XML 38 R24.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Business Segments | 12 Months Ended
--- | ---
Dec. 31, 2021
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company's property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International. These three segments are collectively referred to as Property & Casualty Operations. Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters. Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers. The International segment underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of insurance companies based in the U.K. and Luxembourg and Hardy, the Company's Lloyd's syndicate. The Company's operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other. Life & Group primarily includes the results of the long term care business that is in run-off. Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re, A&EP, a legacy portfolio of EWC policies and certain legacy mass tort reserves. Effective January 1, 2021, and in connection with the ceding of certain legacy reserves under a retroactive reinsurance agreement executed in February 2021, management changed the segment presentation of a legacy portfolio of excess workers’ compensation policies relating to business written in 2007 and prior. This business, which was previously reported as part of the Commercial business segment, is now reported as part of the Corporate & Other business segment. Further information on this retroactive reinsurance agreement is provided in Note E. In addition, a determination was made to change the segment presentation of certain legacy mass tort reserves. Similar to the aforementioned excess workers’ compensation legacy business, these legacy mass tort reserves were previously reported in the Commercial business segment and are now reported as part of the Corporate & Other business segment. These changes were made to better reflect the manner in which the Company is organized for purposes of making operating decisions and assessing performance. Prior period information has been conformed to the new segment presentation. The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements. The Company manages most of its assets on a legal entity basis, while segment operations are generally conducted across legal entities. As such, only Insurance and Reinsurance receivables, Insurance reserves, Deferred acquisition costs, Goodwill and Deferred non-insurance warranty acquisition expense and revenue are readily identifiable for individual segments. Distinct investment portfolios are not maintained for every individual segment; accordingly, allocation of assets to each segment is not performed. Therefore, a significant portion of Net investment income and Net investment gains or losses are allocated primarily based on each segment's net carried insurance reserves, as adjusted. All significant intersegment income and expense have been eliminated. Income taxes have been allocated on the basis of the taxable income of the segments. Approximately 10%, 9% and 9% of the Company's direct written premiums were derived from outside the United States for the years ended December 31, 2021, 2020 and 2019. In the following tables, certain financial measures are presented to provide information used by management to monitor the Company's operating performance. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. The performance of the Company's insurance operations is monitored by management through core income (loss), which is derived from certain income statement amounts. The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk. Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and any cumulative effects of changes in accounting guidance. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of our primary operations. 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 |
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 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration