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v3.23.2

Basis of Presentation (Tables) | 6 Months Ended
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Jun. 30, 2023
Accounting Policies [Abstract] |
Schedule of Accounting Standards Update | The following table presents a roll-forward of the pre-transition LFPB balance as of January 1, 2021:
(In millions) |
Balance as of December 31, 2020, as reported | $ | 13,318 |
Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits (a) | 2,844 |
De-recognition of shadow reserves | (3,293) |
Re-measurement using an upper-medium grade fixed income instrument yield discount rate | 6,255 |
Other adjustments | 8 |
Balance as of January 1, 2021, as adjusted | $ | 19,132 |
(a) | In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expense to Future policy benefits. This change was applied retrospectively as of January 1, 2021.
The following table presents after tax adjustments to the opening balance of Shareholders’ equity and Noncontrolling interests resulting from adoption of ASU 2018-12:
| Accumulated other comprehensive income (loss) |  | Retained earnings |  | Noncontrolling interests
(In millions) |  |  |  |  |
Balance as of December 31, 2020, as reported | $ | 581 |  |  | $ | 14,150 |  |  | $ | 1,321 |
De-recognition of shadow reserves | 2,331 |  |  |  |  | 270 |
Re-measurement of LFPB using an upper-medium grade fixed income instrument yield discount rate | (4,428) |  |  |  |  | (513) |
Other adjustments |  |  | (5) |  |  | (1) |
Balance as of January 1, 2021, as adjusted | $ | (1,516) |  |  | $ | 14,145 |  |  | $ | 1,077 |
The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statement of Operations were as follows:
Three Months Ended June 30, 2022 | As Reported |  | Effect of Adoption |  | As Adjusted
(In millions) |  |  |  |  |
Insurance claims and policyholders’ benefits (a) | $ | 1,583 |  |  | $ | 18 |  |  | $ | 1,601 |
Income before income tax | 253 |  |  | (18) |  |  | 235 |
Income tax expense | (51) |  |  | 3 |  |  | (48) |
Net income | 202 |  |  | (15) |  |  | 187 |
Amounts attributable to noncontrolling interests | (22) |  |  | 2 |  |  | (20) |
Net income attributable to Loews Corporation | 180 |  |  | (13) |  |  | 167 |
Basic net income per share | 0.73 |  |  | (0.05) |  |  | 0.68 |
Diluted net income per share | 0.73 |  |  | (0.05) |  |  | 0.68 |
(a) | The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $1 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations.
Six Months Ended June 30, 2022 | As Reported |  | Effect of Adoption |  | As Adjusted
(In millions) |  |  |  |  |
Insurance claims and policyholders’ benefits (a) | $ | 3,038 |  |  | $ | 41 |  |  | $ | 3,079 |
Income before income tax | 715 |  |  | (41) |  |  | 674 |
Income tax expense | (143) |  |  | 8 |  |  | (135) |
Net income | 572 |  |  | (33) |  |  | 539 |
Amounts attributable to noncontrolling interests | (54) |  |  | 4 |  |  | (50) |
Net income attributable to Loews Corporation | 518 |  |  | (29) |  |  | 489 |
Basic net income per share | 2.10 |  |  | (0.12) |  |  | 1.98 |
Diluted net income per share | 2.09 |  |  | (0.11) |  |  | 1.98 |
(a) | The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $6 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations.
The effects of adoption of ASU 2018-12 on the Consolidated Condensed Balance Sheet were as follows:
December 31, 2022 | As Reported |  | Effect of Adoption |  | As Adjusted
(In millions) |  |  |  |  |
Other assets | $ | 3,941 |  |  | $ | 73 |  |  | $ | 4,014 |
Total assets | 75,494 |  |  | 73 |  |  | 75,567 |
Claim and claim adjustment expenses (a) | 25,099 |  |  | (2,979) |  |  | 22,120 |
Future policy benefits (a) | 10,151 |  |  | 3,329 |  |  | 13,480 |
Total liabilities | 60,016 |  |  | 350 |  |  | 60,366 |
Retained earnings | 15,144 |  |  | (213) |  |  | 14,931 |
Accumulated other comprehensive income (loss) | (3,284) |  |  | (36) |  |  | (3,320) |
Noncontrolling interests | 880 |  |  | (28) |  |  | 852 |
Total equity | 15,478 |  |  | (277) |  |  | 15,201 |
(a) | In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expense to Future policy benefits. This change was applied retrospectively as of January 1, 2021.
The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statement of Comprehensive Income (Loss) were as follows:
Three Months Ended June 30, 2022 | As Reported |  | Effect of Adoption |  | As Adjusted
(In millions) |  |  |  |  |
Changes in: Net unrealized losses on other investments | $ | (1,346) |  |  | $ | (880) |  |  | $ | (2,226) |
Total unrealized losses on investments | (1,348) |  |  | (880) |  |  | (2,228) |
Impact of changes in discount rates used to measure long-duration contract liabilities |  |  | 1,507 |  |  | 1,507 |
Other comprehensive (loss) | (1,405) |  |  | 627 |  |  | (778) |
Comprehensive (loss) | (1,203) |  |  | 612 |  |  | (591) |
Amounts attributable to noncontrolling interests | 124 |  |  | (65) |  |  | 59 |
Total comprehensive (loss) attributable to Loews Corporation | (1,079) |  |  | 547 |  |  | (532) |
Six Months Ended June 30, 2022 | As Reported |  | Effect of Adoption |  | As Adjusted
(In millions) |  |  |  |  |
Changes in: Net unrealized losses on other investments | $ | (2,957) |  |  | $ | (1,912) |  |  | $ | (4,869) |
Total unrealized losses on investments | (2,963) |  |  | (1,912) |  |  | (4,875) |
Impact of changes in discount rates used to measure long-duration contract liabilities |  |  | 3,142 |  |  | 3,142 |
Other comprehensive (loss) | (3,010) |  |  | 1,230 |  |  | (1,780) |
Comprehensive (loss) | (2,438) |  |  | 1,197 |  |  | (1,241) |
Amounts attributable to noncontrolling interests | 260 |  |  | (124) |  |  | 136 |
Total comprehensive (loss) attributable to Loews Corporation | (2,178) |  |  | 1,073 |  |  | (1,105) |
The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statements of Cash Flows were as follows:
Six Months Ended June 30, 2022 | As Reported |  | Effect of Adoption |  | As Adjusted
(In millions) |  |  |  |  |
Net income | $ | 572 |  |  | $ | (33) |  |  | $ | 539 |
Adjustments to reconcile net income to net cash provided by operating activities, net | 505 |  |  | (8) |  |  | 497 |
Changes in: Insurance reserves | 1,376 |  |  | 41 |  |  | 1,417 |
The effects of adoption of ASU 2018-12 on segment results of operations of CNA were as follows:
Three Months Ended June 30, 2022 | As Reported |  | Effect of Adoption |  | As Adjusted
(In millions) |  |  |  |  |
Insurance claims and policyholders’ benefits (a) | $ | 1,583 |  |  | $ | 18 |  |  | $ | 1,601 |
Income before income tax | 245 |  |  | (18) |  |  | 227 |
Income tax expense | (40) |  |  | 3 |  |  | (37) |
Net income | 205 |  |  | (15) |  |  | 190 |
Amounts attributable to noncontrolling interests | (22) |  |  | 2 |  |  | (20) |
Net income attributable to Loews Corporation | 183 |  |  | (13) |  |  | 170 |
(a) | The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $1 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations.
Six Months Ended June 30, 2022 | As Reported |  | Effect of Adoption |  | As Adjusted
(In millions) |  |  |  |  |
Insurance claims and policyholders’ benefits (a) | $ | 3,038 |  |  | $ | 41 |  |  | $ | 3,079 |
Income before income tax | 623 |  |  | (41) |  |  | 582 |
Income tax expense | (105) |  |  | 8 |  |  | (97) |
Net income | 518 |  |  | (33) |  |  | 485 |
Amounts attributable to noncontrolling interests | (54) |  |  | 4 |  |  | (50) |
Net income attributable to Loews Corporation | 464 |  |  | (29) |  |  | 435 |
(a) | The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $6 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations.

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