☒ | QUARTERLY 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. | ||||||||
2. | ||||||||
3. | ||||||||
4. | ||||||||
PART II | ||||||||
1 | ||||||||
2 | ||||||||
6 |
Three months ended March 31 | |||||||||||
(In millions, except per share data) | 2023 | 2022 (1) | |||||||||
Revenues | |||||||||||
Net earned premiums | $ | 2,248 | $ | 2,059 | |||||||
Net investment income | 525 | 448 | |||||||||
Net investment losses | (35) | (11) | |||||||||
Non-insurance warranty revenue | 407 | 382 | |||||||||
Other revenues | 7 | 7 | |||||||||
Total revenues | 3,152 | 2,885 | |||||||||
Claims, Benefits and Expenses | |||||||||||
Insurance claims and policyholders’ benefits (re-measurement gain (loss) of $1 and $5) | 1,653 | 1,478 | |||||||||
Amortization of deferred acquisition costs | 379 | 344 | |||||||||
Non-insurance warranty expense | 384 | 354 | |||||||||
Other operating expenses | 337 | 326 | |||||||||
Interest | 28 | 28 | |||||||||
Total claims, benefits and expenses | 2,781 | 2,530 | |||||||||
Income before income tax | 371 | 355 | |||||||||
Income tax expense | (74) | (60) | |||||||||
Net income | $ | 297 | $ | 295 | |||||||
Basic earnings per share | $ | 1.10 | $ | 1.08 | |||||||
Diluted earnings per share | $ | 1.09 | $ | 1.08 | |||||||
Weighted Average Outstanding Common Stock and Common Stock Equivalents | |||||||||||
Basic | 271.3 | 271.8 | |||||||||
Diluted | 272.3 | 272.9 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 (1) | |||||||||
Comprehensive Income (Loss) | |||||||||||
Net income | $ | 297 | $ | 295 | |||||||
Other Comprehensive Income (Loss), net of tax | |||||||||||
Changes in: | |||||||||||
Net unrealized gains and losses on investments with an allowance for credit losses | (8) | (4) | |||||||||
Net unrealized gains and losses on other investments | 670 | (2,643) | |||||||||
Net unrealized gains and losses on investments | 662 | (2,647) | |||||||||
Impact of changes in discount rates used to measure long-duration contract liabilities | (396) | 1,635 | |||||||||
Foreign currency translation adjustment | 17 | (14) | |||||||||
Pension and postretirement benefits | 7 | 6 | |||||||||
Other comprehensive income (loss), net of tax | 290 | (1,020) | |||||||||
Total comprehensive income (loss) | $ | 587 | $ | (725) |
(In millions, except share data) | March 31, 2023 | December 31, 2022 (1) | |||||||||
Assets | |||||||||||
Investments: | |||||||||||
Fixed maturity securities at fair value (amortized cost of $41,660 and $41,032, less allowance for credit loss of $2 and $1) | $ | 39,107 | $ | 37,627 | |||||||
Equity securities at fair value (cost of $708 and $703) | 682 | 674 | |||||||||
Limited partnership investments | 1,982 | 1,926 | |||||||||
Other invested assets | 79 | 78 | |||||||||
Mortgage loans (less allowance for uncollectible receivables of $24 and $24) | 1,006 | 1,040 | |||||||||
Short term investments | 1,167 | 1,832 | |||||||||
Total investments | 44,023 | 43,177 | |||||||||
Cash | 483 | 475 | |||||||||
Reinsurance receivables (less allowance for uncollectible receivables of $22 and $22) | 5,484 | 5,416 | |||||||||
Insurance receivables (less allowance for uncollectible receivables of $29 and $29) | 3,126 | 3,158 | |||||||||
Accrued investment income | 415 | 402 | |||||||||
Deferred acquisition costs | 852 | 806 | |||||||||
Deferred income taxes | 1,157 | 1,251 | |||||||||
Property and equipment at cost (less accumulated depreciation of $289 and $280) | 232 | 226 | |||||||||
Goodwill | 145 | 144 | |||||||||
Deferred non-insurance warranty acquisition expense | 3,671 | 3,671 | |||||||||
Other assets (includes $— and $18 due from Loews Corporation) | 2,467 | 2,274 | |||||||||
Total assets | $ | 62,055 | $ | 61,000 | |||||||
Liabilities | |||||||||||
Insurance reserves: | |||||||||||
Claim and claim adjustment expenses | $ | 22,409 | $ | 22,120 | |||||||
Unearned premiums | 6,581 | 6,374 | |||||||||
Future policy benefits | 13,976 | 13,480 | |||||||||
Short term debt | 243 | 243 | |||||||||
Long term debt | 2,539 | 2,538 | |||||||||
Deferred non-insurance warranty revenue | 4,710 | 4,714 | |||||||||
Other liabilities (includes $32 and $26 due to Loews Corporation) | 2,930 | 2,983 | |||||||||
Total liabilities | 53,388 | 52,452 | |||||||||
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; 270,852,335 and 270,895,902 shares outstanding) | 683 | 683 | |||||||||
Additional paid-in capital | 2,196 | 2,220 | |||||||||
Retained earnings | 9,191 | 9,336 | |||||||||
Accumulated other comprehensive loss | (3,308) | (3,598) | |||||||||
Treasury stock (2,187,908 and 2,144,341 shares), at cost | (95) | (93) | |||||||||
Total stockholders’ equity | 8,667 | 8,548 | |||||||||
Total liabilities and stockholders' equity | $ | 62,055 | $ | 61,000 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 (1) | |||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 297 | $ | 295 | |||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Deferred income tax expense | 21 | 12 | |||||||||
Trading portfolio activity | (13) | — | |||||||||
Net investment losses | 35 | 11 | |||||||||
Equity method investees | 6 | 152 | |||||||||
Net amortization of investments | (46) | (26) | |||||||||
Depreciation and amortization | 12 | 13 | |||||||||
Changes in: | |||||||||||
Receivables, net | (24) | (5) | |||||||||
Accrued investment income | (13) | (22) | |||||||||
Deferred acquisition costs | (45) | (31) | |||||||||
Insurance reserves | 432 | 512 | |||||||||
Other, net | (226) | (266) | |||||||||
Net cash flows provided by operating activities | 436 | 645 | |||||||||
Cash Flows from Investing Activities | |||||||||||
Dispositions: | |||||||||||
Fixed maturity securities - sales | 1,414 | 803 | |||||||||
Fixed maturity securities - maturities, calls and redemptions | 317 | 916 | |||||||||
Equity securities | 62 | 77 | |||||||||
Limited partnerships | 28 | 80 | |||||||||
Mortgage loans | 39 | 55 | |||||||||
Purchases: | |||||||||||
Fixed maturity securities | (2,258) | (2,547) | |||||||||
Equity securities | (82) | (75) | |||||||||
Limited partnerships | (116) | (85) | |||||||||
Mortgage loans | (12) | (25) | |||||||||
Change in other investments | (2) | (3) | |||||||||
Change in short term investments | 681 | 687 | |||||||||
Purchases of property and equipment | (20) | (12) | |||||||||
Net cash flows provided (used) by investing activities | 51 | (129) | |||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid to common stockholders | (445) | (657) | |||||||||
Purchase of treasury stock | (24) | (21) | |||||||||
Other, net | (11) | (10) | |||||||||
Net cash flows used by financing activities | (480) | (688) | |||||||||
Effect of foreign exchange rate changes on cash | 1 | (3) | |||||||||
Net change in cash | 8 | (175) | |||||||||
Cash, beginning of year | 475 | 536 | |||||||||
Cash, end of period | $ | 483 | $ | 361 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 (1) | |||||||||
Common Stock | |||||||||||
Balance, beginning of period | $ | 683 | $ | 683 | |||||||
Balance, end of period | 683 | 683 | |||||||||
Additional Paid-in Capital | |||||||||||
Balance, beginning of period | 2,220 | 2,215 | |||||||||
Stock-based compensation | (24) | (20) | |||||||||
Balance, end of period | 2,196 | 2,195 | |||||||||
Retained Earnings | |||||||||||
Balance, beginning of period, as previously reported | 9,572 | 9,663 | |||||||||
Cumulative effect adjustments from changes in accounting guidance, net of tax | (236) | (24) | |||||||||
Balance, beginning of period, as adjusted | 9,336 | 9,639 | |||||||||
Dividends to common stockholders ($1.62 and $2.40 per share) | (442) | (657) | |||||||||
Net income | 297 | 295 | |||||||||
Balance, end of period | 9,191 | 9,277 | |||||||||
Accumulated Other Comprehensive (Loss) Income | |||||||||||
Balance, beginning of period, as previously reported | (3,557) | 320 | |||||||||
Cumulative effect adjustments from changes in accounting guidance, net of tax | (41) | (1,680) | |||||||||
Balance, beginning of period, as adjusted | (3,598) | (1,360) | |||||||||
Other comprehensive income (loss) | 290 | (1,020) | |||||||||
Balance, end of period | (3,308) | (2,380) | |||||||||
Treasury Stock | |||||||||||
Balance, beginning of period | (93) | (72) | |||||||||
Stock-based compensation | 22 | 16 | |||||||||
Purchase of treasury stock | (24) | (21) | |||||||||
Balance, end of period | (95) | (77) | |||||||||
Total stockholders' equity | $ | 8,667 | $ | 9,698 |
(In millions) | |||||
Balance as of December 31, 2020, as previously reported | $ | 13,318 | |||
Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits (1) | 2,844 | ||||
De-recognition of shadow reserves | (3,293) | ||||
Re-measurement using an upper-medium grade fixed income instrument yield discount rate | 6,255 | ||||
Other adjustments | 8 | ||||
Balance as of January 1, 2021, as adjusted | $ | 19,132 |
(In millions) | Accumulated other comprehensive income (loss) | Retained earnings | |||||||||
Balance as of December 31, 2020, as previously reported | $ | 803 | $ | 9,081 | |||||||
De-recognition of shadow reserves | 2,601 | — | |||||||||
Re-measurement of LFPB using an upper-medium grade fixed income instrument yield discount rate | (4,941) | — | |||||||||
Other adjustments | — | (6) | |||||||||
Balance as of January 1, 2021, as adjusted | $ | (1,537) | $ | 9,075 |
(In millions) | Prior to Adoption | Effect of Adoption | As reported | ||||||||||||||
Insurance claims and policyholders’ benefits (1) | $ | 1,455 | $ | 23 | $ | 1,478 | |||||||||||
Income (loss) before income tax | 378 | (23) | 355 | ||||||||||||||
Income tax (expense) benefit | (65) | 5 | (60) | ||||||||||||||
Net income | 313 | (18) | 295 | ||||||||||||||
Basic earnings (loss) per share | 1.15 | (0.07) | 1.08 | ||||||||||||||
Diluted earnings (loss) per share | 1.15 | (0.07) | 1.08 |
(In millions) | Prior to Adoption | Effect of Adoption | As reported | ||||||||||||||
Deferred income taxes | $ | 1,178 | $ | 73 | $ | 1,251 | |||||||||||
Total assets | 60,927 | 73 | 61,000 | ||||||||||||||
Claim and claim adjustment expenses (1) | 25,099 | (2,979) | 22,120 | ||||||||||||||
Future policy benefits (1) | 10,151 | 3,329 | 13,480 | ||||||||||||||
Total liabilities | 52,102 | 350 | 52,452 | ||||||||||||||
Retained earnings | 9,572 | (236) | 9,336 | ||||||||||||||
Accumulated other comprehensive income (loss) | (3,557) | (41) | (3,598) | ||||||||||||||
Total stockholders' equity | 8,825 | (277) | 8,548 |
(In millions) | Prior to Adoption | Effect of Adoption | As reported | ||||||||||||||
Impact of changes in discount rates used to measure long-duration contract liabilities | $ | — | $ | 1,635 | $ | 1,635 | |||||||||||
Changes in: Net unrealized gains and losses on other investments | (1,611) | (1,032) | (2,643) | ||||||||||||||
Net unrealized gains and losses on investments | (1,615) | (1,032) | (2,647) | ||||||||||||||
Other comprehensive income (loss), net of tax | (1,623) | 603 | (1,020) | ||||||||||||||
Total comprehensive income (loss) | (1,310) | 585 | (725) |
(In millions) | Prior to Adoption | Effect of Adoption | As reported | ||||||||||||||
Net income | $ | 313 | $ | (18) | $ | 295 | |||||||||||
Deferred income tax expense (benefit) | 17 | (5) | 12 | ||||||||||||||
Changes in: Insurance reserves | 489 | 23 | 512 | ||||||||||||||
(In millions) | Prior to Adoption | Effect of Adoption | As reported | ||||||||||||||
Net incurred claims and benefits (1) | $ | 281 | $ | 23 | $ | 304 | |||||||||||
Core income (loss) before income tax | 16 | (23) | (7) | ||||||||||||||
Income tax (expense) benefit on core income (loss) | 7 | 5 | 12 | ||||||||||||||
Core income (loss) | 23 | (18) | 5 |
(In millions) | Prior to Adoption | Effect of Adoption | As reported | ||||||||||||||
Claim and claim adjustment expenses (1) | $ | 3,674 | $ | (2,979) | $ | 695 | |||||||||||
Future policy benefits (1) | 10,151 | 3,329 | 13,480 |
Three months ended March 31 | |||||||||||
(In millions, except per share data) | 2023 | 2022 | |||||||||
Net income (loss) (1) | $ | 297 | $ | 295 | |||||||
Common Stock and Common Stock Equivalents | |||||||||||
Basic | |||||||||||
Weighted average shares outstanding | 271.3 | 271.8 | |||||||||
Diluted | |||||||||||
Weighted average shares outstanding | 271.3 | 271.8 | |||||||||
Dilutive effect of stock-based awards under compensation plans | 1.0 | 1.1 | |||||||||
Total | 272.3 | 272.9 | |||||||||
Earnings (loss) per share (1) | |||||||||||
Basic | $ | 1.10 | $ | 1.08 | |||||||
Diluted | $ | 1.09 | $ | 1.08 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Fixed maturity securities | $ | 470 | $ | 429 | |||||||
Equity securities | 12 | 2 | |||||||||
Limited partnership investments | 25 | 18 | |||||||||
Mortgage loans | 14 | 15 | |||||||||
Short term investments | 15 | — | |||||||||
Trading portfolio | 3 | 1 | |||||||||
Other | 5 | — | |||||||||
Gross investment income | 544 | 465 | |||||||||
Investment expense | (19) | (17) | |||||||||
Net investment income | $ | 525 | $ | 448 | |||||||
Net investment income (loss) recognized due to the change in fair value of common stock held as of March 31, 2023 and 2022 | $ | (1) | $ | (5) |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Net investment gains (losses): | |||||||||||
Fixed maturity securities: | |||||||||||
Gross gains | $ | 35 | $ | 26 | |||||||
Gross losses | (57) | (28) | |||||||||
Net investment gains (losses) on fixed maturity securities | (22) | (2) | |||||||||
Equity securities | (14) | (38) | |||||||||
Derivatives | — | 29 | |||||||||
Short term investments and other | 1 | — | |||||||||
Net investment gains (losses) | $ | (35) | $ | (11) | |||||||
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of March 31, 2023 and 2022 | $ | (2) | $ | (38) |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Fixed maturity securities available-for-sale: | |||||||||||
Corporate and other bonds | $ | 8 | $ | 8 | |||||||
Asset-backed | — | 2 | |||||||||
Impairment losses (gains) recognized in earnings | $ | 8 | $ | 10 |
March 31, 2023 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Estimated Fair Value | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||
Corporate and other bonds | $ | 24,140 | $ | 437 | $ | 1,675 | $ | 1 | $ | 22,901 | |||||||||||||||||||
States, municipalities and political subdivisions | 8,332 | 410 | 741 | — | 8,001 | ||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 3,066 | 6 | 413 | — | 2,659 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,868 | 5 | 242 | — | 1,631 | ||||||||||||||||||||||||
Other asset-backed | 3,464 | 8 | 306 | 1 | 3,165 | ||||||||||||||||||||||||
Total asset-backed | 8,398 | 19 | 961 | 1 | 7,455 | ||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 126 | — | 2 | — | 124 | ||||||||||||||||||||||||
Foreign government | 647 | 1 | 39 | — | 609 | ||||||||||||||||||||||||
Redeemable preferred stock | 3 | — | — | — | 3 | ||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | 41,646 | 867 | 3,418 | 2 | 39,093 | ||||||||||||||||||||||||
Total fixed maturity securities trading | 14 | — | — | — | 14 | ||||||||||||||||||||||||
Total fixed maturity securities | $ | 41,660 | $ | 867 | $ | 3,418 | $ | 2 | $ | 39,107 | |||||||||||||||||||
December 31, 2022 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Estimated Fair Value | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||
Corporate and other bonds | $ | 23,137 | $ | 301 | $ | 2,009 | $ | — | $ | 21,429 | |||||||||||||||||||
States, municipalities and political subdivisions | 8,918 | 338 | 939 | — | 8,317 | ||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 3,073 | 5 | 447 | — | 2,631 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,886 | 4 | 255 | — | 1,635 | ||||||||||||||||||||||||
Other asset-backed | 3,287 | 2 | 361 | 1 | 2,927 | ||||||||||||||||||||||||
Total asset-backed | 8,246 | 11 | 1,063 | 1 | 7,193 | ||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 111 | 1 | 2 | — | 110 | ||||||||||||||||||||||||
Foreign government | 617 | 1 | 43 | — | 575 | ||||||||||||||||||||||||
Redeemable preferred stock | 3 | — | — | — | 3 | ||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | 41,032 | 652 | 4,056 | 1 | 37,627 | ||||||||||||||||||||||||
Total fixed maturity securities trading | — | — | — | — | — | ||||||||||||||||||||||||
Total fixed maturity securities | $ | 41,032 | $ | 652 | $ | 4,056 | $ | 1 | $ | 37,627 |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
March 31, 2023 | 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 | $ | 10,753 | $ | 545 | $ | 6,184 | $ | 1,130 | $ | 16,937 | $ | 1,675 | |||||||||||||||||||||||
States, municipalities and political subdivisions | 1,708 | 87 | 2,347 | 654 | 4,055 | 741 | |||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 741 | 28 | 1,784 | 385 | 2,525 | 413 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 474 | 36 | 1,072 | 206 | 1,546 | 242 | |||||||||||||||||||||||||||||
Other asset-backed | 1,073 | 86 | 1,474 | 220 | 2,547 | 306 | |||||||||||||||||||||||||||||
Total asset-backed | 2,288 | 150 | 4,330 | 811 | 6,618 | 961 | |||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 57 | 1 | 41 | 1 | 98 | 2 | |||||||||||||||||||||||||||||
Foreign government | 231 | 7 | 327 | 32 | 558 | 39 | |||||||||||||||||||||||||||||
Total | $ | 15,037 | $ | 790 | $ | 13,229 | $ | 2,628 | $ | 28,266 | $ | 3,418 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
December 31, 2022 | 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 | $ | 15,946 | $ | 1,585 | $ | 1,634 | $ | 424 | $ | 17,580 | $ | 2,009 | |||||||||||||||||||||||
States, municipalities and political subdivisions | 4,079 | 769 | 456 | 170 | 4,535 | 939 | |||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 1,406 | 144 | 1,143 | 303 | 2,549 | 447 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 1,167 | 159 | 408 | 96 | 1,575 | 255 | |||||||||||||||||||||||||||||
Other asset-backed | 2,087 | 262 | 542 | 99 | 2,629 | 361 | |||||||||||||||||||||||||||||
Total asset-backed | 4,660 | 565 | 2,093 | 498 | 6,753 | 1,063 | |||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 76 | 1 | 16 | 1 | 92 | 2 | |||||||||||||||||||||||||||||
Foreign government | 473 | 26 | 78 | 17 | 551 | 43 | |||||||||||||||||||||||||||||
Total | $ | 25,234 | $ | 2,946 | $ | 4,277 | $ | 1,110 | $ | 29,511 | $ | 4,056 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 2,357 | $ | 302 | $ | 2,355 | $ | 337 | |||||||||||||||
AAA | 1,424 | 260 | 1,559 | 298 | |||||||||||||||||||
AA | 4,053 | 670 | 4,327 | 817 | |||||||||||||||||||
A | 6,440 | 619 | 6,615 | 749 | |||||||||||||||||||
BBB | 12,651 | 1,360 | 13,226 | 1,621 | |||||||||||||||||||
Non-investment grade | 1,341 | 207 | 1,429 | 234 | |||||||||||||||||||
Total | $ | 28,266 | $ | 3,418 | $ | 29,511 | $ | 4,056 |
(In millions) | Corporate and other bonds | Asset-backed | Total | ||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of January 1, 2023 | $ | — | $ | 1 | $ | 1 | |||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Available-for-sale securities accounted for as PCD assets | 9 | — | 9 | ||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Securities sold during the period (realized) | 6 | — | 6 | ||||||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 3 | — | 3 | ||||||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | 1 | — | 1 | ||||||||||||||
Balance as of March 31, 2023 | $ | 1 | $ | 1 | $ | 2 |
(In millions) | Corporate and other bonds | Asset-backed | Total | ||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of January 1, 2022 | $ | 11 | $ | 7 | $ | 18 | |||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Available-for-sale securities accounted for as PCD assets | — | — | — | ||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Securities sold during the period (realized) | — | — | — | ||||||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | — | — | — | ||||||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | 1 | (2) | (1) | ||||||||||||||
Balance as of March 31, 2022 | $ | 12 | $ | 5 | $ | 17 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In millions) | Cost or Amortized Cost | Estimated Fair Value | Cost or Amortized Cost | Estimated Fair Value | |||||||||||||||||||
Due in one year or less | $ | 1,009 | $ | 989 | $ | 1,012 | $ | 1,001 | |||||||||||||||
Due after one year through five years | 10,486 | 10,035 | 9,880 | 9,399 | |||||||||||||||||||
Due after five years through ten years | 13,763 | 12,702 | 13,788 | 12,453 | |||||||||||||||||||
Due after ten years | 16,388 | 15,367 | 16,352 | 14,774 | |||||||||||||||||||
Total | $ | 41,646 | $ | 39,093 | $ | 41,032 | $ | 37,627 |
March 31, 2023 | Mortgage Loans Amortized Cost Basis by Origination Year (1) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||
DSCR ≥1.6x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | $ | — | $ | 9 | $ | 13 | $ | 112 | $ | 41 | $ | 280 | $ | 455 | |||||||||||||||||||||||||||
LTV 55% to 65% | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | — | 31 | 11 | — | — | — | 42 | ||||||||||||||||||||||||||||||||||
DSCR 1.2x - 1.6x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | — | 5 | 49 | 13 | 43 | 47 | 157 | ||||||||||||||||||||||||||||||||||
LTV 55% to 65% | 12 | 44 | — | 24 | — | 8 | 88 | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | — | 58 | — | — | — | — | 58 | ||||||||||||||||||||||||||||||||||
DSCR ≤1.2 | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | — | 34 | — | — | 35 | — | 69 | ||||||||||||||||||||||||||||||||||
LTV 55% to 65% | — | 41 | — | — | 43 | — | 84 | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | — | 27 | 21 | — | 22 | 7 | 77 | ||||||||||||||||||||||||||||||||||
Total | $ | 12 | $ | 249 | $ | 94 | $ | 149 | $ | 184 | $ | 342 | $ | 1,030 |
March 31, 2023 | Total Assets/Liabilities at Fair Value | ||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate bonds and other | $ | 135 | $ | 22,604 | $ | 912 | $ | 23,651 | |||||||||||||||
States, municipalities and political subdivisions | — | 7,957 | 44 | 8,001 | |||||||||||||||||||
Asset-backed | — | 6,596 | 859 | 7,455 | |||||||||||||||||||
Total fixed maturity securities | 135 | 37,157 | 1,815 | 39,107 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Common stock | 177 | — | 29 | 206 | |||||||||||||||||||
Non-redeemable preferred stock | 55 | 421 | — | 476 | |||||||||||||||||||
Total equity securities | 232 | 421 | 29 | 682 | |||||||||||||||||||
Short term and other | 975 | 27 | — | 1,002 | |||||||||||||||||||
Total assets | $ | 1,342 | $ | 37,605 | $ | 1,844 | $ | 40,791 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Other liabilities | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||||||||
Total liabilities | $ | — | $ | 1 | $ | — | $ | 1 |
December 31, 2022 | Total Assets/Liabilities at Fair Value | ||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate bonds and other | $ | 120 | $ | 21,187 | $ | 810 | $ | 22,117 | |||||||||||||||
States, municipalities and political subdivisions | — | 8,274 | 43 | 8,317 | |||||||||||||||||||
Asset-backed | — | 6,405 | 788 | 7,193 | |||||||||||||||||||
Total fixed maturity securities | 120 | 35,866 | 1,641 | 37,627 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Common stock | 150 | — | 35 | 185 | |||||||||||||||||||
Non-redeemable preferred stock | 54 | 435 | — | 489 | |||||||||||||||||||
Total equity securities | 204 | 435 | 35 | 674 | |||||||||||||||||||
Short term and other | 1,608 | 71 | — | 1,679 | |||||||||||||||||||
Total assets | $ | 1,932 | $ | 36,372 | $ | 1,676 | $ | 39,980 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Other liabilities | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||||||||
Total liabilities | $ | — | $ | 1 | $ | — | $ | 1 |
Level 3 (In millions) | Corporate bonds and other | States, municipalities and political subdivisions | Asset-backed | Equity securities | Total | ||||||||||||||||||||||||
Balance as of January 1, 2023 | $ | 810 | $ | 43 | $ | 788 | $ | 35 | $ | 1,676 | |||||||||||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||||||||||||||
— | — | — | — | — | |||||||||||||||||||||||||
Reported in Net investment income | — | — | 5 | (6) | (1) | ||||||||||||||||||||||||
24 | 1 | 7 | — | 32 | |||||||||||||||||||||||||
Total realized and unrealized investment gains (losses) | 24 | 1 | 12 | (6) | 31 | ||||||||||||||||||||||||
Purchases | 81 | — | 55 | — | 136 | ||||||||||||||||||||||||
Sales | — | — | — | — | — | ||||||||||||||||||||||||
Settlements | (3) | — | (9) | — | (12) | ||||||||||||||||||||||||
Transfers into Level 3 | — | — | 23 | — | 23 | ||||||||||||||||||||||||
Transfers out of Level 3 | — | — | (10) | — | (10) | ||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | 912 | $ | 44 | $ | 859 | $ | 29 | $ | 1,844 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2023 recognized in Net income (loss) in the period | $ | — | $ | — | $ | — | $ | (6) | $ | (6) | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2023 recognized in Other comprehensive income (loss) in the period | 24 | 1 | 7 | — | 32 |
Level 3 (In millions) | Corporate bonds and other | States, municipalities and political subdivisions | Asset-backed | Equity securities | Total | ||||||||||||||||||||||||
Balance as of January 1, 2022 | $ | 937 | $ | 56 | $ | 556 | $ | 29 | $ | 1,578 | |||||||||||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||||||||||||||
(1) | — | 2 | (1) | — | |||||||||||||||||||||||||
Reported in Net investment income | — | — | 1 | 4 | 5 | ||||||||||||||||||||||||
(71) | (5) | (32) | — | (108) | |||||||||||||||||||||||||
Total realized and unrealized investment gains (losses) | (72) | (5) | (29) | 3 | (103) | ||||||||||||||||||||||||
Purchases | 67 | — | 140 | 12 | 219 | ||||||||||||||||||||||||
Sales | (5) | — | — | — | (5) | ||||||||||||||||||||||||
Settlements | (22) | — | (17) | — | (39) | ||||||||||||||||||||||||
Transfers into Level 3 | 10 | — | 5 | — | 15 | ||||||||||||||||||||||||
Transfers out of Level 3 | — | — | (51) | — | (51) | ||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | 915 | $ | 51 | $ | 604 | $ | 44 | $ | 1,614 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2022 recognized in Net income (loss) in the period | $ | — | $ | — | $ | — | $ | 3 | $ | 3 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2022 recognized in Other comprehensive income (loss) in the period | (72) | (5) | (31) | — | (108) |
March 31, 2023 | Estimated Fair Value (In millions) | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | |||||||||||||||||||
Fixed maturity securities | $ | 1,340 | Discounted cash flow | Credit spread | 1% - 8% (3%) |
December 31, 2022 | Estimated Fair Value (In millions) | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | |||||||||||||||||||
Fixed maturity securities | $ | 1,177 | Discounted cash flow | Credit spread | 1% - 8% (2%) |
March 31, 2023 | Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage loans | $ | 1,006 | $ | — | $ | — | $ | 958 | $ | 958 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Short term debt | $ | 243 | $ | — | $ | 245 | $ | — | $ | 245 | |||||||||||||||||||
Long term debt | 2,539 | — | 2,387 | — | 2,387 | ||||||||||||||||||||||||
December 31, 2022 | Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage loans | $ | 1,040 | $ | — | $ | — | $ | 973 | $ | 973 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Short term debt | $ | 243 | $ | — | $ | 248 | $ | — | $ | 248 | |||||||||||||||||||
Long term debt | 2,538 | — | 2,349 | — | 2,349 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 (1) | |||||||||
Reserves, beginning of year: | |||||||||||
Gross | $ | 22,120 | $ | 21,269 | |||||||
Ceded | 5,191 | 4,969 | |||||||||
Net reserves, beginning of year | 16,929 | 16,300 | |||||||||
Net incurred claim and claim adjustment expenses: | |||||||||||
Provision for insured events of current year | 1,326 | 1,188 | |||||||||
Increase (decrease) in provision for insured events of prior years | 13 | (7) | |||||||||
Amortization of discount | 11 | 12 | |||||||||
Total net incurred (2) | 1,350 | 1,193 | |||||||||
Net payments attributable to: | |||||||||||
Current year events | (72) | (68) | |||||||||
Prior year events | (1,042) | (920) | |||||||||
Total net payments | (1,114) | (988) | |||||||||
Foreign currency translation adjustment and other | 35 | (92) | |||||||||
Net reserves, end of period | 17,200 | 16,413 | |||||||||
Ceded reserves, end of period | 5,209 | 5,002 | |||||||||
Gross reserves, end of period | $ | 22,409 | $ | 21,415 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Specialty | $ | — | $ | (10) | |||||||
Commercial | (2) | (2) | |||||||||
International | 15 | — | |||||||||
Corporate & Other | — | — | |||||||||
Total pretax (favorable) unfavorable development | $ | 13 | $ | (12) |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Medical Professional Liability | $ | 9 | $ | 8 | |||||||
Other Professional Liability and Management Liability | — | — | |||||||||
Surety | — | (9) | |||||||||
Warranty | (9) | (9) | |||||||||
Other | — | — | |||||||||
Total pretax (favorable) unfavorable development | $ | — | $ | (10) |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Commercial Auto | $ | — | $ | — | |||||||
General Liability | — | — | |||||||||
Workers' Compensation | (2) | (2) | |||||||||
Property and Other | — | — | |||||||||
Total pretax (favorable) unfavorable development | $ | (2) | $ | (2) |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Commercial | $ | (2) | $ | — | |||||||
Specialty | 19 | — | |||||||||
Other | (2) | — | |||||||||
Total pretax (favorable) unfavorable development | $ | 15 | $ | — |
(In millions) | 2023 | 2022 | |||||||||
Present value of future net premiums | |||||||||||
Balance, January 1 | $ | 3,993 | $ | 4,735 | |||||||
Effect of changes in discount rate | (74) | (880) | |||||||||
Balance, January 1, at original locked in discount rate | 3,919 | 3,855 | |||||||||
Effect of changes in cash flow assumptions (1) | — | — | |||||||||
Effect of actual variances from expected experience (1) | (49) | (18) | |||||||||
Adjusted balance, January 1 | 3,870 | 3,837 | |||||||||
Interest accrual | 52 | 53 | |||||||||
Net premiums: earned during period | (111) | (112) | |||||||||
Balance, end of period at original locked in discount rate | 3,811 | 3,778 | |||||||||
Effect of changes in discount rate | 154 | 525 | |||||||||
Balance, March 31 | $ | 3,965 | $ | 4,303 | |||||||
Present value of future benefits & expenses | |||||||||||
Balance, January 1 | $ | 17,472 | $ | 22,745 | |||||||
Effect of changes in discount rate | (125) | (5,942) | |||||||||
Balance, January 1, at original locked in discount rate | 17,347 | 16,803 | |||||||||
Effect of changes in cash flow assumptions (1) | — | — | |||||||||
Effect of actual variances from expected experience (1) | (50) | (23) | |||||||||
Adjusted balance, January 1 | 17,297 | 16,780 | |||||||||
Interest accrual | 242 | 241 | |||||||||
Benefit & expense payments | (302) | (233) | |||||||||
Balance, end of period at original locked in discount rate | 17,237 | 16,788 | |||||||||
Effect of changes in discount rate | 704 | 3,517 | |||||||||
Balance, March 31 | $ | 17,941 | $ | 20,305 | |||||||
Net LFPB | $ | 13,976 | $ | 16,002 |
As of March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Expected future benefit and expense payments | $ | 33,759 | $ | 33,674 | |||||||
Expected future gross premiums | 5,729 | 5,969 |
As of March 31 | As of December 31 | ||||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
Original locked in discount rate | 5.26 | % | 5.31 | % | 5.27 | % | |||||||||||
Upper-medium grade fixed income instrument discount rate | 4.92 | 3.67 | 5.23 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Net periodic pension cost (benefit) | |||||||||||
Interest cost on projected benefit obligation | $ | 25 | $ | 17 | |||||||
Expected return on plan assets | (30) | (38) | |||||||||
Amortization of net actuarial loss | 8 | 7 | |||||||||
Total net periodic pension cost (benefit) | $ | 3 | $ | (14) |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Non-Service Cost (Benefit): | |||||||||||
Insurance claims and policyholder's benefits | $ | 1 | $ | (4) | |||||||
Other operating expenses | 2 | (10) | |||||||||
Total net periodic pension cost (benefit) | $ | 3 | $ | (14) |
(In millions) | Net unrealized gains (losses) on investments with an allowance for credit losses | Net unrealized gains (losses) on other investments(1) | Pension and postretirement benefits | Cumulative impact of changes in discount rates used to measure long duration contracts (1) | Cumulative foreign currency translation adjustment | Total | |||||||||||||||||||||||||||||
Balance as of January 1, 2023, as previously reported | $ | (7) | $ | (2,738) | $ | (591) | $ | — | $ | (221) | $ | (3,557) | |||||||||||||||||||||||
Cumulative effect adjustment from accounting change for adoption of ASU 2018-12(1) net of tax (expense) benefit of $—, $—, $—, $11, $— and $11 | — | — | — | (41) | — | (41) | |||||||||||||||||||||||||||||
Balance as of January 1, 2023 | $ | (7) | $ | (2,738) | $ | (591) | $ | (41) | $ | (221) | $ | (3,598) | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (8) | 652 | — | (396) | 17 | 265 | |||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $—, $4, $2, $—, $— and $6 | — | (18) | (7) | — | — | (25) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $2, $(180), $(2), $105, $— and $(75) | (8) | 670 | 7 | (396) | 17 | 290 | |||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | (15) | $ | (2,068) | $ | (584) | $ | (437) | $ | (204) | $ | (3,308) |
(In millions) | Net unrealized gains (losses) on investments with an allowance for credit losses | Net unrealized gains (losses) on other investments(1) | Pension and postretirement benefits | Cumulative impact of changes in discount rates used to measure long duration contracts(1) | Cumulative foreign currency translation adjustment | Total | |||||||||||||||||||||||||||||
Balance as of January 1, 2022, as previously reported | $ | (2) | $ | 1,039 | $ | (604) | $ | — | $ | (113) | $ | 320 | |||||||||||||||||||||||
Cumulative effect adjustment from accounting change for adoption of ASU 2018-12(1) net of tax (expense) benefit of $—, $617, $—, $(1,063), $— and $(446) | — | 2,320 | — | (4,000) | — | (1,680) | |||||||||||||||||||||||||||||
Balance as of January 1, 2022, as adjusted | (2) | 3,359 | (604) | (4,000) | (113) | (1,360) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (4) | (2,644) | — | 1,635 | (14) | (1,027) | |||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $—, $1, $2, $—, $— and $3 | — | (1) | (6) | — | — | (7) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $1, $698, $(2), $(435), $— and $262 | (4) | (2,643) | 6 | 1,635 | (14) | (1,020) | |||||||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | (6) | $ | 716 | $ | (598) | $ | (2,365) | $ | (127) | $ | (2,380) |
Component of AOCI | Condensed Consolidated Statements of Operations Line Item Affected by Reclassifications | |||||||
Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments | Net investment gains (losses) | |||||||
Pension and postretirement benefits | Other operating expenses and Insurance claims and policyholders' benefits |
Three months ended March 31, 2023 | Specialty | Commercial | International | Life & Group | Corporate & Other | ||||||||||||||||||||||||||||||||||||
(In millions) | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 797 | $ | 1,046 | $ | 290 | $ | 115 | $ | — | $ | — | $ | 2,248 | |||||||||||||||||||||||||||
Net investment income | 129 | 149 | 23 | 214 | 10 | — | 525 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty revenue | 407 | — | — | — | — | — | 407 | ||||||||||||||||||||||||||||||||||
Other revenues | — | 7 | — | — | 3 | (3) | 7 | ||||||||||||||||||||||||||||||||||
Total operating revenues | 1,333 | 1,202 | 313 | 329 | 13 | (3) | 3,187 | ||||||||||||||||||||||||||||||||||
Claims, benefits and expenses | |||||||||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 465 | 688 | 189 | 311 | (7) | — | 1,646 | ||||||||||||||||||||||||||||||||||
Policyholders’ dividends | 1 | 6 | — | — | — | — | 7 | ||||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 165 | 169 | 45 | — | — | — | 379 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty expense | 384 | — | — | — | — | — | 384 | ||||||||||||||||||||||||||||||||||
Other insurance related expenses | 86 | 142 | 47 | 29 | 1 | — | 305 | ||||||||||||||||||||||||||||||||||
Other expenses | 14 | 6 | 1 | 1 | 41 | (3) | 60 | ||||||||||||||||||||||||||||||||||
Total claims, benefits and expenses | 1,115 | 1,011 | 282 | 341 | 35 | (3) | 2,781 | ||||||||||||||||||||||||||||||||||
Core income (loss) before income tax | 218 | 191 | 31 | (12) | (22) | — | 406 | ||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (47) | (40) | (7) | 9 | 4 | — | (81) | ||||||||||||||||||||||||||||||||||
Core income (loss) | $ | 171 | $ | 151 | $ | 24 | $ | (3) | $ | (18) | $ | — | 325 | ||||||||||||||||||||||||||||
Net investment gains (losses) | (35) | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | 7 | ||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses), after tax | (28) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 297 |
March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Reinsurance receivables | $ | 1,419 | $ | 1,118 | $ | 442 | $ | 102 | $ | 2,425 | $ | — | $ | 5,506 | |||||||||||||||||||||||||||
Insurance receivables | 1,008 | 1,754 | 388 | 5 | — | — | 3,155 | ||||||||||||||||||||||||||||||||||
Deferred acquisition costs | 394 | 338 | 120 | — | — | — | 852 | ||||||||||||||||||||||||||||||||||
Goodwill | 117 | — | 28 | — | — | — | 145 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty acquisition expense | 3,671 | — | — | — | — | — | 3,671 | ||||||||||||||||||||||||||||||||||
Insurance reserves | |||||||||||||||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 6,976 | 9,528 | 2,502 | 704 | 2,699 | — | 22,409 | ||||||||||||||||||||||||||||||||||
Unearned premiums | 3,188 | 2,558 | 713 | 123 | — | (1) | 6,581 | ||||||||||||||||||||||||||||||||||
Future policy benefits | — | — | — | 13,976 | — | — | 13,976 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty revenue | 4,710 | — | — | — | — | — | 4,710 |
Three months ended March 31, 2022 | Specialty | Commercial | International | Life & Group (1) | Corporate & Other | ||||||||||||||||||||||||||||||||||||
(In millions) | Eliminations | Total (1) | |||||||||||||||||||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 772 | $ | 904 | $ | 264 | $ | 120 | $ | (1) | $ | — | $ | 2,059 | |||||||||||||||||||||||||||
Net investment income | 103 | 118 | 14 | 212 | 1 | — | 448 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty revenue | 382 | — | — | — | — | — | 382 | ||||||||||||||||||||||||||||||||||
Other revenues | 1 | 8 | (1) | (1) | 2 | (2) | 7 | ||||||||||||||||||||||||||||||||||
Total operating revenues | 1,258 | 1,030 | 277 | 331 | 2 | (2) | 2,896 | ||||||||||||||||||||||||||||||||||
Claims, benefits and expenses | |||||||||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 445 | 573 | 158 | 304 | (8) | — | 1,472 | ||||||||||||||||||||||||||||||||||
Policyholders’ dividends | 1 | 5 | — | — | — | — | 6 | ||||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 157 | 148 | 39 | — | — | — | 344 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty expense | 354 | — | — | — | — | — | 354 | ||||||||||||||||||||||||||||||||||
Other insurance related expenses | 81 | 130 | 47 | 31 | 2 | — | 291 | ||||||||||||||||||||||||||||||||||
Other expenses | 13 | 7 | 1 | 3 | 41 | (2) | 63 | ||||||||||||||||||||||||||||||||||
Total claims, benefits and expenses | 1,051 | 863 | 245 | 338 | 35 | (2) | 2,530 | ||||||||||||||||||||||||||||||||||
Core income (loss) before income tax | 207 | 167 | 32 | (7) | (33) | — | 366 | ||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (44) | (35) | (6) | 12 | 5 | — | (68) | ||||||||||||||||||||||||||||||||||
Core income (loss) | $ | 163 | $ | 132 | $ | 26 | $ | 5 | $ | (28) | $ | — | 298 | ||||||||||||||||||||||||||||
Net investment gains (losses) | (11) | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | 8 | ||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses), after tax | (3) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 295 |
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Reinsurance receivables | $ | 1,384 | $ | 1,062 | $ | 414 | $ | 101 | $ | 2,477 | $ | — | $ | 5,438 | |||||||||||||||||||||||||||
Insurance receivables | 1,082 | 1,728 | 369 | 8 | — | — | 3,187 | ||||||||||||||||||||||||||||||||||
Deferred acquisition costs | 381 | 321 | 104 | — | — | — | 806 | ||||||||||||||||||||||||||||||||||
Goodwill | 117 | — | 27 | — | — | — | 144 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty acquisition expense | 3,671 | — | — | — | — | — | 3,671 | ||||||||||||||||||||||||||||||||||
Insurance reserves | |||||||||||||||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 6,878 | 9,395 | 2,403 | 695 | 2,749 | — | 22,120 | ||||||||||||||||||||||||||||||||||
Unearned premiums | 3,193 | 2,425 | 653 | 103 | — | — | 6,374 | ||||||||||||||||||||||||||||||||||
Future policy benefits | — | — | — | 13,480 | — | — | 13,480 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty revenue | 4,714 | — | — | — | — | — | 4,714 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Specialty | |||||||||||
Management & Professional Liability | $ | 705 | $ | 673 | |||||||
Surety | 168 | 148 | |||||||||
Warranty & Alternative Risks | 460 | 437 | |||||||||
Specialty revenues | 1,333 | 1,258 | |||||||||
Commercial | |||||||||||
Middle Market | 398 | 362 | |||||||||
Construction | 385 | 324 | |||||||||
Small Business | 150 | 138 | |||||||||
Other Commercial | 269 | 206 | |||||||||
Commercial revenues | 1,202 | 1,030 | |||||||||
International | |||||||||||
Canada | 93 | 88 | |||||||||
Europe | 127 | 120 | |||||||||
Hardy | 93 | 69 | |||||||||
International revenues | 313 | 277 | |||||||||
Life & Group revenues | 329 | 331 | |||||||||
Corporate & Other revenues | 13 | 2 | |||||||||
Eliminations | (3) | (2) | |||||||||
Total operating revenues | 3,187 | 2,896 | |||||||||
Net investment gains (losses) | (35) | (11) | |||||||||
Total revenues | $ | 3,152 | $ | 2,885 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 (1) | |||||||||
Operating Revenues | |||||||||||
Net earned premiums | $ | 2,248 | $ | 2,059 | |||||||
Net investment income | 525 | 448 | |||||||||
Non-insurance warranty revenue | 407 | 382 | |||||||||
Other revenues | 7 | 7 | |||||||||
Total operating revenues | 3,187 | 2,896 | |||||||||
Claims, Benefits and Expenses | |||||||||||
Net incurred claims and benefits (re-measurement gain (loss) of $1 and $5) | 1,646 | 1,472 | |||||||||
Policyholders' dividends | 7 | 6 | |||||||||
Amortization of deferred acquisition costs | 379 | 344 | |||||||||
Non-insurance warranty expense | 384 | 354 | |||||||||
Other insurance related expenses | 305 | 291 | |||||||||
Other expenses | 60 | 63 | |||||||||
Total claims, benefits and expenses | 2,781 | 2,530 | |||||||||
Core income before income tax | 406 | 366 | |||||||||
Income tax expense on core income | (81) | (68) | |||||||||
Core income | 325 | 298 | |||||||||
Net investment losses | (35) | (11) | |||||||||
Income tax benefit on net investment losses | 7 | 8 | |||||||||
Net investment losses, after tax | (28) | (3) | |||||||||
Net income | $ | 297 | $ | 295 |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2023 | 2022 | |||||||||
Gross written premiums | $ | 1,780 | $ | 1,846 | |||||||
Gross written premiums excluding third-party captives | 886 | 885 | |||||||||
Net written premiums | 788 | 771 | |||||||||
Net earned premiums | 797 | 772 | |||||||||
Underwriting gain | 80 | 88 | |||||||||
Net investment income | 129 | 103 | |||||||||
Core income | 171 | 163 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 58.4 | % | 58.9 | % | |||||||
Effect of catastrophe impacts | — | — | |||||||||
Effect of development-related items | — | (1.3) | |||||||||
Loss ratio | 58.4 | 57.6 | |||||||||
Expense ratio | 31.4 | 30.9 | |||||||||
Dividend ratio | 0.2 | 0.2 | |||||||||
Combined ratio | 90.0 | % | 88.7 | % | |||||||
Combined ratio excluding catastrophes and development | 90.0 | % | 90.0 | % | |||||||
Rate | 2 | % | 10 | % | |||||||
Renewal premium change | 4 | 11 | |||||||||
Retention | 88 | 84 | |||||||||
New business | $ | 108 | $ | 145 |
(In millions) | March 31, 2023 | December 31, 2022 | |||||||||
Gross case reserves | $ | 1,444 | $ | 1,529 | |||||||
Gross IBNR reserves | 5,532 | 5,349 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 6,976 | $ | 6,878 | |||||||
Net case reserves | $ | 1,247 | $ | 1,310 | |||||||
Net IBNR reserves | 4,393 | 4,253 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 5,640 | $ | 5,563 |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2023 | 2022 | |||||||||
Gross written premiums | $ | 1,442 | $ | 1,208 | |||||||
Gross written premiums excluding third-party captives | 1,440 | 1,206 | |||||||||
Net written premiums | 1,188 | 1,001 | |||||||||
Net earned premiums | 1,046 | 904 | |||||||||
Underwriting gain | 41 | 48 | |||||||||
Net investment income | 149 | 118 | |||||||||
Core income | 151 | 132 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 61.5 | % | 61.5 | % | |||||||
Effect of catastrophe impacts | 4.2 | 1.8 | |||||||||
Effect of development-related items | — | — | |||||||||
Loss ratio | 65.7 | 63.3 | |||||||||
Expense ratio | 29.8 | 30.7 | |||||||||
Dividend ratio | 0.5 | 0.5 | |||||||||
Combined ratio | 96.0 | % | 94.5 | % | |||||||
Combined ratio excluding catastrophes and development | 91.8 | % | 92.7 | % | |||||||
Rate | 7 | % | 5 | % | |||||||
Renewal premium change | 9 | 8 | |||||||||
Retention | 86 | 87 | |||||||||
New business | $ | 310 | $ | 228 |
(In millions) | March 31, 2023 | December 31, 2022 | |||||||||
Gross case reserves | $ | 3,213 | $ | 3,156 | |||||||
Gross IBNR reserves | 6,315 | 6,239 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 9,528 | $ | 9,395 | |||||||
Net case reserves | $ | 2,825 | $ | 2,809 | |||||||
Net IBNR reserves | 5,700 | 5,621 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 8,525 | $ | 8,430 |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2023 | 2022 | |||||||||
Gross written premiums | $ | 398 | $ | 363 | |||||||
Net written premiums | 271 | 251 | |||||||||
Net earned premiums | 290 | 264 | |||||||||
Underwriting gain | 9 | 20 | |||||||||
Net investment income | 23 | 14 | |||||||||
Core income | 24 | 26 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 57.5 | % | 58.6 | % | |||||||
Effect of catastrophe impacts | 2.8 | 1.2 | |||||||||
Effect of development-related items | 5.1 | — | |||||||||
Loss ratio | 65.4 | 59.8 | |||||||||
Expense ratio | 31.8 | 32.6 | |||||||||
Combined ratio | 97.2 | % | 92.4 | % | |||||||
Combined ratio excluding catastrophes and development | 89.3 | % | 91.2 | % | |||||||
Rate | 4 | % | 9 | % | |||||||
Renewal premium change | 8 | 12 | |||||||||
Retention | 83 | 73 | |||||||||
New business | $ | 85 | $ | 78 |
(In millions) | March 31, 2023 | December 31, 2022 | |||||||||
Gross case reserves | $ | 822 | $ | 817 | |||||||
Gross IBNR reserves | 1,680 | 1,586 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 2,502 | $ | 2,403 | |||||||
Net case reserves | $ | 678 | $ | 686 | |||||||
Net IBNR reserves | 1,425 | 1,317 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 2,103 | $ | 2,003 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 (1) | |||||||||
Net earned premiums | $ | 115 | $ | 120 | |||||||
Net investment income | 214 | 212 | |||||||||
Core loss before income tax | (12) | (7) | |||||||||
Income tax benefit on core loss | 9 | 12 | |||||||||
Core (loss) income | (3) | 5 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Net investment income | $ | 10 | $ | 1 | |||||||
Insurance claims and policyholders' benefits | (7) | (8) | |||||||||
Interest expense | 28 | 28 | |||||||||
Core loss | (18) | (28) |
(In millions) | March 31, 2023 | December 31, 2022 | |||||||||
Gross case reserves | $ | 1,434 | $ | 1,428 | |||||||
Gross IBNR reserves | 1,265 | 1,321 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 2,699 | $ | 2,749 | |||||||
Net case reserves | $ | 137 | $ | 137 | |||||||
Net IBNR reserves | 193 | 202 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 330 | $ | 339 |
Three Months Ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Fixed income securities: | |||||||||||
Taxable fixed income securities | $ | 430 | $ | 368 | |||||||
Tax-exempt fixed income securities | 49 | 73 | |||||||||
Total fixed income securities | 479 | 441 | |||||||||
Limited partnership and common stock investments | 28 | 8 | |||||||||
Other, net of investment expense | 18 | (1) | |||||||||
Net investment income | $ | 525 | $ | 448 | |||||||
Effective income yield for the fixed income securities portfolio | 4.6 | % | 4.3 | % | |||||||
Limited partnership and common stock return | 1.3 | % | 0.4 | % |
Three Months Ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Fixed maturity securities: | |||||||||||
Corporate bonds and other | $ | (23) | $ | 3 | |||||||
States, municipalities and political subdivisions | 10 | 3 | |||||||||
Asset-backed | (9) | (8) | |||||||||
Total fixed maturity securities | (22) | (2) | |||||||||
Non-redeemable preferred stock | (14) | (38) | |||||||||
Derivatives, short term and other | 1 | 29 | |||||||||
Net investment losses | (35) | (11) | |||||||||
Income tax benefit on net investment losses | 7 | 8 | |||||||||
Net investment losses, after tax | $ | (28) | $ | (3) |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(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 | $ | 2,481 | $ | (300) | $ | 2,419 | $ | (336) | |||||||||||||||
AAA | 2,420 | (160) | 2,398 | (208) | |||||||||||||||||||
AA | 6,410 | (473) | 6,342 | (663) | |||||||||||||||||||
A | 9,413 | (342) | 9,043 | (531) | |||||||||||||||||||
BBB | 16,509 | (1,090) | 15,651 | (1,447) | |||||||||||||||||||
Non-investment grade | 1,874 | (186) | 1,774 | (219) | |||||||||||||||||||
Total | $ | 39,107 | $ | (2,551) | $ | 37,627 | $ | (3,404) |
March 31, 2023 | |||||||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | |||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 2,357 | $ | 302 | |||||||
AAA | 1,424 | 260 | |||||||||
AA | 4,053 | 670 | |||||||||
A | 6,440 | 619 | |||||||||
BBB | 12,651 | 1,360 | |||||||||
Non-investment grade | 1,341 | 207 | |||||||||
Total | $ | 28,266 | $ | 3,418 |
March 31, 2023 | |||||||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | |||||||||
Due in one year or less | $ | 852 | $ | 23 | |||||||
Due after one year through five years | 8,096 | 525 | |||||||||
Due after five years through ten years | 9,870 | 1,291 | |||||||||
Due after ten years | 9,448 | 1,579 | |||||||||
Total | $ | 28,266 | $ | 3,418 |
March 31, 2023 | |||||||||||
(In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||
Commercial mortgage-backed: | |||||||||||
Single asset, single borrower: | |||||||||||
Office | $ | 323 | $ | (67) | |||||||
Retail | 304 | (40) | |||||||||
Lodging | 201 | (22) | |||||||||
Industrial | 84 | (7) | |||||||||
Multifamily | 53 | (4) | |||||||||
Total single asset, single borrower | 965 | (140) | |||||||||
Conduits (multi property, multi borrower pools) | 666 | (97) | |||||||||
Total commercial mortgage-backed | $ | 1,631 | $ | (237) |
March 31, 2023 | |||||||||||
(In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||
Commercial mortgage-backed: | |||||||||||
AAA | $ | 367 | $ | (29) | |||||||
AA | 630 | (97) | |||||||||
A | 214 | (34) | |||||||||
BBB | 283 | (51) | |||||||||
Non-investment grade | 137 | (26) | |||||||||
Total commercial mortgage-backed | $ | 1,631 | $ | (237) |
March 31, 2023 | |||||||||||
(In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||
Corporate and other bonds - REITs: | |||||||||||
Retail | $ | 452 | $ | (43) | |||||||
Office | 261 | (30) | |||||||||
Industrial | 85 | (3) | |||||||||
Other (1) | 418 | (34) | |||||||||
Total corporate and other bonds - REITs | $ | 1,216 | $ | (110) |
March 31, 2023 | |||||||||||
(In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||
Corporate and other bonds - REITs: | |||||||||||
AA | $ | 11 | $ | (1) | |||||||
A | 239 | (10) | |||||||||
BBB | 948 | (97) | |||||||||
Non-investment grade | 18 | (2) | |||||||||
Total corporate and other bonds - REITs | $ | 1,216 | $ | (110) |
March 31, 2023 | |||||||||||
(In millions) | Amortized Cost | Percentage of Total | |||||||||
Mortgage loans: | |||||||||||
Retail | $ | 461 | 44 | % | |||||||
Office | 263 | 26 | % | ||||||||
Industrial | 119 | 12 | % | ||||||||
Other | 187 | 18 | % | ||||||||
Total mortgage loans | $ | 1,030 | 100 | % |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In millions) | Estimated Fair Value | Effective Duration (In years) | Estimated Fair Value | Effective Duration (In years) | |||||||||||||||||||
Investments supporting Life & Group | $ | 14,990 | 10.1 | $ | 14,511 | 9.9 | |||||||||||||||||
Other investments | 25,759 | 4.8 | 25,445 | 4.7 | |||||||||||||||||||
Total | $ | 40,749 | 6.8 | $ | 39,956 | 6.6 |
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(In millions, except per share data) | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |||||||||||||||||||||||||||||
Components of Income (Loss) | |||||||||||||||||||||||||||||||||||
Core income (loss) | |||||||||||||||||||||||||||||||||||
Prior to adoption | $ | 316 | $ | 245 | $ | 213 | $ | 274 | $ | 1,048 | $ | 1,106 | |||||||||||||||||||||||
Effect of adoption | (18) | (15) | (170) | (9) | (212) | (18) | |||||||||||||||||||||||||||||
As reported | $ | 298 | $ | 230 | $ | 43 | $ | 265 | $ | 836 | $ | 1,088 | |||||||||||||||||||||||
Net income (Loss) | |||||||||||||||||||||||||||||||||||
Prior to adoption | $ | 313 | $ | 205 | $ | 128 | $ | 248 | $ | 894 | $ | 1,202 | |||||||||||||||||||||||
Effect of adoption | (18) | (15) | (170) | (9) | (212) | (18) | |||||||||||||||||||||||||||||
As reported | $ | 295 | $ | 190 | $ | (42) | $ | 239 | $ | 682 | $ | 1,184 | |||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | |||||||||||||||||||||||||||||||||||
Prior to adoption | $ | (1,623) | $ | (1,410) | $ | (1,426) | $ | 582 | $ | (3,877) | $ | (483) | |||||||||||||||||||||||
Effect of adoption | 603 | 627 | 586 | (177) | 1,639 | 660 | |||||||||||||||||||||||||||||
As reported | $ | (1,020) | $ | (783) | $ | (840) | $ | 405 | $ | (2,238) | $ | 177 | |||||||||||||||||||||||
Diluted Earnings (Loss) Per Common Share | |||||||||||||||||||||||||||||||||||
Core income (loss) | |||||||||||||||||||||||||||||||||||
Prior to adoption | $ | 1.16 | $ | 0.90 | $ | 0.78 | $ | 1.01 | $ | 3.84 | $ | 4.06 | |||||||||||||||||||||||
Effect of adoption | (0.07) | (0.06) | (0.62) | (0.04) | (0.77) | (0.07) | |||||||||||||||||||||||||||||
As reported | $ | 1.09 | $ | 0.84 | $ | 0.16 | $ | 0.97 | $ | 3.07 | $ | 3.99 | |||||||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||||||||||||||
Prior to adoption | $ | 1.15 | $ | 0.75 | $ | 0.47 | $ | 0.91 | $ | 3.28 | $ | 4.41 | |||||||||||||||||||||||
Effect of adoption | (0.07) | (0.06) | (0.62) | (0.04) | (0.77) | (0.07) | |||||||||||||||||||||||||||||
As reported | $ | 1.08 | $ | 0.69 | $ | (0.15) | $ | 0.87 | $ | 2.51 | $ | 4.34 |
(In millions) | December 31, 2022 | December 31, 2021 | |||||||||
Total Assets | |||||||||||
Prior to adoption | $ | 60,927 | $ | 66,639 | |||||||
Effect of adoption | 73 | 453 | |||||||||
As reported | $ | 61,000 | $ | 67,092 | |||||||
Insurance Reserves: | |||||||||||
Claim and claim adjustment expenses | |||||||||||
Prior to adoption | $ | 25,099 | $ | 24,174 | |||||||
Effect of adoption | (2,979) | (2,905) | |||||||||
As reported | $ | 22,120 | $ | 21,269 | |||||||
Future policy benefits | |||||||||||
Prior to adoption | $ | 10,151 | $ | 13,236 | |||||||
Effect of adoption | 3,329 | 5,062 | |||||||||
As reported | $ | 13,480 | $ | 18,298 | |||||||
Total Liabilities | |||||||||||
Prior to adoption | $ | 52,102 | $ | 53,830 | |||||||
Effect of adoption | 350 | 2,157 | |||||||||
As reported | $ | 52,452 | $ | 55,987 | |||||||
Accumulated other comprehensive income (loss) | |||||||||||
Prior to adoption | $ | (3,557) | $ | 320 | |||||||
Effect of adoption | (41) | (1,680) | |||||||||
As reported | $ | (3,598) | $ | (1,360) | |||||||
Total stockholders' equity | |||||||||||
Prior to adoption | $ | 8,825 | $ | 12,809 | |||||||
Effect of adoption | (277) | (1,704) | |||||||||
As reported | $ | 8,548 | $ | 11,105 |
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) | ||||||||||||||||||||||
February 1, 2023 - February 28, 2023 | 550,000 | $ | 44.07 | N/A | N/A | |||||||||||||||||||||
Total | 550,000 | N/A | N/A |
CNA Financial Corporation | ||||||||
Dated: May 1, 2023 | By | /s/ Scott R. Lindquist | ||||||
Scott R. Lindquist Executive Vice President and Chief Financial Officer (Duly authorized officer and principal financial officer) |
Description of Exhibit | Exhibit Number | ||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | 101.INS | ||||
Inline XBRL Taxonomy Extension Schema | 101.SCH | ||||
Inline XBRL Taxonomy Extension Calculation Linkbase | 101.CAL | ||||
Inline XBRL Taxonomy Extension Definition Linkbase | 101.DEF | ||||
Inline XBRL Taxonomy Label Linkbase | 101.LAB | ||||
Inline XBRL Taxonomy Extension Presentation Linkbase | 101.PRE | ||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | 104.1 |
Dated: | Dated: May 1, 2023 | By | /s/ Dino E. Robusto | |||||||||||
Dino E. Robusto | ||||||||||||||
Chief Executive Officer |
Dated: | Dated: May 1, 2023 | By | /s/ Scott R. Lindquist | |||||||||||
Scott R. Lindquist | ||||||||||||||
Chief Financial Officer |
Dated: | Dated: May 1, 2023 | By | /s/ Dino E. Robusto | |||||||||||
Dino E. Robusto | ||||||||||||||
Chief Executive Officer |
Dated: | Dated: May 1, 2023 | By | /s/ Scott R. Lindquist | |||||||||||
Scott R. Lindquist | ||||||||||||||
Chief Financial Officer |