Delaware
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13-2646102
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock, par value $0.01 per share
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L
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New York Stock Exchange
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Item
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Page
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No.
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No.
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1
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3
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7
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9
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13
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14
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15
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15
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1A
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16
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1B
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44
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2
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44
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3
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44
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4
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44
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5
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45
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6
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47
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7
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48
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7A
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79
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8
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83
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9
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162
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9A
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162
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9B
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162
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10
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162
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11
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163
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12
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163
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13
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163
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14
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163
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15
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164
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16
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167
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Item 1.
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Business.
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• | commercial property and casualty insurance (CNA Financial Corporation, an 89% owned subsidiary); |
• | operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc., a 53% owned subsidiary); |
• | transportation and storage of natural gas and natural gas liquids (Boardwalk Pipeline Partners, LP, a wholly owned subsidiary); |
• | operation of a chain of hotels (Loews Hotels Holding Corporation, a wholly owned subsidiary); and |
• | manufacture of rigid plastic packaging solutions (Altium Packaging LLC, formerly known as Consolidated Container Company LLC, a 99% owned subsidiary). |
• | professional liability coverages and risk management services to various professional firms, including architects, real estate agents, accounting firms and law firms; |
• |
directors and officers (“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 health care 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. |
• | the Gulf of Mexico, including the U.S. and Mexico; |
• | South America, principally offshore Brazil and Trinidad and Tobago; |
• | Australia and Southeast Asia, including Malaysia, Myanmar and Vietnam; |
• | Europe, principally offshore the U.K.; |
• | East and West Africa; and |
• | the Mediterranean. |
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Number of
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Name and Location
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Rooms
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Owned:
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|||
Loews Chicago Hotel, Chicago, Illinois
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400
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|||
Loews Chicago O’Hare Hotel, Chicago, Illinois
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556
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|||
Loews Coronado Bay Resort, San Diego, California
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439
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Loews Hotel 1000, Seattle, Washington
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120
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Loews Hotel Vogue, Montreal, Canada
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142
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Loews Miami Beach Hotel, Miami Beach, Florida
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790
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Loews Minneapolis Hotel, Minneapolis, Minnesota
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251
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Loews Philadelphia Hotel, Philadelphia, Pennsylvania
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581
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Loews Regency New York Hotel, New York, New York
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379
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|||
Loews Vanderbilt Hotel, Nashville, Tennessee
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340
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Loews Ventana Canyon Resort, Tucson, Arizona
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398
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Joint Venture:
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Hard Rock Hotel, at Universal Orlando, Orlando, Florida
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650
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Live! by Loews, Arlington, Texas
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300
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Loews Atlanta Hotel, Atlanta, Georgia
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414
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|||
Loews Hollywood Hotel, Hollywood, California
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628
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Loews Portofino Bay Hotel, at Universal Orlando, Orlando, Florida
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750
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Loews Royal Pacific Resort, at Universal Orlando, Orlando, Florida
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1,000
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Loews Sapphire Falls Resort, at Universal Orlando, Orlando, Florida
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1,000
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Universal’s Aventura Hotel, Orlando, Florida
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600
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Universal’s Cabana Bay Beach Resort, Orlando, Florida
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2,200
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Universal’s Endless Summer Resort – Surfside Inn and Suites, Orlando, Florida
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750
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Management Contract:
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Bisha Hotel and Residences, Toronto, Canada
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96
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|||
Loews Boston Hotel, Boston, Massachusetts
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225
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Loews New Orleans Hotel, New Orleans, Louisiana
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285
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Loews San Francisco Hotel, San Francisco, California
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155
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Loews Santa Monica Beach Hotel, Santa Monica, California
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347
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Note:
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Two owned hotels and many of the joint venture hotels are subject to land leases.
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• | In 2019, Live! by Loews in Arlington, Texas, a 300 guestroom hotel opened. Loews Hotels & Co serves as manager and has a joint venture interest; |
• | In 2019, the sale of Loews San Francisco Hotel in San Francisco, California, was completed. Loews Hotel & Co continues to serve as manager, which it is expected to do through March of 2020; |
• | In 2019, Universal’s Endless Summer Resort – Surfside Inn and Suites at Universal Orlando, a 750 guestroom hotel opened, and in 2020 Universal’s Endless Summer Resort – Dockside Inn and Suites at Universal Orlando, is expected to open with approximately 2,050 additional guestrooms. As with Loews Hotels & Co’s other properties at Universal Orlando, Loews Hotels & Co serves as manager and has a joint venture interest in these hotels; |
• | In 2020, Loews Kansas City Hotel in Kansas City, Missouri, an approximately 800 guestroom hotel in which Loews Hotels & Co will serve as manager and has a majority equity interest, is expected to open; |
• | In 2020, Live! by Loews in St. Louis, Missouri, an approximately 216 guestroom hotel in which Loews Hotels & Co will serve as manager and has a joint venture interest, is expected to open; and |
• | In 2022, Loews Coral Gables Hotel in Coral Gables, Florida, an approximately 242 guestroom hotel in which Loews Hotels & Co will serve as manager and will have a joint venture interest upon completion, is expected to be completed. |
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First
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|||||
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Became
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|||||
Name
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Position and Offices Held
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Age
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Officer
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|||||
Marc A. Alpert
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Senior Vice President, General Counsel and Secretary
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57
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2016
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|||||||
David B. Edelson
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Senior Vice President and Chief Financial Officer
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60
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2005
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|||||||
Richard W. Scott
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Senior Vice President and Chief Investment Officer
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66
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2009
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|||||||
Kenneth I. Siegel
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Senior Vice President
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62
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2009
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|||||||
Andrew H. Tisch
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Office of the President,
Co-Chairman
of the Board
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70
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1985
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|||||||
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and Chairman of the Executive Committee
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|||||||
James S. Tisch
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Office of the President, President and
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67
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1981
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|||||||
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Chief Executive Officer
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|||||||
Jonathan M. Tisch
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Office of the President and
Co-Chairman
of the Board
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66
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1987
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●
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it may have difficulty satisfying its obligations with respect to its outstanding debt and, given the challenges to its business presented by the protracted industry downturn, its operational obligations; |
●
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it may have difficulty obtaining financing, including refinancing for its existing indebtedness upon maturity in the future for working capital, capital expenditures, acquisitions or other purposes; |
●
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it may need to use a substantial portion of available cash flow from operations to pay interest and principal on its debt, which would reduce the amount of money available to fund working capital requirements, capital expenditures and other general corporate or business activities; |
●
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vulnerability to the effects of general adverse economic conditions, such as the continuing protracted industry downturn, and adverse operating results, including negative cash flows, could increase; |
●
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flexibility in planning for, or reacting to, changes in its business and in its industry in general could be limited; |
●
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it may not have the ability to pursue business opportunities that become available; |
●
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the amount of debt and the amount it must pay to service its debt obligations could place Diamond Offshore at a competitive disadvantage compared to its competitors that have less debt; and |
●
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customers may react adversely to its significant debt level and seek alternative service providers. |
• | limit Boardwalk Pipelines’ ability to borrow money for its working capital, capital expenditures, debt service requirements or other general business activities; |
• | increase Boardwalk Pipelines’ vulnerability to general adverse economic and industry conditions; and |
• | limit Boardwalk Pipelines’ ability to respond to business opportunities, including growing its business through acquisitions. |
• | the diversion of management’s and employees’ attention from other business concerns; |
• | inaccurate assumptions about volume, revenues and project costs, including potential synergies; |
• | a decrease in Boardwalk Pipelines’ liquidity as a result of using available cash or borrowing capacity to finance the acquisition or project; |
• | a significant increase in interest expense or financial leverage if it incurs additional debt to finance the acquisition or project; |
• | inaccurate assumptions about the overall costs of debt; |
• | an inability to hire, train or retain qualified personnel to manage and operate the acquired business and assets or the developed assets; |
• | unforeseen difficulties operating in new product areas or new geographic areas; and |
• | changes in regulatory requirements or delays of regulatory approvals. |
• | an inability to integrate successfully the businesses Boardwalk Pipelines acquires; |
• | the assumption of unknown liabilities for which it is not indemnified, for which its indemnity is inadequate or for which its insurance policies may exclude from coverage; |
• | limitations on rights to indemnity from the seller; and |
• | customer or key employee losses of an acquired business. |
• | changes in general economic conditions, including the severity and duration of any downturn in the U.S. or global economy and financial markets; |
• | war, political conditions or civil unrest, terrorist activities or threats and heightened travel security measures instituted in response to these events; |
• | outbreaks of pandemic or contagious diseases, such as the recent coronavirus; |
• |
natural or
man-made
disasters;
|
• | any material reduction or prolonged interruption of public utilities and services; |
• | decreased corporate or government travel-related budgets and spending and cancellations, deferrals or renegotiations of group business due to adverse economic conditions or otherwise; |
• | decreased need for business-related travel due to innovations in business-related technology; |
• | competition from other hotels and alternative accommodations, such as Airbnb, in the markets in which Loews Hotels & Co operates; |
• | requirements for periodic capital reinvestment to maintain and upgrade hotels; |
• | increases in operating costs, including labor (such as from minimum wage increases), workers’ compensation, benefits, insurance, food and beverage, commodity costs, energy and unanticipated costs resulting from force majeure events, due to inflation, new or different federal, state or local governmental regulations, including tariffs, and other factors that may not be offset by increased revenues; |
• | the costs and administrative burdens associated with compliance with applicable laws and regulations; |
• | organized labor activities, which could cause a diversion of business from hotels involved in labor negotiations and loss of business for Loews Hotels & Co’s properties generally as a result of certain labor tactics; |
• | changes in the desirability of particular locations or travel patterns of customers, including with respect to the underlying attractions supporting Loews Hotels & Co’s existing and under development immersive destination properties, such as the Universal theme park for its Orlando, Florida properties, the stadiums in Arlington, Texas and St. Louis, Missouri for its Live! by Loews hotels and convention centers for properties in other markets; |
• | geographic concentration of operations and customers; |
• | shortages of desirable locations for development; and |
• | relationships with third-party property owners, developers, landlords and joint venture partners, including the risk that owners and/or partners may terminate management or joint venture agreements. |
• | real estate, insurance, zoning, tax, environmental and eminent domain laws; |
• | the ongoing need for owner-funded capital improvements and expenditures to maintain or upgrade properties; |
• | risks associated with mortgage debt, including the possibility of default, fluctuating interest rate levels and the availability of replacement financing; |
• | risks associated with the possibility that cost increases will outpace revenue increases and that, in the event of an economic slowdown, a high proportion of fixed costs will make it difficult to reduce costs to the extent required to offset declining revenues; |
• | risks associated with real estate leases, including the possibility of rent increases and the inability to renew or extend upon favorable terms; |
• | risks associated with real estate condominiums, including the possibility of special assessments by condominiums Loews Hotels & Co does not control; |
• | fluctuations in real estate values and potential impairments in the value of Loews Hotels & Co’s assets; and |
• | the relative illiquidity of real estate compared to some other assets. |
• | construction delays or cost overruns (including labor and materials or unforeseeable site conditions) that may increase project costs; cause new development projects to not be completed by lender imposed required completion dates or subject Loews Hotels & Co to cancellation penalties for reservations accepted; |
• | obtaining zoning, occupancy and other required permits or authorizations; |
• | changes in economic conditions that may result in weakened or lack of demand or negative project returns; |
• | governmental restrictions on the size or kind of development; |
• | projects financed with construction debt are subject to interest rate risk as uncertain timing and amount of draws make effective hedging difficult to obtain; |
• | force majeure events, including earthquakes, tornados, hurricanes or floods; and |
• | design defects that could increase costs. |
• | limit its ability to borrow money for its working capital, capital expenditures, debt service requirements or other corporate purposes; |
• | increase its vulnerability to general adverse economic and industry conditions; and |
• | limit its ability to respond to business opportunities, including growing its business through acquisitions. |
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|||||||
Loews Common Stock
|
100.0
|
91.98
|
112.86
|
121.21
|
110.84
|
128.46
|
|||||||
S&P 500 Index
|
100.0
|
101.38
|
113.51
|
138.29
|
132.23
|
173.86
|
|||||||
Loews Peer Group (a)
|
100.0
|
94.68
|
109.90
|
113.20
|
106.21
|
130.57
|
(a) | The Loews Peer Group consists of the following companies that are industry competitors of our principal operating subsidiaries: Chubb Limited (name change from ACE Limited after it acquired The Chubb Corporation on January 15, 2016), W.R. Berkley Corporation, The Chubb Corporation (included through January 15, 2016 when it was acquired by ACE Limited), Energy Transfer Partners L.P. (included through October 18, 2018 when it merged with Energy Transfer Equity, L.P.), Valaris plc (name change from ENSCO plc), The Hartford Financial Services Group, Inc., Noble Corporation plc, Spectra Energy Corp (included through February 24, 2017 when it was acquired by Enbridge Inc.), Transocean Ltd. and The Travelers Companies, Inc. |
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Number of
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||||||
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securities remaining
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||||||
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Number of
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available for future
|
|
||||||
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securities to be
|
|
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issuance under
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|
||||||
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issued upon exercise
|
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Weighted average
|
|
equity compensation
|
|
||||||
|
of outstanding
|
|
exercise price of
|
|
plans (excluding
|
|
||||||
|
options, warrants
|
|
outstanding options,
|
|
securities reflected
|
|
||||||
Plan category
|
and rights
|
|
warrants and rights
|
|
in the first column)
|
|
||||||
Equity compensation plans approved by security holders (a)
|
3,025,294
|
$ 41.11
|
5,597,156
|
|||||||||
Equity compensation plans not approved by security holders (b)
|
N/A
|
N/A
|
N/A
|
(a) | Reflects 2,469,756 outstanding stock appreciation rights awarded under the Loews Corporation 2000 Stock Option Plan, 531,427 outstanding unvested time-based and performance-based restricted stock units (“RSUs”) and 24,111 deferred vested time-based RSUs awarded under the Loews Corporation 2016 Incentive Compensation Plan. The weighted average exercise price does not take into account RSUs as they do not have an exercise price. |
(b) | We do not have equity compensation plans that have not been approved by our shareholders. |
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 of shares
(or approximate dollar value)
of shares that may yet be
purchased under the plans or programs (in millions) |
||||||||||||
October 1, 2019 - October 31, 2019
|
2,565,169
|
$ 49.76
|
N/A
|
N/A
|
||||||||||||
November 1, 2019 - November 30, 2019
|
2,161,832
|
50.38
|
N/A
|
N/A
|
||||||||||||
December 1, 2019 - December 31, 2019
|
3,562,239
|
50.78
|
N/A
|
N/A
|
Year Ended December 31
|
2019
|
|
2018
|
2017 (a)
|
2016 (a)
|
2015 (a)
|
||||||||||||||
(In millions, except per share data)
|
|
|
|
|
|
|
||||||||||||||
Results of Operations:
|
|
|
|
|
|
|
|
|||||||||||||
Revenues
|
$
|
14,931
|
|
$ |
14,066
|
$ |
13,735
|
$ |
13,105
|
$ |
13,415
|
|||||||||
Income before income tax
|
$
|
1,119
|
|
$ |
834
|
$ |
1,582
|
$ |
936
|
$ |
244
|
|||||||||
Net income
|
$
|
871
|
|
$ |
706
|
$ |
1,412
|
$ |
716
|
$ |
287
|
|||||||||
Amounts attributable to noncontrolling interests
|
|
61
|
|
(70
|
) |
(248
|
) |
(62
|
) |
(27)
|
||||||||||
Net income attributable to Loews Corporation
|
$
|
932
|
|
$ |
636
|
$ |
1,164
|
$ |
654
|
$ |
260
|
|||||||||
Diluted net income per share
|
$
|
3.07
|
|
$ |
1.99
|
$ |
3.45
|
$ |
1.93
|
$ |
0.72
|
|||||||||
Financial Position:
|
|
|
|
|
|
|
|
|||||||||||||
Investments
|
$
|
51,250
|
|
$ |
48,186
|
$ |
52,226
|
$ |
50,711
|
$ |
49,400
|
|||||||||
Total assets
|
|
82,243
|
|
78,316
|
79,586
|
76,594
|
76,006
|
|||||||||||||
Debt
|
|
11,533
|
|
11,376
|
11,533
|
10,778
|
10,560
|
|||||||||||||
Shareholders’ equity
|
|
19,119
|
|
18,518
|
19,204
|
18,163
|
17,561
|
|||||||||||||
Cash dividends per share
|
|
0.25
|
|
0.25
|
0.25
|
0.25
|
0.25
|
|||||||||||||
Book value per share
|
|
65.71
|
|
59.34
|
57.83
|
53.96
|
51.67
|
|||||||||||||
Shares outstanding
|
|
290.97
|
|
312.07
|
332.09
|
336.62
|
339.90
|
(a) |
On January 1, 2018, the Company adopted Accounting Standard Update (“ASU”)
2014-09,
“Revenue from Contracts with Customers (Topic 606)” and ASU
2016-01,
“Financial Instruments – Overall (Subtopic
825-10);
Recognition and Measurement of Financial Assets and Financial Liabilities.” Prior period revenues were not adjusted for the adoption of either of these standards.
|
|
Page
No. |
|
||
49
|
||||
49
|
||||
49
|
||||
50
|
||||
54
|
||||
56
|
||||
60
|
||||
60
|
||||
61
|
||||
61
|
||||
62
|
||||
64
|
||||
65
|
||||
68
|
||||
77
|
||||
79
|
||||
79
|
Year Ended December 31
|
2019
|
|
2018
|
|||||
(In millions, except per share)
|
|
|
|
|||||
CNA Financial
|
$
|
894
|
|
$ |
726
|
|||
Diamond Offshore
|
|
(175)
|
|
(112)
|
||||
Boardwalk Pipelines
|
|
209
|
|
135
|
||||
Loews Hotels & Co
|
|
(31)
|
|
48
|
||||
Corporate
|
|
35
|
|
(161)
|
||||
Net income attributable to Loews Corporation
|
$
|
932
|
|
$ |
636
|
|||
Basic net income per common share
|
$
|
3.08
|
|
$ |
1.99
|
|||
Diluted net income per common share
|
|
3.07
|
|
1.99
|
||||
Year Ended December 31
|
2019
|
|
2018
|
|
|
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|||||||
Insurance premiums
|
$
|
7,428
|
|
$ |
7,312
|
|
|
|
||||
Net investment income
|
|
2,118
|
|
1,817
|
|
|
|
|||||
Investment gains (losses)
|
|
49
|
|
(57
|
) |
|
|
|
||||
Non-insurance
warranty revenue
|
|
1,161
|
|
1,007
|
|
|
|
|||||
Operating revenues and other
|
|
32
|
|
55
|
|
|
|
|||||
Total
|
|
10,788
|
|
10,134
|
|
|
|
|||||
Expenses:
|
|
|
|
|
|
|||||||
Insurance claims and policyholders’ benefits
|
|
5,806
|
|
5,572
|
|
|
|
|||||
Amortization of deferred acquisition costs
|
|
1,383
|
|
1,335
|
|
|
|
|||||
Non-insurance
warranty expense
|
|
1,082
|
|
923
|
|
|
|
|||||
Other operating expenses
|
|
1,141
|
|
1,203
|
|
|
|
|||||
Interest
|
|
152
|
|
138
|
|
|
|
|||||
Total
|
|
9,564
|
|
9,171
|
|
|
|
|||||
Income before income tax
|
|
1,224
|
|
963
|
|
|
|
|||||
Income tax expense
|
|
(224
|
)
|
(151
|
) |
|
|
|
||||
Net income
|
|
1,000
|
|
812
|
|
|
|
|||||
Amounts attributable to noncontrolling interests
|
|
(106
|
)
|
(86
|
) |
|
|
|
||||
Net income attributable to Loews Corporation
|
$
|
894
|
|
$ |
726
|
|
|
|
||||
Year Ended December 31, 2019
|
|
Specialty
|
|
|
Commercial
|
|
|
International
|
|
|
Total
|
|
|
|||||
(In millions, except %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross written premiums
|
|
$ 6,900
|
|
|
$ 3,693
|
|
|
$ 1,111
|
|
|
$ 11,704
|
|
|
|||||
Gross written premiums excluding third party captives
|
|
3,015
|
|
|
3,609
|
|
|
1,111
|
|
|
7,735
|
|
|
|||||
Net written premiums
|
|
2,848
|
|
|
3,315
|
|
|
971
|
|
|
7,134
|
|
|
|||||
Net earned premiums
|
|
2,773
|
|
|
3,162
|
|
|
974
|
|
|
6,909
|
|
|
|||||
Net investment income
|
|
556
|
|
|
654
|
|
|
63
|
|
|
1,273
|
|
|
|||||
Core income
|
|
671
|
|
|
489
|
|
|
30
|
|
|
1,190
|
|
|
|||||
Other performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss and loss adjustment expense ratio
|
|
57.5
|
%
|
|
67.3
|
%
|
|
64.1
|
%
|
|
62.9
|
%
|
|
|||||
Expense ratio
|
|
32.5
|
|
|
32.9
|
|
|
37.7
|
|
|
33.5
|
|
|
|||||
Dividend ratio
|
|
0.2
|
|
|
0.6
|
|
|
|
0.3
|
|
|
|||||||
Combined ratio
|
|
90.2
|
%
|
|
100.8
|
%
|
|
101.8
|
%
|
|
96.7
|
%
|
|
|||||
Rate
|
|
5%
|
|
|
3%
|
|
|
8%
|
|
|
5%
|
|
|
|||||
Renewal premium change
|
|
6
|
|
|
5
|
|
|
7
|
|
|
6
|
|
|
|||||
Retention
|
|
87
|
|
|
86
|
|
|
71
|
|
|
84
|
|
|
|||||
New business
|
|
$ 367
|
|
|
$ 683
|
|
|
$ 273
|
|
|
$ 1,323
|
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross written premiums
|
$ 6,904
|
$ 3,350
|
$ 1,150
|
$ 11,404
|
|
|||||||||||||||
Gross written premiums excluding third party captives
|
2,834
|
3,267
|
1,150
|
7,251
|
|
|||||||||||||||
Net written premiums
|
2,744
|
3,060
|
1,018
|
6,822
|
|
|||||||||||||||
Net earned premiums
|
2,732
|
3,050
|
1,001
|
6,783
|
|
|||||||||||||||
Net investment income
|
439
|
500
|
57
|
996
|
|
|||||||||||||||
Core income (loss)
|
629
|
357
|
(19
|
) |
967
|
|
||||||||||||||
Other performance metrics:
|
|
|
|
|
|
|||||||||||||||
Loss and loss adjustment expense ratio
|
55.9
|
% |
67.3
|
% |
69.8
|
% |
63.1
|
% |
|
|||||||||||
Expense ratio
|
32.1
|
33.1
|
36.7
|
33.2
|
|
|||||||||||||||
Dividend ratio
|
0.2
|
0.7
|
|
0.4
|
|
|||||||||||||||
Combined ratio
|
88.2
|
% |
101.1
|
% |
106.5
|
% |
96.7
|
% |
|
|||||||||||
Rate
|
2%
|
1%
|
4%
|
2%
|
|
|||||||||||||||
Renewal premium change
|
5
|
5
|
6
|
5
|
|
|||||||||||||||
Retention
|
85
|
85
|
77
|
84
|
|
|||||||||||||||
New business
|
$ 353
|
$ 566
|
$ 307
|
$ 1,226
|
|
Years Ended December 31
|
2019
|
|
|
|
2018
|
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
520
|
|
|
|
|
$ |
530
|
|
|||||||
Net investment income
|
|
845
|
|
|
|
|
821
|
|
||||||||
Core loss
|
|
(211
|
)
|
|
|
|
(122
|
) |
Year Ended December 31
|
2019
|
|
|
2018
|
|
|||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
||||||||
Core income (loss):
|
|
|
|
|
||||||||||||
Property & Casualty Operations
|
$
|
1,190
|
|
|
$ |
967
|
|
|||||||||
Other Insurance Operations
|
|
(211
|
)
|
|
(122
|
) |
|
|||||||||
Total core income
|
|
979
|
|
|
845
|
|
||||||||||
Investment gains (losses) (after tax)
|
|
37
|
|
|
(43
|
) |
|
|||||||||
Consolidating adjustments including purchase accounting and noncontrolling interests
|
|
(122
|
)
|
|
(76
|
) |
|
|||||||||
Net income attributable to Loews Corporation
|
$
|
894
|
|
|
$ |
726
|
|
|||||||||
Year Ended December 31
|
2019
|
|
|
|
2018
|
|
|
|||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues:
|
|
|
|
|
||||||||||||
Net investment income
|
$
|
6
|
|
|
|
|
$ |
8
|
|
|||||||
Contract drilling revenues
|
|
935
|
|
|
|
|
1,060
|
|
||||||||
Other revenues
|
|
47
|
|
|
|
|
25
|
|
||||||||
Total
|
|
988
|
|
|
|
|
1,093
|
|
||||||||
Expenses:
|
|
|
|
|
||||||||||||
Contract drilling expenses
|
|
793
|
|
|
|
|
723
|
|
||||||||
Other operating expenses:
|
|
|
|
|
||||||||||||
Impairment of assets
|
|
|
27
|
|
||||||||||||
Other expenses
|
|
474
|
|
|
|
|
446
|
|
||||||||
Interest
|
|
123
|
|
|
|
|
123
|
|
||||||||
Total
|
|
1,390
|
|
|
|
|
1,319
|
|
||||||||
Loss before income tax
|
|
(402
|
)
|
|
|
|
(226
|
) |
|
|||||||
Income tax benefit
|
|
60
|
|
|
|
|
30
|
|
||||||||
Amounts attributable to noncontrolling interests
|
|
167
|
|
|
|
|
84
|
|
||||||||
Net loss attributable to Loews Corporation
|
$
|
(175
|
)
|
|
|
|
$ |
(112
|
) |
|
||||||
(a) | Reflects an increase of $73 million in Boardwalk Pipelines’ actual 2019 revenues recognized from fixed fees under firm agreements as compared with its expected 2019 revenues from fixed fees under firm agreements, including agreements for transportation, storage and other services as of December 31, 2018, primarily due to an increase from contract renewals that occurred in 2019. |
Year Ended December 31
|
2019
|
|
|
|
2018
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
|
|||||||
Revenues:
|
|
|
|
|
||||||||||
Operating revenues and other
|
$
|
1,300
|
|
|
|
|
$ |
1,227
|
|
|||||
Total
|
|
1,300
|
|
|
|
|
1,227
|
|
||||||
Expenses:
|
|
|
|
|
||||||||||
Operating and other
|
|
840
|
|
|
|
|
820
|
|
||||||
Interest
|
|
179
|
|
|
|
|
176
|
|
||||||
Total
|
|
1,019
|
|
|
|
|
996
|
|
||||||
Income before income tax
|
|
281
|
|
|
|
|
231
|
|
||||||
Income tax expense
|
|
(72
|
)
|
|
|
|
(28
|
) |
|
|||||
Amounts attributable to noncontrolling interests
|
|
|
(68
|
) |
|
|||||||||
Net income attributable to Loews Corporation
|
$
|
209
|
|
|
|
|
$ |
135
|
|
|||||
Year Ended December 31
|
|
2019
|
|
2018
|
|
|||||||
(In millions)
|
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|||||||||
Operating revenues
|
$
|
578
|
|
$ |
628
|
|
||||||
Gain on sale of owned hotel
|
|
|
|
23
|
|
|||||||
Revenues related to reimbursable expenses
|
|
114
|
|
104
|
|
|||||||
Total
|
|
692
|
|
755
|
|
|||||||
Expenses:
|
|
|
|
|
|
|||||||
Operating and other:
|
|
|
|
|
|
|||||||
Operating
|
|
493
|
|
533
|
|
|||||||
Asset impairments
|
|
99
|
|
22
|
|
|||||||
Reimbursable expenses
|
|
114
|
|
104
|
|
|||||||
Depreciation
|
|
61
|
|
67
|
|
|||||||
Equity income from joint ventures
|
|
(69
|
)
|
(73
|
) |
|
||||||
Interest
|
|
22
|
|
29
|
|
|||||||
Total
|
|
720
|
|
682
|
|
|||||||
Income (loss) before income tax
|
|
(28
|
)
|
73
|
|
|||||||
Income tax expense
|
|
(3
|
)
|
(25
|
) |
|
||||||
Net income (loss) attributable to Loews Corporation
|
$
|
(31
|
)
|
$ |
48
|
|
||||||
Year Ended December 31
|
|
2019
|
|
2018
|
|
|||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|||
Revenues:
|
|
|
|
|||||||||
Net investment income (loss)
|
$
|
230
|
|
$ |
(10
|
) |
|
|||||
Operating revenues and other
|
|
933
|
|
867
|
|
|||||||
Total
|
|
1,163
|
|
857
|
|
|||||||
Expenses:
|
|
|
|
|
|
|||||||
Operating and other
|
|
1,004
|
|
956
|
|
|||||||
Interest
|
|
115
|
|
108
|
|
|||||||
Total
|
|
1,119
|
|
1,064
|
|
|||||||
Income (loss) before income tax
|
|
44
|
|
(207
|
) |
|
||||||
Income tax (expense) benefit
|
|
(9
|
)
|
46
|
|
|||||||
Net income (loss) attributable to Loews Corporation
|
$
|
35
|
|
$ |
(161
|
) |
|
|||||
|
Payments Due by Period
|
|||||||||||||||||||||||
|
|
|
Less than
|
|
|
|
|
|
More than
|
|
|
|
||||||||||||
December 31, 2019
|
Total
|
|
1 year
|
|
1-3
years
|
|
3-5
years
|
|
5 years
|
|
|
|
||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt (a)
|
$
|
16,279
|
|
$
|
616
|
|
$
|
2,620
|
|
$
|
4,185
|
|
$
|
8,858
|
|
|
|
|
||||||
Operating leases
|
|
860
|
|
|
114
|
|
|
215
|
|
|
170
|
|
|
361
|
|
|
|
|
||||||
Claim and claim adjustment expense reserves (b)
|
|
22,814
|
|
|
5,512
|
|
|
5,928
|
|
|
2,994
|
|
|
8,380
|
|
|
|
|
||||||
Future policy benefit reserves (c)
|
|
27,539
|
|
|
(350
|
)
|
|
55
|
|
|
813
|
|
|
27,021
|
|
|
|
|
||||||
Purchase and other obligations
|
|
485
|
|
|
262
|
|
|
83
|
|
|
80
|
|
|
60
|
|
|
|
|
||||||
Total
|
$
|
67,977
|
|
$
|
6,154
|
|
$
|
8,901
|
|
$
|
8,242
|
|
$
|
44,680
|
|
|
|
|
||||||
(a) | Includes estimated future interest payments. |
(b) | The claim and claim adjustment expense reserves reflected above are not discounted and represent CNA’s estimate of the amount and timing of the ultimate settlement and administration of gross claims based on its assessment of facts and circumstances known as of December 31, 2019. See the Insurance Reserves section of this MD&A for further information. |
(c) | The future policy benefit reserves reflected above are not discounted and represent CNA’s estimate of the ultimate amount and timing of the settlement of benefits based on its assessment of facts and circumstances known as of December 31, 2019. Additional information on future policy benefit reserves is included in Note 1 of the Notes to Consolidated Financial Statements included under Item 8. |
Year Ended December 31
|
2019
|
|
2018
|
|
||||||
(In millions)
|
|
|
|
|
|
|
|
|||
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 and noncontrolling interests
|
$
|
1,358
|
|
$ |
1,351
|
|
||||
Net investment income after tax and noncontrolling interests
|
$
|
1,543
|
|
$ |
1,341
|
|
||||
Effective income yield for the fixed income securities portfolio, before tax
|
|
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)%
|
|
Year Ended December 31
|
2019
|
|
|
|
2018
|
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
||||||||
Investment gains (losses):
|
|
|
|
|
||||||||||||
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
|
|
(11
|
)
|
|
|
|
13
|
|
||||||||
Total investment gains (losses)
|
|
49
|
|
|
|
|
(57
|
) |
|
|||||||
Income tax (expense) benefit
|
|
(12
|
)
|
|
|
|
14
|
|
||||||||
Amounts attributable to noncontrolling interests
|
|
(4
|
)
|
|
|
|
5
|
|
||||||||
Net investment gains (losses) attributable to Loews Corporation
|
|
$ 33
|
|
|
|
|
$ |
(38
|
) |
|
||||||
|
December 31, 2019
|
December 31, 2018
|
||||||||||||||||||
|
Estimated
Fair Value |
|
Net
Unrealized Gains (Losses) |
|
Estimated
Fair Value |
Net
Unrealized Gains (Losses) |
|
|
||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
Estimated
Fair Value |
|
Gross
Unrealized Losses |
|
|
|||||
(In millions)
|
|
|
|
|
|
|||||
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
|
Estimated
Fair Value |
|
Gross
Unrealized Losses |
|
|
|||||
(In millions)
|
|
|
|
|
|
|||||
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
|
December 31, 2018
|
|
|||||||||||||||
|
Estimated
Fair Value |
|
Effective
Duration (In Years) |
|
Estimated
Fair Value |
Effective
Duration (In Years) |
|
|||||||||||
(In millions of dollars)
|
|
|
|
|
|
|
|
|
|
|||||||||
Investments supporting Other Insurance Operations
|
$
|
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
|
2019
|
|
2018
|
|
||||||
(In millions)
|
|
|
|
|
|
|||||
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
|
|
||||
|
December 31
|
2019
|
|
2018
|
|
||||||
(In millions)
|
|
|
|
|
|
|||||
Gross Case Reserves
|
$
|
6,276
|
|
$ |
6,671
|
|
||||
Gross IBNR Reserves
|
|
9,494
|
|
9,287
|
|
|||||
|
||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves
|
$
|
15,770
|
|
$ |
15,958
|
|
||||
|
||||||||||
Net Case Reserves
|
$
|
5,645
|
|
$ |
6,063
|
|
||||
Net IBNR Reserves
|
|
8,508
|
|
8,290
|
|
|||||
|
||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves
|
$
|
14,153
|
|
$ |
14,353
|
|
||||
|
December 31
|
2019
|
|
2018
|
|
||||||
(In millions)
|
|
|
|
|
|
|||||
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
|
|
||||
|
2019 GPV
|
Estimated Reduction
to Pretax Income |
|
||
(In millions)
|
|
|
||
Hypothetical revisions
|
|
|
|
|
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
|
|
December 31, 2019
|
Claim and claim
adjustment expenses |
|
Future
policy benefits |
|
Total
|
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
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 (a)
|
|
167
|
|
|
2,615
|
|
|
2,782
|
|
|||
Ceded reserves (b)
|
|
159
|
|
|
226
|
|
|
385
|
|
|||
Total gross reserves
|
$
|
3,716
|
|
$
|
12,311
|
|
$
|
16,027
|
|
|||
December 31, 2018
|
Claim and claim
adjustment expenses |
Future
policy benefits |
Total
|
|||||||||
(In millions)
|
|
|
|
|||||||||
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 (a)
|
115
|
1,250
|
1,365
|
|||||||||
Ceded reserves (b)
|
181
|
234
|
415
|
|||||||||
Total gross reserves
|
$ |
3,601
|
$ |
10,597
|
$ |
14,198
|
||||||
(a) | To the extent that unrealized gains on fixed income securities supporting long term care products and annuity contracts would result in a premium deficiency if those gains were realized, an increase in Insurance reserves is recorded, after tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (loss) (“Shadow Adjustments”). |
(b) | Ceded reserves relate to claim or policy reserves fully reinsured in connection with a sale or exit from the underlying business. |
|
|
|
|
|
Increase (Decrease)
|
|||||||||||
December 31, 2019
|
Fair Value Asset
(Liability) |
|
|
|
Interest Rate
Risk |
|
Equity Price
Risk
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities – long
|
$
|
53
|
|
|
|
|
|
|
||||||||
Equity securities – long
|
|
440
|
|
|
|
|
|
$
|
(110)
|
|
||||||
– short
|
|
(17
|
)
|
|
|
|
|
|
4
|
|
||||||
Options – purchased
|
|
1
|
|
|
|
|
|
|
3
|
|
||||||
– written
|
|
(1
|
)
|
|
|
|
|
|
(5)
|
|
||||||
Other invested assets
|
|
7
|
|
|
|
|
|
|
||||||||
Short term investments
|
|
2,521
|
|
|
|
|
$
|
(5
|
)
|
|
|
|
|
Increase (Decrease)
|
|||||||||||||||
December 31, 2019
|
Fair Value Asset
(Liability) |
|
Interest Rate
Risk
|
|
Foreign Currency
Risk |
|
Equity Price
Risk |
|
|
|||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed maturities (a)
|
$
|
42,187
|
|
$
|
(2,669
|
)
|
$
|
(458
|
)
|
|
|
|||||||
Equity securities
|
|
865
|
|
|
(28
|
)
|
|
(3
|
)
|
$
|
(45)
|
|
|
|||||
Limited partnership investments
|
|
2,004
|
|
|
|
|
|
|
|
|
(238)
|
|
|
|||||
Other invested assets
|
|
65
|
|
|
|
|
|
(11
|
)
|
|
|
|
|
|||||
Mortgage loans
|
|
1,025
|
|
|
(45
|
)
|
|
|
|
|
|
|
|
|||||
Short term investments
|
|
2,107
|
|
|
(1
|
)
|
|
(27
|
)
|
|
|
|
|
|||||
Interest rate swaps (b)
|
|
(8
|
)
|
|
11
|
|
|
|
|
|
|
|
|
|||||
Other derivatives
|
|
(7
|
)
|
|
16
|
|
|
|
|
|
|
|
|
(a) | From a financial reporting perspective, Shadow Adjustments related to life and group reserves would reduce the impact of the decrease in fixed maturity securities. |
(b) | The market risk at December 31, 2019 will generally be offset by recognition of the underlying hedged transaction. |
|
|
Increase (Decrease)
|
||||||||||||
December 31, 2018
|
Fair Value Asset
(Liability) |
Interest Rate
Risk
|
Equity Price
Risk |
|
||||||||||
(In millions)
|
|
|
|
|
||||||||||
Fixed maturities – long
|
$ |
157
|
$ |
(1
|
) |
|
|
|||||||
Equity securities – long
|
495
|
|
$ |
(124
|
) |
|
||||||||
– short
|
(6
|
) |
|
2
|
|
|||||||||
Options – purchased
|
18
|
|
28
|
|
||||||||||
– written
|
(17
|
) |
|
(19
|
) |
|
||||||||
Other invested assets
|
5
|
|
|
|
||||||||||
Short term investments
|
1,926
|
(4
|
) |
|
|
|
|
Increase (Decrease)
|
||||||||||||||||
December 31, 2018
|
Fair Value Asset
(Liability) |
Interest Rate
Risk
|
Foreign Currency
Risk |
Equity Price
Risk |
|
|||||||||||||
(In millions)
|
|
|
|
|
|
|||||||||||||
Fixed maturities
|
$ |
39,542
|
$ |
(2,440
|
) | $ |
(406
|
) |
|
|
||||||||
Equity securities
|
780
|
(29
|
) |
(3
|
) | $ |
(46)
|
|
||||||||||
Limited partnership investments
|
2,424
|
|
|
(308)
|
|
|||||||||||||
Other invested assets
|
53
|
|
(9
|
) |
|
|
||||||||||||
Mortgage loans
|
827
|
(36
|
) |
|
|
|
||||||||||||
Short term investments
|
1,943
|
(1
|
) |
(24
|
) |
|
|
|||||||||||
Interest rate swaps (a)
|
11
|
22
|
|
|
|
|||||||||||||
Other derivatives
|
4
|
15
|
|
|
|
(a) | The market risk at December 31, 2018 will generally be offset by recognition of the underlying hedged transaction. |
|
|
|
Page
No. |
|||
84
|
||||||
85
|
||||||
90
|
||||||
92
|
||||||
93
|
||||||
94
|
||||||
96
|
||||||
98
|
||||||
|
1.
|
98
|
||||
|
2.
|
108
|
||||
|
3.
|
109
|
||||
|
4.
|
114
|
||||
|
5.
|
120
|
||||
|
6.
|
120
|
||||
|
7.
|
122
|
||||
|
8.
|
123
|
||||
|
9.
|
138
|
||||
|
10.
|
139
|
||||
|
11.
|
143
|
||||
|
12.
|
146
|
||||
|
13.
|
147
|
||||
|
14.
|
148
|
||||
|
15.
|
149
|
||||
|
16.
|
155
|
||||
|
17.
|
156
|
||||
|
18.
|
157
|
||||
|
19.
|
157
|
||||
|
20.
|
158
|
/s/ DELOITTE & TOUCHE LLP
|
New York, NY
|
February 11, 2020
|
○
|
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 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, the 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. |
○
|
Corroborating information used to identify impairment indicators through independent inquiries of offshore drilling marketing and operations personnel and by performing an independent assessment of potential indicators of impairment utilizing the individual drilling rig history, asset class history for dayrates, backlog and potential drilling rig opportunities. |
○
|
Considering industry and analysts reports and the impact of macroeconomic factors, such as future oil and gas prices, on the Company’s process for identifying indicators of impairment. |
○
|
Comparing the timing of impairments recorded by the Company with the timing of impairments recorded by the Company’s peers. |
○
|
Evaluating the reasonableness of the dayrate assumptions utilized in the Company’s probability-weighted undiscounted cash flow analyses by evaluating potential drilling rig opportunities and considering industry reports and data. |
○
|
Comparing the assumptions used in the Company’s previous undiscounted probability-weighted cash flow analyses to the assumptions used in the current undiscounted probability-weighted cash flow analyses to assess for management bias. |
/s/ DELOITTE & TOUCHE LLP
|
New York, NY
|
February 11, 2020
|
Assets:
|
|
|
|
|
|
|
December 31
|
2019
|
|
2018
|
|||||
(Dollar amounts in millions, except per share data)
|
|
|
|
|
||||
Investments:
|
|
|
||||||
Fixed maturities, amortized cost of $38,157 and $38,234
|
$
|
|
|
$ |
39,699
|
|||
Equity securities, cost of $1,244 and $1,479
|
|
1,306
|
|
1,293
|
||||
Limited partnership investments
|
|
2,004
|
|
2,424
|
||||
Other invested assets, primarily mortgage loans
|
|
1,072
|
|
901
|
||||
Short term investments
|
|
4,628
|
|
3,869
|
||||
Total investments
|
|
51,250
|
|
48,186
|
||||
Cash
|
|
336
|
|
405
|
||||
Receivables
|
|
7,675
|
|
7,960
|
||||
Property, plant and equipment
|
|
15,568
|
|
15,511
|
||||
Goodwill
|
|
767
|
|
665
|
||||
Deferred
non-insurance
warranty acquisition expenses
|
|
2,840
|
|
2,513
|
||||
Deferred acquisition costs of insurance subsidiaries
|
|
662
|
|
633
|
||||
Other assets
|
|
3,145
|
|
2,443
|
||||
Total assets
|
$
|
82,243
|
|
$ |
78,316
|
|||
Liabilities and Equity:
|
|
|
|
|
|
|
December 31
|
2019
|
2018
|
||||||
(Dollar amounts in millions, except per share data)
|
|
|
|
|||||
Insurance reserves:
|
|
|
||||||
Claim and claim adjustment expense
|
$
|
21,720
|
$ |
21,984
|
||||
Future policy benefits
|
|
12,311
|
10,597
|
|||||
Unearned premiums
|
|
4,583
|
4,183
|
|||||
Total insurance reserves
|
|
38,614
|
36,764
|
|||||
Payable to brokers
|
|
108
|
42
|
|||||
Short term debt
|
|
77
|
17
|
|||||
Long term debt
|
|
11,456
|
11,359
|
|||||
Deferred income taxes
|
|
1,168
|
841
|
|||||
Deferred
non-insurance
warranty revenue
|
|
3,779
|
3,402
|
|||||
Other liabilities
|
|
5,111
|
4,505
|
|||||
Total liabilities
|
|
60,313
|
56,930
|
|||||
Commitments and contingent liabilities
|
|
|
|
|||||
Shareholders’ equity:
|
|
|
|
|||||
Preferred stock, $0.10 par value:
|
|
|
|
|||||
Authorized – 100,000,000 shares
|
|
|
|
|||||
Common stock, $0.01 par value:
|
|
|
|
|||||
Authorized – 1,800,000,000 shares
|
|
|
|
|||||
Issued – 291,210,222 and 312,169,189 shares
|
|
3
|
3
|
|||||
Additional
paid-in
capital
|
|
3,374
|
3,627
|
|||||
Retained earnings
|
|
15,823
|
15,773
|
|||||
Accumulated other comprehensive loss
|
|
(68
|
) |
(880
|
) | |||
|
|
19,132
|
|
18,523
|
||||
Less treasury stock, at cost (240,000 and 100,000 shares)
|
|
(13
|
) |
(5
|
) | |||
Total shareholders’ equity
|
|
19,119
|
18,518
|
|||||
Noncontrolling interests
|
|
2,811
|
|
2,868
|
||||
Total equity
|
|
21,930
|
|
21,386
|
||||
Total liabilities and equity
|
$
|
82,243
|
|
$ |
78,316
|
|||
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions, except per share data)
|
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|||
Insurance premiums
|
$
|
7,428
|
|
$ |
7,312
|
$ |
6,988
|
|||||
Net investment income
|
|
2,355
|
|
1,817
|
2,182
|
|||||||
Investment gains (losses):
|
|
|
|
|
|
|||||||
Other-than-temporary impairment losses
|
|
(44
|
) |
(21
|
) |
(14
|
) | |||||
Other net investment gains (losses)
|
|
93
|
|
(36
|
) |
136
|
||||||
Total investment gains (losses)
|
|
49
|
|
(57
|
) |
122
|
||||||
Non-insurance
warranty revenue
|
|
1,161
|
|
1,007
|
390
|
|||||||
Operating revenues and other
|
|
3,938
|
|
3,987
|
4,053
|
|||||||
Total
|
|
14,931
|
|
14,066
|
13,735
|
|||||||
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
|
|||||||
Operating expenses and other
|
|
4,950
|
|
4,828
|
4,665
|
|||||||
Interest
|
|
591
|
|
574
|
646
|
|||||||
Total
|
|
13,812
|
|
13,232
|
12,153
|
|||||||
Income before income tax
|
|
1,119
|
|
834
|
1,582
|
|||||||
Income tax expense
|
|
(248
|
) |
(128
|
) |
(170
|
) | |||||
Net income
|
|
871
|
|
706
|
1,412
|
|||||||
Amounts attributable to noncontrolling interests
|
|
61
|
|
(70
|
) |
(248
|
) | |||||
Net income attributable to Loews Corporation
|
$
|
932
|
|
$ |
636
|
$ |
1,164
|
|||||
Basic net income per common share
|
$
|
3.08
|
|
$ |
1.99
|
$ |
3.46
|
|||||
Diluted net income per common share
|
$
|
3.07
|
|
$ |
1.99
|
$ |
3.45
|
|||||
Basic weighted average number of shares outstanding
|
|
302.70
|
|
319.06
|
336.61
|
|||||||
Diluted weighted average number of shares outstanding
|
|
303.35
|
|
319.93
|
337.50
|
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Net income
|
$
|
871
|
|
$ |
706
|
$ |
1,412
|
|||||
Other comprehensive income (loss), after tax
Changes in:
|
|
|
|
|
|
|||||||
Net unrealized losses on investments with other-than-temporary impairments
|
|
(1
|
) |
(14
|
) |
(5
|
) | |||||
Net other unrealized gains (losses) on investments
|
|
949
|
|
(798
|
) |
108
|
||||||
Total unrealized gains (losses) on investments
|
|
948
|
|
(812
|
) |
103
|
||||||
Unrealized gains (losses) on cash flow hedges
|
|
(11
|
) |
6
|
3
|
|||||||
Pension and postretirement benefits
|
|
(68
|
) |
(2
|
) |
12
|
||||||
Foreign currency translation
|
|
42
|
|
(84
|
) |
100
|
||||||
Other comprehensive income (loss)
|
|
911
|
|
(892
|
) |
218
|
||||||
Comprehensive income (loss)
|
|
1,782
|
|
(186
|
) |
1,630
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to noncontrolling interests
|
|
(38
|
) |
25
|
(269
|
) | ||||||
Total comprehensive income (loss) attributable to Loews Corporation
|
$
|
1,744
|
|
$ |
(161
|
) | $ |
1,361
|
||||
|
|
|
Loews Corporation Shareholders
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
Accumulated
|
Common
|
|
|||||||||||||||||||||
|
|
|
Additional
|
|
Other
|
Stock
|
|
|||||||||||||||||||||
|
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Held in
|
Noncontrolling
|
|||||||||||||||||||||
|
Total
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Treasury
|
Interests
|
|||||||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, January 1, 2017
|
$ |
23,361
|
$ |
3
|
$ |
3,187
|
$ |
15,196
|
$ |
(223
|
) | $ |
-
|
$ |
5,198
|
|||||||||||||
Net income
|
1,412
|
|
|
1,164
|
|
|
248
|
|||||||||||||||||||||
Other comprehensive income
|
218
|
|
|
|
197
|
|
21
|
|||||||||||||||||||||
Dividends paid ($0.25 per share)
|
(223
|
) |
|
|
(84
|
) |
|
|
(139
|
) | ||||||||||||||||||
Purchases of Loews treasury stock
|
(237
|
) |
|
|
|
|
(237
|
) |
|
|||||||||||||||||||
Retirement of treasury stock
|
1
|
|
(41
|
) |
(175
|
) |
|
217
|
|
|||||||||||||||||||
Stock-based compensation
|
35
|
|
2
|
|
|
|
33
|
|||||||||||||||||||||
Other
|
(1
|
) |
|
3
|
(5
|
) |
|
|
1
|
|||||||||||||||||||
Balance, December 31, 2017
|
$ |
24,566
|
$ |
3
|
$ |
3,151
|
$ |
16,096
|
$ |
(26
|
) | $ |
(20
|
) | $ |
5,362
|
||||||||||||
Cumulative effect adjustments from changes in accounting standards
|
(91
|
) |
|
|
(43
|
) |
(28
|
) |
|
(20
|
) | |||||||||||||||||
Balance, January 1, 2018, as adjusted
|
24,475
|
3
|
3,151
|
16,053
|
(54
|
) |
(20
|
) |
5,342
|
|||||||||||||||||||
Net income
|
706
|
|
|
636
|
|
|
70
|
|||||||||||||||||||||
Other comprehensive loss
|
(892
|
) |
|
|
|
(797
|
) |
|
(95
|
) | ||||||||||||||||||
Dividends paid ($0.25 per share)
|
(201
|
) |
|
|
(80
|
) |
|
|
(121
|
) | ||||||||||||||||||
Purchase of Boardwalk Pipelines common units
|
(1,718
|
) |
|
658
|
|
(29
|
) |
|
(2,347
|
) | ||||||||||||||||||
Purchases of Loews treasury stock
|
(1,011
|
) |
|
|
|
|
(1,011
|
) |
|
|||||||||||||||||||
Retirement of treasury stock
|
-
|
|
(195
|
) |
(831
|
) |
|
1,026
|
|
|||||||||||||||||||
Stock-based compensation
|
31
|
|
19
|
|
|
|
12
|
|||||||||||||||||||||
Other
|
(4
|
) |
|
(6
|
) |
(5
|
) |
|
|
7
|
||||||||||||||||||
Balance, December 31, 2018
|
$ |
21,386
|
$ |
3
|
$ |
3,627
|
$ |
15,773
|
$ |
(880
|
) | $ |
(5
|
) | $ |
2,868
|
||||||||||||
|
|
|
Loews Corporation Shareholders
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Accumulated
|
|
Common
|
|
|
|
||||||||||||||
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
Stock
|
|
|
|
||||||||||||||
|
|
|
Common
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
Held in
|
|
Noncontrolling
|
|
||||||||||||||
|
Total
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Income (Loss)
|
|
Treasury
|
|
Interests
|
|
||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, December 31, 2018
|
$
|
21,386
|
|
$
|
3
|
|
$
|
3,627
|
|
$
|
15,773
|
|
$
|
(880
|
)
|
$
|
(5
|
)
|
$
|
2,868
|
|
|||||||
Net income
|
|
|
871
|
|
|
|
|
|
|
|
|
|
|
|
932
|
|
|
|
|
|
|
|
|
|
|
|
(61
|
)
|
Other comprehensive income
|
|
911
|
|
|
|
|
|
|
|
|
|
|
812
|
|
|
|
|
|
99
|
|
||||||||
Dividends paid ($0.25 per share)
|
|
(174
|
)
|
|
|
|
|
|
|
|
(76
|
)
|
|
|
|
|
|
|
|
(98
|
) | |||||||
Purchase of subsidiary stock from noncontrolling interests
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23
|
)
|
||||||
Purchases of Loews treasury stock
|
|
(1,059
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,059
|
)
|
|
|
|
|||||||
Retirement of treasury stock
|
|
-
|
|
|
|
|
|
(248
|
)
|
|
(803
|
)
|
|
|
|
|
1,051
|
|
|
|
|
|||||||
Stock-based compensation
|
|
27
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
23
|
|
|||||||
Other
|
|
(9
|
)
|
|
|
|
|
(9
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
3
|
|
|||||||
Balance, December 31, 2019
|
$
|
21,930
|
|
$
|
3
|
|
$
|
3,374
|
|
$
|
15,823
|
|
$
|
(68
|
)
|
$
|
(13
|
)
|
$
|
2,811
|
|
|||||||
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
871
|
$ |
706
|
$ |
1,412
|
||||||
Adjustments to reconcile net income to net cash provided (used) by operating activities:
|
|
|
|
|
|
|||||||
Investment (gains) losses
|
|
(49
|
) |
57
|
(122)
|
|||||||
Equity method investees
|
|
20
|
572
|
25
|
||||||||
Amortization of investments
|
|
(89
|
) |
(70
|
) |
(40)
|
||||||
Depreciation and amortization
|
|
943
|
912
|
874
|
||||||||
Asset impairments
|
|
99
|
44
|
106
|
||||||||
Provision for deferred income taxes
|
|
70
|
86
|
(47)
|
||||||||
Other
non-cash
items
|
|
87
|
72
|
164
|
||||||||
Changes in operating assets and liabilities, net:
|
|
|
|
|
||||||||
Receivables
|
|
114
|
(131
|
) |
93
|
|||||||
Deferred acquisition costs
|
|
(26
|
) |
(6
|
) |
(24)
|
||||||
Insurance reserves
|
|
358
|
482
|
22
|
||||||||
Other assets
|
|
(356
|
) |
(102
|
) |
(95)
|
||||||
Other liabilities
|
|
193
|
(102
|
) |
114
|
|||||||
Trading securities
|
|
(494
|
) |
1,702
|
108
|
|||||||
Net cash flow provided by operating activities
|
|
1,741
|
4,222
|
2,590
|
||||||||
Investing Activities:
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of fixed maturities
|
|
(8,661
|
) |
(10,785
|
) |
(9,065)
|
||||||
Proceeds from sales of fixed maturities
|
|
5,842
|
8,408
|
5,438
|
||||||||
Proceeds from maturities of fixed maturities
|
|
2,997
|
2,370
|
3,641
|
||||||||
Purchases of limited partnership investments
|
|
(198
|
) |
(420
|
) |
(171)
|
||||||
Proceeds from sales of limited partnership investments
|
|
742
|
470
|
212
|
||||||||
Purchases of property, plant and equipment
|
|
(1,041
|
) |
(995
|
) |
(1,031)
|
||||||
Acquisitions
|
|
(257
|
) |
(37
|
) |
(1,218)
|
||||||
Dispositions
|
|
140
|
113
|
79
|
||||||||
Change in short term investments
|
|
(57
|
) |
(339
|
) |
(167)
|
||||||
Other, net
|
|
(178
|
) |
(229
|
) |
(373)
|
||||||
Net cash flow used by investing activities
|
|
(671
|
) |
(1,444
|
) |
(2,655)
|
||||||
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|||
Dividends paid
|
$
|
(76
|
)
|
$ |
(80
|
) | $ |
(84)
|
||||
Dividends paid to noncontrolling interests
|
|
(98
|
)
|
(121
|
) |
(139)
|
||||||
Purchase of Boardwalk Pipeline common units
|
|
|
|
(1,504
|
) |
|
||||||
Purchases of Loews treasury stock
|
|
(1,051
|
)
|
(1,026
|
) |
(216)
|
||||||
Purchases of subsidiary stock from noncontrolling interests
|
|
(23
|
)
|
|
|
|||||||
Principal payments on debt
|
|
(1,956
|
)
|
(1,043
|
) |
(2,411)
|
||||||
Issuance of debt
|
|
2,076
|
|
865
|
3,067
|
|||||||
Other, net
|
|
(16
|
)
|
74
|
(16)
|
|||||||
|
||||||||||||
Net cash flow (used) provided by financing activities
|
|
(1,144
|
)
|
(2,835
|
) |
201
|
||||||
|
||||||||||||
Effect of foreign exchange rate on cash
|
|
5
|
|
(10
|
) |
9
|
||||||
|
||||||||||||
Net change in cash
|
|
(69
|
)
|
(67
|
) |
145
|
||||||
Cash, beginning of year
|
|
405
|
|
472
|
327
|
|||||||
Cash, end of year
|
$
|
336
|
|
$ |
405
|
$ |
472
|
|||||
Year Ended December 31
|
2019
|
|
2018
|
|||||
(In millions)
|
|
|
|
|
||||
Total assets
|
$ 2,261
|
|
$ 1,924
|
|||||
Total liabilities
|
|
1,727
|
|
1,451
|
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
Revenues
|
$ 804
|
|
$ 731
|
$ 731
|
||||||||
Net income
|
|
106
|
|
114
|
261
|
|
|
Years
|
|
|
Pipeline equipment
|
|
|
30 to 50
|
|
Offshore drilling equipment
|
|
|
15 to 30
|
|
Other
|
|
|
3 to 40
|
|
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Fixed maturity securities
|
$
|
1,817
|
|
$ |
1,795
|
$ |
1,812
|
|||||
Limited partnership investments
|
|
204
|
|
22
|
277
|
|||||||
Short term investments
|
|
52
|
|
43
|
18
|
|||||||
Equity securities
|
|
85
|
|
18
|
12
|
|||||||
Income (loss) from trading portfolio (a)
|
|
216
|
|
(54
|
) |
87
|
||||||
Other
|
|
56
|
|
54
|
35
|
|||||||
Total investment income
|
|
2,430
|
|
1,878
|
2,241
|
|||||||
Investment expenses
|
|
(75
|
) |
(61
|
) |
(59
|
) | |||||
Net investment income
|
$
|
2,355
|
|
$ |
1,817
|
$ |
2,182
|
|||||
(a)
|
Net unrealized gains (losses) related to changes in fair value on securities still held were $41, $(121) and $39 for the years ended December 31, 2019, 2018 and 2017.
|
(a) |
Gross
investment
gains on
available-for-sale
securities were $125, $168 and $187 for the years ended December 31, 2019, 2018 and 2017. Gross
investment
losses on
available-for-sale
securities were
$
131, $164 and $65 for the years ended December 31, 2019, 2018 and 2017. Net
investment g
of $66 were recognized due to the change in fair value of non-redeemable preferred stock still held for the year ended December 31, 2019.
ains
Net investment losses
of $73
were recognized due to the change in fair value of non-redeemable preferred stock still held for the year ended December 31, 2018.
|
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Fixed maturity securities
|
$
|
2,620
|
|
$ |
(1,811
|
) | $ |
728
|
||||
Equity securities (a)
|
|
|
|
|
32
|
|||||||
Other
|
|
|
|
|
(2
|
) | ||||||
Total net change in unrealized gains (losses) on investments
|
$
|
2,620
|
|
$ |
(1,811
|
) | $ |
758
|
||||
(a)
|
Due to the adoption of ASU
2016-01
on January 1, 2018, the change in fair value of equity securities is now recognized through the income statement. See Note 1 for further discussion on the standard.
|
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
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
|
|||||||
Net OTTI losses recognized in earnings
|
$
|
44
|
|
$ |
21
|
$ |
14
|
|||||
December 31, 2019
|
Cost
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Loss
es
|
|
Estimated
Fair Value
|
|
Unrealized
OTTI
(Gains)
|
|||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
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
|
|
$
|
)
|
|||||||||
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-
|
146
|
|
1
|
|
2
|
|
|
145
|
|
|
||||||||||
Foreign government
|
491
|
|
14
|
|
1
|
|
|
504
|
|
|
||||||||||
Redeemable preferred stock
|
10
|
|
|
|
|
|
|
10
|
|
|
||||||||||
Fixed maturities
available-for-sale
|
38,106
|
|
4,126
|
|
45
|
|
|
42,187
|
|
(19)
|
||||||||||
Fixed maturities trading
|
51
|
|
2
|
|
|
|
|
53
|
|
|
||||||||||
Total fixed maturities
|
$
|
38,157
|
|
$
|
4,128
|
|
$
|
45
|
|
$
|
42,240
|
|
$
(19
)
|
|||||||
December 31, 2018
|
|
Cost or
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Losses
|
|
|
Estimated
Fair Value
|
|
|
Unrealized
OTTI Losses
(Gains)
|
|
|||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed maturity securities:
|
|
|
|
|
|
|||||||||||||||
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
|
|
|||||||||||||||
Fixed maturities
available-for-sale
|
38,081
|
1,982
|
521
|
39,542
|
(20
|
) | ||||||||||||||
Fixed maturities trading
|
153
|
4
|
|
157
|
|
|||||||||||||||
Total fixed maturities
|
$
|
38,234 |
$
|
1,986 |
$
|
521 |
$
|
39,699 |
$
|
(20
|
) | |||||||||
|
Less than
12 Months
|
|
12 Months
or Longer
|
|
Total
|
|||||||||||||||||||
December 31, 2019
|
|
|
Estimated
Fair
V
alue
|
|
|
|
Gross Unrealized Losses
|
|
|
|
Estimated Fair Value
|
|
|
|
Gross Unrealized Losses
|
|
|
|
Estimated Fair Value
|
|
|
|
Gross Unrealized Losses
|
|
(In millions
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
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 fixed maturity securities
|
$
|
2,148
|
|
|
$
|
31
|
|
|
$
|
272
|
|
|
$
|
14
|
|
|
$
|
2,420
|
|
|
$
|
45
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
||||||||||||||||||
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 fixed maturity securities
|
$
|
12,689 |
$
|
404 |
$
|
2,614 |
$
|
117 |
$
|
15,303 |
$
|
521 | ||||||||||||
Year Ended December 31
|
2019
|
2018
|
2017
|
|||||||||
(In millions)
|
|
|
|
|
|
|||||||
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
|
||||||||||||||
Cost
Cost
|
|
Estimated
Fair Value
|
|
Cost
Cost
|
Estimated
Fair Value
|
|||||||||||
(In millions)
|
|
|
|
|
|
|
||||||||||
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
|
2018
|
||||||||||||||||||||||
|
Contractual/
|
|
|
|
|
|
Contractual/
|
|
|
|||||||||||||||
|
Notional
|
|
Estimated Fair Value
|
Notional
|
Estimated Fair Value
|
|||||||||||||||||||
Amount
|
|
Asset
|
|
(Liability)
|
|
Amount
|
Asset
|
(Liability)
|
||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With hedge designation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
715
|
|
|
|
$
|
(8
|
)
|
$
|
500 |
$
|
11 |
|
|||||||||||
Without hedge designation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Options – purchased
|
|
57
|
|
|
$
|
1
|
|
|
|
|
213
|
18
|
|
|||||||||||
– written
|
|
100
|
|
|
|
|
|
(1)
|
|
239
|
|
$
|
(17 |
)
|
||||||||||
Commodity futures – long
|
|
|
|
|
|
|
|
|
|
32
|
|
|
||||||||||||
Embedded derivative on funds withheld liability
|
|
182
|
|
|
|
|
|
(7)
|
172
|
4
|
|
• | Level 1 – Quoted prices for identical instruments in active markets. |
• | Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. |
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are not observable. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
(Losses)
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
|
|
|
Recognized in
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Losses)
|
|
|
Other
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in
|
|
|
Comprehensive
|
|
||||||||||||||
|
|
|
|
|
Net Realized Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
Income (Loss)
|
|
||||||||||||||
|
|
|
|
|
Gains (Losses) and Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) on Level
|
|
|
on Level 3
|
|
||||||||||||||
|
|
|
|
|
Change in Unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Assets and
|
|
|
Assets and
|
|
||||||||||||||
|
|
|
|
|
Investment Gains (Losses)
|
|
|
|
|
|
|
|
|
|
|
|
Transfers
|
|
|
Transfers
|
|
|
|
|
|
Liabilities
|
|
|
Liabilities
|
|
||||||||||||||
|
|
Balance,
|
|
|
Included in
|
|
|
Included in
|
|
|
|
|
|
|
|
|
|
|
|
into
|
|
|
out of
|
|
|
Balance,
|
|
|
Held at
|
|
|
Held at
|
|
|||||||||||
2019
|
|
January 1
|
|
|
Net Income
|
|
|
OCI
|
|
|
Purchases
|
|
|
Sales
|
|
|
Settlements
|
|
|
Level 3
|
|
|
Level 3
|
|
|
December 31
|
|
|
December 31
|
|
|
December 31
|
|
|||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds and other
|
|
$
|
222
|
|
|
|
|
|
|
$
|
33
|
|
|
$
|
256
|
|
|
|
|
|
|
$
|
(11)
|
|
|
|
|
|
$
|
(32)
|
|
$
|
468
|
|
|
|
|
|
|
$
|
28
|
|
||
Asset-backed
|
|
|
197
|
|
|
|
|
|
|
|
8
|
|
|
|
48
|
|
|
|
|
|
|
|
(16)
|
|
$
|
45
|
|
|
|
(117)
|
|
|
165
|
|
|
|
|
|
|
|
7
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Fixed maturities
available-for-sale
|
|
|
419
|
|
|
$
|
-
|
|
|
|
41
|
|
|
|
304
|
|
|
$
|
-
|
|
|
|
(27)
|
|
|
45
|
|
|
|
(149)
|
|
|
633
|
|
|
$
|
-
|
|
|
|
35
|
|
||
Fixed maturities trading
|
|
|
6
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
(2)
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total fixed maturities
|
|
$
|
425
|
|
|
$
|
(2)
|
|
$
|
41
|
|
|
$
|
304
|
|
|
$
|
-
|
|
|
$
|
(27)
|
|
$
|
45
|
|
|
$
|
(149)
|
|
$
|
637
|
|
|
$
|
(2)
|
|
$
|
35
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities
|
|
$
|
19
|
|
|
$
|
(2)
|
|
|
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19
|
|
|
$
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Gains
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Unrealized
|
(Losses)
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Gains
|
Recognized in
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(Losses)
|
Other
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Recognized in
|
Comprehensive
|
||||||||||||||||||||||||||||||||||
|
|
Net Realized Investment
|
|
|
|
|
|
|
Net Income
|
Income (Loss)
|
||||||||||||||||||||||||||||||||||
|
|
Gains (Losses) and Net
|
|
|
|
|
|
|
(Loss) on Level
|
on Level 3
|
||||||||||||||||||||||||||||||||||
|
|
Change in Unrealized
|
|
|
|
|
|
|
3 Assets and
|
Assets and
|
||||||||||||||||||||||||||||||||||
|
|
Investment Gains (Losses)
|
|
|
|
Transfers
|
Transfers
|
|
Liabilities
|
Liabilities
|
||||||||||||||||||||||||||||||||||
|
Balance,
|
Included in
|
Included in
|
|
|
|
into
|
out of
|
Balance,
|
Held at
|
Held at
|
|||||||||||||||||||||||||||||||||
2018
|
January 1
|
Net Income
|
OCI
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
Level 3
|
December 31
|
December 31
|
December 31
|
|||||||||||||||||||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds and other
|
|
$
|
98
|
|
|
$
|
(1)
|
|
$
|
(4)
|
|
$
|
117
|
|
|
$
|
(5)
|
|
$
|
(9)
|
|
$
|
35
|
|
|
$
|
(9)
|
|
$
|
222
|
|
|
|
|
|
|
$
|
(5
|
) | |||||
States, municipalities and political subdivisions
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Asset-backed
|
|
335
|
|
|
|
5
|
|
|
|
(8)
|
|
|
162
|
|
|
|
(72)
|
|
|
(64)
|
|
|
42
|
|
|
|
(203)
|
|
|
197
|
|
|
$
|
(2)
|
|
|
(4
|
) | ||||||
Fixed maturities
available-for-sale
|
|
|
434
|
|
|
|
4
|
|
|
|
(12)
|
|
|
279
|
|
|
|
(77)
|
|
|
(74)
|
|
|
77
|
|
|
|
(212)
|
|
|
419
|
|
|
|
(2)
|
|
|
(9
|
) | |||||
Fixed maturities trading
|
|
|
4
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
2
|
|
|
|
|
|
|
Total fixed maturities
|
|
$
|
438
|
|
|
$
|
7
|
|
|
$
|
(12)
|
|
$
|
279
|
|
|
$
|
(78)
|
|
$
|
(74
)
|
|
$
|
77
|
|
|
$
|
(212)
|
|
$
|
425
|
|
|
$
|
-
|
|
|
$
|
(9
|
) | ||||
Equity securities
|
|
$
|
22
|
|
|
$
|
(2)
|
|
|
|
|
|
|
|
|
|
$
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19
|
|
|
$
|
(2)
|
|
|
|
|
Major Category of Assets and Liabilities
|
Consolidated Statements of Income Line Items
|
|
|
|
|
Fixed maturity securities
available-for-sale
|
Investment gains (losses)
|
|
Fixed maturity securities trading
|
Net investment income
|
|
Equity securities
|
Investment gains (losses) and Net investment income
|
|
Other invested assets
|
Investment gains (losses) and Net investment income
|
|
Derivative financial instruments held in a trading portfolio
|
Net investment income
|
|
Derivative financial instruments, other
|
Investment gains (losses) and Operating revenues and other
|
|
|
|
|
|
|
|
Range
|
|
||||||||
|
Estimated
|
|
Valuation
|
|
Unobservable
|
|
(Weighted
|
|
||||||||
December 31, 2019
|
Fair Value
|
|
Techniques
|
|
Inputs
|
|
Average)
|
|
||||||||
|
(In millions)
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
525
|
|
Discounted
cash
|
|
|
Credit
|
|
|
1
%
)
|
|||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
228
|
Discounted
cash
|
Credit spread
|
1% – 12% (3%
)
|
|
Carrying
|
|
Estimated Fair Value
|
|||||||||||||||||
December 31, 2019
|
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other invested assets, primarily mortgage loans
|
$
|
994
|
|
|
|
|
|
|
|
$
|
1,025
|
|
$
|
1,025
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Short term debt
|
|
75
|
|
|
|
|
$
|
9
|
|
|
66
|
|
|
75
|
|
|||||
Long term debt
|
|
11,443
|
|
|
|
|
|
10,884
|
|
|
626
|
|
|
11,510
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|||||||||||||||
Other invested assets, primarily mortgage loans
|
$ |
839
|
|
|
$ |
827
|
$ |
827
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|||||||||||||||
Short term debt
|
15
|
|
$ |
14
|
|
14
|
||||||||||||||
Long term debt
|
11,345
|
|
10,111
|
653
|
10,764
|
December 31
|
2019
|
|
2018
|
|||||
(In millions)
|
|
|
|
|
||||
Pipeline equipment (net of accumulated depreciation of $3,075 and $2,761)
|
$
|
8,229
|
|
$ |
|
|||
Offshore drilling equipment (net of accumulated depreciation of $2,885 and $3,067)
|
|
5,119
|
|
5,144
|
||||
Other (net of accumulated depreciation of $1,114 and $1,056
)
|
|
1,625
|
|
1,812
|
||||
Construction in process
|
|
595
|
|
317
|
||||
Property, plant and equipment
|
$
|
15,568
|
|
$ |
|
|||
Year Ended December 31
|
2019
|
2018
|
2017
|
|||||||||||||||||||||
|
Depre-
|
|
Capital
|
|
Depre-
|
Capital
|
Depre-
|
Capital
|
||||||||||||||||
|
ciation
|
|
Expend.
|
|
ciation
|
Expend.
|
ciation
|
Expend.
|
||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CNA Financial
|
$
|
64
|
|
$
|
26
|
|
$ |
76
|
$ |
99
|
$ |
80
|
$ |
101
|
||||||||||
Diamond Offshore
|
|
356
|
|
|
345
|
|
332
|
222
|
349
|
113
|
||||||||||||||
Boardwalk Pipelines
|
|
348
|
|
|
418
|
|
346
|
487
|
325
|
689
|
||||||||||||||
Loews Hotels & Co
|
|
60
|
|
|
216
|
|
67
|
139
|
63
|
57
|
||||||||||||||
Corporate
|
|
70
|
|
|
53
|
|
59
|
48
|
37
|
30
|
||||||||||||||
Total
|
$
|
898
|
|
$
|
1,058
|
|
$ |
880
|
$ |
995
|
$ |
854
|
$ |
990
|
||||||||||
|
CNA
|
Boardwalk
|
|
|
||||||||||||
|
Financial
|
Pipelines
|
Corporate
|
Total
|
||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|||||||||
Balance, December 31, 2017
|
$ |
112
|
$ |
237
|
$ |
310
|
$ |
659
|
||||||||
Acquisition
|
|
|
8
|
8
|
||||||||||||
Other adjustments
|
(2
|
) |
|
|
(2)
|
|||||||||||
Balance, December 31, 2018
|
110
|
237
|
318
|
665
|
||||||||||||
Acquisition
s
|
|
|
|
|
|
|
|
100
|
|
100
|
|
|||||
Other adjustments
|
|
2
|
|
|
|
|
|
|
|
2
|
|
|||||
Balance, December 31, 2019
|
$
|
112
|
|
$
|
237
|
|
$
|
418
|
$
|
767
|
|
|||||
December 31
|
2019
|
|||
(In millions)
|
|
|
||
|
|
|
|
|
Net liability for unpaid claim and claim adjustment expenses:
|
|
|||
Property & Casualty Operations
|
$
|
14,153
|
||
Other Insurance Operations (a)
|
|
3,732
|
||
|
|
|||
Total net claim and claim adjustment expenses
|
|
17,885
|
||
Reinsurance receivables: (b)
|
|
|
||
Property & Casualty Operations
|
|
1,617
|
||
Other Insurance Operations (c)
|
|
2,218
|
||
|
|
|||
Total reinsurance receivables
|
|
3,835
|
||
|
|
|||
Total gross liability for unpaid claims and claims adjustment expenses
|
$
|
21,720
|
||
(a)
|
Other Insurance Operations amounts are primarily related to long term care claim reserves, which are long duration insurance contracts, but also include amounts related to unfunded structured settlements arising from short duration insurance contracts.
|
(b)
|
Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses.
|
(c)
|
The Other Insurance Operations reinsurance receivables are primarily related to A&EP claims covered under the loss portfolio transfer
(
“
LPT
”
)
|
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
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
|
|||||||
Decrease
in provision for insured events of prior years
|
|
(127
|
) |
(179
|
) |
(381
|
) | |||||
Amortization of discount
|
|
184
|
|
176
|
179
|
|||||||
Total net incurred (a)
|
|
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
|
|||||
(a) | Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Statements of Income 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
|
|
●
|
Incurred development
|
|
●
|
Loss ratio
|
|
●
|
Bornhuetter-Ferguson using premiums and paid loss
|
|
●
|
Bornhuetter-Ferguson using premiums and incurred loss
|
|
●
|
Frequency times severity
|
|
●
|
Stochastic modeling
|
|
Property
|
|
Other
|
|
|
|
||||||
|
and Casualty
|
|
Insurance
|
|
|
|
||||||
December 31, 2019
|
Operations
|
|
Operations
|
|
Total
|
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
Gross Case Reserves
|
$
|
6,276
|
|
$
|
4,713
|
|
$
|
10,989
|
|
|||
Gross IBNR Reserves
|
|
9,494
|
|
|
1,237
|
|
|
10,731
|
|
|||
Total Gross Carried Claim and Claim Adjustment Expense Reserves
|
$
|
15,770
|
|
$
|
5,950
|
|
$
|
21,720
|
|
|||
Net Case Reserves
|
$
|
5,645
|
|
$
|
3,533
|
|
$
|
9,178
|
|
|||
Net IBNR Reserves
|
|
8,508
|
|
|
199
|
|
|
8,707
|
|
|||
Total Net Carried Claim and Claim Adjustment Expense Reserves
|
$
|
14,153
|
|
$
|
3,732
|
|
$
|
17,885
|
|
|||
December 31, 2018
|
|
|
|
|
|
|
||||||
Gross Case Reserves
|
$ |
6,671
|
$ |
4,724
|
$ |
11,395
|
||||||
Gross IBNR Reserves
|
9,287
|
1,302
|
10,589
|
|||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves
|
$ |
15,958
|
$ |
6,026
|
$ |
21,984
|
||||||
Net Case Reserves
|
$ |
6,063
|
$ |
3,460
|
$ |
9,523
|
||||||
Net IBNR Reserves
|
8,290
|
152
|
8,442
|
|||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves
|
$ |
14,353
|
$ |
3,612
|
$ |
17,965
|
||||||
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Medical professional liability
|
$
|
75
|
|
$ |
47
|
$ |
30
|
|||||
Other professional liability and management liability
|
|
(69)
|
(127)
|
(126)
|
||||||||
Surety
|
|
(92)
|
(70)
|
(84)
|
||||||||
Commercial auto
|
|
(25)
|
1
|
(35)
|
||||||||
General liability
|
|
54
|
32
|
(24)
|
||||||||
Workers’ compensation
|
|
(13)
|
(32)
|
(63)
|
||||||||
Other
|
|
(3)
|
(32)
|
(6)
|
||||||||
Total pretax favorable development
|
$
|
(73)
|
$ |
(181)
|
$ |
(308)
|
||||||
December 31
|
2019
|
|
||
(In millions)
|
|
|
||
Medical professional liability
|
$
|
1,429
|
|
|
Other professional liability and management liability
|
|
2,739
|
|
|
Surety
|
|
369
|
|
|
Commercial auto
|
|
404
|
|
|
General liability
|
|
3,176
|
|
|
Workers’ compensation
|
|
3,932
|
|
|
Other
|
|
2,104
|
|
|
Total net liability for unpaid claim and claim adjustment expenses
|
$
|
14,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|
|
|
Cumulative
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
||||||||||||
December 31
|
|
2010 (a)
|
|
|
2011 (a)
|
|
|
2012 (a)
|
|
|
2013 (a)
|
|
|
2014 (a)
|
|
|
2015 (a)
|
|
|
2016 (a)
|
|
|
2017 (a)
|
|
|
2018 (a)
|
|
|
2019
|
|
|
IBNR
|
|
|
Claims
|
|
||||||||||||
(In millions, except reported claims data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Strengthening (Releases) of Prior Accident Year Reserves
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31
|
|
|
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
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|
|
|
Cumulative
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
||||||||||||
December 31
|
|
2010 (a)
|
|
|
2011 (a)
|
|
|
2012 (a)
|
|
|
2013 (a)
|
|
|
2014 (a)
|
|
|
2015 (a)
|
|
|
2016 (a)
|
|
|
2017 (a)
|
|
|
2018 (a)
|
|
|
2019
|
|
|
IBNR
|
|
|
Claims
|
|
||||||||||||
(In millions, except reported claims data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Data presented for these calendar years is required supplemental information, which is unaudited.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|
|
|
Cumulative
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
||||||||||||
December 31
|
|
2010 (a)
|
|
|
2011 (a)
|
|
|
2012 (a)
|
|
|
2013 (a)
|
|
|
2014 (a)
|
|
|
2015 (a)
|
|
|
2016 (a)
|
|
|
2017 (a)
|
|
|
2018 (a)
|
|
|
2019
|
|
|
IBNR
|
|
|
Claims
|
|
||||||||||||
(In millions, except reported claims data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
December 31
|
|
|
|
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
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Data presented for these calendar years is required supplemental information, which is unaudited.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|
|
|
Cumulative
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
||||||||||||
December 31
|
|
2010 (a)
|
|
|
2011 (a)
|
|
|
2012 (a)
|
|
|
2013 (a)
|
|
|
2014 (a)
|
|
|
2015 (a)
|
|
|
2016 (a)
|
|
|
2017 (a)
|
|
|
2018 (a)
|
|
|
2019
|
|
|
IBNR
|
|
|
Claims
|
|
||||||||||||
(In millions, except reported claims data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Data presented for these calendar years is required supplemental information, which is unaudited.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|
|
|
Cumulative
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
||||||||||||
December 31
|
|
2010 (a)
|
|
|
2011 (a)
|
|
|
2012 (a)
|
|
|
2013 (a)
|
|
|
2014 (a)
|
|
|
2015 (a)
|
|
|
2016 (a)
|
|
|
2017 (a)
|
|
|
2018 (a)
|
|
|
2019
|
|
|
IBNR
|
|
|
Claims
|
|
||||||||||||
(In millions, except reported claims data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Data presented for these calendar years is required supplemental information, which is unaudited.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
|
|
|
|
Cumulative
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
||||||||||||
December 31
|
|
2010 (a)
|
|
|
2011 (a)
|
|
|
2012 (a)
|
|
|
2013 (a)
|
|
|
2014 (a)
|
|
|
2015 (a)
|
|
|
2016 (a)
|
|
|
2017 (a)
|
|
|
2018 (a)
|
|
|
2019
|
|
|
IBNR
|
|
|
Claims
|
|
||||||||||||
(In millions, except reported claims data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 (b)
|
|
|
(22
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented
|
|
|
25
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net liability for unpaid claim and claim adjustment expenses
|
|
$
|
3,932
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
December 31
|
|
|
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
|
)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Data presented for these calendar years is required supplemental information, which is unaudited.
|
(b)
|
Other includes the effect of discounting lifetime claim reserves.
|
(a) | Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables. |
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
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
|
) | ||||
As of December 31, 2019
|
Operating
Leases |
|
||
(In millions)
|
|
|
||
|
|
|
|
|
2020
|
$
|
114
|
|
|
2021
|
|
113
|
|
|
2022
|
|
102
|
|
|
2023
|
|
89
|
|
|
2024
|
|
81
|
|
|
Thereafter
|
|
361
|
|
|
Total
|
|
860
|
|
|
Less: discount
|
|
166
|
|
|
Total lease liabilities
|
$
|
694
|
|
|
As of December 31, 2019
|
|
|
||
Weighted average remaining lease term
|
|
9.4
|
Y
ears
|
|
Weighted average discount rate
|
|
4.7
|
%
|
|
|
Future Minimum Lease
|
|
|||||
Year Ended December 31
|
|
Payments
|
|
|
Receipts
|
|
||
(In millions)
|
|
|
|
|
|
|
||
2019
|
|
$
|
75
|
|
|
$
|
6
|
|
2020
|
|
|
79
|
|
|
|
5
|
|
2021
|
|
|
79
|
|
|
|
5
|
|
2022
|
|
|
68
|
|
|
|
4
|
|
2023
|
|
|
57
|
|
|
|
4
|
|
Thereafter
|
|
|
344
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
702
|
|
|
$
|
38
|
|
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Income tax expense (benefit):
|
|
|
|
|||||||||
Federal:
|
|
|
|
|||||||||
Current
|
$
|
108
|
|
$ |
6
|
$ |
157
|
|||||
Deferred
|
|
47
|
|
85
|
(63
|
) | ||||||
State and city:
|
|
|
|
|
|
|||||||
Current
|
|
18
|
|
15
|
22
|
|||||||
Deferred
|
|
22
|
|
9
|
17
|
|||||||
Foreign
|
|
53
|
|
13
|
37
|
|||||||
|
||||||||||||
Total
|
$
|
248
|
|
$ |
128
|
$ |
170
|
|||||
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Income
(
before income tax:
loss
)
|
|
|
|
|||||||||
U.S.
|
$
|
1,145
|
|
$ |
775
|
$ |
1,322
|
|||||
Foreign
|
|
(26
|
)
|
59
|
260
|
|||||||
|
|
|||||||||||
Total
|
$
|
1,119
|
|
$ |
834
|
$ |
1,582
|
|||||
|
|
|||||||||||
Income tax expense at statutory rate
|
$
|
235
|
|
$ |
175
|
$ |
554
|
|||||
Increase (decrease) in income tax expense resulting from:
|
|
|
|
|
||||||||
Effect of the Tax Act
|
|
(14
|
)
|
(6
|
) |
(190
|
) | |||||
Exempt investment income
|
|
(50
|
)
|
(64
|
) |
(134
|
) | |||||
Foreign related tax differential
|
|
(55
|
)
|
1
|
(36
|
) | ||||||
Taxes related to domestic affiliate
|
|
(15
|
)
|
(7
|
) |
1
|
||||||
Partnership earnings not subject to taxes
|
|
|
|
(14
|
) |
(51
|
) | |||||
Valuation allowance
|
|
12
|
|
12
|
7
|
|||||||
Unrecognized tax positions, settlements and adjustments relating to prior years
|
|
97
|
|
2
|
(8
|
) | ||||||
State taxes
|
|
37
|
|
20
|
23
|
|||||||
Other
|
|
1
|
|
9
|
4
|
|||||||
|
||||||||||||
Income tax expense
|
$
|
248
|
|
$ |
128
|
$ |
170
|
|||||
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Balance at January 1
|
$
|
58
|
|
$ |
84
|
$ |
35
|
|||||
Additions for tax positions related to the current year
|
|
86
|
|
3
|
51
|
|||||||
Additions for tax positions related to a prior year
|
|
2
|
|
20
|
5
|
|||||||
Reductions for tax positions related to a prior year
|
|
(23
|
)
|
(48
|
) |
(1
|
) | |||||
Lapse of statute of limitations
|
|
(2
|
)
|
(1
|
) |
(6
|
) | |||||
|
|
|||||||||||
Balance at December 31
|
$
|
121
|
|
$ |
58
|
$ |
84
|
|||||
(a) |
Includes $
37
of deferred tax assets reflected in Other assets in the Consolidated Balance Sheets at December 31, 2019 and 2018.
|
December 31
|
2019
|
|
2018
|
|||||
(In millions)
|
|
|
|
|
||||
Loews Corporation (Parent Company):
|
|
|
|
|
|
|
||
Senior:
|
|
|
||||||
2.6% notes due 2023 (effective interest rate of 2.8%) (authorized, $
500
)
|
$
|
500
|
|
$ |
500
|
|||
3.8% notes due 2026 (effective interest rate of 3.9%) (authorized, $
500
)
|
|
500
|
|
500
|
||||
6.0% notes due 2035 (effective interest rate of 6.2%) (authorized, $
300
)
|
|
300
|
|
300
|
||||
4.1% notes due 2043 (effective interest rate of 4.3%) (authorized, $
500
)
|
|
500
|
|
500
|
||||
CNA Financial:
|
|
|
|
|
|
|
||
Senior:
|
|
|
||||||
5.9% notes due 2020 (effective interest rate of 6.0%) (authorized, $
500
)
|
|
|
|
500
|
||||
5.8% notes due 2021 (effective interest rate of 5.9%) (authorized, $
400
)
|
|
400
|
|
400
|
||||
7.3% debentures due 2023 (effective interest rate of 7.3%) (authorized, $
250
)
|
|
243
|
|
243
|
||||
4.0% notes due 2024 (effective interest rate of 4.0%) (authorized, $
550
)
|
|
550
|
|
550
|
||||
4.5% notes due 2026 (effective interest rate of 4.5%) (authorized, $
500
)
|
|
500
|
|
500
|
||||
3.5% notes due 2027 (effective interest rate of 3.5%) (authorized, $
500
)
|
|
500
|
|
500
|
||||
3.9% notes due 2029 (effective interest rate of 3.9%) (authorized, $
500
)
|
|
500
|
|
|
||||
F
inance
|
|
1
|
||||||
Diamond Offshore:
|
|
|
|
|
|
|
||
Senior:
|
|
|
||||||
3.5% notes due 2023 (effective interest rate of 3.5%) (authorized, $
250
)
|
|
250
|
|
250
|
||||
7.9% notes due 2025 (effective interest rate of 8.0%) (authorized, $
500
)
|
|
500
|
|
500
|
||||
5.7% notes due 2039 (effective interest rate of 5.8%) (authorized, $
500
)
|
|
500
|
|
500
|
||||
4.9% notes due 2043 (effective interest rate of 4.9%) (authorized, $
750
)
|
|
750
|
|
750
|
||||
Boardwalk Pipelines:
|
|
|
|
|
|
|
||
Senior:
|
|
|
||||||
Variable rate revolving credit facility due 2022 (effective interest rate of 3.0% and 3.7%)
|
|
295
|
|
580
|
||||
5.8% notes due 2019 (effective interest rate of 5.9%) (authorized, $
350
)
|
|
|
|
350
|
||||
4.5% notes due 2021 (effective interest rate of 5.0%) (authorized, $
440
)
|
|
440
|
|
440
|
||||
4.0% notes due 2022 (effective interest rate of 4.4%) (authorized, $
300
)
|
|
300
|
|
300
|
||||
3.4% notes due 2023 (effective interest rate of 3.5%) (authorized, $
300
)
|
|
300
|
|
300
|
||||
5.0% notes due 2024 (effective interest rate of 5.2%) (authorized, $
600
)
|
|
600
|
|
600
|
||||
6.0% notes due 2026 (effective interest rate of 6.2%) (authorized, $
550
)
|
|
550
|
|
550
|
||||
4.5% notes due 2027 (effective interest rate of 4.6%) (authorized, $
500
)
|
|
500
|
|
500
|
||||
7.3% debentures due 2027 (effective interest rate of 8.1%) (authorized, $
100
)
|
|
100
|
|
100
|
||||
4.8% notes due 2029 (effective interest rate of 4.9%) (authorized, $
500
)
|
|
500
|
|
|
||||
Finance
lease obligation
|
7
|
8
|
||||||
Loews Hotels & Co:
|
|
|
|
|
|
|
||
Senior debt, principally mortgages (effective interest rates approximate 4.7%
and 4.4%
)
|
|
712
|
|
653
|
||||
Altium Packaging
:
|
|
|
|
|
|
|
||
Senior:
|
|
|
|
|
||||
Variable rate asset based lending facility due 2022 (effective interest rate of 5.5%)
|
|
|
|
9
|
||||
Variable rate term loan due 2024 (effective interest rate of 4.9% and 5.0%)
|
|
591
|
|
597
|
||||
Variable rate term loan due 2026 (effective interest rate of 5.3%)
|
|
249
|
|
|
||||
Finance
lease obligation
|
|
6
|
|
7
|
||||
|
|
11,643
|
|
11,488
|
||||
Less unamortized discount and issuance costs
|
|
110
|
|
112
|
||||
Debt
|
$
|
11,533
|
|
$ |
11,376
|
|||
December 31, 2019
|
Principal
|
|
Unamortized
Discount and Issuance Costs |
|
Net
|
|
Short Term
Debt |
|
Long Term
Debt |
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loews Corporation
|
$
|
1,800
|
|
$
|
21
|
|
$
|
1,779
|
|
|
|
|
$
|
1,779
|
|
|||||
CNA Financial
|
|
2,693
|
|
|
14
|
|
|
2,679
|
|
|
|
|
|
2,679
|
|
|||||
Diamond Offshore
|
|
2,000
|
|
|
24
|
|
|
1,976
|
|
|
|
|
|
1,976
|
|
|||||
Boardwalk Pipelines
|
|
3,592
|
|
|
26
|
|
|
3,566
|
|
|
|
|
3,566
|
|
||||||
Loews Hotels & Co
|
|
712
|
|
|
7
|
|
|
705
|
|
$
|
67
|
|
|
638
|
|
|||||
Altium Packaging
|
|
846
|
|
|
18
|
|
|
828
|
|
|
10
|
|
|
818
|
|
|||||
Total
|
$
|
11,643
|
|
$
|
110
|
|
$
|
11,533
|
|
$
|
77
|
|
$
|
11,456
|
|
|||||
|
Net Unrealized
Gains (Losses)
on Investments
with OTTI
Losses
|
Net Other
Unrealized
Gains (Losses)
on Investments
|
Unrealized
Gains (Losses) on Cash Flow Hedges |
Pension and
Postretirement Benefits |
Foreign
Currency Translation |
Total
Accumulated Other Comprehensive Income (Loss) |
||||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, January 1, 2017
|
$
|
27
|
$
|
576
|
$
|
(2
|
) |
$
|
(646
|
) |
$
|
(178
|
) |
$
|
(223
|
) | ||||||||
Other comprehensive income (loss) before reclassifications, after tax of $1, $(106), $(2), $4 and $0
|
(3
|
) |
190
|
1
|
(18
|
) |
100
|
270
|
||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $1, $38, $0, $(16) and $0
|
(2
|
) |
(82
|
) |
2
|
30
|
|
(52
|
) | |||||||||||||||
Other comprehensive income (loss)
|
(5
|
) |
108
|
3
|
12
|
100
|
218
|
|||||||||||||||||
Amounts attributable to noncontrolling interests
|
|
(11
|
) |
(1
|
) |
1
|
(10
|
) |
(21
|
) | ||||||||||||||
Balance, December 31, 2017
|
22
|
673
|
–
|
(633
|
) |
(88
|
) |
(26
|
) | |||||||||||||||
Cumulative effect adjustment
from changes in accounting standards
, after tax of $0, $8, $0, $0 and $0
|
4
|
98
|
|
(130
|
)
|
|
(28
|
) | ||||||||||||||||
Balance, January 1, 2018, as adjusted
|
26
|
771
|
–
|
(763
|
) |
(88
|
) |
(54
|
) | |||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $2, $213, $(2), $9 and $0
|
(7
|
) |
(801
|
) |
4
|
(34
|
) |
(84
|
) |
(922
|
) | |||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $2, $(2), $0, $(6) and $0
|
(7
|
) |
3
|
2
|
32
|
|
30
|
|||||||||||||||||
Other comprehensive income (loss)
|
(14
|
) |
(798
|
) |
6
|
(2
|
) |
(84
|
) |
(892
|
) | |||||||||||||
Amounts attributable to noncontrolling interests
|
2
|
84
|
|
|
9
|
95
|
||||||||||||||||||
Purchase of Boardwalk Pipelines common units
|
|
|
(1
|
) |
(28
|
) |
|
(29
|
) | |||||||||||||||
Balance, December 31, 2018
|
14
|
57
|
5
|
(793
|
) |
(163
|
) |
(880
|
) | |||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $3, $(256), $5, $28 and $0
|
|
(13
|
)
|
|
957
|
|
|
(11
|
)
|
|
(102
|
)
|
|
42
|
|
|
873
|
|
||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $(3), $1, $0, $(9) and $0
|
|
12
|
|
|
(8
|
)
|
|
|
|
|
34
|
|
|
|
|
|
38
|
|
||||||
Other comprehensive income (loss)
|
|
(1
|
)
|
|
949
|
|
|
(11
|
)
|
|
(68
|
)
|
|
42
|
|
|
911
|
|
||||||
Amounts attributable to noncontrolling interests
|
|
|
|
|
(101
|
)
|
|
|
|
|
6
|
|
|
(4
|
)
|
|
(99
|
)
|
||||||
Balance, December 31, 2019
|
$
|
13
|
|
$
|
905
|
|
$
|
(6
|
)
|
$
|
(855
|
)
|
$
|
(125
|
)
|
$
|
(68
|
)
|
||||||
Major Category of AOCI
|
|
Affected Line Item
|
Net unrealized gains (losses) on investments with OTTI losses
|
|
Investment gains (losses)
|
Net other unrealized gains (losses) on investments
|
|
Investment gains (losses)
|
Unrealized gains (losses) on cash flow hedges
|
|
Operating revenues and other, Interest expense and
Operating expenses and other
|
Pension and postretirement benefits
|
|
Operating expenses and other
|
Year Ended December 31
|
2019
|
|
2018
|
2017 (a)
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Non-insurance
warranty – CNA Financial
|
$
|
1,161
|
|
$ |
1,007
|
$ |
390
|
|||||
Contract drilling – Diamond Offshore
|
$
|
981
|
|
$ |
1,083
|
$ |
1,486
|
|||||
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines
|
|
1,266
|
|
1,206
|
1,298
|
|||||||
Lodging and related services – Loews Hotels & Co
|
|
691
|
|
730
|
682
|
|||||||
Rigid plastic packaging and recycled resin – Corporate
|
|
932
|
|
867
|
498
|
|||||||
Total revenues from contracts with customers
|
|
3,870
|
|
3,886
|
3,964
|
|||||||
Other revenues
|
|
68
|
|
101
|
89
|
|||||||
Operating revenues and other
|
$
|
3,938
|
|
$ |
3,987
|
$ |
4,053
|
|||||
(a) |
Prior period amounts have not been adjusted under the modified retrospective method of adoption for ASU
2014-09.
|
|
Statutory Capital and Surplus
|
Statutory Net Income
|
||||||||||||||||||
|
December 31
|
Year Ended December 31
|
||||||||||||||||||
|
2019(a)
|
|
2018
|
2019(a)
|
|
2018
|
2017
|
|||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Combined Continental Casualty Companies
|
$
|
10,787
|
|
$ |
10,411
|
$
|
1,062
|
|
$ |
1,405
|
$ |
1,029
|
(a) | Information derived from the statutory-basis financial statements to be filed with insurance regulators. |
|
Pension Benefits
|
Other Postretirement Benefits
|
||||||||||||||||||||||
December 31
|
2019
|
|
2018
|
2017
|
2019
|
|
2018
|
2017
|
||||||||||||||||
Discount rate
|
|
3.0
|
%
|
4.1
|
% |
3.5
|
% |
|
3.0
|
%
|
4.1
|
% |
3.4
|
% | ||||||||||
Expected long term rate of return on plan assets
|
|
7.5
|
%
|
7.5
|
% |
7.5
|
% |
|
3.6
|
%
|
5.3
|
% |
5.3
|
% | ||||||||||
Interest crediting rate
|
|
3.7
|
%
|
3.8
|
% |
3.7
|
% |
|
|
|
|
|
||||||||||||
Rate of compensation increase
|
|
3.0% to 5.5
|
%
|
3.9% to 5.5
|
% |
3.9% to 5.5
|
% |
|
|
|
|
|
December 31
|
2019
|
|
2018
|
2017
|
||||||||
Health care cost trend rate assumed for next year
|
|
4.0% to 8.0%
|
4.0% to 6.5
|
% |
4.0% to 7.0
|
% | ||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
|
4.0% to 5.0%
|
|
4.0% to 5.0
|
% |
4.0% to 5.0
|
% | |||||
Year that the rate reaches the ultimate trend rate
|
|
2021-2026
|
|
2019-2022
|
2018-2022
|
|
Pension Benefits
|
Other Postretirement Benefits
|
||||||||||||||
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
||||||
(In millions)
|
|
|
|
|
|
|
|
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit obligation at January 1
|
$
|
2,919
|
|
$ |
3,242
|
$
|
53
|
|
$ |
62
|
||||||
Acquisitions
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
7
|
|
8
|
|
|
|
1
|
||||||||
Interest cost
|
|
117
|
|
110
|
|
2
|
|
2
|
||||||||
Plan participants’ contributions
|
|
|
|
|
|
4
|
|
4
|
||||||||
Amendments
|
|
1
|
|
|
|
|
|
|
||||||||
Actuarial (gain) loss
|
|
299
|
|
(212
|
) |
|
3
|
|
(6
|
) | ||||||
Benefits paid from plan assets
|
|
(191
|
)
|
(187
|
) |
|
(10
|
)
|
(10
|
) | ||||||
Settlements and curtailments
|
|
(19
|
)
|
(35
|
) |
|
|
|
|
|||||||
Foreign exchange
|
|
4
|
|
(7
|
) |
|
|
|
|
|||||||
Benefit obligation at December 31
|
|
3,137
|
|
2,919
|
|
52
|
|
53
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fair value of plan assets at January 1
|
|
2,304
|
|
2,577
|
|
85
|
|
88
|
||||||||
Acquisitions
|
|
|
|
|
|
|
|
|
||||||||
Actual return on plan assets
|
|
328
|
|
(83
|
) |
|
8
|
|
|
|||||||
Company contributions
|
|
146
|
|
39
|
|
3
|
|
3
|
||||||||
Plan participants’ contributions
|
|
|
|
|
|
4
|
|
4
|
||||||||
Benefits paid from plan assets
|
|
(191
|
)
|
(187
|
) |
|
(10
|
)
|
(10
|
) | ||||||
Settlements
|
|
(15
|
)
|
(35
|
) |
|
|
|
|
|||||||
Foreign exchange
|
|
4
|
|
(7
|
) |
|
|
|
|
|||||||
|
||||||||||||||||
Fair value of plan assets at December 31
|
|
2,576
|
|
2,304
|
|
90
|
|
85
|
||||||||
|
||||||||||||||||
Funded status
|
$
|
(561
|
)
|
$ |
(615
|
) |
$
|
38
|
|
$ |
32
|
|||||
Amounts recognized in Accumulated other comprehensive income (loss), not yet recognized in net periodic (benefit) cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Prior service credit
|
|
|
$ |
(2
|
)
|
$
|
(1
|
)
|
$ |
(1
|
)
|
|||||
Net actuarial loss
|
$
|
1,144
|
|
1,065
|
|
(4
|
)
|
(3
|
)
|
|||||||
Net amount recognized
|
$
|
1,144
|
|
$ |
1,063
|
$
|
(5
|
)
|
$ |
(4
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected future benefit payments
|
Pension
Benefits |
|
Other
Postretirement Benefits |
|
||||
(In millions)
|
|
|
|
|
||||
2020
|
$ |
234
|
$ |
5
|
||||
2021
|
211
|
5
|
||||||
2022
|
215
|
4
|
||||||
2023
|
217
|
4
|
||||||
2024
|
212
|
3
|
||||||
2025 – 2029
|
1,001
|
14
|
December 31, 2019
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
|||||||||||
(In millions)
|
|
|
|
|
|
|||||||||||
Plan assets at fair value:
|
|
|
|
|
|
|
|
|
|
|||||||
Fixed maturity securities:
|
|
|
|
|
||||||||||||
Corporate and other bonds
|
|
|
$
|
587
|
$
|
10
|
$
|
597
|
|
|||||||
States, municipalities and political subdivisions
|
|
|
|
51
|
|
|
|
51
|
|
|||||||
Asset-backed
|
|
|
|
154
|
|
|
|
154
|
|
|||||||
|
||||||||||||||||
Total fixed maturities
|
$
|
–
|
|
792
|
|
10
|
|
802
|
|
|||||||
Equity securities
|
|
541
|
|
128
|
|
|
|
669
|
|
|||||||
Short term investments
|
|
74
|
|
7
|
|
|
|
81
|
|
|||||||
Fixed income mutual funds
|
|
128
|
|
|
|
|
|
128
|
|
|||||||
Other assets
|
|
11
|
|
9
|
|
|
|
20
|
|
|||||||
|
|
|
||||||||||||||
Total plan assets at fair value
|
$
|
754
|
$
|
936
|
$
|
10
|
$
|
1,700
|
|
|||||||
|
|
|||||||||||||||
Plan assets at net asset value: (a)
|
|
|
|
|
|
|
|
|
|
|||||||
Limited partnerships
|
|
|
|
|
|
|
|
876
|
|
|||||||
|
|
|||||||||||||||
Total plan assets
|
$
|
754
|
$
|
936
|
$
|
10
|
$
|
2,576
|
|
|||||||
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Plan assets at fair value:
|
|
|
|
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
||||||||||||
Corporate and other bonds
|
|
$ |
472
|
$ |
10
|
$ |
482
|
|||||||||
States, municipalities and political subdivisions
|
|
58
|
|
58
|
||||||||||||
Asset-backed
|
|
165
|
|
165
|
||||||||||||
Total fixed maturities
|
$ |
–
|
695
|
10
|
705
|
|||||||||||
Equity securities
|
406
|
110
|
|
516
|
||||||||||||
Short term investments
|
36
|
54
|
|
90
|
||||||||||||
Fixed income mutual funds
|
120
|
|
|
120
|
||||||||||||
Other assets
|
|
9
|
|
9
|
||||||||||||
Total plan assets at fair value
|
$ |
562
|
$ |
868
|
$ |
10
|
$ |
1,440
|
||||||||
Plan assets at net asset value: (a)
|
|
|
|
|
||||||||||||
Limited partnerships
|
|
|
|
864
|
||||||||||||
Total plan assets
|
$ |
562
|
$ |
868
|
$ |
10
|
$ |
2,304
|
||||||||
(a) | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
December 31, 2019
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate and other bonds
|
|
|
|
$
|
22
|
|
|
|
|
$
|
22
|
|
||||
States, municipalities and political subdivisions
|
|
|
|
|
16
|
|
|
|
|
|
16
|
|
||||
Asset-backed
|
|
|
|
|
31
|
|
|
|
|
|
31
|
|
||||
Total fixed maturities
|
$
|
-
|
|
|
69
|
|
$
|
-
|
|
|
69
|
|
||||
Short term investments
|
|
3
|
|
|
|
|
|
|
|
|
3
|
|
||||
Fixed income mutual funds
|
|
18
|
|
|
|
|
|
|
|
|
18
|
|
||||
Total
|
$
|
21
|
|
$
|
69
|
|
$
|
-
|
|
$
|
90
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
||||||||||||
Corporate and other bonds
|
|
$ |
24
|
|
$ |
24
|
||||||||||
States, municipalities and political subdivisions
|
|
11
|
|
11
|
||||||||||||
Asset-backed
|
|
30
|
|
30
|
||||||||||||
Total fixed maturities
|
$ |
-
|
65
|
$ |
-
|
65
|
||||||||||
Short term investments
|
4
|
|
|
4
|
||||||||||||
Fixed income mutual funds
|
16
|
|
|
16
|
||||||||||||
Total
|
$ |
20
|
$ |
65
|
$ |
-
|
$ |
85
|
||||||||
December 31
|
2019
|
|
2018
|
|||||
(In millions)
|
|
|
|
|
||||
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
|
||||
Less allowance for doubtful accounts
|
|
25
|
|
29
|
||||
Reinsurance receivables, net of allowance for doubtful accounts
|
$
|
4,179
|
|
$ |
4,426
|
|||
|
Direct
|
|
Assumed
|
|
Ceded
|
|
Net
|
|
Assumed/
Net % |
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property and casualty
|
$
|
11,021
|
|
$
|
288
|
|
$
|
4,401
|
|
$
|
6,908
|
|
|
4.2
|
%
|
|||||
Long term care
|
|
470
|
|
|
50
|
|
|
|
|
|
520
|
|
|
9.6
|
||||||
Earned premiums
|
$
|
11,491
|
|
$
|
338
|
|
$
|
4,401
|
|
$
|
7,428
|
|
|
4.6
|
%
|
|||||
Year Ended December 31, 2018
|
|
|
|
|
|
|||||||||||||||
Property and casualty
|
$ |
10,857
|
$ |
305
|
$ |
4,380
|
$ |
6,782
|
4.5
|
% | ||||||||||
Long term care
|
480
|
50
|
|
530
|
9.4
|
|||||||||||||||
Earned premiums
|
$ |
11,337
|
$ |
355
|
$ |
4,380
|
$ |
7,312
|
4.9
|
% | ||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|||||||||||||||
Property and casualty
|
$ |
10,447
|
$ |
317
|
$ |
4,315
|
$ |
6,449
|
4.9
|
% | ||||||||||
Long term care
|
489
|
50
|
|
539
|
9.3
|
|||||||||||||||
Earned premiums
|
$ |
10,936
|
$ |
367
|
$ |
4,315
|
$ |
6,988
|
5.3
|
% | ||||||||||
2019 Quarter Ended
|
Dec. 31
|
|
Sept. 30
|
|
June 30
|
|
March 31
|
|
||||||||
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
3,876
|
|
$
|
3,675
|
|
$
|
3,623
|
|
$
|
3,757
|
|
||||
Net income (a) (b)
|
|
217
|
|
|
72
|
|
|
249
|
|
|
394
|
|
||||
Per share-basic and diluted
|
|
0.73
|
|
|
0.24
|
|
|
0.82
|
|
|
1.27
|
|
2018 Quarter Ended
|
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$ |
3,287
|
$ |
3,608
|
$ |
3,590
|
$ |
3,581
|
||||||||
Net income (loss) (
c
)
|
(165
|
) |
278
|
230
|
293
|
|||||||||||
Per share-basic and diluted
|
(0.53
|
) |
0.88
|
0.72
|
0.89
|
(a)
|
Net income for the
fourth
quarter of 2019 include
s
net i
$116 million (after tax and noncontrolling interests) related to
n
vestment income of
limited partnership
of
s
and equity securities partially offset
by asset
impairment charges
$69
million (after tax).
|
(b)
|
Net income for the third quarter of 2019 included a $151 million (after tax and noncontrolling interests) charge related to the recognition of an active life reserve premium deficiency as a result of the third quarter GPV.
|
(
c
)
|
Net loss for the fourth quarter of 2018 includes a loss on limited partnership and common stock investments of $97 million (after tax and noncontrolling interests), catastrophe losses of $96 million (after tax and noncontrolling interests) and net investment losses of $57 million (after tax). |
Year Ended December 31, 2019
|
CNA
Financial |
|
Diamond
Offshore |
|
Boardwalk
Pipelines |
|
Loews
Hotels & Co |
|
Corporate
|
|
Total
|
|
||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Insurance premiums
|
$
|
7,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,428
|
|
||||||
Net investment income
|
|
2,118
|
|
$
|
6
|
|
|
|
|
$
|
1
|
|
$
|
230
|
|
|
2,355
|
|
||||||
Investment
gains
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
||||||
Non-insurance
warranty revenue
|
|
1,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,161
|
|
||||||
Operating revenues and other
|
|
32
|
|
|
982
|
|
$
|
1,300
|
|
|
691
|
|
|
933
|
|
|
3,938
|
|
||||||
Total
|
|
10,788
|
|
|
988
|
|
|
1,300
|
|
|
692
|
|
|
1,163
|
|
|
14,931
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Insurance claims and policyholders’ benefits
|
|
5,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,806
|
|
||||||
Amortization of deferred acquisition costs
|
|
1,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,383
|
|
||||||
Non-insurance
warranty expense
|
|
1,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,082
|
|
||||||
Operating expenses and other
|
|
1,141
|
|
|
1,267
|
|
|
840
|
|
|
698
|
|
|
1,004
|
|
|
4,950
|
|
||||||
Interest
|
|
152
|
|
|
123
|
|
|
179
|
|
|
22
|
|
|
115
|
|
|
591
|
|
||||||
Total
|
|
9,564
|
|
|
1,390
|
|
|
1,019
|
|
|
720
|
|
|
1,119
|
|
|
13,812
|
|
||||||
Income (loss) before income tax
|
|
1,224
|
|
|
(402
|
)
|
|
281
|
|
|
(28
|
)
|
|
44
|
|
|
1,119
|
|
||||||
Income tax (expense) benefit
|
|
(224
|
)
|
|
60
|
|
|
(72
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
(248
|
)
|
||||||
Net income (loss)
|
|
1,000
|
|
|
(342
|
)
|
|
209
|
|
|
(31
|
)
|
|
35
|
|
|
871
|
|
||||||
Amounts attributable to noncontrolling interests
|
|
(106
|
)
|
|
167
|
|
|
|
|
|
|
|
|
|
|
|
61
|
|
||||||
Net income (loss) attributable to Loews Corporation
|
$
|
894
|
|
$
|
(175
|
)
|
$
|
209
|
|
$
|
(31
|
)
|
$
|
35
|
|
$
|
932
|
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
60,583
|
|
$
|
5,834
|
|
$
|
9,248
|
|
$
|
1,728
|
|
$
|
4,850
|
|
$
|
82,243
|
|
Year Ended December 31, 2018
|
CNA
Financial |
Diamond
Offshore |
Boardwalk
Pipelines |
Loews
Hotels & Co |
Corporate
|
Total
|
||||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
||||||||||||||||||
Insurance premiums
|
$ |
7,312
|
|
|
|
|
$ |
7,312
|
||||||||||||||||
Net investment income (loss)
|
1,817
|
$ |
8
|
|
$ |
2
|
$ |
(10
|
) |
1,817
|
||||||||||||||
Investment losses
|
(57
|
) |
|
|
|
|
(57
|
) | ||||||||||||||||
Non-insurance
warranty revenue
|
1,007
|
|
|
|
|
1,007
|
||||||||||||||||||
Operating revenues and other
|
55
|
1,085
|
$ |
1,227
|
753
|
867
|
3,987
|
|||||||||||||||||
Total
|
10,134
|
1,093
|
1,227
|
755
|
857
|
14,066
|
||||||||||||||||||
Expenses:
|
|
|
|
|
|
|
||||||||||||||||||
Insurance claims and policyholders’ benefits
|
5,572
|
|
|
|
|
5,572
|
||||||||||||||||||
Amortization of deferred acquisition costs
|
1,335
|
|
|
|
|
1,335
|
||||||||||||||||||
Non-insurance
warranty expense
|
923
|
|
|
|
|
923
|
||||||||||||||||||
Operating expenses and other
|
1,203
|
1,196
|
820
|
653
|
956
|
4,828
|
||||||||||||||||||
Interest
|
138
|
123
|
176
|
29
|
108
|
574
|
||||||||||||||||||
Total
|
9,171
|
1,319
|
996
|
682
|
1,064
|
13,232
|
||||||||||||||||||
Income (loss) before income tax
|
963
|
(226
|
) |
231
|
73
|
(207
|
) |
834
|
||||||||||||||||
Income tax (expense) benefit
|
(151
|
) |
30
|
(28
|
) |
(25
|
) |
46
|
(128
|
) | ||||||||||||||
Net income (loss)
|
812
|
(196
|
) |
203
|
48
|
(161
|
) |
706
|
||||||||||||||||
Amounts attributable to noncontrolling interests
|
(86
|
) |
84
|
(68
|
) |
|
|
(70
|
) | |||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$ |
726
|
$ |
(112
|
) | $ |
135
|
$ |
48
|
$ |
(161
|
) | $ |
636
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
$ |
57,123
|
$ |
6,036
|
$ |
9,131
|
$ |
1,812
|
$ |
4,214
|
$ |
78,316
|
Year Ended December 31, 2017
|
CNA
Financial |
Diamond
Offshore |
Boardwalk
Pipelines |
Loews
Hotels & Co |
Corporate
|
Total
|
||||||||||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
||||||||||||||||||
Insurance premiums
|
$ |
6,988
|
|
|
|
|
$ |
6,988
|
||||||||||||||||
Net investment income
|
2,034
|
$ |
2
|
|
|
$ |
146
|
2,182
|
||||||||||||||||
Investment gains
|
122
|
|
|
|
|
122
|
||||||||||||||||||
Non-insurance
warranty revenue
|
390
|
|
|
|
|
390
|
||||||||||||||||||
Operating revenues and other
|
49
|
1,498
|
$ |
1,325
|
$ |
682
|
499
|
4,053
|
||||||||||||||||
Total
|
9,583
|
1,500
|
1,325
|
682
|
645
|
13,735
|
||||||||||||||||||
Expenses:
|
|
|
|
|
|
|
||||||||||||||||||
Insurance claims and policyholders’ benefits
|
5,310
|
|
|
|
|
5,310
|
||||||||||||||||||
Amortization of deferred acquisition costs
|
1,233
|
|
|
|
|
1,233
|
||||||||||||||||||
Non-insurance
warranty expense
|
299
|
|
|
|
|
299
|
||||||||||||||||||
Operating expenses and other
|
1,224
|
1,373
|
861
|
589
|
618
|
4,665
|
||||||||||||||||||
Interest
|
203
|
149
|
171
|
28
|
95
|
646
|
||||||||||||||||||
Total
|
8,269
|
1,522
|
1,032
|
617
|
713
|
12,153
|
||||||||||||||||||
Income (loss) before income tax
|
1,314
|
(22
|
) |
293
|
65
|
(68
|
) |
1,582
|
||||||||||||||||
Income tax (expense) benefit
|
(419
|
) |
4
|
232
|
(1
|
) |
14
|
(170
|
) | |||||||||||||||
Net income (loss)
|
895
|
(18
|
) |
525
|
64
|
(54
|
) |
1,412
|
||||||||||||||||
Amounts attributable to noncontrolling interests
|
(94
|
) |
(9
|
) |
(145
|
) |
|
|
(248
|
) | ||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$ |
801
|
$ |
(27
|
) | $ |
380
|
$ |
64
|
$ |
(54
|
) | $ |
1,164
|
||||||||||
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|
Item 9A.
|
Controls and Procedures.
|
Item 9B.
|
Other Information.
|
Item 10.
|
Directors, Executive Officers and Corporate Governance.
|
Item 15.
|
Exhibits and Financial Statement Schedules.
|
Page
Number |
|
|||
2. Financial Statement Schedules:
|
|
|||
Loews Corporation and Subsidiaries:
|
|
|||
170
|
||||
172
|
|
Description
|
Exhibit
Number |
|
|||
|
3. Exhibits:
|
|
||||
(3)
|
Articles of Incorporation and
By-Laws
|
|
||||
|
3.01
|
|||||
|
3.02
|
|||||
(4)
|
Instruments Defining the Rights of Security Holders, Including Indentures
|
|
||||
|
4.01*
|
|||||
|
Registrant hereby agrees to furnish to the Commission upon request copies of instruments with respect to long term debt, pursuant to Item 601(b)(4)(iii) of Regulation
S-K
|
4.02
|
||||
(10)
|
Material Contracts
|
|
||||
|
10.01
+
|
Description
|
Exhibit
Number |
|
||||
|
10.02
+
|
|||||
|
10.03
+
|
|||||
|
10.04
+
|
|||||
|
10.05
+
|
|||||
|
10.06
+
|
|||||
|
10.07
+
|
|||||
|
10.08*
|
+ | ||||
|
10.09
+
|
|||||
|
10.10
+
|
|||||
|
10.11
|
|
Description
|
Exhibit
Number |
|
|||
(21)
|
Subsidiaries of the Registrant
|
|
||||
|
21.01*
|
|||||
(23)
|
Consent of Experts and Counsel
|
|
||||
|
23.01*
|
|||||
(24)
|
24.01*
|
|||||
(31)
|
Rule
13a-14(a)/15d-14(a)
Certifications
|
|
||||
|
31.01*
|
|||||
|
31.02*
|
|||||
(32)
|
Section 1350 Certifications
|
|
||||
|
32.01*
|
|||||
|
32.02*
|
|||||
(100)
|
XBRL Related Documents
|
|
||||
|
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*
|
* | Filed herewith. |
+
|
Management contract or compensatory plan or arrangement. |
Item 16.
|
Form
10-K
Summary.
|
|
|
LOEWS CORPORATION
|
||||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(David B. Edelson, Senior Vice President and
Chief Financial Officer)
|
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(James S. Tisch, President,
|
|||
|
|
|
Chief Executive Officer and Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(David B. Edelson, Senior Vice President and
|
|||
|
|
|
Chief Financial Officer)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Mark S. Schwartz, Vice President and
|
|||
|
|
|
Chief Accounting Officer)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Ann E. Berman, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Joseph L. Bower, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
(Charles D. Davidson, Director)
|
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Charles M. Diker, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Paul J. Fribourg, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Walter L. Harris, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Philip A. Laskawy, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Susan P. Peters, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Andrew H. Tisch, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Jonathan M. Tisch, Director)
|
|||
Dated: February 11, 2020
|
|
By
|
*
|
|||
|
|
|
(Anthony Welters, Director)
|
*By:
|
/s/ Marc A. Alpert
|
|
|
(Marc A. Alpert, Senior Vice President, General
Counsel and Secretary) Attorney-in-Fact |
December 31
|
2019
|
|
2018
|
|||||
(In millions)
|
|
|
|
|
||||
Current assets, principally investment in short term instruments
|
$
|
2,550
|
|
$ |
2,050
|
|||
Investments in securities
|
|
734
|
|
1,112
|
||||
Investments in capital stocks of subsidiaries, at equity
|
|
18,123
|
|
17,556
|
||||
Other assets
|
|
24
|
|
402
|
||||
Total assets
|
$
|
21,431
|
|
$ |
21,120
|
|||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities
|
$
|
77
|
|
$ |
109
|
|||
Long term debt
|
|
1,779
|
|
1,778
|
||||
Deferred income tax and other
|
|
456
|
|
715
|
||||
Total liabilities
|
|
2,312
|
|
2,602
|
||||
Shareholders’ equity
|
|
19,119
|
|
18,518
|
||||
Total liabilities and shareholders’ equity
|
$
|
21,431
|
|
$ |
21,120
|
|||
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|||||||
Equity in income of subsidiaries (a)
|
|
$
|
867
|
|
|
$
|
819
|
|
|
$
|
1,199
|
|
Net investment income (loss), interest and other
|
|
239
|
|
(11
|
) |
167
|
||||||
Total
|
|
1,106
|
|
808
|
1,366
|
|||||||
Expenses:
|
|
|
|
|
|
|||||||
Administrative
|
|
83
|
|
127
|
134
|
|||||||
Interest
|
|
72
|
|
72
|
72
|
|||||||
Total
|
|
155
|
|
199
|
206
|
|||||||
Income before income tax
|
|
951
|
|
609
|
1,160
|
|||||||
Income tax (expense) benefit
|
|
(19
|
)
|
27
|
4
|
|||||||
Net income
|
|
932
|
|
636
|
1,164
|
|||||||
Equity in other comprehensive income (loss) of subsidiaries
|
|
812
|
|
(797
|
) |
197
|
||||||
Total comprehensive income (loss)
|
$
|
1,744
|
|
$ |
(161
|
) | $ |
1,361
|
||||
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
Operating Activities:
|
|
|
|
|
|
|||||||
Net income
|
$
|
932
|
|
$ |
636
|
$ |
1,164
|
|||||
Adjustments to reconcile net income to net cash provided (used) by operating activities:
|
|
|
|
|
|
|||||||
Equity method investees
|
|
36
|
|
401
|
(405
|
) | ||||||
Provision for deferred income taxes
|
|
106
|
|
113
|
77
|
|||||||
Changes in operating assets and liabilities, net:
|
|
|
|
|
|
|||||||
Receivables
|
|
1
|
|
3
|
4
|
|||||||
Accounts payable and accrued liabilities
|
|
(29
|
)
|
92
|
(20
|
) | ||||||
Trading securities
|
|
(478
|
)
|
1,702
|
100
|
|||||||
Other, net
|
|
36
|
|
19
|
(41
|
) | ||||||
|
|
604
|
|
2,966
|
879
|
|||||||
Investing Activities:
|
|
|
|
|
|
|||||||
Investments in and advances to subsidiaries
|
|
183
|
|
(135
|
) |
12
|
||||||
Change in investments, primarily short term
|
|
326
|
|
(187
|
) |
30
|
||||||
Purchase of Boardwalk Pipelines common units
|
|
|
|
(1,504
|
) |
|
||||||
Acquisition
|
|
|
|
|
(620
|
) | ||||||
Other
|
|
|
|
(2
|
) |
(1
|
) | |||||
|
|
509
|
|
(1,828
|
) |
(579
|
) | |||||
Financing Activities:
|
|
|
|
|
|
|||||||
Dividends paid
|
|
(76
|
)
|
(80
|
) |
(84
|
) | |||||
Purchases of treasury shares
|
|
(1,051
|
)
|
(1,026
|
) |
(216
|
) | |||||
Other
|
|
(5
|
)
|
(3
|
) |
|
||||||
|
||||||||||||
|
|
(1,132
|
)
|
(1,109
|
) |
(300
|
) | |||||
Net change in cash
|
|
(19
|
)
|
29
|
-
|
|||||||
Cash, beginning of year
|
|
29
|
|
|
|
|||||||
Cash, end of year
|
$
|
10
|
|
$ |
29
|
$ |
-
|
|||||
(a)
|
Cash dividends paid to the Company by affiliates amounted to $927, $878 and $804 for the years ended December 31, 2019, 2018 and 2017.
|
Consolidated Property and Casualty Operations
|
December 31
|
2019
|
|
2018
|
|||||
(In millions)
|
|
|
|
|
||||
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
|
Year Ended December 31
|
2019
|
|
2018
|
2017
|
||||||||
(In millions)
|
|
|
|
|
|
|
||||||
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
|
Exhibit 4.01
Description of the Registrants Securities
Registered Pursuant to Section 12 of the
Securities Exchange Act of 1934
Loews Corporation has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our Common Stock, par value $0.01 per share.
Description of Common Stock
The following description of certain rights of our common stock does not purport to be complete and is qualified in its entirety by reference to our certificate of incorporation and our by-laws and the applicable provisions of the Delaware General Corporation Law.
Voting Rights. Holders of our common stock are entitled to one vote for each share of common stock they hold on all matters voted on by shareholders, including elections of directors, and, except as otherwise required by law or provided in any resolution adopted by our board of directors with respect to any series of our preferred stock or any other class of our common stock hereafter created, the holders of our common stock possess all voting power of our capital stock.
Elections of directors are decided by a majority of the votes cast by holders of capital stock entitled to vote thereon in person or by proxy at a meeting, so long as a quorum is present, except that (i) contested elections of directors are decided by a plurality of votes cast by holders of shares of capital stock entitled to vote thereon, and (ii) newly created directorships resulting from an increase in the number of directors and vacancies occurring in the board of directors for any reason may be filled by vote of a majority of the directors then in office, although less than a quorum, at any meeting of the board of directors, or may be elected by a plurality of the votes cast by the holders of shares of capital stock entitled to vote in the election at a special meeting of the shareholders called for that purpose. Except as provided by the Delaware General Corporation Law, all other matters to be voted upon by shareholders are decided by a majority of the votes cast by holders of shares of our capital stock entitled to vote thereon in person or by proxy at a meeting, so long as a quorum is present.
Dividends and Liquidation Rights. Subject to any preferential rights of any outstanding series of preferred stock created by our board of directors hereafter, the holders of common stock are entitled to such dividends as may be declared from time to time by our board of directors from funds available therefor, and, upon liquidation, holders of our common stock will share ratably in the funds remaining for distribution to our common shareholders.
Miscellaneous. The outstanding shares of common stock are fully paid and nonassessable. The common stock has no preemptive or conversion rights and there are no redemption or sinking fund provisions applicable thereto.
The common stock is listed for trading on the New York Stock Exchange under the ticker symbol L.
The transfer agent and registrar for the common stock is Computershare, P.O. Box 50500, Louisville, KY 40233-5000 (telephone: (800) 358-9151).
1
Exhibit 10.08
LOEWS CORPORATION DEFERRED INVESTMENT PLAN
(Effective as of January 1, 2020)
1. |
PURPOSE |
The purpose of the Loews Corporation Deferred Investment Plan (the Plan) is to provide select management employees and highly compensated employees, and non-employee directors, of Loews Corporation (the Corporation) and certain members of the Controlled Group (hereinafter, with the Corporation, collectively referred to as the Company), an opportunity, in accordance with the terms and conditions set forth herein, to defer, on a non-qualified basis, compensation that would otherwise be payable currently, and to receive certain additional deferred compensation funded by the Company. The Plan shall be effective as of January 1, 2020 (the Effective Date), and shall take the place of the Loews Corporation Executive Deferred Compensation Plan, which shall be frozen as of the Effective Date, and the Loews Corporation Deferred Compensation Plan, which has previously been frozen (collectively the Prior Plans).
2. |
ADMINISTRATION |
The Plan shall be administered by the Loews Corporation Benefits Committee, or such other person or group as may be designated by the Board of Directors (the Board) of the Corporation (the Committee). The Committee shall be the administrator of the Plan as defined in Section 3(16)(A) of ERISA and shall have the sole and complete authority to interpret the terms and provisions of the Plan, to adopt, alter or repeal such rules, regulations or practices governing the operation of the Plan and make all other determinations as it shall from time to time deem necessary, advisable or appropriate. The decisions, actions, determinations and records of the Committee shall be conclusive and binding upon the Company and all persons having or claiming to have any right or interest in or under the Plan. Where the Committee is given the discretion to determine any matter, the Committees discretion shall be sole and absolute, need not be exercised in a consistent or uniform manner, and, to the maximum extent permitted by law, shall not be subject to review by any court or tribunal. The senior human resources officer of the Corporation, or persons acting under his/her authority, shall have the authority to administer the Plan and to exercise the authority of the Committee in administrative, ministerial, and technical matters, except as the Committee may otherwise determine.
3. |
ELIGIBILITY |
Except as otherwise provided by the Committee, the following persons shall be eligible to participate in the Plan:
(a) |
Any person employed by the Corporation whose total Compensation received in any Plan Year (treating 2019 as a Plan Year for this purpose) exceeds, or will exceed, the limit on compensation set forth in Section 401(a)(17) of the Code (the Section 401(a)(17) Limit) shall be eligible to participate in the Plan for the immediately following Plan Year. |
(b) |
Any Employee who is hired by the Corporation at a Base Salary that will equal or exceed the Section 401(a)(17) Limit on an annual basis, or who was not previously eligible to participate but is promoted to a position with a Base Salary that will equal or exceed the Section 401(a)(17) Limit on an annual basis, shall be eligible to participate in the Plan as of the effective date of hire or promotion, provided that if the Employee has ever been eligible to participate in the Plan, a Prior Plan, or any individual account deferred compensation plan maintained by the Company or any member of the Controlled Group, either the Participant received a complete distribution of his/her account balance in such other plan prior to the date that he/she becomes eligible to participate (and following such distribution was not eligible to participate in such plan), or has not been eligible to participate in such |
other plan (other than by accrual of earnings, if any) for at least twenty-four (24) months. Such an Employee (regardless of whether he/she has previously participated in such plan) shall also be eligible to participate for the next succeeding Plan Year, but for all subsequent Plan Years his eligibility shall be determined by Section 3(a). |
(c) |
Any Employee who was eligible to participate in a Prior Plan, and who actually deferred a portion of his/her compensation in such Prior Plan in 2019, shall continue to be eligible to participate in the Plan for so long as he/she would have continued to satisfy the eligibility requirements of such Prior Plan, unless otherwise determined by the Committee. |
(d) |
Each member of the Board who is not an Employee of the Corporation (an Outside Director) shall be eligible to defer his/her Director Fees under the Plan, commencing with the date on which he/she becomes an Outside Director. |
(e) |
The Committee may, in its discretion, authorize Employees of members of the Controlled Group other than the Corporation to participate in the Plan, and a Participant who is transferred to a different member of the Controlled Group shall continue to be a Participant with respect to amounts credited to his/her Account prior to the transfer, but no person employed by any member of the Controlled Group other than the Corporation shall be eligible to continue to defer Compensation, or be allocated Employer Contributions, unless a written resolution of the Committee provides for such participation. |
The Committee shall have the discretion to determine which Employees shall be eligible to participate in the Plan, and the Committee may determine either that an Employee not described in paragraph (a), (b) or (c) is eligible to participate, or that an Employee who is described in any of such paragraphs is not eligible. Any Employee who is determined to be eligible to participate in the Plan shall be hereinafter referred to as a Participant for so long as he/she retains an Account in the Plan, regardless of whether he/she is continuing to be credited with deferred compensation.
4. |
ELECTION TO DEFER |
A Participant may elect to defer receipt of a portion of his/her Compensation in accordance with rules and procedures specified by the Committee, and subject to the following provisions.
(a) |
Except as otherwise provided herein, a Participants election to defer Compensation shall be made before the beginning of the Plan Year in which such Compensation begins to be earned. An Employees deferral election for a Plan Year shall apply to (i) Base Salary earned during such Plan Year, and (ii) any Bonus earned during such Plan Year even if paid in a subsequent Plan Year. An Outside Directors deferral election shall apply to Director Fees earned during the Plan Year. |
(b) |
An Employee who first becomes eligible to participate in the Plan during a Plan Year pursuant to Section 3(b) may elect to defer his/her Compensation earned in the remainder of the Plan Year within thirty (30) days after first becoming eligible, provided such deferral election applies only to Compensation earned after the election is made, and if the deferral election applies to a Bonus, only to the portion of the Bonus earned after the election, determined by pro-rating the performance period. |
(c) |
An Outside Director who first becomes eligible to participate in the Plan during a Plan Year pursuant to Section 3(d) may elect to defer his/her Director Fees earned |
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in the remainder of the Plan Year within thirty (30) days after first becoming eligible, provided such deferral election applies only to Director Fees earned after the election is made. |
(d) |
The Committee shall establish rules and procedures for deferral elections, which shall specify the maximum percentage of each payment of Compensation that may be deferred. Unless otherwise determined by the Committee, the maximum percentage of each payment of Base Salary that may be deferred shall be seventy-five percent (75%), and the maximum percentage of each Bonus or payment of Director Fees that may be deferred shall be one hundred percent (100%), minus, if applicable, the portion that must be withheld for payment of Federal Insurance Contribution Act (FICA) and other applicable taxes. |
(e) |
All elections made by a Participant pursuant to a Prior Plan to defer Compensation payable on or after January 1, 2020, shall be treated as elections to defer the same amount of Compensation pursuant to this Plan. |
(f) |
Except as otherwise provided in Section 9(g) with respect to Unforeseeable Emergencies, all deferral elections shall be irrevocable after the applicable deadline for making such election has passed. A Participants Termination of Employment, or failure to meet the requirements for participation in the Plan, during a Plan Year shall not affect deferral elections for such Plan Year that have become irrevocable. |
(g) |
The portion of any payment of Compensation that a Participant elects to defer shall be withheld from his/her Compensation and credited to his/her Account as soon as practical after the date on which the deferred amount would otherwise have been paid. |
5. |
EMPLOYER CONTRIBUTIONS. |
(a) |
Each Participant (other than Outside Directors) shall have an amount (an Employer Contribution) credited to his/her Account for each Plan Year equal to five percent (5%) of the excess, if any, of the Participants Compensation actually paid during the Plan Year over the Section 401(a)(17) Limit in effect for the Plan Year. The Employer Contribution shall be credited to each Participants Account as soon as practical after the end of the Plan Year. If a Participants employment is terminated during the Plan Year (other than for Cause), or if the Participant is transferred during the Plan Year to a position in which he/she is no longer eligible to participate, the Employer Contribution shall be calculated on the basis of his/her Compensation through the date of termination or transfer and credited as soon as practical after the date of termination or transfer. Notwithstanding the foregoing, if a Participants employment is terminated for Cause, the Participant shall not be entitled to any Employer Contribution for such Plan Year, and any Employer Contribution previously credited to his/her Account for such Plan Year shall be cancelled. In addition, any Employer Contributions credited in prior Plan Years may be forfeited in whole or part as provided in Section 8(c). The Committee may, in its discretion, change the percentage used to calculate the Employer Contribution for any Plan Year (including eliminating Employer Contributions for such Plan Year entirely). |
(b) |
The Company may, in its discretion, credit additional Employer Contributions to the Accounts of Participants. Such Employer Contributions may be made either by resolution of the Committee, in such amounts and based on such criteria as it may determine in its discretion (and need not be made to all Participants, or on a uniform basis), or may be made pursuant to a written agreement with a Participant to credit Employer Contributions to the Participants Account. The Committee resolution, or agreement, may also provide for the time at which such Employer |
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Contributions will be credited, the extent to which they be vested, and the time and form of payment, which provisions may differ from those otherwise applicable to Employer Contributions under the Plan. In no event shall any Participant have any right to receive additional Employer Contributions based on oral representations of any person, or otherwise unless the right to such Employer Contributions is contained in a Committee resolution or written agreement. |
6. |
ESTABLISHMENT OF DEFERRED COMPENSATION ACCOUNT |
At the time of the Participants initial election to defer pursuant to Section 4, or if earlier the time that an Employer Contribution is first credited to the Participant pursuant to Section 5, the Company shall establish a memorandum account (an Account) for each Participant on its books. Each Account shall be divided into (i) an Elective Deferral Account, to reflect the amount of Compensation that the Participant elects to defer pursuant to Section 4 and the earnings, if any, attributable thereto, and (ii) an Employer Contribution Account, to reflect the Employer Contributions credited to the Participants Account pursuant to Section 5 and the earnings, if any, attributable thereto, and may be further divided into subaccounts in order to properly reflect different distribution elections made for amounts deferred in different Plan Years, or for such other administrative purposes as the Committee determines to be appropriate.
7. |
EARNINGS |
The balance in a Participants Account shall be deemed invested in such investments as the Participant may select from time to time, in accordance with such procedures as may be established by the Committee. The Committee shall from time to time designate the investment funds to which the Participants may direct the deemed investment of their Account balances. Each Participants Account shall be credited or debited with an amount equal to the income, gain and losses that would have been realized in an account that was actually invested in the deemed investments selected by the Participant from the date the amounts are credited to the Participants Account until the date such amounts are distributed or forfeited. The Committee shall have the authority to change the permissible investment funds at any time, to specify the investment fund or funds in which a Participants Account shall be deemed invested if the Participant fails to make an election, and to establish rules and procedures governing deemed elections, including imposing limitations on the minimum or maximum amount that may be transferred between investment funds and the times at which transfers may be made.
8. |
VESTING OF ACCOUNTS |
(a) |
The balance in a Participants Elective Deferral Account, and all subaccounts thereof, shall be fully vested and nonforfeitable at all times. |
(b) |
The balance in a Participants Employer Contribution Account, and all subaccounts thereof, shall be vested on the earliest of the date on which the Participant completes three Years of Service, the date of the Participants death while still employed by the Company, or the date on which the Participant incurs a Termination of Employment by reason of Disability, unless at the time of the Participants death or termination by reason of Disability the Participant could have been terminated for Cause. For avoidance of doubt, all amounts allocated to a Participants Employer Contribution Account after the date on which the Participant completes three Years of Service (including Years of Service completed prior to the Effective Date) shall be fully vested as of the date on which they are credited. If a Participant incurs a Termination of Employment for any reason (other than death or Disability) prior to date on which his/her Employer Contribution Account is fully vested, the balance in his/her Employer Contribution Account shall be forfeited and the Participant shall have no right to payment of any portion thereof. |
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(c) |
Notwithstanding anything contained in the Plan to the contrary, if a Participants employment is terminated for Cause (including a termination for Cause after the Participant has satisfied the eligibility requirements for Retirement or Disability), the Committee may provide for all or a portion of his/her Employer Contribution Account credited in prior Plan Years, and any earnings thereon (but not, for avoidance of doubt, his/her Elective Deferral Account) to be forfeited, which amount shall be determined by the Committee in its discretion taking into account the culpability of the Participants conduct and the damage or potential damage, including reputational, caused to the Corporation or its business. |
9. |
PAYMENT OF DEFERRED AMOUNTS |
(a) |
Payment on Termination of Employment in General. Except as otherwise provided herein, the entire vested balance in a Participants Account shall be paid, in a single lump sum, as soon as practical but in no event more than ninety (90) days after the Participant incurs a Termination of Employment for any reason. |
(b) |
Payment on Retirement. A Participant may elect to have any amount credited to his/her Account in any Plan Year distributed in between two and fifteen consecutive annual installments upon the Participants Retirement (which series of installments shall be treated as a single payment for purposes of Section 409A), subject to the following provisions. Such elections shall be made separately for each Plan Year, and shall apply only to amounts deferred in such Plan Year. |
(i) |
An election made for any Plan Year shall apply to (A) all of the Participants deferred Base Salary or Director Fees that would otherwise have been paid in such Plan Year to the extent not deferred to a Specified Year Account pursuant to Section 9(c), (B) all of the Participants deferred Bonus earned in such Plan Year to the extent not deferred to a Specified Year Account pursuant to Section 9(c) (even if paid in a subsequent Plan Year), and (C) all Employer Contributions credited with respect to the Plan Year, unless the Committee permits separate elections to be made for separate types of deferrals and contributions. For avoidance of doubt, a Participant may elect payment in installments for a Plan Year even though he/she also elects to have a portion of his/her deferrals for the same Plan Year credited to a Specified Year Account pursuant to Section 9(c), provided that if the Participant subsequently Retires before the specified payment year the amount credited to the Specified Year Account shall be paid in accordance with this Section 9(b). |
(ii) |
Each election shall be made at the same time that the Participant elects (or is eligible to elect) his/her annual deferral for the Plan Year; provided that a Participant who is first credited with an Employer Contribution for a Plan Year and who has not previously been eligible to make any deferral election may, to the extent permitted by Section 409A, make such election not later than January 30 of the following Plan Year. |
(iii) |
The first installment shall be paid in February of the Plan Year following the Plan Year in which the Participant Retires, and each subsequent installment shall be paid in February of the following Plan Years. The Participants Account shall continue to be credited or charged with earnings, if any, or losses, if any, and the amount of each installment shall equal the value of the Participants Account (or the subaccount for the applicable Plan Year) immediately prior to the payment of the installment divided by the number of installments remaining to be paid. |
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(iv) |
Payment in installments pursuant to this Section 9(b) shall apply only if (A) a Participant Retires, and (B) the total balance in a Participants Account, plus the balance in his/her accounts in the Prior Plans (but, for avoidance of doubt, not the Loews Corporation Benefit Equalization Plan) at the time of his/her Retirement is at least $200,000. If a Participant incurs a Termination of Employment for any reason prior to Retirement, or if such balance in his/her Account (plus the balance in his/her Prior Plan accounts) is less than $200,000, the vested balance in his/her Account shall be distributed in accordance with the remaining provisions of this Section 9. |
(v) |
If a Participant elected a form of payment under a Prior Plan that applies to Compensation deferred under this Plan, the portion of his/her Account attributable to such Compensation shall be paid in the manner elected under such Prior Plan, subject to the Participants right to change the manner of payment as provided in Section 9(b)(vi). |
(vi) |
After the latest date on which an election may be made for a Plan Year, a Participant may elect to change the manner in which the amount credited with respect to such Plan Year is distributed in accordance with procedures established by the Committee, provided that the election is made at least one year prior to the date on which the Participant incurs a Retirement (and if a Retirement occurs within one year after the election is made, the election shall be void). If such a change is made, the date on which the distribution commences shall be not earlier than February of the fifth Plan Year following the Plan Year in which the Participant Retires. Unless otherwise permitted by the Committee, only one such change may be made with respect to any Plan Year. |
(viii) |
If a Participant who has elected payment in installments pursuant to this Section 9(b) dies after payment has commenced, but before all installments have been paid, the remaining installments shall be paid to the Participants Beneficiary at the same time and in the same amount, unless the Participant elects otherwise in accordance with Section 9(d). |
(c) |
Payment in Specified Year Prior to Termination of Employment. A Participant may elect to have all or a portion of the amount of his/her Elective Deferral Account attributable to amounts deferred in a Plan Year (but not any portion of his/her Employer Contribution Account) allocated to a Specified Year Account, the balance in which will be distributed, either in a lump sum or in between two and four consecutive annual installments (which series of installments shall be treated as a single payment for purposes of Section 409A), commencing in February of a Plan Year that is at least two years after the Plan Year in which the Compensation was deferred, subject to the following provisions. Such elections shall be made separately for each Plan Year, and shall apply only to amounts deferred in such Plan Year. |
(i) |
Each election shall be made at the same time that the Participant elects (or is eligible to elect) his/her annual deferral for the Plan Year. Only one Specified Year Account may be established for each Plan Year. |
(ii) |
The first installment shall be paid in February of the Plan Year elected by the Participant, and each subsequent installment shall be paid in February of the following Plan Years. The Participants Specified Year Account shall continue to be credited or charged with earnings, if any, or losses, if any, and the amount of each installment shall equal the value of the Participants |
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Specified Year Account immediately prior to the payment of the installment divided by the number of installments remaining to be paid. |
(iii) |
If a Participant has elected payment in a specified year under a Prior Plan that applies to Compensation deferred under this Plan, the portion of his/her Account attributable to such Compensation shall be paid in the manner elected under such Prior Plan, subject to the Participants right to change the manner of payment as provided in Section 9(c)(v). |
(iv) |
If the Participant incurs a Termination of Employment for any reason (including death), or becomes Disabled, prior to February 1 of the Plan Year in which such distribution is to be made, the election shall be void and the balance in the Specified Year Account shall be distributed in accordance with the remaining provisions of this Section 9. |
(v) |
After the latest date on which an election may be made for a Plan Year, a Participant may not elect to establish a Specified Year Account for such Plan Year, or to change the amount allocated to the Specified Year Account, but if the Participant has elected to establish a Specified Year Account for such Plan Year, the Participant may elect to change either the Plan Year in which, or the manner in which, the Specified Year Account will be distributed (or both) provided that the change is elected not later than January 31 of the Plan Year prior to the Plan Year in which the distribution is to commence, and that the distribution commences not earlier than February of the fifth Plan Year following the Plan Year in which the distribution was otherwise to be made (subject to Section 9(c)(iv)). Unless otherwise permitted by the Committee, only one such change may be made with respect to any Plan Year. |
(d) |
Payment Upon Death. A Participant may elect to have any amount credited to his/her Account in any Plan Year distributed in between two and fifteen consecutive annual installments upon the Participants death (which series of installments shall be treated as a single payment for purposes of Section 409A), subject to the following provisions. Such elections shall be made separately for each Plan Year, and shall apply only to amounts deferred in such Plan Year. |
(i) |
An election made for any Plan Year shall apply to (A) all of the Participants deferred Base Salary or Director Fees that would otherwise have been paid in such Plan Year to the extent not deferred to a Specified Year Account pursuant to Section 9(c), (B) all of the Participants deferred Bonus earned in such Plan Year to the extent not deferred to a Specified Year Account pursuant to Section 9(c) (even if paid in a subsequent Plan Year), and (C) all Employer Contributions credited with respect to the Plan Year, unless the Committee permits separate elections to be made for separate types of deferrals and contributions. For avoidance of doubt, a Participant may elect payment in installments for a Plan Year even though he/she also elects to have a portion of his/her deferrals for the same Plan Year credited to a Specified Year Account pursuant to Section 9(c), provided that if the Participant subsequently dies before the specified payment year the amount credited to the Specified Year Account shall be paid in accordance with this Section 9(d). |
(ii) |
Each election shall be made at the same time that the Participant elects (or is eligible to elect) his/her annual deferral for the Plan Year; provided that a Participant who is first credited with an Employer Contribution for a Plan |
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Year and who has not previously been eligible to make any deferral election may, to the extent permitted by Section 409A, make such election not later than January 30 of the following Plan Year. |
(iii) |
The first installment shall be paid in February of the Plan Year following the Plan Year in which the Participant dies, and each subsequent installment shall be paid in February of the following Plan Years. The Participants Account shall continue to be credited or charged with earnings, if any, or losses, if any, and the amount of each installment shall equal the value of the Participants Account (or the subaccount for the applicable Plan Year) immediately prior to the payment of the installment divided by the number of installments remaining to be paid. |
(iv) |
Payment in installments pursuant to this Section 9(d) shall apply only if the total balance in the Participants Account, plus the balance in his/her accounts in the Prior Plans (but, for avoidance of doubt, not the Loews Corporation Benefit Equalization Plan) at the time of payment of the first installment is at least $200,000. If such balance in his/her Account (plus the balance in his/her Prior Plan accounts) is less than $200,000, the vested balance in his/her Account shall be distributed in a lump sum within ninety (90) days after the Participants death. |
(v) |
If a Participant elected a form of payment upon death under a Prior Plan that applies to Compensation deferred under this Plan, the portion of his/her Account attributable to such Compensation shall be paid in the manner elected under such Prior Plan, subject to the Participants right to change the manner of payment as provided in Section 9(d)(vi). |
(vi) |
After the latest date on which an election may be made for a Plan Year, a Participant may change the manner in which the portion of his/her Account deferred in such Plan Year will be paid in the event of his/her death, provided that if the Participant dies within one year after making such election, such election shall be void and the Participants Account shall be distributed as if such election had not been made. |
(e) |
Payment Upon Disability. Anything else contained herein to the contrary notwithstanding, if a Participant other than an Outside Director becomes Disabled, either before or after the Participant incurs a Termination of Employment, the entire vested portion of the Participants Account shall be distributed in a single lump sum within ninety (90) days after the Participant becomes Disabled. Such distribution may be paid to the Participants guardian or conservator, if one has been appointed, or to such other person as the Committee may determine to be used for the benefit of the Participant. |
(f) |
Payment to Specified Employees. Anything else contained herein to the contrary notwithstanding, if a Participant is a Specified Employee on the date he/she incurs a Termination of Employment (other than by reason of death), then any distribution by reason of the Termination of Employment shall not commence until the earlier of (i) the first day of the seventh month following the month that includes the Termination of Employment or (ii) the date of the Participants death. If the Participant has elected payment in installments, only installments that would otherwise have been payable prior to such date shall be deferred, and the payment of future installments will not be affected. The Participants Account shall continue to be credited with earnings, if any, until the deferred date of payment. |
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(g) |
Unforeseeable Emergencies. In the event a Participant incurs an Unforeseeable Emergency, the Committee, upon written application of such Participant, may (i) direct that the Participants deferral elections for the Plan Year in which the Unforeseeable Emergency occurs be cancelled, and (ii) if the cancellation of the Participants deferral elections is insufficient to alleviate the Unforeseeable Emergency, direct immediate payment of all or a portion of the then vested portion of such Participants Account. The amount of the distribution shall be limited to the amount needed to satisfy the Unforeseeable Emergency plus federal, state, local or foreign income taxes reasonably anticipated to be owed by the Participant as a result of the distribution. Such distributions shall not be allowed to the extent that the hardship may be relieved through reimbursement or compensation by insurance or otherwise, or by liquidation of the Participants assets (to the extent such liquidation would not itself cause a severe financial hardship). The Committee shall determine, in accordance with Section 409A, whether the Participant has incurred an Unforeseeable Emergency and the amount needed to satisfy such emergency. |
10. |
TRANSFERABILITY OF INTERESTS |
Except for the right of a Participant to designate a Beneficiary as hereinabove provided, a Participants or Beneficiarys rights and interests may not be anticipated, alienated, assigned, pledged, transferred or otherwise encumbered. Notwithstanding the foregoing, (i) the Committee may adopt procedures permitting the payment of a portion of a Participants Account to an alternate payee pursuant to a domestic relations order as defined in Section 414(p)(1)(B) of ERISA, and (ii) the Company may offset against any distribution any amounts owed by the Participant to the Company to the extent permitted by Section 409A.
11. |
AMENDMENT, SUSPENSION AND TERMINATION |
The Corporation, in its discretion, at any time may amend, suspend or terminate the Plan or any portion thereof by action of either the Board or the Committee. Any rule, determination or procedure adopted by the Committee that is inconsistent with any provision of the Plan shall be deemed to amend the Plan to the extent of such inconsistency. No such amendment, suspension or termination shall reduce the vested balance in a Participants Account as in effect immediately prior to the date of the act adopting the amendment, suspension or termination. Following the suspension or termination of the Plan, amounts credited to Accounts in the Plan shall continue to be administered and distributed in accordance with the terms of the Plan, unless the Committee provides for such Accounts to be distributed in accordance with Section 409A.
12. |
DEFINITIONS |
(a) |
The term Account is defined in Section 6. |
(b) |
The term Base Salary means the regular cash compensation paid as base salary to a Participant who is an Employee. |
(c) |
The term Beneficiary means the person or persons designated by a Participant in accordance with procedures established by the Committee to receive payment of the Participants Account in the event of his/her death. To the extent permitted by such procedures, a Participant may name trusts or other entities as Beneficiaries, and may name multiple, alternate, or contingent Beneficiaries and specify the manner in which payment is to be allocated among them. |
(d) |
The term Board is defined in Section 2. |
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(e) |
The term Bonus means the annual cash bonus payable to Employees by the Corporation. |
(f) |
The term Cause shall have the meaning set forth in any written employment agreement between a Participant and the Company, if such an agreement exists and contains a definition of Cause; otherwise Cause shall mean (1) conviction of the Participant for committing a felony under federal law or the law of the state in which such action occurred, (2) dishonesty in the course of fulfilling a Participants employment duties, (3) willful and deliberate failure on the part of a Participant to perform the Participants employment duties in any material respect or (4) such other events as shall be determined in good faith by the Committee. The Committee shall, unless otherwise provided in an employment agreement with the Participant, have the discretion to determine whether Cause exists, and its determination shall be final. |
(g) |
The term Claims Administrator is defined in Section 17. |
(h) |
The term Code means the Internal Revenue Code of 1986, and all regulations and other authoritative interpretations adopted pursuant thereto, as now in effect or hereafter amended. |
(i) |
The term Company is defined in Section 1. A reference to the Company with respect to a particular Employee or Participant shall be deemed to refer to the entity within the Company that employs the Employee or Participant, except as the context otherwise requires. |
(j) |
The term Compensation means (i) in the case of an Employee, Base Salary and Bonuses, and (ii) in the case of an Outside Director, Director Fees. |
(k) |
The term Controlled Group means the Corporation and all other business entities required to be aggregated with the Corporation pursuant to Section 414(b) or (c) of the Code. |
(l) |
The term Corporation is defined in Section 1. |
(m) |
The term Director Fees means the cash compensation paid to an Outside Director by reason of his membership on the Board or any committee thereof. |
(n) |
The term Disability or Disabled shall meant that a Participant is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under the long term disability plan or policy maintained by the Company or, if the Company, does not maintain such a plan or policy for which the Participant is eligible, has been determined to be totally disabled by the United States Social Security Administration. |
(o) |
The term Effective Date is defined in Section 1. |
(p) |
The term Elective Deferral Account is defined in Section 6. |
(q) |
The term Employee means a common law employee of the Corporation, or of any member of the Controlled Group that the Committee authorizes to participate in the Plan. A person who is retained to render services pursuant to an agreement (with such person or any employee leasing or similar entity) that designates such person as an independent contractor or employee of a third party, shall not be |
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considered an Employee even if subsequently determined to be a common law employee for any tax or other legal purpose. |
(r) |
The term Employer Contribution is defined in Section 5. |
(s) |
The term Employer Contribution Account is defined in Section 6. |
(t) |
The term ERISA means the Employee Retirement Income Security Act of 1974, and all regulations and other authoritative interpretations adopted pursuant thereto, as now in effect or hereafter amended. |
(u) |
The term Outside Director is defined in Section 3(d). |
(v) |
The term Participant is defined in Section 3. |
(w) |
The term Plan is defined in Section 1. |
(x) |
The term Plan Year means the calendar year. |
(y) |
The term Prior Plans is defined in Section 1. |
(z) |
The term Retirement or Retire shall mean (i) in the case of an Employee, a Termination of Employment occurring on or after the first to occur of attainment of (a) age fifty-five (55) with ten (10) Years of Service, or (b) age sixty (60) with five (5) Years of Service, and (ii) in the case of an Outside Director, termination of the Outside Directors membership on the Board at any age and for any reason other than death. |
(aa) |
The term Section 409A means Section 409A of the Code. |
(bb) |
The term Section 401(a)(17) Limit is defined in Section 3(a). |
(cc) |
The term Specified Employee shall have the meaning set forth in Section 409A. |
(dd) |
The term Specified Year Account shall mean the portion of a Participants Deferred Compensation Account for a Plan Year that the Participant elects to have distributed in a specific Plan Year rather than upon Termination of Employment pursuant to Section 9(c). |
(ee) |
The term Termination of Employment shall mean a separation from service from the Company and all members of the Controlled Group as defined in Section 409A. |
(ff) |
The term Unforeseeable Emergency means, with respect to a Participant, a severe financial hardship resulting from: (1) an illness or accident of the Participant, the Participants spouse, or a dependent; (2) loss of the Participants property due to casualty; or (3) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, in each case as permitted pursuant to Section 409A. |
(gg) |
The term Year of Service shall have the same meaning as in the Loews Corporation Employees Savings Plan or any successor thereto. |
13. |
UNFUNDED OBLIGATION |
No assets of the Company have been set aside to provide for the payment of the Accounts. Assets of the Company are subject to the claims of the Companys general creditors. The Plan is intended to be, and shall be operated and administered to be, a plan which is unfunded and
- 11 -
which is maintained primarily for the purpose of providing deferred compensation for non-employee directors and a select group of management and highly compensated employees. The Company shall make no provision for the funding or insuring of Accounts that would cause the Plan to be (i) a funded plan for purposes of Section 404(a)(5) of the Code or Title I of ERISA, or (ii) other than an unfunded and unsecured promise to pay money or property in the future under Treasury Regulations Sections 1.83-3(e). A Participant and his/her Beneficiary shall be treated as a general unsecured creditor of the Company at all times under this Plan.
14. |
NO RIGHT TO EMPLOYMENT, TO RENDER SERVICES, OR OTHER BENEFITS |
This Plan shall not constitute a contract of employment, nor an arrangement to render services, between the Company and the Participant, and nothing contained herein shall be construed as conferring upon any Participant the right to continue in the employ of, nor the right to continue to render services to, the Company.
15. |
GOVERNING LAW |
The Plan shall be governed by the laws of the State of New York without reference to the principles of conflict of laws.
16. |
COMPLIANCE WITH SECTION 409A |
The Plan is intended to comply with the applicable provisions of Section 409A and shall be administered in accordance with Section 409A to the extent Section 409A applies to the Plan. Accordingly, the Plan shall be construed in a manner consistent with those provisions and may, at any time, be amended in the manner and to the extent determined necessary or desirable by the Committee to reflect or otherwise facilitate compliance with such provisions. Notwithstanding the foregoing, in no event shall the Company, any member of the Committee, or any other person have any liability to any Participant, Beneficiary or other person by reason of the application of any additional tax on such person pursuant to Section 409A or otherwise.
17. |
CLAIMS PROCEDURE |
Any Participant, Beneficiary or other person asserting a claim to a benefit under the Plan may submit a written claim for such benefit in accordance with procedures established by the Committee to the person or persons designated by the Committee (which may be the Committee) (such person or persons, Claims Administrator) in accordance with the provisions of this Section 17. Participants are not required to file formal claims for benefits payable in the normal course, but any Participant or other person who believes that he/she is entitled to a benefit that has not been paid, or that an error has been made in the calculation or payment of any benefit, must file a claim not more than one year after the date on which such benefit should have been paid (or was paid in the case of a claimed error in the amount of payment).
(a) |
In the event that any claim for benefits is denied in whole or in part, the Claims Administrator must notify the applicant, in written or electronic format, of the denial of the application, and of the applicants right to review the denial. The notice of denial shall be set forth in a manner designed to be understood by the applicant, and shall include (i) the specific reasons for the denial, (ii) specific references to the Plan provision upon which the denial is based, (iii) a description of any information or material that the Claims Administrator needs to complete the review, (iv) an explanation of the Plans review procedure, and (v) a statement of the claimants right to bring a civil action under Section 502(a) of ERISA |
(b) |
This notice shall be given to the applicant within ninety (90) days after the Claims Administrator receives the application, unless special circumstances require an |
- 12 -
extension of time, in which case, the Claims Administrator has up to an additional ninety (90) days for processing the application. If an extension of time for processing is required, written or electronic notice of the extension shall be furnished to the applicant before the end of the initial ninety (90)-day period. |
(c) |
This notice of extension shall describe the special circumstances necessitating the additional time and the date by which the Claims Administrator is to render his/her decision on the application. |
(d) |
Any person (or that persons authorized representative) for whom an application for benefits is denied, in whole or in part, may appeal the denial by submitting a request for a review to the Claims Administrator within sixty (60) days after the application is denied. The Claims Administrator shall give the applicant (or his/her representative) a reasonable opportunity for a full and fair review of a claim and adverse benefit determination, including: (i) the opportunity to submit written comments, documents, records and other information relating to the claim for benefits; (ii) the provision, upon request and free of charge, of reasonable access to and copies of, all documents, records and other information relevant to the claimants claim for benefits, and (iii) a review that takes into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. A request for a review shall be in writing and shall be addressed to: |
Vice President, Human Resources
Loews Corporation
667 Madison Avenue
New York, NY 10065
(e) |
A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are pertinent. The Claims Administrator may require the applicant to submit additional facts, documents or other material as he/she/she may find necessary or appropriate in making his/her review. |
(f) |
The Claims Administrator shall act on each request for review within sixty (60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request for a review. If an extension for review is required, written or electronic notice of the extension shall be furnished to the applicant within the initial sixty (60)-day period. The Claims Administrator shall give prompt, written or electronic notice of his/her decision to the applicant. In the event that the Claims Administrator confirms the denial of the application for benefits in whole or in part, the notice shall outline, in a manner calculated to be understood by the applicant: (i) the specific reason or reasons for the adverse determination, (ii) the specific Plan provisions upon which the decision is based, and (iii) a statement of the claimants right to bring a civil action under Section 502(a) of ERISA. |
(g) |
The Claims Administrator may establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out his/her responsibilities in reviewing benefit claims. |
(h) |
No legal action for benefits under the Plan may be brought until the applicant (i) has submitted a written application for benefits in accordance with the procedures described by Section 17(a) above, (ii) has been notified by the Claims Administrator |
- 13 -
that the application is denied, (iii) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 17(d) above, and (iv) has been notified in writing or electronically that the Claims Administrator has denied the appeal. No legal action may be brought more than ninety (90) days after the applicant has been notified of the denial of the appeal. |
18. |
CORRECTION OF ERRORS |
The Committee shall have the authority to correct any error in the calculation of a Participants Account or the amount distributed to a Participant, regardless of the reason for the error and regardless of whether distribution of the Account has commenced. By his/her participation in the Plan and acceptance of benefits hereunder, each Participant agrees that he/she will promptly repay to the Plan any payment that exceeds the amount to which he/she was entitled under the Plan (an excess payment), and will hold any excess payment, and any proceeds of any excess payment, or property acquired with any excess payment, in trust for the benefit of the Plan, which trust shall remain in effect, and shall continue to apply to any excess payment, proceeds or other property even if transferred to a third party, until the total amount of the excess payment has been repaid to the Plan. The Committee may, on behalf of the Plan, commence an action to enforce such trust, or take any other available action in law or equity, including setting off any other amount owed to the Participant, to recover such excess payment.
19. |
PARTICIPANT LITIGATION |
In any action or proceeding regarding the Plan, Employees or former Employees, Participants, Beneficiaries or any other persons having or claiming to have an interest in this Plan will not be necessary parties and will not be entitled to any notice or process. Any final judgment which is not appealed or appealable and may be entered in any such action or proceeding will be binding and conclusive on the parties hereto and all persons having or claiming to have any interest in this Plan. To the extent permitted by law, if a legal action is begun against the Company, the Committee, or any member of the Committee by or on behalf of any person and such action results adversely to such person or if a legal action arises because of conflicting claims to a Participants or other persons benefits, the costs to such person of defending the action will be charged to the amounts, if any, which were involved in the action or were payable to the Participant or other person concerned. To the extent permitted by applicable law, acceptance of participation in this Plan will constitute a release of the Company, the Committee and each member thereof, and their respective agents from any and all liability and obligation not involving willful misconduct or gross negligence. Any litigation commenced by any Participant, Beneficiary or other person involving his/her claimed benefits under the Plan shall be brought only in the United States District Court for the Southern District of New York (and, if commenced in any other court, may be removed or transferred to such court), and each party to any such litigation waives, to the maximum extent permitted by law, any right to trial by jury (provided that the foregoing shall not be construed to imply that any such person would otherwise have a right to trial by jury).
- 14 -
Exhibit 21.01
LOEWS CORPORATION
Subsidiaries of the Registrant
December 31, 2019
Name of Subsidiary |
Organized Under Laws of |
Business Names |
||||
CNA Financial Corporation |
Delaware | ) | ||||
American Casualty Company of Reading, Pennsylvania |
Pennsylvania | ) | ||||
CNA Europe Holdings Limited |
United Kingdom | ) | ||||
CNA Insurance Company (Europe) S.A. |
Luxembourg | ) | ||||
CNA Insurance Company Limited |
United Kingdom | ) | ||||
CNA National Warranty Corporation |
Arizona | ) | ||||
Columbia Casualty Company |
Illinois | ) | ||||
Continental Casualty Company |
Illinois | ) | ||||
Continental Reinsurance Corporation International, Ltd |
Bermuda | ) | ||||
Hardy Bermuda Limited |
Bermuda | ) | ||||
Hardy Underwriting Labuan Limited |
Malaysia | ) | ||||
Hardy Underwriting Limited |
United Kingdom | ) | CNA Financial | |||
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 |
Pennsylvania | ) | ||||
The Continental Insurance Company of New Jersey |
New Jersey | ) | ||||
Transportation Insurance Company |
Illinois | ) | ||||
Universal Surety of America |
South Dakota | ) | ||||
Valley Forge Insurance Company |
Pennsylvania | ) | ||||
Western Surety Company |
South Dakota | ) | ||||
Boardwalk Pipeline Partners, LP |
Delaware | ) | ||||
Boardwalk Acquisition Company LLC |
Delaware | ) | ||||
Boardwalk Midstream, LLC |
Delaware | ) | ||||
Boardwalk Pipelines, LP |
Delaware | ) | Boardwalk Pipelines | |||
Gulf South Pipeline Company, LP |
Delaware | ) | ||||
Texas Gas Transmission, LLC |
Delaware | ) | ||||
Diamond Offshore Drilling, Inc. |
Delaware | ) | ||||
Diamond Foreign Asset Company |
Cayman Islands | ) | ||||
Diamond Hungary Leasing LLC |
Hungary | ) | ||||
Diamond Offshore Drilling Limited |
Cayman Islands | ) | ||||
Diamond Offshore Finance Company |
Delaware | ) | Diamond Offshore | |||
Diamond Offshore International Limited |
Cayman Islands | ) | ||||
Diamond Offshore Limited |
United Kingdom | ) | ||||
Diamond Offshore Services Company |
Delaware | ) | ||||
Loews Hotels Holding Corporation |
Delaware | ) | Loews Hotels & Co | |||
Altium Packaging LLC |
Delaware | ) | Altium Packaging |
The names of certain subsidiaries which, if considered as a single subsidiary, would not constitute a significant subsidiary as defined in Regulation S-X, have been omitted.
Exhibit 23.01
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement Nos. 333-211278, 333-182982, 333-129772 and 333-33616 on Form S-8 and Registration Statement No. 333-223187 on Form S-3ASR of our reports dated February 11, 2020, relating to the financial statements of Loews Corporation (the Company) and the effectiveness of the Companys internal control over financial reporting, appearing in this Annual Report on Form 10-K for the year ended December 31, 2019.
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 11, 2020
Exhibit 24.01
POWER OF ATTORNEY
I, the undersigned Director and/or Officer of Loews Corporation, a Delaware corporation (the Corporation), hereby constitute and appoint MARC A. ALPERT, DAVID B. EDELSON and MARK S. SCHWARTZ, and each of them singly, my true and lawful attorneys-in-fact and agents with full power to them and each of them to sign for me, and in my name and in the capacity or capacities indicated below, the Corporations Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and any amendments thereto.
IN WITNESS WHEREOF, each of the undersigned has hereunto set his or her hand this 12th day of November 2019.
/s/ James S. Tisch |
/s/ David B. Edelson |
|||
James S. Tisch | David B. Edelson | |||
President, Chief Executive Officer and Director | Senior Vice President and Chief Financial Officer | |||
/s/ Mark S. Schwartz |
/s/ Ann E. Berman |
|||
Mark S. Schwartz | Ann E. Berman | |||
Vice President and Chief Accounting Officer | Director | |||
/s/ Joseph L. Bower |
/s/ Charles D. Davidson |
|||
Joseph L. Bower | Charles D. Davidson | |||
Director | Director | |||
/s/ Charles M. Diker |
/s/ Paul J. Fribourg |
|||
Charles M. Diker |
Paul J. Fribourg |
|||
Director |
Director |
|||
/s/ Walter L. Harris |
/s/ Philip A. Laskawy |
|||
Walter L. Harris |
Philip A. Laskawy |
|||
Director |
Director |
|||
/s/ Susan P. Peters |
/s/ Andrew H. Tisch |
|||
Susan P. Peters |
Andrew H. Tisch |
|||
Director |
Director |
|||
/s/ Jonathan M. Tisch |
/s/ Anthony Welters |
|||
Jonathan M. Tisch |
Anthony Welters |
|||
Director |
Director |
Exhibit 31.01
I, James S. Tisch, certify that:
1. I have reviewed this annual report on Form 10-K of Loews 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 registrants other certifying officer(s) 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(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 registrants 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 registrants internal control over financial reporting. |
Date: February 11, 2020 | By: |
/s/ JAMES S. TISCH |
||||
JAMES S. TISCH | ||||||
Chief Executive Officer |
Exhibit 31.02
I, David B. Edelson, certify that:
1. I have reviewed this annual report on Form 10-K of Loews 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 registrants other certifying officer(s) 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(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 registrants 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 registrants internal control over financial reporting. |
Date: February 11, 2020 | By: |
/s/ DAVID B. EDELSON |
||||
DAVID B. EDELSON | ||||||
Chief Financial Officer |
Exhibit 32.01
Certification by the Chief Executive Officer
of Loews Corporation pursuant to 18 U.S.C. Section 1350
(as adopted by Section 906 of the
Sarbanes-Oxley Act of 2002)
Pursuant to 18 U.S.C. Section 1350, the undersigned chief executive officer of Loews Corporation (the Company) hereby certifies, to such officers knowledge, that the Companys annual report on Form 10-K for the year ended December 31, 2019 (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.
Date: February 11, 2020 | By: |
/s/ JAMES S. TISCH |
||||
JAMES S. TISCH | ||||||
Chief Executive Officer |
Exhibit 32.02
Certification by the Chief Financial Officer
of Loews Corporation pursuant to 18 U.S.C. Section 1350
(as adopted by Section 906 of the
Sarbanes-Oxley Act of 2002)
Pursuant to 18 U.S.C. Section 1350, the undersigned chief financial officer of Loews Corporation (the Company) hereby certifies, to such officers knowledge, that the Companys annual report on Form 10-K for the year ended December 31, 2019 (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.
Date: February 11, 2020 | By: |
/s/ DAVID B. EDELSON |
||||
DAVID B. EDELSON | ||||||
Chief Financial Officer |