XML 33 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2

Investments (Tables)

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Net Investment Income and Investment Gains (Losses)

Net investment income is as follows:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2016				2015				2016				2015
(In millions)
Fixed maturity securities		$	457			$	449			$	1,352			$	1,344
Limited partnership investments			91				(122	)			98				88
Short term investments			3				4				8				7
Equity securities			1				3				8				9
Income (loss) from trading portfolio (a)			11				(5	)			113				(9)
Other			12				9				34				26
Total investment income			575				338				1,613				1,465
Investment expenses			(14	)			(17	)			(43	)			(46)
Net investment income		$	561			$	321			$	1,570			$	1,419

(a) Includes net unrealized gains (losses) related to changes in fair value on trading securities still held of $8, $(59), $63 and $(71) for the three and nine months ended September 30, 2016 and 2015.

Investment gains (losses) are as follows:

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2016				2015				2016				2015
(In millions)
Fixed maturity securities		$	47			$	(29	)		$	34			$	(29)
Equity securities			(3	)			(18	)			(5	)			(19)
Derivative instruments			1				(1	)			(12	)			9
Short term investments and other							(2	)			1				(3)
Investment gains (losses) (a)		$	45			$	(50	)		$	18			$	(42)

(a) Includes gross realized gains of $68, $23, $157 and $93 and gross realized losses of $24, $70, $128 and $141 on available-for-sale securities for the three and nine months ended September 30, 2016 and 2015.

 

(a) Includes gross realized gains of $68, $23, $157 and $93 and gross realized losses of $24, $70, $128 and $141 on available-for-sale securities for the three and nine months ended September 30, 2016 and 2015.

Components of Net Other-than-Temporary Impairment Losses Recognized in Earnings by Asset Type

The components of net other-than-temporary impairment (“OTTI”) losses recognized in earnings by asset type are as follows:

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2016				2015				2016				2015
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds		$	14			$	36			$	43			$	52
States, municipalities and political subdivisions															18
Asset-backed:
Residential mortgage-backed							1				1				7
Other asset-backed											3				1
Total asset-backed			-				1				4				8
Total fixed maturities available-for-sale			14				37				47				78
Equity securities available-for-sale - common stock			4				19				9				20
Short term investments															1
Net OTTI losses recognized in earnings		$	18			$	56			$	56			$	99

Amortized Cost and Fair Values of Securities

The amortized cost and fair values of securities are as follows:

September 30, 2016		Cost or Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value				Unrealized OTTI Losses (Gains)
(In millions)
Fixed maturity securities:
Corporate and other bonds		$	17,985				$1,867			$	36			$	19,816			$	(1)
States, municipalities and political subdivisions			11,566				1,937				2				13,501				(27)
Asset-backed:
Residential mortgage-backed			5,174				206				15				5,365				(24)
Commercial mortgage-backed			2,064				88				8				2,144
Other asset-backed			948				12				1				959
Total asset-backed			8,186				306				24				8,468				(24)
U.S. Treasury and obligations of government-sponsored enterprises			68				8								76
Foreign government			415				23								438
Redeemable preferred stock			18				2								20
Fixed maturities available-for-sale			38,238				4,143				62				42,319				(52)
Fixed maturities trading			572				4				1				575
Total fixed maturities			38,810				4,147				63				42,894				(52)
Equity securities:
Common stock			15				6				1				20
Preferred stock			93				5				2				96
Equity securities available-for-sale			108				11				3				116				-
Equity securities trading			473				81				84				470
Total equity securities			581				92				87				586
Total		$	39,391				$4,239			$	150			$	43,480			$	(52)
December 31, 2015
(In millions)
Fixed maturity securities:
Corporate and other bonds		$	17,097				$ 1,019			$	347			$	17,769
States, municipalities and political subdivisions			11,729				1,453				8				13,174			$	(4)
Asset-backed:
Residential mortgage-backed			4,935				154				17				5,072				(37)
Commercial mortgage-backed			2,154				55				12				2,197
Other asset-backed			923				6				8				921
Total asset-backed			8,012				215				37				8,190				(37)
U.S. Treasury and obligations of government-sponsored enterprises			62				5								67
Foreign government			334				13				1				346
Redeemable preferred stock			33				2								35
Fixed maturities available-for-sale			37,267				2,707				393				39,581				(41)
Fixed maturities, trading			140								20				120
Total fixed maturities			37,407				2,707				413				39,701				(41)
Equity securities:
Common stock			46				3				1				48
Preferred stock			145				7				3				149
Equity securities available-for-sale			191				10				4				197				-
Equity securities, trading			633				56				134				555
Total equity securities			824				66				138				752				-
Total		$	38,231				$ 2,773			$	551			$	40,453			$	(41)

Securities Available-for-Sale in Gross Unrealized Loss Position

The available-for-sale securities in a gross unrealized loss position are as follows:

		Less than 12 Months								12 Months or Longer								Total
September 30, 2016		Estimated Fair Value				Gross Unrealized Losses				Estimated Fair Value				Gross Unrealized Losses				Estimated Fair Value				Gross  Unrealized  Losses
(In millions)
Fixed maturity securities:
Corporate and other bonds		$	617			$	10			$	338			$	26			$	955			$	36
States, municipalities and political subdivisions			163				2				9								172				2
Asset-backed:
Residential mortgage-backed			273				6				212				9				485				15
Commercial mortgage-backed			391				7				96				1				487				8
Other asset-backed			153				1				17								170				1
Total asset-backed			817				14				325				10				1,142				24
U.S. Treasury and obligations of government-sponsored enterprises			2																2
Foreign government			16																16
Total fixed maturity securities			1,615				26				672				36				2,287				62
Common stock							1																1
Preferred stock			15				2												15				2
Total		$	1,630			$	29			$	672			$	36			$	2,302			$	65
December 31, 2015
(In millions)
Fixed maturity securities:
Corporate and other bonds		$	4,882			$	302			$	174			$	45			$	5,056			$	347
States, municipalities and political subdivisions			338				8				75								413				8
Asset-backed:
Residential mortgage-backed			963				9				164				8				1,127				17
Commercial mortgage-backed			652				10				96				2				748				12
Other asset-backed			552				8				5								557				8
Total asset-backed			2,167				27				265				10				2,432				37
U.S. Treasury and obligations of government- sponsored enterprises			4																4
Foreign government			54				1												54				1
Redeemable preferred stock			3																3
Total fixed maturity securities			7,448				338				514				55				7,962				393
Common stock			3				1												3				1
Preferred stock			13				3												13				3
Total		$	7,464			$	342			$	514			$	55			$	7,978			$	397

Pretax Credit Loss Component Reflected in Retained Earnings on Fixed Maturity Securities

The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of September 30, 2016 and 2015 for which a portion of an OTTI loss was recognized in Other comprehensive income.

		Three Months Ended September 30,								Nine Months Ended     September 30,
		2016				2015				2016				2015
(In millions)
Beginning balance of credit losses on fixed maturity securities		$	41			$	59			$	53			$	62
Reductions for securities sold during the period			(2)				(2)				(14)				(5)
Reductions for securities the Company intends to sell or more likely than not will be required to sell			(1)								(1)
Ending balance of credit losses on fixed maturity securities		$	38			$	57			$	38			$	57

Available-for-Sale Fixed Maturity Securities by Contractual Maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.

		September 30, 2016								December 31, 2015
		Cost or Amortized Cost				Estimated Fair Value				Cost or Amortized Cost				Estimated Fair Value
(In millions)
Due in one year or less		$	1,665			$	1,710			$	1,574			$	1,595
Due after one year through five years			9,052				9,584				7,738				8,082
Due after five years through ten years			14,659				15,625				14,652				14,915
Due after ten years			12,862				15,400				13,303				14,989
Total		$	38,238			$	42,319			$	37,267			$	39,581

Summary of Aggregate Contractual or Notional Amounts and Gross Estimated Fair Values Related to Derivative Financial Instruments

A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets.

		September 30, 2016												December 31, 2015
		Contractual/												Contractual /
		Notional				Estimated Fair Value								Notional				Estimated Fair Value
		Amount				Asset				(Liability)				Amount				Asset				(Liability)
(In millions)
Without hedge designation:
Equity markets:
Options – purchased		$	391			$	22								$ 501			$	16
– written			229							$	(9)				614								$  (28)
Futures – long															312								(1)
– short			106								(1)
Interest rate risk:
Futures – long															63
Foreign exchange:
Currency forwards – long															133				2
– short															152
Currency options – long			250												550				7
Commodities:
Futures – long			68				1
Embedded derivative on funds withheld liability			175								(8	)			179				5

X

- Definition

Components Of Other Than Temporary Impairment Losses Recognized In Earnings By Asset Type [Table Text Block]

+ References

No definition available.

+ Details

Name:	l_ComponentsOfOtherThanTemporaryImpairmentLossesRecognizedInEarningsByAssetTypeTableTextBlock
Namespace Prefix:	l_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Net investment income and investment gains (losses).

+ References

No definition available.

+ Details

Name:	l_NetInvestmentIncomeAndInvestmentGainsLossesTableTextBlock
Namespace Prefix:	l_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments.

+ References

No definition available.

+ Details

Name:	us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27340-111563

+ Details

Name:	us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

For all investments in an unrealized loss position, including those for which other-than-temporary impairments have not been recognized in earnings (including investments for which a portion of an other-than-temporary impairment has been recognized in other comprehensive income), a tabular disclosure of the aggregate related fair value of investments with unrealized losses and the aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27290-111563

+ Details

Name:	us-gaap_ScheduleOfUnrealizedLossOnInvestmentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_TextBlockAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration