
36.81
|
|
|
Awards forfeited, canceled or expired
|
(379,425
|
)
|
|
45.98
|
|
|
Performance-based adjustment
|
40,914
|
|
|
44.86
|
|
|
Balance as of December 31, 2019
|
2,115,186
|
|
|
46.25
|
|
December 31
|
|
|
2019
|
|
2018
|
||||||||||||
(In millions)
|
Economic Useful Life
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||
Finite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Trade name
|
8 years
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
5
|
|
Distribution channel
|
15 years
|
|
11
|
|
|
5
|
|
|
10
|
|
|
4
|
|
||||
Total finite-lived intangible assets
|
|
|
18
|
|
|
11
|
|
|
16
|
|
|
9
|
|
||||
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Syndicate capacity
|
|
|
46
|
|
|
|
|
45
|
|
|
|
||||||
Agency force
|
|
|
16
|
|
|
|
|
16
|
|
|
|
||||||
Total indefinite-lived intangible assets
|
|
|
62
|
|
|
|
|
61
|
|
|
|
||||||
Total other intangible assets
|
|
|
$
|
80
|
|
|
$
|
11
|
|
|
$
|
77
|
|
|
$
|
9
|
|
(In millions)
|
December 31, 2019
|
||
Operating lease ROU assets
|
$
|
220
|
|
Operating lease liabilities
|
301
|
|
(In millions)
|
Operating Leases
|
||
2020
|
$
|
38
|
|
2021
|
43
|
|
|
2022
|
40
|
|
|
2023
|
34
|
|
|
2024
|
29
|
|
|
Thereafter
|
184
|
|
|
Total lease payments
|
368
|
|
|
Less: Discount
|
(67
|
)
|
|
Total operating lease liabilities
|
$
|
301
|
|
|
December 31, 2019
|
|
Weighted average remaining lease term
|
10.8 years
|
|
Weighted average discount rate
|
3.4
|
%
|
(In millions)
|
Future Minimum Lease Payments
|
||
2019
|
$
|
35
|
|
2020
|
39
|
|
|
2021
|
41
|
|
|
2022
|
38
|
|
|
2023
|
32
|
|
|
Thereafter
|
200
|
|
|
Total
|
$
|
385
|
|
|
Statutory Capital and Surplus
|
|
Statutory Net Income (Loss)
|
||||||||||||||||
|
December 31
|
|
Years ended December 31
|
||||||||||||||||
(In millions)
|
2019 (1)
|
|
2018
|
|
2019 (1)
|
|
2018
|
|
2017
|
||||||||||
Combined Continental Casualty Companies
|
$
|
10,787
|
|
|
$
|
10,411
|
|
|
$
|
1,062
|
|
|
$
|
1,405
|
|
|
$
|
1,029
|
|
(In millions)
|
Net unrealized gains (losses) on investments with OTTI losses
|
|
Net unrealized gains (losses) on other investments
|
|
Pension and postretirement benefits
|
|
Cumulative foreign currency translation adjustment
|
|
Total
|
||||||||||
Balance as of January 1, 2019
|
$
|
16
|
|
|
$
|
61
|
|
|
$
|
(775
|
)
|
|
$
|
(180
|
)
|
|
$
|
(878
|
)
|
Other comprehensive income (loss) before reclassifications
|
(13
|
)
|
|
957
|
|
|
(89
|
)
|
|
39
|
|
|
894
|
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $3, $(1), $8, $- and $10
|
(12
|
)
|
|
8
|
|
|
(31
|
)
|
|
—
|
|
|
(35
|
)
|
|||||
Other comprehensive income (loss) net of tax (expense) benefit of $-, $(255), $15, $- and $(240)
|
(1
|
)
|
|
949
|
|
|
(58
|
)
|
|
39
|
|
|
929
|
|
|||||
Balance as of December 31, 2019
|
$
|
15
|
|
|
$
|
1,010
|
|
|
$
|
(833
|
)
|
|
$
|
(141
|
)
|
|
$
|
51
|
|
(In millions)
|
Net unrealized gains (losses) on investments with OTTI losses
|
|
Net unrealized gains (losses) on other investments
|
|
Pension and postretirement benefits
|
|
Cumulative foreign currency translation adjustment
|
|
Total
|
||||||||||
Balance as of January 1, 2018, as previously reported
|
$
|
25
|
|
|
$
|
750
|
|
|
$
|
(645
|
)
|
|
$
|
(98
|
)
|
|
$
|
32
|
|
Cumulative effect adjustment from accounting change for adoption of ASU 2018-02
|
5
|
|
|
137
|
|
|
(130
|
)
|
|
—
|
|
|
12
|
|
|||||
Cumulative effect adjustment from accounting change for adoption of ASU 2016-01 net of tax (expenses) benefit of $-, $8, $-, $- and $8
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||
Balance as of January 1, 2018
|
30
|
|
|
859
|
|
|
(775
|
)
|
|
(98
|
)
|
|
16
|
|
|||||
Other comprehensive income (loss) before reclassifications
|
(7
|
)
|
|
(801
|
)
|
|
(32
|
)
|
|
(82
|
)
|
|
(922
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $(2), $2, $8, $- and $8
|
7
|
|
|
(3
|
)
|
|
(32
|
)
|
|
—
|
|
|
(28
|
)
|
|||||
Other comprehensive income (loss) net of tax (expense) benefit of $4, $211, $1, $- and $216
|
(14
|
)
|
|
(798
|
)
|
|
—
|
|
|
(82
|
)
|
|
(894
|
)
|
|||||
Balance as of December 31, 2018
|
$
|
16
|
|
|
$
|
61
|
|
|
$
|
(775
|
)
|
|
$
|
(180
|
)
|
|
$
|
(878
|
)
|
Component of AOCI
|
|
Consolidated Statements of Operations Line Item Affected by Reclassifications
|
Net unrealized gains (losses) on investments with OTTI losses
|
|
Net investment gains (losses)
|
Net unrealized gains (losses) on other investments
|
|
Net investment gains (losses)
|
Pension and postretirement benefits
|
|
Other operating expenses and Insurance claims and policyholders' benefits
|
Year ended December 31, 2019
|
Specialty
|
|
Commercial
|
|
International
|
|
Life &
Group
|
|
Corporate
& Other
|
|
|
|
|
||||||||||||||
(In millions)
|
|
|
|
|
|
Eliminations
|
|
Total
|
|||||||||||||||||||
Net written premiums
|
$
|
2,848
|
|
|
$
|
3,315
|
|
|
$
|
971
|
|
|
$
|
523
|
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
7,656
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net earned premiums
|
$
|
2,773
|
|
|
$
|
3,162
|
|
|
$
|
974
|
|
|
$
|
520
|
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
7,428
|
|
Net investment income
|
556
|
|
|
654
|
|
|
63
|
|
|
820
|
|
|
25
|
|
|
—
|
|
|
2,118
|
|
|||||||
Non-insurance warranty revenue
|
1,161
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,161
|
|
|||||||
Other revenues
|
1
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(5
|
)
|
|
31
|
|
|||||||
Total operating revenues
|
4,491
|
|
|
3,845
|
|
|
1,037
|
|
|
1,340
|
|
|
32
|
|
|
(7
|
)
|
|
10,738
|
|
|||||||
Claims, benefits and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net incurred claims and benefits
|
1,595
|
|
|
2,130
|
|
|
624
|
|
|
1,416
|
|
|
18
|
|
|
—
|
|
|
5,783
|
|
|||||||
Policyholders’ dividends
|
5
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|||||||
Amortization of deferred acquisition costs
|
610
|
|
|
537
|
|
|
236
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,383
|
|
|||||||
Non-insurance warranty expense
|
1,082
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,082
|
|
|||||||
Other insurance related expenses
|
292
|
|
|
505
|
|
|
130
|
|
|
115
|
|
|
(2
|
)
|
|
(2
|
)
|
|
1,038
|
|
|||||||
Other expenses
|
48
|
|
|
32
|
|
|
8
|
|
|
8
|
|
|
144
|
|
|
(5
|
)
|
|
235
|
|
|||||||
Total claims, benefits and expenses
|
3,632
|
|
|
3,222
|
|
|
998
|
|
|
1,539
|
|
|
160
|
|
|
(7
|
)
|
|
9,544
|
|
|||||||
Core income (loss) before income tax
|
859
|
|
|
623
|
|
|
39
|
|
|
(199
|
)
|
|
(128
|
)
|
|
—
|
|
|
1,194
|
|
|||||||
Income tax (expense) benefit on core income (loss)
|
(188
|
)
|
|
(134
|
)
|
|
(9
|
)
|
|
90
|
|
|
26
|
|
|
—
|
|
|
(215
|
)
|
|||||||
Core income (loss)
|
$
|
671
|
|
|
$
|
489
|
|
|
$
|
30
|
|
|
$
|
(109
|
)
|
|
$
|
(102
|
)
|
|
$
|
—
|
|
|
979
|
|
|
Net investment gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|||||||||||||
Income tax (expense) benefit on net investment gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
(8
|
)
|
|||||||||||||
Net investment gains (losses), after tax
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,000
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Reinsurance receivables
|
$
|
575
|
|
|
$
|
855
|
|
|
$
|
247
|
|
|
$
|
385
|
|
|
$
|
2,142
|
|
|
$
|
—
|
|
|
$
|
4,204
|
|
Insurance receivables
|
971
|
|
|
1,210
|
|
|
284
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
2,481
|
|
|||||||
Deferred acquisition costs
|
311
|
|
|
257
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
662
|
|
|||||||
Goodwill
|
117
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|||||||
Deferred non-insurance warranty acquisition expense
|
2,840
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,840
|
|
|||||||
Insurance reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Claim and claim adjustment expenses
|
5,238
|
|
|
8,656
|
|
|
1,876
|
|
|
3,716
|
|
|
2,234
|
|
|
—
|
|
|
21,720
|
|
|||||||
Unearned premiums
|
2,337
|
|
|
1,626
|
|
|
495
|
|
|
125
|
|
|
—
|
|
|
—
|
|
|
4,583
|
|
|||||||
Future policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
12,311
|
|
|
—
|
|
|
—
|
|
|
12,311
|
|
|||||||
Deferred non-insurance warranty revenue
|
3,779
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,779
|
|
Year ended December 31, 2018
|
Specialty
|
|
Commercial
|
|
International
|
|
Life &
Group
|
|
Corporate
& Other
|
|
|
|
|
||||||||||||||
(In millions)
|
|
|
|
|
Eliminations
|
|
Total
|
||||||||||||||||||||
Net written premiums
|
$
|
2,744
|
|
|
$
|
3,060
|
|
|
$
|
1,018
|
|
|
$
|
524
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
7,345
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net earned premiums
|
$
|
2,732
|
|
|
$
|
3,050
|
|
|
$
|
1,001
|
|
|
$
|
530
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
7,312
|
|
Net investment income
|
439
|
|
|
500
|
|
|
57
|
|
|
801
|
|
|
20
|
|
|
—
|
|
|
1,817
|
|
|||||||
Non-insurance warranty revenue
|
1,007
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,007
|
|
|||||||
Other revenues
|
2
|
|
|
28
|
|
|
1
|
|
|
2
|
|
|
19
|
|
|
(2
|
)
|
|
50
|
|
|||||||
Total operating revenues
|
4,180
|
|
|
3,578
|
|
|
1,059
|
|
|
1,333
|
|
|
39
|
|
|
(3
|
)
|
|
10,186
|
|
|||||||
Claims, benefits and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net incurred claims and benefits
|
1,526
|
|
|
2,053
|
|
|
699
|
|
|
1,218
|
|
|
51
|
|
|
—
|
|
|
5,547
|
|
|||||||
Policyholders’ dividends
|
5
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||||
Amortization of deferred acquisition costs
|
599
|
|
|
505
|
|
|
231
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,335
|
|
|||||||
Non-insurance warranty expense
|
923
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
923
|
|
|||||||
Other insurance related expenses
|
279
|
|
|
505
|
|
|
135
|
|
|
122
|
|
|
(1
|
)
|
|
(1
|
)
|
|
1,039
|
|
|||||||
Other expenses
|
46
|
|
|
43
|
|
|
14
|
|
|
7
|
|
|
193
|
|
|
(2
|
)
|
|
301
|
|
|||||||
Total claims, benefits and expenses
|
3,378
|
|
|
3,126
|
|
|
1,079
|
|
|
1,347
|
|
|
243
|
|
|
(3
|
)
|
|
9,170
|
|
|||||||
Core income (loss) before income tax
|
802
|
|
|
452
|
|
|
(20
|
)
|
|
(14
|
)
|
|
(204
|
)
|
|
—
|
|
|
1,016
|
|
|||||||
Income tax (expense) benefit on core income (loss)
|
(173
|
)
|
|
(95
|
)
|
|
1
|
|
|
57
|
|
|
39
|
|
|
—
|
|
|
(171
|
)
|
|||||||
Core income (loss)
|
$
|
629
|
|
|
$
|
357
|
|
|
$
|
(19
|
)
|
|
$
|
43
|
|
|
$
|
(165
|
)
|
|
$
|
—
|
|
|
845
|
|
|
Net investment gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
(52
|
)
|
|||||||||||||
Income tax (expense) benefit on net investment gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
14
|
|
|||||||||||||
Net investment gains (losses), after tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(38
|
)
|
|||||||||||||
Net deferred tax asset remeasurement
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
813
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Reinsurance receivables
|
$
|
649
|
|
|
$
|
795
|
|
|
$
|
250
|
|
|
$
|
414
|
|
|
$
|
2,347
|
|
|
$
|
—
|
|
|
$
|
4,455
|
|
Insurance receivables
|
947
|
|
|
1,277
|
|
|
284
|
|
|
9
|
|
|
(152
|
)
|
|
—
|
|
|
2,365
|
|
|||||||
Deferred acquisition costs
|
308
|
|
|
230
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
633
|
|
|||||||
Goodwill
|
117
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
146
|
|
|||||||
Deferred non-insurance warranty acquisition expense
|
2,513
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,513
|
|
|||||||
Insurance reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Claim and claim adjustment expenses
|
5,465
|
|
|
8,743
|
|
|
1,750
|
|
|
3,601
|
|
|
2,425
|
|
|
—
|
|
|
21,984
|
|
|||||||
Unearned premiums
|
2,132
|
|
|
1,454
|
|
|
475
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
4,183
|
|
|||||||
Future policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
10,597
|
|
|
—
|
|
|
—
|
|
|
10,597
|
|
|||||||
Deferred non-insurance warranty revenue
|
3,402
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,402
|
|
Year ended December 31, 2017
|
Specialty
|
|
Commercial
|
|
|
|
Life &
Group
|
|
Corporate
& Other
|
|
|
|
|
||||||||||||||
(In millions)
|
|
|
International
|
|
|
|
Eliminations
|
|
Total
|
||||||||||||||||||
Net written premiums
|
$
|
2,731
|
|
|
$
|
2,922
|
|
|
$
|
881
|
|
|
$
|
536
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
7,069
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net earned premiums
|
$
|
2,712
|
|
|
$
|
2,881
|
|
|
$
|
857
|
|
|
$
|
539
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
6,988
|
|
Net investment income
|
522
|
|
|
658
|
|
|
52
|
|
|
782
|
|
|
20
|
|
|
—
|
|
|
2,034
|
|
|||||||
Non-insurance warranty revenue
|
390
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
390
|
|
|||||||
Other revenues
|
1
|
|
|
32
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
37
|
|
|||||||
Total operating revenues
|
3,625
|
|
|
3,571
|
|
|
909
|
|
|
1,323
|
|
|
22
|
|
|
(1
|
)
|
|
9,449
|
|
|||||||
Claims, benefits and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net incurred claims and benefits
|
1,533
|
|
|
1,930
|
|
|
575
|
|
|
1,269
|
|
|
(19
|
)
|
|
—
|
|
|
5,288
|
|
|||||||
Policyholders’ dividends
|
4
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||||
Amortization of deferred acquisition costs
|
590
|
|
|
481
|
|
|
162
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,233
|
|
|||||||
Non-insurance warranty expense
|
299
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
299
|
|
|||||||
Other insurance related expenses
|
279
|
|
|
530
|
|
|
162
|
|
|
129
|
|
|
(1
|
)
|
|
(1
|
)
|
|
1,098
|
|
|||||||
Other expenses
|
43
|
|
|
57
|
|
|
(7
|
)
|
|
7
|
|
|
192
|
|
|
—
|
|
|
292
|
|
|||||||
Total claims, benefits and expenses
|
2,748
|
|
|
3,016
|
|
|
892
|
|
|
1,405
|
|
|
172
|
|
|
(1
|
)
|
|
8,232
|
|
|||||||
Core income (loss) before income tax
|
877
|
|
|
555
|
|
|
17
|
|
|
(82
|
)
|
|
(150
|
)
|
|
—
|
|
|
1,217
|
|
|||||||
Income tax (expense) benefit on core income (loss)
|
(295
|
)
|
|
(186
|
)
|
|
(9
|
)
|
|
132
|
|
|
60
|
|
|
—
|
|
|
(298
|
)
|
|||||||
Core income (loss)
|
$
|
582
|
|
|
$
|
369
|
|
|
$
|
8
|
|
|
$
|
50
|
|
|
$
|
(90
|
)
|
|
$
|
—
|
|
|
919
|
|
|
Net investment gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
93
|
|
|||||||||||||
Income tax (expense) benefit on net investment gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
(30
|
)
|
|||||||||||||
Net investment gains (losses), after tax
|
|
|
|
|
|
|
|
|
|
|
|
|
63
|
|
|||||||||||||
Net deferred tax asset remeasurement
|
|
|
|
|
|
|
|
|
|
|
|
|
(83
|
)
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
899
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Specialty
|
|
|
|
|
|
||||||
Management & Professional Liability
|
$
|
2,572
|
|
|
$
|
2,440
|
|
|
$
|
2,533
|
|
Surety
|
596
|
|
|
571
|
|
|
541
|
|
|||
Warranty & Alternative Risks (1)
|
1,323
|
|
|
1,169
|
|
|
551
|
|
|||
Specialty revenues
|
4,491
|
|
|
4,180
|
|
|
3,625
|
|
|||
Commercial
|
|
|
|
|
|
|
|
||||
Middle Market
|
2,249
|
|
|
2,045
|
|
|
1,965
|
|
|||
Small Business
|
469
|
|
|
472
|
|
|
480
|
|
|||
Other Commercial Insurance
|
1,127
|
|
|
1,061
|
|
|
1,126
|
|
|||
Commercial revenues
|
3,845
|
|
|
3,578
|
|
|
3,571
|
|
|||
International
|
|
|
|
|
|
|
|
|
|||
Canada
|
277
|
|
|
255
|
|
|
224
|
|
|||
Europe
|
363
|
|
|
363
|
|
|
326
|
|
|||
Hardy
|
397
|
|
|
441
|
|
|
359
|
|
|||
International revenues
|
1,037
|
|
|
1,059
|
|
|
909
|
|
|||
Life & Group revenues
|
1,340
|
|
|
1,333
|
|
|
1,323
|
|
|||
Corporate & Other revenues
|
32
|
|
|
39
|
|
|
22
|
|
|||
Eliminations
|
(7
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|||
Total operating revenues
|
10,738
|
|
|
10,186
|
|
|
9,449
|
|
|||
Net investment gains (losses)
|
29
|
|
|
(52
|
)
|
|
93
|
|
|||
Total revenues
|
$
|
10,767
|
|
|
$
|
10,134
|
|
|
$
|
9,542
|
|
(1)
|
As of January 1, 2018, the Company adopted ASU 2014-09 Revenue Recognition (Topic 606): Revenue from Contracts with Customers. See Note A to the Consolidated Financial Statements for additional information.
|
2019
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions, except per share data)
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Full Year
|
||||||||||
Revenues
|
$
|
2,695
|
|
|
$
|
2,610
|
|
|
$
|
2,685
|
|
|
$
|
2,777
|
|
|
$
|
10,767
|
|
Net income (loss) (1)
|
342
|
|
|
278
|
|
|
107
|
|
|
273
|
|
|
1,000
|
|
|||||
Basic earnings (loss) per share (3)
|
1.26
|
|
|
1.03
|
|
|
0.39
|
|
|
1.00
|
|
|
3.68
|
|
|||||
Diluted earnings (loss) per share (3)
|
$
|
1.25
|
|
|
$
|
1.02
|
|
|
$
|
0.39
|
|
|
$
|
1.00
|
|
|
$
|
3.67
|
|
2018
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions, except per share data)
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Full Year
|
||||||||||
Revenues
|
$
|
2,535
|
|
|
$
|
2,574
|
|
|
$
|
2,622
|
|
|
$
|
2,403
|
|
|
$
|
10,134
|
|
Net income (loss) (2)
|
291
|
|
|
270
|
|
|
336
|
|
|
(84
|
)
|
|
813
|
|
|||||
Basic earnings (loss) per share (3)
|
1.07
|
|
|
0.99
|
|
|
1.24
|
|
|
(0.31
|
)
|
|
2.99
|
|
|||||
Diluted earnings (loss) per share (3)
|
$
|
1.07
|
|
|
$
|
0.99
|
|
|
$
|
1.23
|
|
|
$
|
(0.31
|
)
|
|
$
|
2.98
|
|
(1)
|
Net income (loss) in the third quarter of 2019 included a $170 million charge related to recognition of an active life reserve premium deficiency as a result of the third quarter 2019 GPV.
|
(2)
|
Net income (loss) in the fourth quarter of 2018 included a loss on limited partnership and common stock investments of $109 million and catastrophe losses, net of reinsurance, of $107 million related to Hurricane Michael and the California wildfires.
|
(3)
|
Earnings (loss) per share (EPS) in each quarter is computed using the weighted average number of shares outstanding during that quarter, while EPS for the full year is computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quarters EPS may not equal the full year EPS.
|
•
|
We tested the effectiveness of controls related to the determination of P&C claim and claim adjustment expense reserves, including those controls related to the estimation of and management’s review of P&C claim and claim adjustment expense reserves.
|
•
|
We tested the underlying data, including historical claims, that served as the basis for the actuarial analyses, to test that the inputs to the actuarial estimates were accurate and complete.
|
•
|
With the assistance of our actuarial specialists:
|
◦
|
We developed a range of independent estimates of P&C claim and claim adjustment expense reserves and compared our estimates to the recorded reserves.
|
◦
|
We compared our prior year estimates of expected incurred losses to actual experience during the most recent year to identify potential bias in the Company’s determination of P&C claim and claim adjustment expense reserves.
|
•
|
We tested the effectiveness of controls related to the determination of LTC future policy benefit reserves, including those controls related to the estimation of and management’s review of LTC future policy benefit reserves.
|
•
|
We tested the underlying data, including demographic and historical claims data, that served as the basis for the actuarial analyses, to test that the inputs to the actuarial estimates were accurate and complete.
|
•
|
With the assistance of our actuarial specialists:
|
◦
|
We independently recalculated a sample of LTC future policy benefit reserves and compared our estimates to the recorded reserves.
|
◦
|
We evaluated the key assumptions applied in the GPV analysis, including comparing those assumptions to the Company’s historical experience, underlying investment portfolio yield and market data.
|
◦
|
We assessed the Company’s projection of future cash flows to evaluate the reasonableness of the 2019 charge related to unlocking LTC future policy benefit reserves to recognize a premium deficiency as a result of the most recently completed GPV.
|
NAME
|
POSITION AND OFFICES HELD WITH REGISTRANT
|
AGE
|
FIRST BECAME EXECUTIVE OFFICER OF CNA
|
PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
|
Dino E. Robusto
|
Chief Executive Officer
|
61
|
2016
|
Chairman of the Board and Chief Executive Officer of CNA Financial Corporation since November 2016. President of Commercial and Specialty Lines of the Chubb Group of Insurance Companies and Executive Vice President of Chubb Limited from 2013 through November 2015.
|
James M. Anderson
|
Executive Vice President & Chief Financial Officer
|
47
|
2018
|
Executive Vice President and Chief Financial Officer of CNA Financial Corporation since August 2018. Senior Vice President, Financial Planning & Analysis of the CNA insurance companies from 2012 to August 2018.
|
Elizabeth A. Aguinaga
|
Executive Vice President & Chief Human Resources Officer
|
42
|
2018
|
Executive Vice President and Chief Human Resources Officer of CNA insurance companies since February 2018. Senior Vice President, Chief Human Resources Officer of CNA insurance companies from September 2015 through February 2018. Vice President, Human Resources of CNA insurance companies from September 2010 through September 2015.
|
David Brosnan
|
Chief Executive, CNA Hardy, & Executive Vice President, CNA
|
57
|
2015
|
Chief Executive of CNA Hardy since August 2014 and Chief Executive of Hardy since February 2014. Senior Vice President, Commercial from May 2013 through February 2014.
|
Michael A. Costonis
|
Executive Vice President & Chief Operations Officer
|
49
|
2018
|
Executive Vice President & Chief Operations Officer of the CNA insurance companies since September 2018. Global Insurance Industry Practice Leader and Senior Managing Director at Accenture from 2014 through September 2018. Managing Director at Accenture from 2002 to 2014.
|
Jose Ramon Gonzalez
|
Executive Vice President & General Counsel
|
52
|
2019
|
Executive Vice President and General Counsel of CNA Financial Corporation since July 2019. Chief Legal Officer, QBE North America from April 2014 through July 2019. Global General Counsel and Corporate Secretary, Torus from March 2011 through April 2014.
|
Larry A. Haefner
|
Executive Vice President & Chief Actuary
|
63
|
2008
|
Executive Vice President & Chief Actuary of the CNA insurance companies.
|
Kevin Leidwinger
|
President & Chief Operating Officer, CNA Commercial
|
56
|
2015
|
President and Chief Operating Officer, Commercial of the CNA insurance companies since June 2015. Global Casualty Manager for Chubb Commercial Insurance from April 2013 to June 2015.
|
Albert J. Miralles
|
President of CNA Warranty
|
50
|
2014
|
President of CNA Warranty since October 2019. Executive Vice President and Chief Risk Officer of the CNA insurance companies from January 2018 to October 2019. President, Long Term Care of the CNA insurance companies from March 2014 through January 2018. Senior Vice President and Treasurer of the CNA insurance companies from 2011 to March 2014.
|
Kevin G. Smith
|
President & Chief Operating Officer, CNA Specialty
|
55
|
2017
|
President and Chief Operating Officer for Specialty of CNA insurance companies since May 2017. Executive Vice President, Chubb from May 2016 through May 2017. Senior Vice President, Chicago Regional Branch Manager, Chubb from July 2008 through May 2016.
|
NAME
|
POSITION AND OFFICES HELD WITH REGISTRANT
|
AGE
|
FIRST BECAME EXECUTIVE OFFICER OF CNA
|
PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
|
Douglas M. Worman
|
Executive Vice President & Chief Underwriting Officer
|
52
|
2017
|
Executive Vice President and Chief Underwriting Officer of CNA insurance companies since March 2017. Chief Executive Officer, U.S. Insurance, ENH Insurance Company from November 2013 through July 2016.
|
December 31, 2019
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
Weighted average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
||||
Plan Category
|
(a)
|
|
(b)
|
|
(c)
|
||||
Equity compensation plans approved by security holders
|
2,651,958
|
|
|
$
|
45.49
|
|
|
2,311,148
|
|
Equity compensation plans not approved by security holders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
2,651,958
|
|
|
$
|
45.49
|
|
|
2,311,148
|
|
|
|
Page Number
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
|
Schedule I
|
|
||
|
Schedule II
|
|
||
|
Schedule III
|
|
||
|
Schedule IV
|
|
||
|
Schedule V
|
|
||
|
Schedule VI
|
|
|
Description of Exhibit
|
Exhibit Number
|
|
||
(3
|
)
|
Articles of incorporation and by-laws:
|
|
|
|
|
|
|
|
||
|
3.1
|
|
|
||
|
|
|
|
||
|
3.1.1
|
|
|
||
|
|
|
|
||
|
Certificate of Amendment of Certificate of Incorporation, dated May 10, 1999 (Exhibit 3.1 to 1999 Form 10-K incorporated herein by reference)
|
3.1.2
|
|
**
|
|
|
|
|
|
||
|
3.2
|
|
|
||
|
|
|
|
||
(4
|
)
|
Instruments defining the rights of security holders, including indentures:*
|
|
|
|
|
|
|
|
||
|
4.1
|
|
|
||
|
|
|
|
|
4.2
|
|
|
||
|
|
|
|
||
(10
|
)
|
Material contracts:
|
|
|
|
|
|
|
|
||
|
10.1
|
|
|
||
|
|
|
|
||
|
Federal Income Tax Allocation Agreement, dated February 29, 1980 between CNA Financial Corporation and Loews Corporation (Exhibit 10.2 to 1987 Form 10-K incorporated herein by reference)
|
10.2
|
|
**
|
|
|
|
|
|
||
|
10.3
|
|
|
||
|
|
|
|
||
|
10.3.1
|
|
|
||
|
|
|
|
||
|
10.4
|
|
+
|
||
|
|
|
|
||
|
10.4.1
|
|
+
|
||
|
|
|
|
||
|
10.5
|
|
+
|
||
|
|
|
|
||
|
10.6
|
|
+
|
||
|
|
|
|
||
|
10.6.1
|
|
+
|
||
|
|
|
|
||
|
10.6.2
|
|
+
|
||
|
|
|
|
||
|
10.7
|
|
+
|
||
|
|
|
|
||
|
10.11
|
|
+
|
||
|
|
|
|
||
|
10.13
|
|
|
|
10.14
|
|
|
||
|
|
|
|
||
|
10.15
|
|
|
||
|
|
|
|
||
|
10.16
|
|
|
||
|
|
|
|
||
|
10.17
|
|
|
||
|
|
|
|
||
|
10.18
|
|
|
||
|
|
|
|
||
(21
|
)
|
Subsidiaries of the Registrant
|
|
|
|
|
|
|
|
||
|
21.1
|
|
|
||
|
|
|
|
||
(23
|
)
|
Consent of Experts and Counsel
|
|
|
|
|
|
|
|
||
|
23.1
|
|
|
||
|
|
|
|
||
(31
|
)
|
Rule 13a-14(a)/15d-14(a) Certifications
|
|
|
|
|
|
|
|
||
|
31.1
|
|
|
||
|
|
|
|
|
|
|
31.2
|
|
|
||
|
|
|
|
|
|
(32
|
)
|
Section 1350 Certifications
|
|
|
|
|
32.1
|
|
|
||
|
|
|
|
|
|
|
32.2
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
|
|
|
|
|
||||||
Net investment income
|
$
|
13
|
|
|
$
|
10
|
|
|
$
|
6
|
|
Net investment losses
|
(21
|
)
|
|
—
|
|
|
(42
|
)
|
|||
Total revenues
|
(8
|
)
|
|
10
|
|
|
(36
|
)
|
|||
Expenses
|
|
|
|
|
|
||||||
Administrative and general
|
1
|
|
|
1
|
|
|
2
|
|
|||
Interest
|
131
|
|
|
135
|
|
|
152
|
|
|||
Total expenses
|
132
|
|
|
136
|
|
|
154
|
|
|||
Loss from operations before income taxes and equity in net income of subsidiaries
|
(140
|
)
|
|
(126
|
)
|
|
(190
|
)
|
|||
Income tax benefit
|
21
|
|
|
9
|
|
|
57
|
|
|||
Loss before equity in net income of subsidiaries
|
(119
|
)
|
|
(117
|
)
|
|
(133
|
)
|
|||
Equity in net income of subsidiaries
|
1,119
|
|
|
930
|
|
|
1,032
|
|
|||
Net income
|
1,000
|
|
|
813
|
|
|
899
|
|
|||
Equity in other comprehensive income (loss) of subsidiaries
|
929
|
|
|
(894
|
)
|
|
205
|
|
|||
Total comprehensive income (loss)
|
$
|
1,929
|
|
|
$
|
(81
|
)
|
|
$
|
1,104
|
|
December 31
|
|
|
|
||||
(In millions, except share data)
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Investment in subsidiaries
|
$
|
14,412
|
|
|
$
|
13,427
|
|
Cash
|
1
|
|
|
1
|
|
||
Short term investments
|
521
|
|
|
519
|
|
||
Amounts due from affiliates
|
2
|
|
|
2
|
|
||
Other assets
|
1
|
|
|
—
|
|
||
Total assets
|
$
|
14,937
|
|
|
$
|
13,949
|
|
Liabilities
|
|
|
|
||||
Long term debt
|
$
|
2,679
|
|
|
$
|
2,680
|
|
Other liabilities
|
43
|
|
|
52
|
|
||
Total liabilities
|
2,722
|
|
|
2,732
|
|
||
Stockholders' Equity
|
|
|
|
||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,412,591 and 271,456,978 shares outstanding)
|
683
|
|
|
683
|
|
||
Additional paid-in capital
|
2,203
|
|
|
2,192
|
|
||
Retained earnings
|
9,348
|
|
|
9,277
|
|
||
Accumulated other comprehensive income (loss)
|
51
|
|
|
(878
|
)
|
||
Treasury stock (1,627,652 and 1,583,265 shares), at cost
|
(70
|
)
|
|
(57
|
)
|
||
Total stockholders' equity
|
12,215
|
|
|
11,217
|
|
||
Total liabilities and stockholders' equity
|
$
|
14,937
|
|
|
$
|
13,949
|
|
Years ended December 31
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
1,000
|
|
|
$
|
813
|
|
|
$
|
899
|
|
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
|
|
|
|
|
||||||
Equity in net income of subsidiaries
|
(1,119
|
)
|
|
(930
|
)
|
|
(1,032
|
)
|
|||
Dividends received from subsidiaries
|
1,065
|
|
|
1,026
|
|
|
955
|
|
|||
Net investment losses
|
21
|
|
|
—
|
|
|
42
|
|
|||
Other, net
|
13
|
|
|
16
|
|
|
36
|
|
|||
Net cash flows provided by operating activities
|
980
|
|
|
925
|
|
|
900
|
|
|||
Cash Flows from Investing Activities
|
|
|
|
|
|
||||||
Change in short term investments
|
10
|
|
|
130
|
|
|
(146
|
)
|
|||
Capital contributions to subsidiaries
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|||
Other, net
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net cash flows provided (used) by investing activities
|
8
|
|
|
128
|
|
|
(146
|
)
|
|||
Cash Flows from Financing Activities
|
|
|
|
|
|
||||||
Dividends paid to common stockholders
|
(929
|
)
|
|
(896
|
)
|
|
(842
|
)
|
|||
Proceeds from the issuance of debt
|
496
|
|
|
—
|
|
|
496
|
|
|||
Repayment of debt
|
(520
|
)
|
|
(150
|
)
|
|
(391
|
)
|
|||
Purchase of Treasury Stock
|
(23
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(12
|
)
|
|
(7
|
)
|
|
(17
|
)
|
|||
Net cash flows used by financing activities
|
(988
|
)
|
|
(1,053
|
)
|
|
(754
|
)
|
|||
Net change in cash
|
—
|
|
|
—
|
|
|
—
|
|
|||
Cash, beginning of year
|
1
|
|
|
1
|
|
|
1
|
|
|||
Cash, end of year
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
(In millions)
|
Balance at Beginning of Period
|
|
Charged to Costs and Expenses
|
|
Charged to Other Accounts (1)
|
|
Deductions
|
|
Balance at End of Period
|
||||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance and reinsurance receivables
|
$
|
71
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
57
|
|
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance and reinsurance receivables
|
$
|
73
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
71
|
|
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance and reinsurance receivables
|
$
|
83
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
73
|
|
As of and for the years ended December 31
|
Consolidated Property and Casualty Operations
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance Sheet Data
|
|
|
|
|
|
||||||
Deferred acquisition costs
|
$
|
662
|
|
|
$
|
633
|
|
|
|
||
Reserves for unpaid claim and claim adjustment expenses
|
21,720
|
|
|
21,984
|
|
|
|
||||
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.5% to 7.6%)
|
1,321
|
|
|
1,388
|
|
|
|
||||
Unearned premiums
|
4,583
|
|
|
4,183
|
|
|
|
||||
Statement of Operations Data
|
|
|
|
|
|
||||||
Net written premiums
|
$
|
7,656
|
|
|
$
|
7,345
|
|
|
$
|
7,069
|
|
Net earned premiums
|
7,428
|
|
|
7,312
|
|
|
6,988
|
|
|||
Net investment income
|
2,063
|
|
|
1,751
|
|
|
1,992
|
|
|||
Incurred claim and claim adjustment expenses related to current year
|
5,356
|
|
|
5,358
|
|
|
5,201
|
|
|||
Incurred claim and claim adjustment expenses related to prior years
|
(127
|
)
|
|
(179
|
)
|
|
(381
|
)
|
|||
Amortization of deferred acquisition costs
|
1,383
|
|
|
1,335
|
|
|
1,233
|
|
|||
Paid claim and claim adjustment expenses
|
5,576
|
|
|
5,331
|
|
|
5,341
|
|
|
|
CNA Financial Corporation
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Dino E. Robusto
|
|
|
Dino E. Robusto
Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ James M. Anderson
|
|
|
James M. Anderson
Executive Vice President and
Chief Financial Officer
(Principal Financial & Accounting Officer)
|
Dated: February 11, 2020
|
By
|
/s/ Dino E. Robusto
|
|
|
(Dino E. Robusto, Chief Executive Officer and Chairman of the Board of Directors)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Michael A. Bless
|
|
|
(Michael A. Bless, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Jose O. Montemayor
|
|
|
(Jose O. Montemayor, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Don M. Randel
|
|
|
(Don M. Randel, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Andre Rice
|
|
|
(Andre Rice, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Kenneth I. Siegel
|
|
|
(Kenneth I. Siegel, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Andrew H. Tisch
|
|
|
(Andrew H. Tisch, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Benjamin J. Tisch
|
|
|
(Benjamin J. Tisch, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ James S. Tisch
|
|
|
(James S. Tisch, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Jane Wang
|
|
|
(Jane Wang, Director)
|
|
|
|
Dated: February 11, 2020
|
By
|
/s/ Marvin Zonis
|
|
|
(Marvin Zonis, Director)
|
Name of Subsidiary
|
Organized Under Laws of
|
American Casualty Company of Reading, Pennsylvania
|
Pennsylvania
|
CNA Insurance Company (Europe) S.A.
|
Luxembourg
|
CNA Insurance Company Limited
|
United Kingdom
|
Columbia Casualty Company
|
Illinois
|
Continental Casualty Company
|
Illinois
|
Continental Reinsurance Corporation International, Ltd
|
Bermuda
|
Hardy Bermuda Limited
|
Bermuda
|
Hardy Underwriting Limited
|
United Kingdom
|
Hardy Underwriting Labuan Limited
|
Malaysia
|
National Fire Insurance Company of Hartford
|
Illinois
|
North Rock Insurance Company Limited
|
Bermuda
|
Surety Bonding Company of America
|
South Dakota
|
The Continental Corporation
|
New York
|
The Continental Insurance Company of New Jersey
|
New Jersey
|
The Continental Insurance Company
|
Pennsylvania
|
Transportation Insurance Company
|
Illinois
|
Universal Surety of America
|
South Dakota
|
Valley Forge Insurance Company
|
Pennsylvania
|
Western Surety Company
|
South Dakota
|
1.
|
I have reviewed this Annual Report on Form 10-K of CNA Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
February 11, 2020
|
By
|
/s/ Dino E. Robusto
|
|
|
|
|
Dino E. Robusto
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of CNA Financial Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Dated:
|
February 11, 2020
|
By
|
/s/ James M. Anderson
|
|
|
|
|
James M. Anderson
|
|
|
|
|
Chief Financial Officer
|
|
•
|
the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed on the date hereof with the Securities and Exchange Commission (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
February 11, 2020
|
By
|
/s/ Dino E. Robusto
|
|
|
|
|
Dino E. Robusto
|
|
|
|
|
Chief Executive Officer
|
|
•
|
the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed on the date hereof with the Securities and Exchange Commission (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
February 11, 2020
|
By
|
/s/ James M. Anderson
|
|
|
|
|
James M. Anderson
|
|
|
|
|
Chief Financial Officer
|
|