XML 42 R30.htm IDEA: XBRL DOCUMENT
v3.23.2

Business Segments (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2023
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.
Three months ended June 30, 2023 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  |  | Eliminations |  | Total
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 812 |  |  | $ | 1,120 |  |  | $ | 302 |  |  | $ | 113 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,347 |
Net investment income | 142 |  |  | 165 |  |  | 25 |  |  | 229 |  |  | 14 |  |  | — |  |  | 575 |
Non-insurance warranty revenue | 407 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 407 |
Other revenues | — |  |  | 6 |  |  | 1 |  |  | — |  |  | 2 |  |  | (2) |  |  | 7 |
Total operating revenues | 1,361 |  |  | 1,291 |  |  | 328 |  |  | 342 |  |  | 16 |  |  | (2) |  |  | 3,336 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 474 |  |  | 740 |  |  | 185 |  |  | 344 |  |  | 29 |  |  | — |  |  | 1,772 |
Policyholders’ dividends | 2 |  |  | 5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7 |
Amortization of deferred acquisition costs | 168 |  |  | 175 |  |  | 60 |  |  | — |  |  | — |  |  | — |  |  | 403 |
Non-insurance warranty expense | 384 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 384 |
Other insurance related expenses | 94 |  |  | 158 |  |  | 35 |  |  | 31 |  |  | — |  |  | — |  |  | 318 |
Other expenses | 12 |  |  | 10 |  |  | (5) |  |  | — |  |  | 44 |  |  | (2) |  |  | 59 |
Total claims, benefits and expenses | 1,134 |  |  | 1,088 |  |  | 275 |  |  | 375 |  |  | 73 |  |  | (2) |  |  | 2,943 |
Core income (loss) before income tax | 227 |  |  | 203 |  |  | 53 |  |  | (33) |  |  | (57) |  |  | — |  |  | 393 |
Income tax (expense) benefit on core income (loss) | (50) |  |  | (44) |  |  | (15) |  |  | 13 |  |  | 11 |  |  | — |  |  | (85) |
Core income (loss) | $ | 177 |  |  | $ | 159 |  |  | $ | 38 |  |  | $ | (20) |  |  | $ | (46) |  |  | $ | — |  |  | 308 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (32) |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 7 |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | (25) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 283 |
Three months ended June 30, 2022 | Specialty |  | Commercial |  | International |  | Life & Group (1) |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  | Eliminations |  | Total (1)
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 794 |  |  | $ | 974 |  |  | $ | 269 |  |  | $ | 118 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,155 |
Net investment income | 100 |  |  | 113 |  |  | 14 |  |  | 201 |  |  | 4 |  |  | — |  |  | 432 |
Non-insurance warranty revenue | 392 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 392 |
Other revenues | — |  |  | 4 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | (1) |  |  | 6 |
Total operating revenues | 1,286 |  |  | 1,091 |  |  | 284 |  |  | 320 |  |  | 5 |  |  | (1) |  |  | 2,985 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 456 |  |  | 610 |  |  | 160 |  |  | 311 |  |  | 57 |  |  | — |  |  | 1,594 |
Policyholders’ dividends | 2 |  |  | 5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7 |
Amortization of deferred acquisition costs | 162 |  |  | 156 |  |  | 56 |  |  | — |  |  | — |  |  | — |  |  | 374 |
Non-insurance warranty expense | 367 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 367 |
Other insurance related expenses | 81 |  |  | 134 |  |  | 30 |  |  | 29 |  |  | 1 |  |  | — |  |  | 275 |
Other expenses | 12 |  |  | 11 |  |  | 13 |  |  | 2 |  |  | 45 |  |  | (1) |  |  | 82 |
Total claims, benefits and expenses | 1,080 |  |  | 916 |  |  | 259 |  |  | 342 |  |  | 103 |  |  | (1) |  |  | 2,699 |
Core income (loss) before income tax | 206 |  |  | 175 |  |  | 25 |  |  | (22) |  |  | (98) |  |  | — |  |  | 286 |
Income tax (expense) benefit on core income (loss) | (45) |  |  | (37) |  |  | (7) |  |  | 13 |  |  | 20 |  |  | — |  |  | (56) |
Core income (loss) | $ | 161 |  |  | $ | 138 |  |  | $ | 18 |  |  | $ | (9) |  |  | $ | (78) |  |  | $ | — |  |  | 230 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (59) |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 19 |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | (40) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 190 |
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Condensed Consolidated Financial Statements for additional information.
Six months ended June 30, 2023 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  | Eliminations |  | Total
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 1,609 |  |  | $ | 2,166 |  |  | $ | 592 |  |  | $ | 228 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,595 |
Net investment income | 271 |  |  | 314 |  |  | 48 |  |  | 443 |  |  | 24 |  |  | — |  |  | 1,100 |
Non-insurance warranty revenue | 814 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 814 |
Other revenues | — |  |  | 13 |  |  | 1 |  |  | — |  |  | 5 |  |  | (5) |  |  | 14 |
Total operating revenues | 2,694 |  |  | 2,493 |  |  | 641 |  |  | 671 |  |  | 29 |  |  | (5) |  |  | 6,523 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 939 |  |  | 1,428 |  |  | 374 |  |  | 655 |  |  | 22 |  |  | — |  |  | 3,418 |
Policyholders’ dividends | 3 |  |  | 11 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14 |
Amortization of deferred acquisition costs | 333 |  |  | 344 |  |  | 105 |  |  | — |  |  | — |  |  | — |  |  | 782 |
Non-insurance warranty expense | 768 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 768 |
Other insurance related expenses | 180 |  |  | 300 |  |  | 82 |  |  | 60 |  |  | 1 |  |  | — |  |  | 623 |
Other expenses | 26 |  |  | 16 |  |  | (4) |  |  | 1 |  |  | 85 |  |  | (5) |  |  | 119 |
Total claims, benefits and expenses | 2,249 |  |  | 2,099 |  |  | 557 |  |  | 716 |  |  | 108 |  |  | (5) |  |  | 5,724 |
Core income (loss) before income tax | 445 |  |  | 394 |  |  | 84 |  |  | (45) |  |  | (79) |  |  | — |  |  | 799 |
Income tax (expense) benefit on core income (loss) | (97) |  |  | (84) |  |  | (22) |  |  | 22 |  |  | 15 |  |  | — |  |  | (166) |
Core income (loss) | $ | 348 |  |  | $ | 310 |  |  | $ | 62 |  |  | $ | (23) |  |  | $ | (64) |  |  | $ | — |  |  | 633 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (67) |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 14 |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | (53) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 580 |
June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Reinsurance receivables | $ | 1,530 |  |  | $ | 1,153 |  |  | $ | 445 |  |  | $ | 100 |  |  | $ | 2,375 |  |  | $ | — |  |  | $ | 5,603 |
Insurance receivables | 1,034 |  |  | 2,050 |  |  | 462 |  |  | 4 |  |  | 1 |  |  | — |  |  | 3,551 |
Deferred acquisition costs | 395 |  |  | 359 |  |  | 131 |  |  | — |  |  | — |  |  | — |  |  | 885 |
Goodwill | 117 |  |  | — |  |  | 29 |  |  | — |  |  | — |  |  | — |  |  | 146 |
Deferred non-insurance warranty acquisition expense | 3,689 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,689 |
Insurance reserves |  |  |  |  |  |  |  |  |  |  |  |  |
Claim and claim adjustment expenses | 7,183 |  |  | 9,674 |  |  | 2,583 |  |  | 688 |  |  | 2,674 |  |  | — |  |  | 22,802 |
Unearned premiums | 3,194 |  |  | 2,882 |  |  | 790 |  |  | 112 |  |  | — |  |  | — |  |  | 6,978 |
Future policy benefits | — |  |  | — |  |  | — |  |  | 13,666 |  |  | — |  |  | — |  |  | 13,666 |
Deferred non-insurance warranty revenue | 4,735 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,735 |
Six months ended June 30, 2022 | Specialty |  | Commercial |  | International |  | Life & Group (1) |  | Corporate & Other |  |  |  |
(In millions) |  |  |  |  | Eliminations |  | Total (1)
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 1,566 |  |  | $ | 1,878 |  |  | $ | 533 |  |  | $ | 238 |  |  | $ | (1) |  |  | $ | — |  |  | $ | 4,214 |
Net investment income | 203 |  |  | 231 |  |  | 28 |  |  | 413 |  |  | 5 |  |  | — |  |  | 880 |
Non-insurance warranty revenue | 774 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 774 |
Other revenues | 1 |  |  | 12 |  |  | — |  |  | — |  |  | 3 |  |  | (3) |  |  | 13 |
Total operating revenues | 2,544 |  |  | 2,121 |  |  | 561 |  |  | 651 |  |  | 7 |  |  | (3) |  |  | 5,881 |
Claims, benefits and expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Net incurred claims and benefits | 901 |  |  | 1,183 |  |  | 318 |  |  | 615 |  |  | 49 |  |  | — |  |  | 3,066 |
Policyholders’ dividends | 3 |  |  | 10 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13 |
Amortization of deferred acquisition costs | 319 |  |  | 304 |  |  | 95 |  |  | — |  |  | — |  |  | — |  |  | 718 |
Non-insurance warranty expense | 721 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 721 |
Other insurance related expenses | 162 |  |  | 264 |  |  | 77 |  |  | 60 |  |  | 3 |  |  | — |  |  | 566 |
Other expenses | 25 |  |  | 18 |  |  | 14 |  |  | 5 |  |  | 86 |  |  | (3) |  |  | 145 |
Total claims, benefits and expenses | 2,131 |  |  | 1,779 |  |  | 504 |  |  | 680 |  |  | 138 |  |  | (3) |  |  | 5,229 |
Core income (loss) before income tax | 413 |  |  | 342 |  |  | 57 |  |  | (29) |  |  | (131) |  |  | — |  |  | 652 |
Income tax (expense) benefit on core income (loss) | (89) |  |  | (72) |  |  | (13) |  |  | 25 |  |  | 25 |  |  | — |  |  | (124) |
Core income (loss) | $ | 324 |  |  | $ | 270 |  |  | $ | 44 |  |  | $ | (4) |  |  | $ | (106) |  |  | $ | — |  |  | 528 |
Net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | (70) |
Income tax (expense) benefit on net investment gains (losses) |  |  |  |  |  |  |  |  |  |  |  |  | 27 |
Net investment gains (losses), after tax |  |  |  |  |  |  |  |  |  |  |  |  | (43) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 485 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Reinsurance receivables | $ | 1,384 |  |  | $ | 1,062 |  |  | $ | 414 |  |  | $ | 101 |  |  | $ | 2,477 |  |  | $ | — |  |  | $ | 5,438 |
Insurance receivables | 1,082 |  |  | 1,728 |  |  | 369 |  |  | 8 |  |  | — |  |  | — |  |  | 3,187 |
Deferred acquisition costs | 381 |  |  | 321 |  |  | 104 |  |  | — |  |  | — |  |  | — |  |  | 806 |
Goodwill | 117 |  |  | — |  |  | 27 |  |  | — |  |  | — |  |  | — |  |  | 144 |
Deferred non-insurance warranty acquisition expense | 3,671 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,671 |
Insurance reserves |  |  |  |  |  |  |  |  |  |  |  |  |
Claim and claim adjustment expenses | 6,878 |  |  | 9,395 |  |  | 2,403 |  |  | 695 |  |  | 2,749 |  |  | — |  |  | 22,120 |
Unearned premiums | 3,193 |  |  | 2,425 |  |  | 653 |  |  | 103 |  |  | — |  |  | — |  |  | 6,374 |
Future policy benefits | — |  |  | — |  |  | — |  |  | 13,480 |  |  | — |  |  | — |  |  | 13,480 |
Deferred non-insurance warranty revenue | 4,714 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,714 |
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Condensed Consolidated Financial Statements for additional information.
Revenues by line of business | The following table presents operating revenues by line of business for each reportable segment.
Periods ended June 30 | Three Months |  | Six Months
(In millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Specialty |  |  |  |  |  |  |
Management & Professional Liability | $ | 718 |  |  | $ | 680 |  |  | $ | 1,423 |  |  | $ | 1,353 |
Surety | 183 |  |  | 162 |  |  | 351 |  |  | 310 |
Warranty & Alternative Risks | 460 |  |  | 444 |  |  | 920 |  |  | 881 |
Specialty revenues | 1,361 |  |  | 1,286 |  |  | 2,694 |  |  | 2,544 |
Commercial |  |  |  |  |  |  |
Middle Market | 419 |  |  | 374 |  |  | 817 |  |  | 736 |
Construction | 420 |  |  | 350 |  |  | 805 |  |  | 674 |
Small Business | 160 |  |  | 143 |  |  | 310 |  |  | 281 |
Other Commercial | 292 |  |  | 224 |  |  | 561 |  |  | 430 |
Commercial revenues | 1,291 |  |  | 1,091 |  |  | 2,493 |  |  | 2,121 |
International |  |  |  |  |  |  |
Canada | 96 |  |  | 91 |  |  | 189 |  |  | 179 |
Europe | 135 |  |  | 118 |  |  | 262 |  |  | 238 |
Hardy | 97 |  |  | 75 |  |  | 190 |  |  | 144 |
International revenues | 328 |  |  | 284 |  |  | 641 |  |  | 561 |
Life & Group revenues | 342 |  |  | 320 |  |  | 671 |  |  | 651 |
Corporate & Other revenues | 16 |  |  | 5 |  |  | 29 |  |  | 7 |
Eliminations | (2) |  |  | (1) |  |  | (5) |  |  | (3) |
Total operating revenues | 3,336 |  |  | 2,985 |  |  | 6,523 |  |  | 5,881 |
Net investment gains (losses) | (32) |  |  | (59) |  |  | (67) |  |  | (70) |
Total revenues | $ | 3,304 |  |  | $ | 2,926 |  |  | $ | 6,456 |  |  | $ | 5,811 |

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total revenues from reportable segments to the entity's consolidated revenues. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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