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Business Segments (Tables) | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
Significant components of the Company's continuing operations and selected balance sheet items | The Company's results of operations and selected balance sheet items by segment are presented in the following tables.
Year ended December 31, 2021 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  |  | Eliminations |  | Total
Net written premiums | $ | 3,225 |  |  | $ | 3,595 |  |  | $ | 1,101 |  |  | $ | 485 |  |  | $ | — |  |  | $ | (1) |  |  | $ | 8,405 |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 3,076 |  |  | $ | 3,552 |  |  | $ | 1,057 |  |  | $ | 491 |  |  | $ | — |  |  | $ | (1) |  |  | $ | 8,175 |
Net investment income | 497 |  |  | 624 |  |  | 57 |  |  | 966 |  |  | 15 |  |  | — |  |  | 2,159 |
Non-insurance warranty revenue | 1,430 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,430 |
Other revenues | 1 |  |  | 23 |  |  | — |  |  | — |  |  | 6 |  |  | (6) |  |  | 24 |
Total operating revenues | 5,004 |  |  | 4,199 |  |  | 1,114 |  |  | 1,457 |  |  | 21 |  |  | (7) |  |  | 11,788 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 1,787 |  |  | 2,540 |  |  | 652 |  |  | 1,239 |  |  | 109 |  |  | — |  |  | 6,327 |
Policyholders’ dividends | 3 |  |  | 19 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 22 |
Amortization of deferred acquisition costs | 643 |  |  | 594 |  |  | 206 |  |  | — |  |  | — |  |  | — |  |  | 1,443 |
Non-insurance warranty expense | 1,328 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,328 |
Other insurance related expenses | 296 |  |  | 511 |  |  | 144 |  |  | 103 |  |  | 9 |  |  | (1) |  |  | 1,062 |
Other expenses | 47 |  |  | 38 |  |  | (2) |  |  | 10 |  |  | 155 |  |  | (6) |  |  | 242 |
Total claims, benefits and expenses | 4,104 |  |  | 3,702 |  |  | 1,000 |  |  | 1,352 |  |  | 273 |  |  | (7) |  |  | 10,424 |
Core income (loss) before income tax | 900 |  |  | 497 |  |  | 114 |  |  | 105 |  |  | (252) |  |  | — |  |  | 1,364 |
Income tax (expense) benefit on core income (loss) | (196) |  |  | (103) |  |  | (28) |  |  | 21 |  |  | 48 |  |  | — |  |  | (258) |
Core income (loss) | $ | 704 |  |  | $ | 394 |  |  | $ | 86 |  |  | $ | 126 |  |  | $ | (204) |  |  | $ | — |  |  | 1,106 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 120 |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (24) |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | 96 |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,202 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Reinsurance receivables | $ | 1,200 |  |  | $ | 923 |  |  | $ | 381 |  |  | $ | 401 |  |  | $ | 2,579 |  |  | $ | — |  |  | $ | 5,484 |
Insurance receivables | 1,136 |  |  | 1,488 |  |  | 340 |  |  | 6 |  |  | 4 |  |  | — |  |  | 2,974 |
Deferred acquisition costs | 363 |  |  | 278 |  |  | 96 |  |  | — |  |  | — |  |  | — |  |  | 737 |
Goodwill | 117 |  |  | — |  |  | 31 |  |  | — |  |  | — |  |  | — |  |  | 148 |
Deferred non-insurance warranty acquisition expense | 3,476 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,476 |
Insurance reserves |  |  |  |  |  |  |  |  |  |  |  |  |
Claim and claim adjustment expenses | 6,433 |  |  | 8,890 |  |  | 2,280 |  |  | 3,754 |  |  | 2,817 |  |  | — |  |  | 24,174 |
Unearned premiums | 3,001 |  |  | 2,066 |  |  | 585 |  |  | 109 |  |  | — |  |  | — |  |  | 5,761 |
Future policy benefits | — |  |  | — |  |  | — |  |  | 13,236 |  |  | — |  |  | — |  |  | 13,236 |
Deferred non-insurance warranty revenue | 4,503 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,503 |
Year ended December 31, 2020 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  | Eliminations |  | Total
Net written premiums | $ | 3,040 |  |  | $ | 3,565 |  |  | $ | 961 |  |  | $ | 494 |  |  | $ | — |  |  | $ | (1) |  |  | $ | 8,059 |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 2,883 |  |  | $ | 3,323 |  |  | $ | 940 |  |  | $ | 504 |  |  | $ | — |  |  | $ | (1) |  |  | $ | 7,649 |
Net investment income | 449 |  |  | 513 |  |  | 58 |  |  | 851 |  |  | 64 |  |  | — |  |  | 1,935 |
Non-insurance warranty revenue | 1,252 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,252 |
Other revenues | 1 |  |  | 25 |  |  | — |  |  | — |  |  | 5 |  |  | (5) |  |  | 26 |
Total operating revenues | 4,585 |  |  | 3,861 |  |  | 998 |  |  | 1,355 |  |  | 69 |  |  | (6) |  |  | 10,862 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 1,792 |  |  | 2,375 |  |  | 629 |  |  | 1,286 |  |  | 67 |  |  | — |  |  | 6,149 |
Policyholders’ dividends | 3 |  |  | 18 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 21 |
Amortization of deferred acquisition costs | 621 |  |  | 592 |  |  | 197 |  |  | — |  |  | — |  |  | — |  |  | 1,410 |
Non-insurance warranty expense | 1,159 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,159 |
Other insurance related expenses | 280 |  |  | 506 |  |  | 136 |  |  | 109 |  |  | (2) |  |  | (1) |  |  | 1,028 |
Other expenses | 50 |  |  | 34 |  |  | (7) |  |  | 7 |  |  | 141 |  |  | (5) |  |  | 220 |
Total claims, benefits and expenses | 3,905 |  |  | 3,525 |  |  | 955 |  |  | 1,402 |  |  | 206 |  |  | (6) |  |  | 9,987 |
Core income (loss) before income tax | 680 |  |  | 336 |  |  | 43 |  |  | (47) |  |  | (137) |  |  | — |  |  | 875 |
Income tax (expense) benefit on core income (loss) | (145) |  |  | (69) |  |  | (5) |  |  | 56 |  |  | 23 |  |  | — |  |  | (140) |
Core income (loss) | $ | 535 |  |  | $ | 267 |  |  | $ | 38 |  |  | $ | 9 |  |  | $ | (114) |  |  | $ | — |  |  | 735 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (54) |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 9 |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | (45) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 690 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Reinsurance receivables | $ | 886 |  |  | $ | 848 |  |  | $ | 302 |  |  | $ | 390 |  |  | $ | 2,052 |  |  | $ | — |  |  | $ | 4,478 |
Insurance receivables | 1,052 |  |  | 1,254 |  |  | 328 |  |  | 4 |  |  | 2 |  |  | — |  |  | 2,640 |
Deferred acquisition costs | 330 |  |  | 281 |  |  | 97 |  |  | — |  |  | — |  |  | — |  |  | 708 |
Goodwill | 117 |  |  | — |  |  | 31 |  |  | — |  |  | — |  |  | — |  |  | 148 |
Deferred non-insurance warranty acquisition expense | 3,068 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,068 |
Insurance reserves |  |  |  |  |  |  |  |  |  |  |  |  |
Claim and claim adjustment expenses | 5,748 |  |  | 8,250 |  |  | 2,091 |  |  | 3,743 |  |  | 2,874 |  |  | — |  |  | 22,706 |
Unearned premiums | 2,635 |  |  | 1,824 |  |  | 546 |  |  | 114 |  |  | — |  |  | — |  |  | 5,119 |
Future policy benefits | — |  |  | — |  |  | — |  |  | 13,318 |  |  | — |  |  | — |  |  | 13,318 |
Deferred non-insurance warranty revenue | 4,023 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,023 |
Year ended December 31, 2019 | Specialty |  | Commercial |  |  |  | Life & Group |  | Corporate & Other |  |  |  |
(In millions) |  |  | International |  |  |  | Eliminations |  | Total
Net written premiums | $ | 2,848 |  |  | $ | 3,315 |  |  | $ | 971 |  |  | $ | 523 |  |  | $ | 1 |  |  | $ | (2) |  |  | $ | 7,656 |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 2,773 |  |  | $ | 3,162 |  |  | $ | 974 |  |  | $ | 520 |  |  | $ | 1 |  |  | $ | (2) |  |  | $ | 7,428 |
Net investment income | 556 |  |  | 605 |  |  | 63 |  |  | 820 |  |  | 74 |  |  | — |  |  | 2,118 |
Non-insurance warranty revenue | 1,161 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,161 |
Other revenues | 1 |  |  | 29 |  |  | — |  |  | — |  |  | 6 |  |  | (5) |  |  | 31 |
Total operating revenues | 4,491 |  |  | 3,796 |  |  | 1,037 |  |  | 1,340 |  |  | 81 |  |  | (7) |  |  | 10,738 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 1,595 |  |  | 2,086 |  |  | 624 |  |  | 1,416 |  |  | 62 |  |  | — |  |  | 5,783 |
Policyholders’ dividends | 5 |  |  | 18 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |
Amortization of deferred acquisition costs | 610 |  |  | 537 |  |  | 236 |  |  | — |  |  | — |  |  | — |  |  | 1,383 |
Non-insurance warranty expense | 1,082 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,082 |
Other insurance related expenses | 292 |  |  | 505 |  |  | 130 |  |  | 115 |  |  | (2) |  |  | (2) |  |  | 1,038 |
Other expenses | 48 |  |  | 32 |  |  | 8 |  |  | 8 |  |  | 144 |  |  | (5) |  |  | 235 |
Total claims, benefits and expenses | 3,632 |  |  | 3,178 |  |  | 998 |  |  | 1,539 |  |  | 204 |  |  | (7) |  |  | 9,544 |
Core income (loss) before income tax | 859 |  |  | 618 |  |  | 39 |  |  | (199) |  |  | (123) |  |  | — |  |  | 1,194 |
Income tax (expense) benefit on core income (loss) | (188) |  |  | (138) |  |  | (9) |  |  | 90 |  |  | 30 |  |  | — |  |  | (215) |
Core income (loss) | $ | 671 |  |  | $ | 480 |  |  | $ | 30 |  |  | $ | (109) |  |  | $ | (93) |  |  | $ | — |  |  | 979 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 29 |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (8) |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | 21 |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,000 |
Revenues by line of business | The following table presents operating revenues by line of business for each reportable segment.
Years ended December 31 |  |  |  |  |
(In millions) | 2021 |  | 2020 |  | 2019
Specialty |  |  |  |  |
Management & Professional Liability | $ | 2,776 |  |  | $ | 2,577 |  |  | $ | 2,572 |
Surety | 604 |  |  | 596 |  |  | 596 |
Warranty & Alternative Risks | 1,624 |  |  | 1,412 |  |  | 1,323 |
Specialty revenues | 5,004 |  |  | 4,585 |  |  | 4,491 |
Commercial |  |  |  |  |
Middle Market | 1,508 |  |  | 1,444 |  |  | 1,439 |
Construction | 1,322 |  |  | 1,120 |  |  | 1,043 |
Small Business | 558 |  |  | 482 |  |  | 504 |
Other Commercial | 811 |  |  | 815 |  |  | 810 |
Commercial revenues | 4,199 |  |  | 3,861 |  |  | 3,796 |
International |  |  |  |  |
Canada | 344 |  |  | 291 |  |  | 277 |
Europe | 473 |  |  | 389 |  |  | 363 |
Hardy | 297 |  |  | 318 |  |  | 397 |
International revenues | 1,114 |  |  | 998 |  |  | 1,037 |
Life & Group revenues | 1,457 |  |  | 1,355 |  |  | 1,340 |
Corporate & Other revenues | 21 |  |  | 69 |  |  | 81 |
Eliminations | (7) |  |  | (6) |  |  | (7) |
Total operating revenues | 11,788 |  |  | 10,862 |  |  | 10,738 |
Net investment gains (losses) | 120 |  |  | (54) |  |  | 29 |
Total revenues | $ | 11,908 |  |  | $ | 10,808 |  |  | $ | 10,767 |

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