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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CNA Financial Corporation | NYSE:CNA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.18 | -0.40% | 44.40 | 44.58 | 43.83 | 44.49 | 213,187 | 01:00:00 |
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 36-6169860 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
151 N. Franklin | 60606 | ||||||||||
Chicago, | Illinois | (Zip Code) | |||||||||
(Address of principal executive offices) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, Par value $2.50 | "CNA" | New York Stock Exchange | ||||||||||||
Chicago Stock Exchange |
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐ |
Emerging growth company
|
☐ |
Item Number |
Page
Number |
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PART I
|
||||||||
1. | ||||||||
2. | ||||||||
3. | ||||||||
4. | ||||||||
PART II | ||||||||
1. | ||||||||
1A. | ||||||||
2. | ||||||||
6. |
Three months ended March 31 | |||||||||||
(In millions, except per share data) | 2021 | 2020 | |||||||||
Revenues | |||||||||||
Net earned premiums | $ | 1,962 | $ | 1,869 | |||||||
Net investment income | 504 | 329 | |||||||||
Net investment gains (losses) | 57 | (216) | |||||||||
Non-insurance warranty revenue | 338 | 301 | |||||||||
Other revenues | 5 | 8 | |||||||||
Total revenues | 2,866 | 2,291 | |||||||||
Claims, Benefits and Expenses | |||||||||||
Insurance claims and policyholders’ benefits | 1,506 | 1,425 | |||||||||
Amortization of deferred acquisition costs | 359 | 344 | |||||||||
Non-insurance warranty expense | 311 | 281 | |||||||||
Other operating expenses | 284 | 299 | |||||||||
Interest | 28 | 31 | |||||||||
Total claims, benefits and expenses | 2,488 | 2,380 | |||||||||
Income (loss) before income tax | 378 | (89) | |||||||||
Income tax (expense) benefit | (66) | 28 | |||||||||
Net income (loss) | $ | 312 | $ | (61) | |||||||
Basic earnings (loss) per share | $ | 1.15 | $ | (0.23) | |||||||
Diluted earnings (loss) per share | $ | 1.14 | $ | (0.23) | |||||||
Weighted Average Outstanding Common Stock and Common Stock Equivalents | |||||||||||
Basic | 271.9 | 271.5 | |||||||||
Diluted | 272.9 | 271.5 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Comprehensive Loss | |||||||||||
Net income (loss) | $ | 312 | $ | (61) | |||||||
Other Comprehensive Loss, net of tax | |||||||||||
Changes in: | |||||||||||
Net unrealized gains and losses on investments with an allowance for credit losses | — | (11) | |||||||||
Net unrealized gains and losses on other investments | (627) | (1,044) | |||||||||
Net unrealized gains and losses on investments | (627) | (1,055) | |||||||||
Foreign currency translation adjustment | 2 | (77) | |||||||||
Pension and postretirement benefits | 9 | 11 | |||||||||
Other comprehensive loss, net of tax | (616) | (1,121) | |||||||||
Total comprehensive loss | $ | (304) | $ | (1,182) |
(In millions, except share data) | March 31, 2021 (Unaudited) | December 31, 2020 | |||||||||
Assets | |||||||||||
Investments: | |||||||||||
Fixed maturity securities at fair value (amortized cost of $39,291 and $38,953, less allowance for credit loss of $43 and $40)
|
$ | 43,579 | $ | 44,631 | |||||||
Equity securities at fair value (cost of $927 and $941)
|
984 | 992 | |||||||||
Limited partnership investments | 1,654 | 1,619 | |||||||||
Other invested assets | 77 | 76 | |||||||||
Mortgage loans (less allowance for uncollectible receivables of $26 and $26)
|
1,043 | 1,068 | |||||||||
Short term investments | 1,334 | 1,907 | |||||||||
Total investments | 48,671 | 50,293 | |||||||||
Cash | 588 | 419 | |||||||||
Reinsurance receivables (less allowance for uncollectible receivables of $22 and $21)
|
5,111 | 4,457 | |||||||||
Insurance receivables (less allowance for uncollectible receivables of $33 and $33)
|
2,652 | 2,607 | |||||||||
Accrued investment income | 399 | 380 | |||||||||
Deferred acquisition costs | 741 | 708 | |||||||||
Deferred income taxes | 197 | 66 | |||||||||
Property and equipment at cost (less accumulated depreciation of $243 and $231)
|
244 | 252 | |||||||||
Goodwill | 148 | 148 | |||||||||
Deferred non-insurance warranty acquisition expense | 3,149 | 3,068 | |||||||||
Other assets | 1,813 | 1,628 | |||||||||
Total assets | $ | 63,713 | $ | 64,026 | |||||||
Liabilities | |||||||||||
Insurance reserves: | |||||||||||
Claim and claim adjustment expenses | $ | 23,056 | $ | 22,706 | |||||||
Unearned premiums | 5,319 | 5,119 | |||||||||
Future policy benefits | 12,772 | 13,318 | |||||||||
Long term debt | 2,777 | 2,776 | |||||||||
Deferred non-insurance warranty revenue | 4,119 | 4,023 | |||||||||
Other liabilities (includes $130 and $89 due to Loews Corporation)
|
3,581 | 3,377 | |||||||||
Total liabilities | 51,624 | 51,319 | |||||||||
Commitments and contingencies (Notes C and F) | |||||||||||
Stockholders' Equity | |||||||||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,644,861 and 271,391,603 shares outstanding)
|
683 | 683 | |||||||||
Additional paid-in capital | 2,194 | 2,211 | |||||||||
Retained earnings | 9,084 | 9,081 | |||||||||
Accumulated other comprehensive income | 187 | 803 | |||||||||
Treasury stock (1,395,382 and 1,648,640 shares), at cost
|
(59) | (71) | |||||||||
Total stockholders’ equity | 12,089 | 12,707 | |||||||||
Total liabilities and stockholders' equity | $ | 63,713 | $ | 64,026 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Net income (loss) | $ | 312 | $ | (61) | |||||||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||||||||||
Deferred income tax expense (benefit) | 30 | (37) | |||||||||
Trading portfolio activity | (8) | 7 | |||||||||
Net investment (gains) losses | (57) | 216 | |||||||||
Equity method investees | 14 | 98 | |||||||||
Net amortization of investments | (24) | (15) | |||||||||
Depreciation and amortization | 14 | 16 | |||||||||
Changes in: | |||||||||||
Receivables, net | (700) | (229) | |||||||||
Accrued investment income | (19) | (8) | |||||||||
Deferred acquisition costs | (32) | (27) | |||||||||
Insurance reserves | 605 | 510 | |||||||||
Other, net | (53) | (258) | |||||||||
Net cash flows provided by operating activities | 82 | 212 | |||||||||
Cash Flows from Investing Activities | |||||||||||
Dispositions: | |||||||||||
Fixed maturity securities - sales | 907 | 823 | |||||||||
Fixed maturity securities - maturities, calls and redemptions | 1,084 | 799 | |||||||||
Equity securities | 119 | 98 | |||||||||
Limited partnerships | 49 | 204 | |||||||||
Mortgage loans | 42 | 15 | |||||||||
Purchases: | |||||||||||
Fixed maturity securities | (2,203) | (1,818) | |||||||||
Equity securities | (81) | (220) | |||||||||
Limited partnerships | (61) | (32) | |||||||||
Mortgage loans | (16) | (61) | |||||||||
Change in other investments | (2) | (6) | |||||||||
Change in short term investments | 573 | 1,267 | |||||||||
Purchases of property and equipment | (3) | (3) | |||||||||
Other, net | — | 21 | |||||||||
Net cash flows provided by investing activities | 408 | 1,087 | |||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid to common stockholders | (310) | (649) | |||||||||
Purchase of treasury stock | (3) | (18) | |||||||||
Other, net | (8) | (8) | |||||||||
Net cash flows used by financing activities | (321) | (675) | |||||||||
Effect of foreign exchange rate changes on cash | — | (9) | |||||||||
Net change in cash | 169 | 615 | |||||||||
Cash, beginning of year | 419 | 242 | |||||||||
Cash, end of period | $ | 588 | $ | 857 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Common Stock | |||||||||||
Balance, beginning of period | $ | 683 | $ | 683 | |||||||
Balance, end of period | 683 | 683 | |||||||||
Additional Paid-in Capital | |||||||||||
Balance, beginning of period | 2,211 | 2,203 | |||||||||
Stock-based compensation | (17) | (16) | |||||||||
Balance, end of period | 2,194 | 2,187 | |||||||||
Retained Earnings | |||||||||||
Balance, beginning of period, as previously reported | 9,081 | 9,348 | |||||||||
Cumulative effect adjustments from changes in accounting guidance, net of tax | — | (5) | |||||||||
Balance, beginning of period, as adjusted | 9,081 | 9,343 | |||||||||
Dividends to common stockholders ($1.13 and $2.37 per share)
|
(309) | (648) | |||||||||
Net income (loss) | 312 | (61) | |||||||||
Balance, end of period | 9,084 | 8,634 | |||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance, beginning of period | 803 | 51 | |||||||||
Other comprehensive loss | (616) | (1,121) | |||||||||
Balance, end of period | 187 | (1,070) | |||||||||
Treasury Stock | |||||||||||
Balance, beginning of period | (71) | (70) | |||||||||
Stock-based compensation | 15 | 16 | |||||||||
Purchase of treasury stock | (3) | (18) | |||||||||
Balance, end of period | (59) | (72) | |||||||||
Total stockholders' equity | $ | 12,089 | $ | 10,362 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Fixed maturity securities | $ | 428 | $ | 438 | |||||||
Equity securities | 29 | (44) | |||||||||
Limited partnership investments | 43 | (70) | |||||||||
Mortgage loans | 14 | 14 | |||||||||
Short term investments | — | 7 | |||||||||
Trading portfolio | 5 | 1 | |||||||||
Other | 2 | — | |||||||||
Gross investment income | 521 | 346 | |||||||||
Investment expense | (17) | (17) | |||||||||
Net investment income | $ | 504 | $ | 329 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Net investment gains (losses): | |||||||||||
Fixed maturity securities: | |||||||||||
Gross gains | $ | 58 | $ | 29 | |||||||
Gross losses | (20) | (104) | |||||||||
Net investment gains (losses) on fixed maturity securities | 38 | (75) | |||||||||
Equity securities | 2 | (133) | |||||||||
Derivatives | 17 | 5 | |||||||||
Mortgage loans | — | (13) | |||||||||
Net investment gains (losses) | $ | 57 | $ | (216) |
(In millions) | Corporate and other bonds | Asset-backed | Total | ||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of January 1, 2021 | $ | 23 | $ | 17 | $ | 40 | |||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Securities for which credit losses were not previously recorded | 14 | — | 14 | ||||||||||||||
Available-for-sale securities accounted for as PCD assets | 2 | — | 2 | ||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Securities sold during the period (realized) | 6 | — | 6 | ||||||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | — | — | — | ||||||||||||||
Write-offs charged against the allowance | — | — | — | ||||||||||||||
Recoveries of amounts previously written off | — | — | — | ||||||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (6) | (1) | (7) | ||||||||||||||
Balance as of March 31, 2021
|
$ | 27 | $ | 16 | $ | 43 |
(In millions) | Corporate and other bonds | Asset-backed | Total | ||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of January 1, 2020 | $ | — | $ | — | $ | — | |||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Impact of adopting ASC 326 | 6 | — | 6 | ||||||||||||||
Securities for which credit losses were not previously recorded | 48 | — | 48 | ||||||||||||||
Available-for-sale securities accounted for as PCD assets | 1 | — | 1 | ||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Securities sold during the period (realized) | 5 | — | 5 | ||||||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 1 | — | 1 | ||||||||||||||
Write-offs charged against the allowance | — | — | — | ||||||||||||||
Recoveries of amounts previously written off | — | — | — | ||||||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | — | — | — | ||||||||||||||
Balance as of March 31, 2020
|
$ | 49 | $ | — | $ | 49 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Fixed maturity securities available-for-sale: | |||||||||||
Corporate and other bonds | $ | 7 | $ | 91 | |||||||
Asset-backed | (1) | 1 | |||||||||
Impairment losses recognized in earnings | $ | 6 | $ | 92 |
March 31, 2021 |
Cost or
Amortized Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Allowance
for Credit Losses |
Estimated
Fair Value |
||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||
Corporate and other bonds | $ | 21,110 | $ | 2,644 | $ | 71 | $ | 27 | $ | 23,656 | |||||||||||||||||||
States, municipalities and political subdivisions | 10,041 | 1,590 | 31 | — | 11,600 | ||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 3,215 | 108 | 40 | — | 3,283 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,952 | 76 | 24 | 16 | 1,988 | ||||||||||||||||||||||||
Other asset-backed | 2,281 | 71 | 7 | — | 2,345 | ||||||||||||||||||||||||
Total asset-backed | 7,448 | 255 | 71 | 16 | 7,616 | ||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 138 | 1 | 7 | — | 132 | ||||||||||||||||||||||||
Foreign government | 508 | 23 | 2 | — | 529 | ||||||||||||||||||||||||
Redeemable preferred stock | 12 | — | — | — | 12 | ||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | 39,257 | 4,513 | 182 | 43 | 43,545 | ||||||||||||||||||||||||
Total fixed maturity securities trading | 34 | — | — | — | 34 | ||||||||||||||||||||||||
Total fixed maturity securities | $ | 39,291 | $ | 4,513 | $ | 182 | $ | 43 | $ | 43,579 |
December 31, 2020 |
Cost or
Amortized Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Allowance
for Credit Losses |
Estimated
Fair Value |
||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||
Corporate and other bonds | $ | 20,792 | $ | 3,578 | $ | 22 | $ | 23 | $ | 24,325 | |||||||||||||||||||
States, municipalities and political subdivisions | 9,729 | 1,863 | — | — | 11,592 | ||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 3,442 | 146 | 1 | — | 3,587 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,933 | 93 | 42 | 17 | 1,967 | ||||||||||||||||||||||||
Other asset-backed | 2,179 | 81 | 9 | — | 2,251 | ||||||||||||||||||||||||
Total asset-backed | 7,554 | 320 | 52 | 17 | 7,805 | ||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 339 | 2 | 3 | — | 338 | ||||||||||||||||||||||||
Foreign government | 512 | 32 | — | — | 544 | ||||||||||||||||||||||||
Redeemable preferred stock | — | — | — | — | — | ||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | 38,926 | 5,795 | 77 | 40 | 44,604 | ||||||||||||||||||||||||
Total fixed maturity securities trading | 27 | — | — | — | 27 | ||||||||||||||||||||||||
Total fixed maturity securities | $ | 38,953 | $ | 5,795 | $ | 77 | $ | 40 | $ | 44,631 |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
March 31, 2021 |
Estimated
Fair Value |
Gross
Unrealized Losses |
Estimated
Fair Value |
Gross
Unrealized Losses |
Estimated
Fair Value |
Gross
Unrealized Losses |
|||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 1,868 | $ | 66 | $ | 82 | $ | 5 | $ | 1,950 | $ | 71 | |||||||||||||||||||||||
States, municipalities and political subdivisions | 866 | 31 | — | — | 866 | 31 | |||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 1,584 | 40 | 12 | — | 1,596 | 40 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 320 | 9 | 285 | 15 | 605 | 24 | |||||||||||||||||||||||||||||
Other asset-backed | 337 | 3 | 97 | 4 | 434 | 7 | |||||||||||||||||||||||||||||
Total asset-backed | 2,241 | 52 | 394 | 19 | 2,635 | 71 | |||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 65 | 7 | — | — | 65 | 7 | |||||||||||||||||||||||||||||
Foreign government | 45 | 2 | — | — | 45 | 2 | |||||||||||||||||||||||||||||
Total | $ | 5,085 | $ | 158 | $ | 476 | $ | 24 | $ | 5,561 | $ | 182 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
December 31, 2020 |
Estimated
Fair Value |
Gross
Unrealized Losses |
Estimated
Fair Value |
Gross
Unrealized Losses |
Estimated
Fair Value |
Gross
Unrealized Losses |
|||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 609 | $ | 21 | $ | 12 | $ | 1 | $ | 621 | $ | 22 | |||||||||||||||||||||||
States, municipalities and political subdivisions | 33 | — | — | — | 33 | — | |||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 71 | 1 | 11 | — | 82 | 1 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 533 | 40 | 28 | 2 | 561 | 42 | |||||||||||||||||||||||||||||
Other asset-backed | 344 | 9 | 13 | — | 357 | 9 | |||||||||||||||||||||||||||||
Total asset-backed | 948 | 50 | 52 | 2 | 1,000 | 52 | |||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 63 | 3 | — | — | 63 | 3 | |||||||||||||||||||||||||||||
Foreign government | 13 | — | — | — | 13 | — | |||||||||||||||||||||||||||||
Total | $ | 1,666 | $ | 74 | $ | 64 | $ | 3 | $ | 1,730 | $ | 77 |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(In millions) |
Cost or
Amortized Cost |
Estimated
Fair Value |
Cost or
Amortized Cost |
Estimated
Fair Value |
|||||||||||||||||||
Due in one year or less | $ | 1,468 | $ | 1,473 | $ | 1,456 | $ | 1,458 | |||||||||||||||
Due after one year through five years | 10,837 | 11,583 | 12,304 | 13,098 | |||||||||||||||||||
Due after five years through ten years | 13,640 | 14,685 | 12,319 | 13,878 | |||||||||||||||||||
Due after ten years | 13,312 | 15,804 | 12,847 | 16,170 | |||||||||||||||||||
Total | $ | 39,257 | $ | 43,545 | $ | 38,926 | $ | 44,604 |
March 31, 2021 |
Mortgage Loans Amortized Cost Basis by Origination Year (1)
|
||||||||||||||||||||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | ||||||||||||||||||||||||||||||||||
DSCR ≥1.6x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | $ | — | $ | 75 | $ | 32 | $ | 36 | $ | 114 | $ | 187 | $ | 444 | |||||||||||||||||||||||||||
LTV 55% to 65% | — | 14 | 20 | 14 | 15 | 11 | 74 | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | 5 | — | 5 | — | — | 24 | 34 | ||||||||||||||||||||||||||||||||||
DSCR 1.2x - 1.6x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | — | — | 16 | — | 5 | 77 | 98 | ||||||||||||||||||||||||||||||||||
LTV 55% to 65% | — | 20 | 40 | 53 | 27 | — | 140 | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | 10 | 52 | 44 | — | 9 | 12 | 127 | ||||||||||||||||||||||||||||||||||
DSCR ≤1.2 | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | — | — | 50 | — | 8 | 10 | 68 | ||||||||||||||||||||||||||||||||||
LTV 55% to 65% | — | — | 48 | — | — | — | 48 | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | — | — | 29 | — | — | 7 | 36 | ||||||||||||||||||||||||||||||||||
Total | $ | 15 | $ | 161 | $ | 284 | $ | 103 | $ | 178 | $ | 328 | $ | 1,069 |
March 31, 2021 |
Total
Assets/Liabilities at Fair Value |
||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate bonds and other | $ | 152 | $ | 23,444 | $ | 767 | $ | 24,363 | |||||||||||||||
States, municipalities and political subdivisions | — | 11,556 | 44 | 11,600 | |||||||||||||||||||
Asset-backed | — | 7,301 | 315 | 7,616 | |||||||||||||||||||
Total fixed maturity securities | 152 | 42,301 | 1,126 | 43,579 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Common stock | 177 | — | 21 | 198 | |||||||||||||||||||
Non-redeemable preferred stock | 67 | 711 | 8 | 786 | |||||||||||||||||||
Total equity securities | 244 | 711 | 29 | 984 | |||||||||||||||||||
Short term and other | 1,178 | 25 | — | 1,203 | |||||||||||||||||||
Total assets | $ | 1,574 | $ | 43,037 | $ | 1,155 | $ | 45,766 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Other liabilities | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||
Total liabilities | $ | — | $ | 2 | $ | — | $ | 2 |
December 31, 2020 |
Total
Assets/Liabilities at Fair Value |
||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate bonds and other | $ | 355 | $ | 24,109 | $ | 770 | $ | 25,234 | |||||||||||||||
States, municipalities and political subdivisions | — | 11,546 | 46 | 11,592 | |||||||||||||||||||
Asset-backed | — | 7,497 | 308 | 7,805 | |||||||||||||||||||
Total fixed maturity securities | 355 | 43,152 | 1,124 | 44,631 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Common stock | 175 | — | 20 | 195 | |||||||||||||||||||
Non-redeemable preferred stock | 68 | 722 | 7 | 797 | |||||||||||||||||||
Total equity securities | 243 | 722 | 27 | 992 | |||||||||||||||||||
Short term and other | 1,761 | 28 | — | 1,789 | |||||||||||||||||||
Total assets | $ | 2,359 | $ | 43,902 | $ | 1,151 | $ | 47,412 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Other liabilities | $ | — | $ | 19 | $ | — | $ | 19 | |||||||||||||||
Total liabilities | $ | — | $ | 19 | $ | — | $ | 19 |
Level 3
(In millions)
|
Corporate bonds and other | States, municipalities and political subdivisions | Asset-backed | Equity securities | Total | ||||||||||||||||||||||||
Balance as of January 1, 2021 | $ | 770 | $ | 46 | $ | 308 | $ | 27 | $ | 1,151 | |||||||||||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||||||||||||||
Reported in Net investment gains (losses) | (13) | — | — | 1 | (12) | ||||||||||||||||||||||||
Reported in Net investment income | — | — | 2 | 1 | 3 | ||||||||||||||||||||||||
Reported in Other comprehensive income (loss) | (40) | (2) | (9) | — | (51) | ||||||||||||||||||||||||
Total realized and unrealized investment gains (losses) | (53) | (2) | (7) | 2 | (60) | ||||||||||||||||||||||||
Purchases | 42 | — | 30 | — | 72 | ||||||||||||||||||||||||
Sales | — | — | — | — | — | ||||||||||||||||||||||||
Settlements | (2) | — | (17) | — | (19) | ||||||||||||||||||||||||
Transfers into Level 3 | 10 | — | 9 | — | 19 | ||||||||||||||||||||||||
Transfers out of Level 3 | — | — | (8) | — | (8) | ||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | 767 | $ | 44 | $ | 315 | $ | 29 | $ | 1,155 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2021 recognized in Net income (loss) in the period | $ | — | $ | — | $ | — | $ | 2 | $ | 2 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2021 recognized in Other comprehensive income (loss) in the period | (40) | (2) | (9) | — | (51) |
Level 3
(In millions)
|
Corporate bonds and other | States, municipalities and political subdivisions | Asset-backed | Equity securities | Total | ||||||||||||||||||||||||
Balance as of January 1, 2020 | $ | 468 | $ | — | $ | 165 | $ | 18 | $ | 651 | |||||||||||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||||||||||||||
Reported in Net investment gains (losses) | — | — | — | — | — | ||||||||||||||||||||||||
Reported in Net investment income | — | — | — | (3) | (3) | ||||||||||||||||||||||||
Reported in Other comprehensive income (loss) | (37) | — | (9) | — | (46) | ||||||||||||||||||||||||
Total realized and unrealized investment gains (losses) | (37) | — | (9) | (3) | (49) | ||||||||||||||||||||||||
Purchases | 67 | — | 45 | — | 112 | ||||||||||||||||||||||||
Sales | — | — | — | — | — | ||||||||||||||||||||||||
Settlements | (2) | — | (3) | — | (5) | ||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||||||||||
Transfers out of Level 3 | — | — | (1) | — | (1) | ||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | 496 | $ | — | $ | 197 | $ | 15 | $ | 708 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period | $ | — | $ | — | $ | — | $ | (3) | $ | (3) | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period | (35) | — | (9) | — | (44) |
March 31, 2021 |
Estimated Fair Value
(In millions) |
Valuation Technique(s) | Unobservable Input(s) |
Range
(Weighted Average) |
|||||||||||||||||||
Fixed maturity securities | $ | 936 | Discounted cash flow | Credit spread |
1% - 8% (2%)
|
December 31, 2020 |
Estimated Fair Value
(In millions) |
Valuation Technique(s) | Unobservable Input(s) |
Range
(Weighted Average) |
|||||||||||||||||||
Fixed maturity securities | $ | 966 | Discounted cash flow | Credit spread |
1% - 8% (3%)
|
March 31, 2021 |
Carrying
Amount |
Estimated Fair Value | |||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage loans | $ | 1,043 | $ | — | $ | — | $ | 1,107 | $ | 1,107 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long term debt | $ | 2,777 | $ | — | $ | 3,016 | $ | — | $ | 3,016 |
December 31, 2020 |
Carrying
Amount |
Estimated Fair Value | |||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage loans | $ | 1,068 | $ | — | $ | — | $ | 1,151 | $ | 1,151 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long term debt | $ | 2,776 | $ | — | $ | 3,148 | $ | — | $ | 3,148 |
For the three months ended March 31, 2021
|
|||||||||||
(In millions) | 2021 | 2020 | |||||||||
Reserves, beginning of year: | |||||||||||
Gross | $ | 22,706 | $ | 21,720 | |||||||
Ceded | 4,005 | 3,835 | |||||||||
Net reserves, beginning of year | 18,701 | 17,885 | |||||||||
Reduction of net reserves due to Excess Workers' Compensation Loss Portfolio Transfer | (632) | — | |||||||||
Net incurred claim and claim adjustment expenses: | |||||||||||
Provision for insured events of current year | 1,474 | 1,355 | |||||||||
Increase (decrease) in provision for insured events of prior years | (54) | (8) | |||||||||
Amortization of discount | 50 | 51 | |||||||||
Total net incurred (1)
|
1,470 | 1,398 | |||||||||
Net payments attributable to: | |||||||||||
Current year events | (85) | (72) | |||||||||
Prior year events | (1,067) | (1,218) | |||||||||
Total net payments | (1,152) | (1,290) | |||||||||
Foreign currency translation adjustment and other | (32) | (88) | |||||||||
Net reserves, end of period | 18,355 | 17,905 | |||||||||
Ceded reserves, end of period | 4,701 | 3,967 | |||||||||
Gross reserves, end of period | $ | 23,056 | $ | 21,872 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Specialty | $ | (15) | $ | (11) | |||||||
Commercial | — | (4) | |||||||||
International | — | — | |||||||||
Corporate & Other | — | — | |||||||||
Total pretax (favorable) unfavorable development | $ | (15) | $ | (15) |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Medical Professional Liability | $ | 8 | $ | 10 | |||||||
Other Professional Liability and Management Liability | — | 3 | |||||||||
Surety | (15) | (30) | |||||||||
Warranty | (8) | — | |||||||||
Other | — | 6 | |||||||||
Total pretax (favorable) unfavorable development | $ | (15) | $ | (11) |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Commercial Auto | $ | — | $ | 9 | |||||||
General Liability | — | — | |||||||||
Workers' Compensation | — | (13) | |||||||||
Property and Other | — | — | |||||||||
Total pretax (favorable) unfavorable development | $ | — | $ | (4) |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Net periodic pension cost (benefit) | |||||||||||
Interest cost on projected benefit obligation | $ | 15 | $ | 20 | |||||||
Expected return on plan assets | (38) | (39) | |||||||||
Amortization of net actuarial (gain) loss | 12 | 11 | |||||||||
Settlement loss | — | 1 | |||||||||
Total net periodic pension cost (benefit) | $ | (11) | $ | (7) |
(In millions) | Net unrealized gains (losses) on investments with an allowance for credit losses | Net unrealized gains (losses) on other investments | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||||||||||||
Balance as of January 1, 2021 | $ | — | $ | 1,745 | $ | (848) | $ | (94) | $ | 803 | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (3) | (593) | — | 2 | (594) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $1, $(8), $2, $— and $(5)
|
(3) | 34 | (9) | — | 22 | ||||||||||||||||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $—, $162, $(2), $— and $160
|
— | (627) | 9 | 2 | (616) | ||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | — | $ | 1,118 | $ | (839) | $ | (92) | $ | 187 |
(In millions) | Net unrealized gains (losses) on investments with an allowance for credit losses | Net unrealized gains (losses) on other investments | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||||||||||||
Balance as of January 1, 2020 | $ | — | $ | 1,025 | $ | (833) | $ | (141) | $ | 51 | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (48) | (1,066) | 1 | (77) | (1,190) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $10, $6, $3, $— and $19
|
(37) | (22) | (10) | — | (69) | ||||||||||||||||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $3, $281, $(3), $— and $281
|
(11) | (1,044) | 11 | (77) | (1,121) | ||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | (11) | $ | (19) | $ | (822) | $ | (218) | $ | (1,070) |
Component of AOCI | Consolidated Statements of Operations Line Item Affected by Reclassifications | |||||||
Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments | Net investment gains (losses) | |||||||
Pension and postretirement benefits | Other operating expenses and Insurance claims and policyholders' benefits |
Three months ended March 31, 2021 |
Specialty |
Commercial |
International |
Life &
Group |
Corporate
& Other |
||||||||||||||||||||||||||||||||||||
(In millions) | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 735 | $ | 855 | $ | 252 | $ | 120 | $ | — | $ | — | $ | 1,962 | |||||||||||||||||||||||||||
Net investment income | 117 | 148 | 14 | 219 | 6 | — | 504 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty revenue | 338 | — | — | — | — | — | 338 | ||||||||||||||||||||||||||||||||||
Other revenues | — | 5 | — | 1 | 1 | (2) | 5 | ||||||||||||||||||||||||||||||||||
Total operating revenues | 1,190 | 1,008 | 266 | 340 | 7 | (2) | 2,809 | ||||||||||||||||||||||||||||||||||
Claims, benefits and expenses | |||||||||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 427 | 639 | 155 | 281 | (2) | — | 1,500 | ||||||||||||||||||||||||||||||||||
Policyholders’ dividends | 1 | 5 | — | — | — | — | 6 | ||||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 154 | 153 | 52 | — | — | — | 359 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty expense | 311 | — | — | — | — | — | 311 | ||||||||||||||||||||||||||||||||||
Other insurance related expenses | 70 | 115 | 35 | 25 | 10 | — | 255 | ||||||||||||||||||||||||||||||||||
Other expenses | 11 | 9 | (5) | 2 | 42 | (2) | 57 | ||||||||||||||||||||||||||||||||||
Total claims, benefits and expenses | 974 | 921 | 237 | 308 | 50 | (2) | 2,488 | ||||||||||||||||||||||||||||||||||
Core income (loss) before income tax | 216 | 87 | 29 | 32 | (43) | — | 321 | ||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (46) | (18) | (5) | 4 | 7 | — | (58) | ||||||||||||||||||||||||||||||||||
Core income (loss) | $ | 170 | $ | 69 | $ | 24 | $ | 36 | $ | (36) | $ | — | 263 | ||||||||||||||||||||||||||||
Net investment gains (losses) | 57 | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | (8) | ||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses), after tax | 49 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 312 |
March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Reinsurance receivables | $ | 957 | $ | 859 | $ | 300 | $ | 389 | $ | 2,628 | $ | — | $ | 5,133 | |||||||||||||||||||||||||||
Insurance receivables | 1,004 | 1,322 | 357 | 2 | — | — | 2,685 | ||||||||||||||||||||||||||||||||||
Deferred acquisition costs | 340 | 299 | 102 | — | — | — | 741 | ||||||||||||||||||||||||||||||||||
Goodwill | 117 | — | 31 | — | — | — | 148 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty acquisition expense | 3,149 | — | — | — | — | — | 3,149 | ||||||||||||||||||||||||||||||||||
Insurance reserves | |||||||||||||||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 5,916 | 8,449 | 2,142 | 3,726 | 2,823 | — | 23,056 | ||||||||||||||||||||||||||||||||||
Unearned premiums | 2,666 | 1,930 | 588 | 135 | — | — | 5,319 | ||||||||||||||||||||||||||||||||||
Future policy benefits | — | — | — | 12,772 | — | — | 12,772 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty revenue | 4,119 | — | — | — | — | — | 4,119 |
Three months ended March 31, 2020 |
Specialty |
Commercial |
International |
Life &
Group |
Corporate
& Other |
||||||||||||||||||||||||||||||||||||
(In millions) | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 685 | $ | 818 | $ | 239 | $ | 127 | $ | — | $ | — | $ | 1,869 | |||||||||||||||||||||||||||
Net investment income | 56 | 42 | 15 | 208 | 8 | — | 329 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty revenue | 301 | — | — | — | — | — | 301 | ||||||||||||||||||||||||||||||||||
Other revenues | 1 | 8 | — | — | 1 | (2) | 8 | ||||||||||||||||||||||||||||||||||
Total operating revenues | 1,043 | 868 | 254 | 335 | 9 | (2) | 2,507 | ||||||||||||||||||||||||||||||||||
Claims, benefits and expenses | |||||||||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 405 | 555 | 154 | 316 | (11) | — | 1,419 | ||||||||||||||||||||||||||||||||||
Policyholders’ dividends | 1 | 5 | — | — | — | — | 6 | ||||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 151 | 144 | 49 | — | — | — | 344 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty expense | 281 | — | — | — | — | — | 281 | ||||||||||||||||||||||||||||||||||
Other insurance related expenses | 69 | 127 | 36 | 26 | — | — | 258 | ||||||||||||||||||||||||||||||||||
Other expenses | 13 | 6 | 13 | 3 | 39 | (2) | 72 | ||||||||||||||||||||||||||||||||||
Total claims, benefits and expenses | 920 | 837 | 252 | 345 | 28 | (2) | 2,380 | ||||||||||||||||||||||||||||||||||
Core income (loss) before income tax | 123 | 31 | 2 | (10) | (19) | — | 127 | ||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (27) | (8) | — | 14 | 2 | — | (19) | ||||||||||||||||||||||||||||||||||
Core income (loss) | $ | 96 | $ | 23 | $ | 2 | $ | 4 | $ | (17) | $ | — | 108 | ||||||||||||||||||||||||||||
Net investment gains (losses) | (216) | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | 47 | ||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses), after tax | (169) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (61) |
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 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Specialty | |||||||||||
Management & Professional Liability | $ | 667 | $ | 568 | |||||||
Surety | 142 | 138 | |||||||||
Warranty & Alternative Risks | 381 | 337 | |||||||||
Specialty revenues | 1,190 | 1,043 | |||||||||
Commercial | |||||||||||
Middle Market | 375 | 335 | |||||||||
Construction | 309 | 250 | |||||||||
Small Business | 126 | 112 | |||||||||
Other Commercial | 198 | 171 | |||||||||
Commercial revenues | 1,008 | 868 | |||||||||
International | |||||||||||
Canada | 79 | 73 | |||||||||
Europe | 111 | 92 | |||||||||
Hardy | 76 | 89 | |||||||||
International revenues | 266 | 254 | |||||||||
Life & Group revenues | 340 | 335 | |||||||||
Corporate & Other revenues | 7 | 9 | |||||||||
Eliminations | (2) | (2) | |||||||||
Total operating revenues | 2,809 | 2,507 | |||||||||
Net investment gains (losses) | 57 | (216) | |||||||||
Total revenues | $ | 2,866 | $ | 2,291 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Operating Revenues | |||||||||||
Net earned premiums | $ | 1,962 | $ | 1,869 | |||||||
Net investment income | 504 | 329 | |||||||||
Non-insurance warranty revenue | 338 | 301 | |||||||||
Other revenues | 5 | 8 | |||||||||
Total operating revenues | 2,809 | 2,507 | |||||||||
Claims, Benefits and Expenses | |||||||||||
Net incurred claims and benefits | 1,500 | 1,419 | |||||||||
Policyholders' dividends | 6 | 6 | |||||||||
Amortization of deferred acquisition costs | 359 | 344 | |||||||||
Non-insurance warranty expense | 311 | 281 | |||||||||
Other insurance related expenses | 255 | 258 | |||||||||
Other expenses | 57 | 72 | |||||||||
Total claims, benefits and expenses | 2,488 | 2,380 | |||||||||
Core income before income tax | 321 | 127 | |||||||||
Income tax expense on core income | (58) | (19) | |||||||||
Core income | 263 | 108 | |||||||||
Net investment gains (losses) | 57 | (216) | |||||||||
Income tax (expense) benefit on net investment gains (losses) | (8) | 47 | |||||||||
Net investment gains (losses), after tax | 49 | (169) | |||||||||
Net income (loss) | $ | 312 | $ | (61) |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2021 | 2020 | |||||||||
Gross written premiums | $ | 1,794 | $ | 1,714 | |||||||
Gross written premiums excluding third party captives | 816 | 741 | |||||||||
Net written premiums | 742 | 694 | |||||||||
Net earned premiums | 735 | 685 | |||||||||
Net investment income | 117 | 56 | |||||||||
Core income | 170 | 96 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 59.4 | % | 59.5 | % | |||||||
Effect of catastrophe impacts | 0.7 | 1.1 | |||||||||
Effect of development-related items | (2.1) | (1.5) | |||||||||
Loss ratio | 58.0 | 59.1 | |||||||||
Expense ratio | 30.6 | 32.0 | |||||||||
Dividend ratio | 0.2 | 0.2 | |||||||||
Combined ratio | 88.8 | % | 91.3 | % | |||||||
Combined ratio excluding catastrophes and development | 90.2 | % | 91.7 | % | |||||||
Rate | 10 | % | 10 | % | |||||||
Renewal premium change | 9 | 11 | |||||||||
Retention | 86 | 83 | |||||||||
New business | $ | 103 | $ | 74 |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Gross case reserves | $ | 1,575 | $ | 1,567 | |||||||
Gross IBNR reserves | 4,341 | 4,181 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 5,916 | $ | 5,748 | |||||||
Net case reserves | $ | 1,418 | $ | 1,410 | |||||||
Net IBNR reserves | 3,577 | 3,488 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 4,995 | $ | 4,898 |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2021 | 2020 | |||||||||
Gross written premiums | $ | 1,113 | $ | 1,062 | |||||||
Gross written premiums excluding third party captives | 1,111 | 1,059 | |||||||||
Net written premiums | 960 | 950 | |||||||||
Net earned premiums | 855 | 818 | |||||||||
Net investment income | 148 | 42 | |||||||||
Core income | 69 | 23 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 60.8 | % | 60.8 | % | |||||||
Effect of catastrophe impacts | 13.4 | 7.0 | |||||||||
Effect of development-related items | 0.5 | — | |||||||||
Loss ratio | 74.7 | 67.8 | |||||||||
Expense ratio | 31.4 | 33.2 | |||||||||
Dividend ratio | 0.6 | 0.6 | |||||||||
Combined ratio | 106.7 | % | 101.6 | % | |||||||
Combined ratio excluding catastrophes and development | 92.8 | % | 94.6 | % | |||||||
Rate | 10 | % | 8 | % | |||||||
Renewal premium change | 8 | 9 | |||||||||
Retention | 84 | 86 | |||||||||
New business | $ | 211 | $ | 198 |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Gross case reserves | $ | 3,238 | $ | 3,215 | |||||||
Gross IBNR reserves | 5,211 | 5,035 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 8,449 | $ | 8,250 | |||||||
Net case reserves | $ | 2,925 | $ | 2,885 | |||||||
Net IBNR reserves | 4,732 | 4,590 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 7,657 | $ | 7,475 |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2021 | 2020 | |||||||||
Gross written premiums | $ | 343 | $ | 307 | |||||||
Net written premiums | 235 | 219 | |||||||||
Net earned premiums | 252 | 239 | |||||||||
Net investment income | 14 | 15 | |||||||||
Core income | 24 | 2 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 59.6 | % | 60.3 | % | |||||||
Effect of catastrophe impacts | 2.0 | 4.3 | |||||||||
Effect of development-related items | (0.1) | (0.1) | |||||||||
Loss ratio | 61.5 | 64.5 | |||||||||
Expense ratio | 34.4 | 35.4 | |||||||||
Combined ratio | 95.9 | % | 99.9 | % | |||||||
Combined ratio excluding catastrophes and development | 94.0 | % | 95.7 | % | |||||||
Rate | 14 | % | 9 | % | |||||||
Renewal premium change | 11 | 9 | |||||||||
Retention | 74 | 70 | |||||||||
New business | $ | 80 | $ | 68 |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Gross case reserves | $ | 861 | $ | 892 | |||||||
Gross IBNR reserves | 1,281 | 1,199 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 2,142 | $ | 2,091 | |||||||
Net case reserves | $ | 740 | $ | 777 | |||||||
Net IBNR reserves | 1,112 | 1,045 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 1,852 | $ | 1,822 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Net earned premiums | $ | 120 | $ | 127 | |||||||
Net investment income | 219 | 208 | |||||||||
Core income (loss) before income tax | 32 | (10) | |||||||||
Income tax benefit on core loss | 4 | 14 | |||||||||
Core income | 36 | 4 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Net investment income | $ | 6 | $ | 8 | |||||||
Interest expense | 28 | 31 | |||||||||
Core loss | (36) | (17) |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Gross case reserves | $ | 1,626 | $ | 1,614 | |||||||
Gross IBNR reserves | 1,197 | 1,260 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 2,823 | $ | 2,874 | |||||||
Net case reserves | $ | 123 | $ | 560 | |||||||
Net IBNR reserves | 130 | 331 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 253 | $ | 891 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Fixed income securities: | |||||||||||
Taxable fixed income securities | $ | 359 | $ | 371 | |||||||
Tax-exempt fixed income securities | 80 | 78 | |||||||||
Total fixed income securities | 439 | 449 | |||||||||
Limited partnership investments | 43 | (70) | |||||||||
Common stock | 18 | (55) | |||||||||
Other, net of investment expense | 4 | 5 | |||||||||
Net investment income | $ | 504 | $ | 329 | |||||||
Effective income yield for the fixed income securities portfolio | 4.4 | % | 4.6 | % | |||||||
Limited partnership and common stock return | 3.4 | % | (7.0) | % |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Fixed maturity securities: | |||||||||||
Corporate and other bonds | $ | 36 | $ | (79) | |||||||
States, municipalities and political subdivisions | (1) | — | |||||||||
Asset-backed | 3 | 4 | |||||||||
Total fixed maturity securities | 38 | (75) | |||||||||
Non-redeemable preferred stock | 2 | (133) | |||||||||
Short term and other | 17 | 5 | |||||||||
Mortgage loans | — | (13) | |||||||||
Net investment gains (losses) | 57 | (216) | |||||||||
Income tax (expense) benefit on net investment gains (losses) | (8) | 47 | |||||||||
Net investment gains (losses), after tax | $ | 49 | $ | (169) |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(In millions) |
Estimated Fair Value | Net Unrealized Gains (Losses) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 3,149 | $ | 36 | $ | 3,672 | $ | 117 | |||||||||||||||
AAA | 3,589 | 385 | 3,627 | 454 | |||||||||||||||||||
AA | 7,221 | 802 | 7,159 | 1,012 | |||||||||||||||||||
A | 9,380 | 1,057 | 9,543 | 1,390 | |||||||||||||||||||
BBB | 17,692 | 1,920 | 18,007 | 2,596 | |||||||||||||||||||
Non-investment grade | 2,548 | 131 | 2,623 | 149 | |||||||||||||||||||
Total | $ | 43,579 | $ | 4,331 | $ | 44,631 | $ | 5,718 |
March 31, 2021 | |||||||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | |||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 1,631 | $ | 47 | |||||||
AAA | 202 | 9 | |||||||||
AA | 896 | 29 | |||||||||
A | 1,096 | 33 | |||||||||
BBB | 1,372 | 47 | |||||||||
Non-investment grade | 364 | 17 | |||||||||
Total | $ | 5,561 | $ | 182 |
March 31, 2021 | |||||||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | |||||||||
Due in one year or less | $ | 135 | $ | 5 | |||||||
Due after one year through five years | 672 | 21 | |||||||||
Due after five years through ten years | 3,090 | 82 | |||||||||
Due after ten years | 1,664 | 74 | |||||||||
Total | $ | 5,561 | $ | 182 |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(In millions) | Estimated Fair Value |
Effective
Duration (In years) |
Estimated Fair Value |
Effective
Duration (In years) |
|||||||||||||||||||
Investments supporting Life & Group | $ | 17,952 | 9.1 | $ | 18,518 | 9.2 | |||||||||||||||||
Other investments | 27,666 | 4.9 | 28,839 | 4.5 | |||||||||||||||||||
Total | $ | 45,618 | 6.5 | $ | 47,357 | 6.3 |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Short term investments: | |||||||||||
U.S. Treasury securities | $ | 1,109 | $ | 1,702 | |||||||
Other | 225 | 205 | |||||||||
Total short term investments | $ | 1,334 | $ | 1,907 |
Period | (a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced plans or programs | (d) Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions) | |||||||||||||||||||||||||||||||
March 1, 2021 - March 31, 2021 | 66,000 | $ | 46.32 | N/A | N/A | ||||||||||||||||||||||||||||||
Total | 66,000 | N/A | N/A |
CNA Financial Corporation | ||||||||
Dated: May 7, 2021 | By | /s/ Albert J. Miralles | ||||||
Albert J. Miralles
Executive Vice President and Chief Financial Officer (Duly authorized officer and principal financial and accounting officer) |
Description of Exhibit | Exhibit Number | ||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | 101.INS | ||||
Inline XBRL Taxonomy Extension Schema | 101.SCH | ||||
Inline XBRL Taxonomy Extension Calculation Linkbase | 101.CAL | ||||
Inline XBRL Taxonomy Extension Definition Linkbase | 101.DEF | ||||
Inline XBRL Taxonomy Label Linkbase | 101.LAB | ||||
Inline XBRL Taxonomy Extension Presentation Linkbase | 101.PRE | ||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | 104.1 |
1 Year CNA Financial Chart |
1 Month CNA Financial Chart |
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