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Basis of Presentation (Tables)

6 Months Ended

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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- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 270
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-Section 45
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-Publisher FASB
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-Name Accounting Standards Codification
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-Section 45
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482989/270-10-45-13

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