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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Loews Corporation | NYSE:L | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.32 | -0.42% | 75.55 | 76.07 | 75.10 | 75.66 | 1,274,902 | 21:11:00 |
Delaware
|
13-2646102
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock, par value $0.01 per share
|
L
|
New York Stock Exchange
|
Yes ☒
|
No ☐
|
Yes ☒
|
No ☐
|
Not Applicable ☐
|
Large accelerated filer ☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
Yes ☐
|
No ☒
|
|
Page
No.
|
3
|
|
4
|
|
5
|
|
6
|
|
8
|
|
9
|
|
39
|
|
62
|
|
62
|
|
62
|
|
62
|
|
62
|
|
67
|
|
68
|
|
September 30, 2020
|
December 31, 2019
|
||||||
(Dollar amounts in millions, except per share data)
|
||||||||
Assets:
|
||||||||
Investments:
|
||||||||
Fixed maturities, amortized cost of $38,979 and $38,157, less allowance for credit loss of $47 and $0
|
$
|
43,917
|
$
|
42,240
|
||||
Equity securities, cost of $1,391 and $1,244
|
1,368
|
1,306
|
||||||
Limited partnership investments
|
1,758
|
2,004
|
||||||
Other invested assets, primarily mortgage loans, less allowance for credit loss of $21 and $0
|
1,176
|
1,072
|
||||||
Short term investments
|
4,553
|
4,628
|
||||||
Total investments
|
52,772
|
51,250
|
||||||
Cash
|
886
|
336
|
||||||
Receivables
|
7,850
|
7,675
|
||||||
Property, plant and equipment
|
10,468
|
15,568
|
||||||
Goodwill
|
765
|
767
|
||||||
Deferred non-insurance warranty acquisition expenses
|
2,998
|
2,840
|
||||||
Deferred acquisition costs of insurance subsidiaries
|
697
|
662
|
||||||
Other assets
|
3,028
|
3,145
|
||||||
Total assets
|
$
|
79,464
|
$
|
82,243
|
||||
Liabilities and Equity:
|
||||||||
Insurance reserves:
|
||||||||
Claim and claim adjustment expense
|
$
|
22,534
|
$
|
21,720
|
||||
Future policy benefits
|
12,978
|
12,311
|
||||||
Unearned premiums
|
5,020
|
4,583
|
||||||
Total insurance reserves
|
40,532
|
38,614
|
||||||
Payable to brokers
|
466
|
108
|
||||||
Short term debt
|
35
|
77
|
||||||
Long term debt
|
10,373
|
11,456
|
||||||
Deferred income taxes
|
913
|
1,168
|
||||||
Deferred non-insurance warranty revenue
|
3,951
|
3,779
|
||||||
Other liabilities
|
4,574
|
5,111
|
||||||
Total liabilities
|
60,844
|
60,313
|
||||||
Commitments and contingent liabilities
|
||||||||
Preferred stock, $0.10 par value:
|
||||||||
Authorized – 100,000,000 shares
|
|
|
||||||
Common stock, $0.01 par value:
|
|
|
||||||
Authorized – 1,800,000,000 shares
|
||||||||
Issued – 291,393,899 and 291,210,222 shares
|
3
|
3
|
||||||
Additional paid-in capital
|
3,379
|
3,374
|
||||||
Retained earnings
|
14,437
|
15,823
|
||||||
Accumulated other comprehensive income (loss)
|
238
|
(68
|
)
|
|||||
18,057
|
19,132
|
|||||||
Less treasury stock, at cost (16,353,956 and 240,000 shares)
|
(685
|
)
|
(13
|
)
|
||||
Total shareholders’ equity
|
17,372
|
19,119
|
||||||
Noncontrolling interests
|
1,248
|
2,811
|
||||||
Total equity
|
18,620
|
21,930
|
||||||
Total liabilities and equity
|
$
|
79,464
|
$
|
82,243
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions, except per share data)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Insurance premiums
|
$
|
1,953
|
$
|
1,890
|
$
|
5,672
|
$
|
5,517
|
||||||||
Net investment income
|
540
|
525
|
1,347
|
1,733
|
||||||||||||
Investment gains (losses) (Note 2)
|
46
|
8
|
(1,312
|
)
|
41
|
|||||||||||
Non-insurance warranty revenue
|
317
|
292
|
926
|
858
|
||||||||||||
Operating revenues and other
|
609
|
960
|
2,241
|
2,906
|
||||||||||||
Total
|
3,465
|
3,675
|
8,874
|
11,055
|
||||||||||||
Expenses:
|
||||||||||||||||
Insurance claims and policyholders’ benefits
|
1,616
|
1,614
|
4,683
|
4,323
|
||||||||||||
Amortization of deferred acquisition costs
|
360
|
345
|
1,046
|
1,025
|
||||||||||||
Non-insurance warranty expense
|
293
|
278
|
859
|
801
|
||||||||||||
Operating expenses and other
|
876
|
1,234
|
3,894
|
3,614
|
||||||||||||
Interest
|
137
|
144
|
404
|
449
|
||||||||||||
Total
|
3,282
|
3,615
|
10,886
|
10,212
|
||||||||||||
Income (loss) before income tax
|
183
|
60
|
(2,012
|
)
|
843
|
|||||||||||
Income tax (expense) benefit
|
(21
|
)
|
(21
|
)
|
284
|
(183
|
)
|
|||||||||
Net income (loss)
|
162
|
39
|
(1,728
|
)
|
660
|
|||||||||||
Amounts attributable to noncontrolling interests
|
(23
|
)
|
33
|
400
|
55
|
|||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
139
|
$
|
72
|
$
|
(1,328
|
)
|
$
|
715
|
|||||||
Basic and diluted net income (loss) per share
|
$
|
0.50
|
$
|
0.24
|
$
|
(4.70
|
)
|
$
|
2.34
|
|||||||
Weighted average shares outstanding:
|
||||||||||||||||
Shares of common stock
|
279.40
|
301.65
|
282.63
|
305.08
|
||||||||||||
Dilutive potential shares of common stock
|
0.09
|
0.70
|
0.65
|
|||||||||||||
Total weighted average shares outstanding assuming dilution
|
279.49
|
302.35
|
282.63
|
305.73
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Net income (loss)
|
$
|
162
|
$
|
39
|
$
|
(1,728
|
)
|
$
|
660
|
|||||||
Other comprehensive income (loss), after tax
|
||||||||||||||||
Changes in:
|
||||||||||||||||
Net unrealized gains (losses) on investments with an allowance for credit losses
|
6
|
(3
|
)
|
|||||||||||||
Net unrealized gains on other investments
|
207
|
41
|
354
|
1,007
|
||||||||||||
Total unrealized gains on investments
|
213
|
41
|
351
|
1,007
|
||||||||||||
Unrealized gains (losses) on cash flow hedges
|
1
|
(4
|
)
|
(18
|
)
|
(16
|
)
|
|||||||||
Pension and postretirement benefits
|
7
|
10
|
27
|
25
|
||||||||||||
Foreign currency translation
|
38
|
(31
|
)
|
(17
|
)
|
(11
|
)
|
|||||||||
Other comprehensive income
|
259
|
16
|
343
|
1,005
|
||||||||||||
Comprehensive income (loss)
|
421
|
55
|
(1,385
|
)
|
1,665
|
|||||||||||
Amounts attributable to noncontrolling interests
|
(49
|
)
|
31
|
363
|
(53
|
)
|
||||||||||
Total comprehensive income (loss) attributable to Loews Corporation
|
$
|
372
|
$
|
86
|
$
|
(1,022
|
)
|
$
|
1,612
|
|
Loews Corporation Shareholders
|
|||||||||||||||||||||||||||
Total
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Common
Stock
Held in
Treasury
|
Noncontrolling
Interests
|
||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||
Balance, July 1, 2019
|
$
|
22,394
|
$
|
3
|
$
|
3,612
|
$
|
16,374
|
$
|
3
|
$
|
(478
|
)
|
$
|
2,880
|
|||||||||||||
Net income
|
39
|
72
|
(33
|
)
|
||||||||||||||||||||||||
Other comprehensive income
|
16
|
14
|
2
|
|||||||||||||||||||||||||
Dividends paid ($0.0625 per share)
|
(29
|
)
|
(19
|
)
|
(10
|
)
|
||||||||||||||||||||||
Purchases of Loews Corporation treasury stock
|
(169
|
)
|
(169
|
)
|
||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests
|
(2
|
)
|
(2
|
)
|
||||||||||||||||||||||||
Stock-based compensation
|
9
|
8
|
1
|
|||||||||||||||||||||||||
Balance, September 30, 2019
|
$
|
22,258
|
$
|
3
|
$
|
3,620
|
$
|
16,427
|
$
|
17
|
$
|
(647
|
)
|
$
|
2,838
|
|||||||||||||
Balance, July 1, 2020
|
$
|
18,413
|
$
|
3
|
$
|
3,371
|
$
|
14,316
|
$
|
5
|
$
|
(491
|
)
|
$
|
1,209
|
|||||||||||||
Net income
|
162
|
139
|
23
|
|||||||||||||||||||||||||
Other comprehensive income
|
259
|
233
|
26
|
|||||||||||||||||||||||||
Dividends paid ($0.0625 per share)
|
(27
|
)
|
(17
|
)
|
(10
|
)
|
||||||||||||||||||||||
Purchases of Loews Corporation treasury stock
|
(195
|
)
|
(195
|
)
|
||||||||||||||||||||||||
Stock-based compensation
|
8
|
8
|
||||||||||||||||||||||||||
Other
|
-
|
(1
|
)
|
1
|
||||||||||||||||||||||||
Balance, September 30, 2020
|
$
|
18,620
|
$
|
3
|
$
|
3,379
|
$
|
14,437
|
$
|
238
|
$
|
(685
|
)
|
$
|
1,248
|
|
Loews Corporation Shareholders
|
|||||||||||||||||||||||||||
Total
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Common
Stock
Held in
Treasury
|
Noncontrolling
Interests
|
||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||
Balance, January 1, 2019
|
$
|
21,386
|
$
|
3
|
$
|
3,627
|
$
|
15,773
|
$
|
(880
|
)
|
$
|
(5
|
)
|
$
|
2,868
|
||||||||||||
Net income
|
660
|
715
|
(55
|
)
|
||||||||||||||||||||||||
Other comprehensive income
|
1,005
|
897
|
108
|
|||||||||||||||||||||||||
Dividends paid ($0.1875 per share)
|
(145
|
)
|
(57
|
)
|
(88
|
)
|
||||||||||||||||||||||
Purchases of Loews Corporation treasury stock
|
(642
|
)
|
(642
|
)
|
||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests
|
(18
|
)
|
(18
|
)
|
||||||||||||||||||||||||
Stock-based compensation
|
17
|
(5
|
)
|
22
|
||||||||||||||||||||||||
Other
|
(5
|
)
|
(2
|
)
|
(4
|
)
|
1
|
|||||||||||||||||||||
Balance, September 30, 2019
|
$
|
22,258
|
$
|
3
|
$
|
3,620
|
$
|
16,427
|
$
|
17
|
$
|
(647
|
)
|
$
|
2,838
|
|||||||||||||
Balance, December 31, 2019, as reported
|
$
|
21,930
|
$
|
3
|
$
|
3,374
|
$
|
15,823
|
$
|
(68
|
)
|
$
|
(13
|
)
|
$
|
2,811
|
||||||||||||
Cumulative effect adjustment from change in accounting standards (Note 1)
|
(5
|
)
|
(5
|
)
|
||||||||||||||||||||||||
Balance, January 1, 2020, as adjusted
|
21,925
|
3
|
3,374
|
15,818
|
(68
|
)
|
(13
|
)
|
2,811
|
|||||||||||||||||||
Net loss
|
(1,728
|
)
|
(1,328
|
)
|
(400
|
)
|
||||||||||||||||||||||
Other comprehensive income
|
343
|
306
|
37
|
|||||||||||||||||||||||||
Dividends paid ($0.1875 per share)
|
(141
|
)
|
(53
|
)
|
(88
|
)
|
||||||||||||||||||||||
Deconsolidation of Diamond Offshore
|
(1,087
|
)
|
(1,087
|
)
|
||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock
|
(673
|
)
|
(673
|
)
|
||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests
|
(37
|
)
|
5
|
(42
|
)
|
|||||||||||||||||||||||
Stock-based compensation
|
17
|
(1
|
)
|
18
|
||||||||||||||||||||||||
Other
|
1
|
1
|
1
|
(1
|
)
|
|||||||||||||||||||||||
Balance, September 30, 2020
|
$
|
18,620
|
$
|
3
|
$
|
3,379
|
$
|
14,437
|
$
|
238
|
$
|
(685
|
)
|
$
|
1,248
|
Nine Months Ended September 30,
|
2020
|
2019
|
||||||
(In millions)
|
||||||||
Operating Activities:
|
||||||||
Net income (loss)
|
$
|
(1,728
|
)
|
$
|
660
|
|||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities, net
|
2,503
|
747
|
||||||
Changes in operating assets and liabilities, net:
|
||||||||
Receivables
|
(273
|
)
|
179
|
|||||
Deferred acquisition costs
|
(36
|
)
|
(37
|
)
|
||||
Insurance reserves
|
1,479
|
337
|
||||||
Other assets
|
(411
|
)
|
(386
|
)
|
||||
Other liabilities
|
238
|
315
|
||||||
Trading securities
|
(481
|
)
|
(544
|
)
|
||||
Net cash flow provided by operating activities
|
1,291
|
1,271
|
||||||
Investing Activities:
|
||||||||
Purchases of fixed maturities
|
(8,466
|
)
|
(7,053
|
)
|
||||
Proceeds from sales of fixed maturities
|
5,023
|
4,872
|
||||||
Proceeds from maturities of fixed maturities
|
2,706
|
2,116
|
||||||
Purchases of limited partnership investments
|
(144
|
)
|
(167
|
)
|
||||
Proceeds from sales of limited partnership investments
|
305
|
680
|
||||||
Purchases of property, plant and equipment
|
(584
|
)
|
(743
|
)
|
||||
Acquisitions
|
-
|
(257
|
)
|
|||||
Dispositions
|
47
|
137
|
||||||
Deconsolidation of Diamond Offshore
|
(483
|
)
|
-
|
|||||
Change in short term investments
|
706
|
26
|
||||||
Other, net
|
(218
|
)
|
(95
|
)
|
||||
Net cash flow used by investing activities
|
(1,108
|
)
|
(484
|
)
|
||||
Financing Activities:
|
||||||||
Dividends paid
|
(53
|
)
|
(57
|
)
|
||||
Dividends paid to noncontrolling interests
|
(88
|
)
|
(88
|
)
|
||||
Purchases of Loews Corporation treasury stock
|
(678
|
)
|
(643
|
)
|
||||
Purchases of subsidiary stock from noncontrolling interests
|
(37
|
)
|
(18
|
)
|
||||
Principal payments on debt
|
(1,157
|
)
|
(1,796
|
)
|
||||
Issuance of debt
|
2,393
|
1,870
|
||||||
Other, net
|
(13
|
)
|
(15
|
)
|
||||
Net cash flow provided (used) by financing activities
|
367
|
(747
|
)
|
|||||
Effect of foreign exchange rate on cash
|
-
|
(3
|
)
|
|||||
Net change in cash
|
550
|
37
|
||||||
Cash, beginning of period
|
336
|
405
|
||||||
Cash, end of period
|
$
|
886
|
$
|
442
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities
|
$
|
432
|
$
|
452
|
$
|
1,300
|
$
|
1,362
|
||||||||
Limited partnership investments
|
71
|
16
|
26
|
140
|
||||||||||||
Short term investments
|
2
|
13
|
11
|
42
|
||||||||||||
Equity securities
|
18
|
16
|
24
|
62
|
||||||||||||
Income from trading portfolio (a)
|
22
|
34
|
144
|
|||||||||||||
Other
|
14
|
13
|
44
|
39
|
||||||||||||
Total investment income
|
559
|
544
|
1,405
|
1,789
|
||||||||||||
Investment expenses
|
(19
|
)
|
(19
|
)
|
(58
|
)
|
(56
|
)
|
||||||||
Net investment income
|
$
|
540
|
$
|
525
|
$
|
1,347
|
$
|
1,733
|
(a) |
Net unrealized gains (losses) related to changes in fair value on securities still held were $11 and $17 for the three months ended September 30, 2020 and 2019 and $13 and $55 for the nine months ended September 30, 2020 and 2019.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities
|
$
|
26
|
$
|
3
|
$
|
(32
|
)
|
$
|
(6
|
)
|
||||||
Equity securities
|
25
|
7
|
(45
|
)
|
60
|
|||||||||||
Derivative instruments
|
(2
|
)
|
(2
|
)
|
(7
|
)
|
(13
|
)
|
||||||||
Short term investments and other
|
(3
|
)
|
(17
|
)
|
||||||||||||
Deconsolidation of Diamond Offshore (see Note 2)
|
(1,211
|
)
|
||||||||||||||
Investment gains (losses) (a)
|
$
|
46
|
$
|
8
|
$
|
(1,312
|
)
|
$
|
41
|
(a) |
Gross investment gains on available-for-sale securities were $44 and $34 for the three months ended September 30, 2020 and 2019 and $175 and $98 for the nine months ended September 30, 2020 and 2019. Gross investment losses on available-for-sale securities were $18 and $31 for the three months ended September 30, 2020 and 2019 and $207 and $104 for the nine months ended September 30, 2020 and 2019. During the three and nine months ended September 30, 2020, $25 of investment gains and $44 of investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of September 30, 2020. During the three and nine months ended September 30, 2019, $7 and $60 of investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of September 30, 2019.
|
Three months ended September 30, 2020
|
Corporate and
Other Bonds
|
Asset-
backed
|
Total
|
|||||||||
(In millions)
|
||||||||||||
Allowance for credit losses:
|
||||||||||||
Balance as of July 1, 2020
|
$
|
39
|
$
|
12
|
$
|
51
|
||||||
Additions to the allowance for credit losses:
|
||||||||||||
For securities for which credit losses were not previously recorded
|
4
|
4
|
||||||||||
For available-for-sale securities accounted for as PCD assets
|
1
|
1
|
||||||||||
Reductions to the allowance for credit losses:
|
||||||||||||
Securities sold during the period (realized)
|
9
|
9
|
||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period
|
(1
|
)
|
1
|
|||||||||
Total allowance for credit losses
|
$
|
34
|
$
|
13
|
$
|
47
|
Nine months ended September 30, 2020
|
||||||||||||
Allowance for credit losses:
|
||||||||||||
Balance as of December 31, 2019
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Additions to the allowance for credit losses:
|
||||||||||||
Impact of adopting ASC 326
|
6
|
6
|
||||||||||
For securities for which credit losses were not previously recorded
|
62
|
12
|
74
|
|||||||||
For available-for-sale securities accounted for as PCD assets
|
3
|
3
|
||||||||||
Reductions to the allowance for credit losses:
|
||||||||||||
Securities sold during the period (realized)
|
15
|
15
|
||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis
|
1
|
1
|
||||||||||
Additional increases or (decrease) to the allowance for credit losses on securities that had an allowance recorded in a previous period
|
(21
|
)
|
1
|
(20
|
)
|
|||||||
Total allowance for credit losses
|
$
|
34
|
$
|
13
|
$
|
47
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities available-for-sale:
|
||||||||||||||||
Corporate and other bonds
|
$
|
4
|
$
|
12
|
$
|
94
|
$
|
24
|
||||||||
Asset-backed
|
1
|
2
|
14
|
10
|
||||||||||||
Impairment losses recognized in earnings
|
$
|
5
|
$
|
14
|
$
|
108
|
$
|
34
|
September 30, 2020
|
Cost or
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Allowance
for Credit
Losses (a)
|
Estimated
Fair Value
|
|||||||||||||||
(In millions)
|
||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||
Corporate and other bonds
|
$
|
20,734
|
$
|
3,047
|
$
|
89
|
$
|
34
|
$
|
23,658
|
||||||||||
States, municipalities and political subdivisions
|
9,459
|
1,766
|
1
|
11,224
|
||||||||||||||||
Asset-backed:
|
||||||||||||||||||||
Residential mortgage-backed
|
3,796
|
153
|
1
|
3,948
|
||||||||||||||||
Commercial mortgage-backed
|
2,048
|
85
|
70
|
13
|
2,050
|
|||||||||||||||
Other asset-backed
|
2,097
|
76
|
19
|
2,154
|
||||||||||||||||
Total asset-backed
|
7,941
|
314
|
90
|
13
|
8,152
|
|||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
347
|
4
|
1
|
350
|
||||||||||||||||
Foreign government
|
481
|
29
|
510
|
|||||||||||||||||
Fixed maturities available-for-sale
|
38,962
|
5,160
|
181
|
47
|
43,894
|
|||||||||||||||
Fixed maturities trading
|
17
|
6
|
23
|
|||||||||||||||||
Total fixed maturity securities
|
$
|
38,979
|
$
|
5,166
|
$
|
181
|
$
|
47
|
$
|
43,917
|
December 31, 2019
|
Cost or
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair Value
|
Unrealized
OTTI Losses
(Gains) (a)
|
|||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||
Corporate and other bonds
|
$
|
19,789
|
$
|
2,292
|
$
|
32
|
$
|
22,049
|
||||||||||||
States, municipalities and political subdivisions
|
9,093
|
1,559
|
10,652
|
|||||||||||||||||
Asset-backed:
|
||||||||||||||||||||
Residential mortgage-backed
|
4,387
|
133
|
1
|
4,519
|
$
|
(17
|
)
|
|||||||||||||
Commercial mortgage-backed
|
2,265
|
86
|
5
|
2,346
|
1
|
|||||||||||||||
Other asset-backed
|
1,925
|
41
|
4
|
1,962
|
(3
|
)
|
||||||||||||||
Total asset-backed
|
8,577
|
260
|
10
|
8,827
|
(19
|
)
|
||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
146
|
1
|
2
|
145
|
||||||||||||||||
Foreign government
|
491
|
14
|
1
|
504
|
||||||||||||||||
Redeemable preferred stock
|
10
|
10
|
||||||||||||||||||
Fixed maturities available-for-sale
|
38,106
|
4,126
|
45
|
42,187
|
(19
|
)
|
||||||||||||||
Fixed maturities trading
|
51
|
2
|
53
|
|||||||||||||||||
Total fixed maturities
|
$
|
38,157
|
$
|
4,128
|
$
|
45
|
$
|
42,240
|
$
|
(19
|
)
|
(a) |
On January 1, 2020, the Company adopted ASU 2016-13; see Note 1. The Unrealized OTTI Losses (Gains) column that tracked subsequent valuation changes on securities for which a credit loss had previously been recorded has been replaced with the Allowance for Credit Losses column. Prior period amounts were not adjusted for the adoption of this standard.
|
|
Less than
12 Months
|
12 Months
or Longer
|
Total
|
|||||||||||||||||||||
September 30, 2020
|
Estimated
Fair Value
|
Gross
Unrealized
Losses
|
Estimated
Fair Value
|
Gross
Unrealized
Losses
|
Estimated
Fair Value
|
Gross
Unrealized
Losses
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||
Corporate and other bonds
|
$
|
1,579
|
$
|
86
|
$
|
56
|
$
|
3
|
$
|
1,635
|
$
|
89
|
||||||||||||
States, municipalities and political subdivisions
|
154
|
1
|
154
|
1
|
||||||||||||||||||||
Asset-backed:
|
||||||||||||||||||||||||
Residential mortgage-backed
|
98
|
1
|
13
|
111
|
1
|
|||||||||||||||||||
Commercial mortgage-backed
|
693
|
69
|
19
|
1
|
712
|
70
|
||||||||||||||||||
Other asset-backed
|
432
|
18
|
13
|
1
|
445
|
19
|
||||||||||||||||||
Total asset-backed
|
1,223
|
88
|
45
|
2
|
1,268
|
90
|
||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
25
|
1
|
25
|
1
|
||||||||||||||||||||
Foreign government
|
20
|
20
|
||||||||||||||||||||||
Total fixed maturity securities
|
$
|
3,001
|
$
|
176
|
$
|
101
|
$
|
5
|
$
|
3,102
|
$
|
181
|
||||||||||||
December 31, 2019
|
||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||
Corporate and other bonds
|
$
|
914
|
$
|
21
|
$
|
186
|
$
|
11
|
$
|
1,100
|
$
|
32
|
||||||||||||
States, municipalities and political subdivisions
|
34
|
34
|
||||||||||||||||||||||
Asset-backed:
|
||||||||||||||||||||||||
Residential mortgage-backed
|
249
|
1
|
30
|
279
|
1
|
|||||||||||||||||||
Commercial mortgage-backed
|
381
|
3
|
20
|
2
|
401
|
5
|
||||||||||||||||||
Other asset-backed
|
449
|
3
|
33
|
1
|
482
|
4
|
||||||||||||||||||
Total asset-backed
|
1,079
|
7
|
83
|
3
|
1,162
|
10
|
||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
62
|
2
|
2
|
64
|
2
|
|||||||||||||||||||
Foreign government
|
59
|
1
|
1
|
60
|
1
|
|||||||||||||||||||
Total fixed maturity securities
|
$
|
2,148
|
$
|
31
|
$
|
272
|
$
|
14
|
$
|
2,420
|
$
|
45
|
|
September 30, 2020
|
December 31, 2019
|
||||||||||||||
Cost or
Amortized
Cost
|
Estimated
Fair
Value
|
Cost or
Amortized
Cost
|
Estimated
Fair
Value
|
|||||||||||||
(In millions)
|
||||||||||||||||
Due in one year or less
|
$
|
1,372
|
$
|
1,392
|
$
|
1,334
|
$
|
1,356
|
||||||||
Due after one year through five years
|
11,955
|
12,625
|
9,746
|
10,186
|
||||||||||||
Due after five years through ten years
|
13,026
|
14,359
|
14,892
|
15,931
|
||||||||||||
Due after ten years
|
12,609
|
15,518
|
12,134
|
14,714
|
||||||||||||
Total
|
$
|
38,962
|
$
|
43,894
|
$
|
38,106
|
$
|
42,187
|
|
Mortgage Loans Amortized Cost Basis by Origination Year (a)
|
|||||||||||||||||||||||||||
As of September 30, 2020
|
2020
|
2019
|
2018
|
2017
|
2016
|
Prior
|
Total
|
|||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||
DSCR ≥1.6x
|
||||||||||||||||||||||||||||
LTV less than 55%
|
$
|
75
|
$
|
33
|
$
|
19
|
$
|
85
|
$
|
33
|
$
|
161
|
$
|
406
|
||||||||||||||
LTV 55% to 65%
|
33
|
29
|
55
|
12
|
129
|
|||||||||||||||||||||||
LTV greater than 65%
|
5
|
12
|
17
|
|||||||||||||||||||||||||
DSCR 1.2x - 1.6x
|
||||||||||||||||||||||||||||
LTV less than 55%
|
31
|
10
|
13
|
16
|
79
|
149
|
||||||||||||||||||||||
LTV 55% to 65%
|
20
|
54
|
32
|
24
|
130
|
|||||||||||||||||||||||
LTV greater than 65%
|
48
|
103
|
151
|
|||||||||||||||||||||||||
DSCR ≤1.2x
|
||||||||||||||||||||||||||||
LTV less than 55%
|
||||||||||||||||||||||||||||
LTV 55% to 65%
|
14
|
14
|
28
|
|||||||||||||||||||||||||
LTV greater than 65%
|
23
|
45
|
24
|
7
|
99
|
|||||||||||||||||||||||
Total
|
$
|
143
|
$
|
296
|
$
|
104
|
$
|
222
|
$
|
85
|
$
|
259
|
$
|
1,109
|
(a) |
The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index.
|
|
September 30, 2020
|
December 31, 2019
|
|||||||||||||||||||
Contractual/
Notional
|
Estimated Fair Value
|
Contractual/
Notional
|
Estimated Fair Value
|
||||||||||||||||||
Amount
|
Asset
|
(Liability)
|
Amount
|
Asset
|
(Liability)
|
||||||||||||||||
(In millions)
|
|||||||||||||||||||||
With hedge designation:
|
|||||||||||||||||||||
Interest rate swaps
|
$
|
675
|
$
|
(28
|
)
|
$
|
715
|
$
|
(8
|
)
|
|||||||||||
Without hedge designation:
|
|||||||||||||||||||||
Equity Options – purchased
|
57
|
$
|
1
|
||||||||||||||||||
– written
|
100
|
(1
|
)
|
||||||||||||||||||
Interest rate swaps
|
80
|
(3
|
)
|
||||||||||||||||||
Embedded derivative on funds withheld liability
|
193
|
(16
|
)
|
182
|
(7
|
)
|
● |
Level 1 – Quoted prices for identical instruments in active markets.
|
● |
Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.
|
● |
Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are not observable.
|
September 30, 2020
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||
Corporate bonds and other
|
$
|
372
|
$
|
23,452
|
$
|
694
|
$
|
24,518
|
||||||||
States, municipalities and political subdivisions
|
11,179
|
45
|
11,224
|
|||||||||||||
Asset-backed
|
7,917
|
235
|
8,152
|
|||||||||||||
Fixed maturities available-for-sale
|
372
|
42,548
|
974
|
43,894
|
||||||||||||
Fixed maturities trading
|
15
|
8
|
23
|
|||||||||||||
Total fixed maturities
|
$
|
372
|
$
|
42,563
|
$
|
982
|
$
|
43,917
|
||||||||
Equity securities
|
$
|
655
|
$
|
674
|
$
|
39
|
$
|
1,368
|
||||||||
Short term and other
|
4,379
|
56
|
4,435
|
|||||||||||||
Payable to brokers
|
(40
|
)
|
(31
|
)
|
(71
|
)
|
December 31, 2019
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||
Corporate bonds and other
|
$
|
175
|
$
|
22,065
|
$
|
468
|
$
|
22,708
|
||||||||
States, municipalities and political subdivisions
|
10,652
|
10,652
|
||||||||||||||
Asset-backed
|
8,662
|
165
|
8,827
|
|||||||||||||
Fixed maturities available-for-sale
|
175
|
41,379
|
633
|
42,187
|
||||||||||||
Fixed maturities trading
|
49
|
4
|
53
|
|||||||||||||
Total fixed maturities
|
$
|
175
|
$
|
41,428
|
$
|
637
|
$
|
42,240
|
||||||||
Equity securities
|
$
|
629
|
$
|
658
|
$
|
19
|
$
|
1,306
|
||||||||
Short term and other
|
3,138
|
1,383
|
4,521
|
|||||||||||||
Receivables
|
2
|
2
|
||||||||||||||
Payable to brokers
|
(18
|
)
|
(10
|
)
|
(28
|
)
|
|
Net Realized
Investment Gains
(Losses) and Net Change
in Unrealized Investment
Gains (Losses)
|
Unrealized
Gains
(Losses)
Recognized in
Net Income
(Loss) on Level
3 Assets and
|
Unrealized
Gains
(Losses)
Recognized in
Other
Comprehensive
Income (Loss)
on Level 3
Assets and
|
|||||||||||||||||||||||||||||||||||||||||
2020
|
Balance,
July 1
|
Included in
Net Income
(Loss)
|
Included in
OCI
|
Purchases
|
Sales
|
Settlements
|
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
Balance,
September 30
|
Liabilities
Held at
September 30
|
Liabilities
Held at
September 30
|
|||||||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other
|
$
|
555
|
$
|
5
|
$
|
129
|
$
|
(3
|
)
|
$
|
8
|
$
|
694
|
$
|
5
|
|||||||||||||||||||||||||||||
States, municipalities and political subdivisions
|
-
|
45
|
45
|
|||||||||||||||||||||||||||||||||||||||||
Asset-backed
|
222
|
9
|
20
|
(14
|
)
|
$
|
(2
|
)
|
235
|
8
|
||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale
|
777
|
$
|
-
|
14
|
194
|
$
|
-
|
(17
|
)
|
8
|
(2
|
)
|
974
|
$
|
-
|
13
|
||||||||||||||||||||||||||||
Fixed maturities trading
|
4
|
4
|
8
|
4
|
||||||||||||||||||||||||||||||||||||||||
Total fixed maturities
|
$
|
781
|
$
|
4
|
$
|
14
|
$
|
194
|
$
|
-
|
$
|
(17
|
)
|
$
|
8
|
$
|
(2
|
)
|
$
|
982
|
$
|
4
|
$
|
13
|
||||||||||||||||||||
Equity securities
|
$
|
27
|
$
|
12
|
$
|
39
|
|
Net Realized
Investment Gains
(Losses) and Net Change
in Unrealized Investment
Gains (Losses)
|
Unrealized
Gains
(Losses)
Recognized in
Net Income
(Loss) on Level
3 Assets and
|
Unrealized
Gains
(Losses)
Recognized in
Other
Comprehensive
Income (Loss)
on Level 3
Assets and
|
|||||||||||||||||||||||||||||||||||||||||
2019
|
Balance,
July 1
|
Included in
Net Income
(Loss)
|
Included in
OCI
|
Purchases
|
Sales
|
Settlements
|
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
Balance,
September 30
|
Liabilities
Held at
September 30
|
Liabilities
Held at
September 30
|
|||||||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other
|
$
|
338
|
$
|
14
|
$
|
79
|
$
|
(3
|
)
|
$
|
428
|
$
|
14
|
|||||||||||||||||||||||||||||||
Asset-backed
|
193
|
1
|
22
|
(4
|
)
|
$
|
(16
|
)
|
196
|
2
|
||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale
|
531
|
$
|
-
|
15
|
101
|
$
|
-
|
(7
|
)
|
$
|
-
|
(16
|
)
|
624
|
$
|
-
|
16
|
|||||||||||||||||||||||||||
Fixed maturities trading
|
4
|
4
|
||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities
|
$
|
535
|
$
|
-
|
$
|
15
|
$
|
101
|
$
|
-
|
$
|
(7
|
)
|
$
|
-
|
$
|
(16
|
)
|
$
|
628
|
$
|
-
|
$
|
16
|
||||||||||||||||||||
Equity securities
|
$
|
23
|
$
|
23
|
|
Net Realized
Investment Gains
(Losses) and Net Change
in Unrealized Investment
Gains (Losses)
|
Unrealized
Gains
(Losses)
Recognized in
Net Income
(Loss) on Level
3 Assets and
|
Unrealized
Gains
(Losses)
Recognized in
Other
Comprehensive
Income (Loss)
on Level 3
Assets and
|
|||||||||||||||||||||||||||||||||||||||||
2020
|
Balance,
January 1
|
Included in
Net Income
(Loss)
|
Included in
OCI
|
Purchases
|
Sales
|
Settlements
|
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
Balance,
September 30
|
Liabilities
Held at
September 30
|
Liabilities
Held at
September 30
|
|||||||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other
|
$
|
468
|
$
|
27
|
$
|
200
|
$
|
(9
|
)
|
$
|
8
|
$
|
694
|
$
|
29
|
|||||||||||||||||||||||||||||
States, municipalities and political subdivisions
|
-
|
45
|
45
|
|||||||||||||||||||||||||||||||||||||||||
Asset-backed
|
165
|
18
|
100
|
$
|
(9
|
)
|
(22
|
)
|
$
|
(17
|
)
|
235
|
19
|
|||||||||||||||||||||||||||||||
Fixed maturities available-for-sale
|
633
|
$
|
-
|
45
|
345
|
(9
|
)
|
(31
|
)
|
8
|
(17
|
)
|
974
|
$
|
-
|
48
|
||||||||||||||||||||||||||||
Fixed maturities trading
|
4
|
4
|
8
|
4
|
||||||||||||||||||||||||||||||||||||||||
Total fixed maturities
|
$
|
637
|
$
|
4
|
$
|
45
|
$
|
345
|
$
|
(9
|
)
|
$
|
(31
|
)
|
$
|
8
|
$
|
(17
|
)
|
$
|
982
|
$
|
4
|
$
|
48
|
|||||||||||||||||||
Equity securities
|
$
|
19
|
$
|
(7
|
)
|
$
|
12
|
$
|
15
|
$
|
39
|
$
|
(7
|
)
|
|
Net Realized
Investment Gains
(Losses) and Net Change
in Unrealized Investment
Gains (Losses)
|
Unrealized
Gains
(Losses)
Recognized in
Net Income
(Loss) on Level
3 Assets and
|
Unrealized
Gains
(Losses)
Recognized in
Other
Comprehensive
Income (Loss)
on Level 3
Assets and
|
|||||||||||||||||||||||||||||||||||||||||
2019
|
Balance,
January 1
|
Included in
Net Income
(Loss)
|
Included in
OCI
|
Purchases
|
Sales
|
Settlements
|
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
Balance,
September 30
|
Liabilities
Held at
September 30
|
Liabilities
Held at
September 30
|
|||||||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other
|
$
|
222
|
$
|
34
|
$
|
211
|
$
|
(7
|
)
|
$
|
(32
|
)
|
$
|
428
|
$
|
29
|
||||||||||||||||||||||||||||
Asset-backed
|
197
|
8
|
42
|
(12
|
)
|
$
|
45
|
(84
|
)
|
196
|
9
|
|||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale
|
419
|
$
|
-
|
42
|
253
|
$
|
-
|
(19
|
)
|
45
|
(116
|
)
|
624
|
$
|
-
|
38
|
||||||||||||||||||||||||||||
Fixed maturities trading
|
6
|
(2
|
)
|
4
|
(2
|
)
|
||||||||||||||||||||||||||||||||||||||
Total fixed maturities
|
$
|
425
|
$
|
(2
|
)
|
$
|
42
|
$
|
253
|
$
|
-
|
$
|
(19
|
)
|
$
|
45
|
$
|
(116
|
)
|
$
|
628
|
$
|
(2
|
)
|
$
|
38
|
||||||||||||||||||
Equity securities
|
$
|
19
|
$
|
2
|
$
|
2
|
$
|
23
|
$
|
2
|
Major Category of Assets and Liabilities
|
Consolidated Condensed Statements of Operations Line Items
|
Fixed maturity securities available-for-sale
|
Investment gains (losses)
|
Fixed maturity securities trading
|
Net investment income
|
Equity securities
|
Investment gains (losses) and Net investment income
|
Other invested assets
|
Investment gains (losses) and Net investment income
|
Derivative financial instruments held in a trading portfolio
|
Net investment income
|
Derivative financial instruments, other
|
Investment gains (losses) and Operating revenues and other
|
September 30, 2020
|
Estimated
Fair Value
|
Valuation
Techniques
|
Unobservable
Inputs
|
Range
(Weighted
Average)
|
||||
(In millions)
|
||||||||
Fixed maturity securities
|
$
|
888
|
Discounted cash flow
|
Credit spread
|
1% – 10% (3%)
|
|||
December 31, 2019
|
||||||||
Fixed maturity securities
|
$
|
525
|
Discounted cash flow
|
Credit spread
|
1% – 6% (2%)
|
|
Carrying
|
Estimated Fair Value
|
|||||||||||||||
September 30, 2020
|
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
(In millions)
|
|||||||||||||||||
Assets:
|
|||||||||||||||||
Other invested assets, primarily mortgage loans
|
$
|
1,088
|
$
|
1,159
|
$
|
1,159
|
|||||||||||
Liabilities:
|
|||||||||||||||||
Short term debt
|
32
|
$
|
8
|
25
|
33
|
||||||||||||
Long term debt
|
10,343
|
10,641
|
757
|
11,398
|
|||||||||||||
December 31, 2019
|
|||||||||||||||||
Assets:
|
|||||||||||||||||
Other invested assets, primarily mortgage loans
|
$
|
994
|
$
|
1,025
|
$
|
1,025
|
|||||||||||
Liabilities:
|
|||||||||||||||||
Short term debt
|
75
|
$
|
9
|
66
|
75
|
||||||||||||
Long term debt
|
11,443
|
10,884
|
626
|
11,510
|
Nine Months Ended September 30
|
2020
|
2019
|
||||||
(In millions)
|
||||||||
Reserves, beginning of year:
|
||||||||
Gross
|
$
|
21,720
|
$
|
21,984
|
||||
Ceded
|
3,835
|
4,019
|
||||||
Net reserves, beginning of year
|
17,885
|
17,965
|
||||||
Net incurred claim and claim adjustment expenses:
|
||||||||
Provision for insured events of current year
|
4,425
|
3,968
|
||||||
Increase (decrease) in provision for insured events of prior years
|
(68
|
)
|
(65
|
)
|
||||
Amortization of discount
|
143
|
143
|
||||||
Total net incurred (a)
|
4,500
|
4,046
|
||||||
Net payments attributable to:
|
||||||||
Current year events
|
(556
|
)
|
(599
|
)
|
||||
Prior year events
|
(3,285
|
)
|
(3,547
|
)
|
||||
Total net payments
|
(3,841
|
)
|
(4,146
|
)
|
||||
Foreign currency translation adjustment and other
|
39
|
29
|
||||||
Net reserves, end of period
|
18,583
|
17,894
|
||||||
Ceded reserves, end of period
|
3,951
|
3,702
|
||||||
Gross reserves, end of period
|
$
|
22,534
|
$
|
21,596
|
(a) |
Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above.
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Medical professional liability
|
$
|
25
|
$
|
29
|
$
|
35
|
$
|
59
|
||||||||
Other professional liability and management liability
|
(18
|
)
|
(6
|
)
|
(37
|
)
|
||||||||||
Surety
|
(40
|
)
|
(43
|
)
|
(70
|
)
|
(83
|
)
|
||||||||
Commercial auto
|
9
|
(16
|
)
|
33
|
(24
|
)
|
||||||||||
General liability
|
15
|
43
|
65
|
36
|
||||||||||||
Workers’ compensation
|
(23
|
)
|
7
|
(97
|
)
|
2
|
||||||||||
Property and other
|
(1
|
)
|
14
|
32
|
18
|
|||||||||||
Total pretax (favorable) unfavorable development
|
$
|
(15
|
)
|
$
|
16
|
$
|
(8
|
)
|
$
|
(29
|
)
|
|
Net Unrealized
Gains (Losses)
on Investments
with OTTI
Losses
|
Net Unrealized
Gains (Losses)
on Other
Investments
|
Unrealized
Gains (Losses)
on Cash Flow
Hedges
|
Pension and
Postretirement
Benefits
|
Foreign
Currency
Translation
|
Total
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Balance, July 1, 2019
|
$
|
18
|
$
|
917
|
$
|
(7
|
)
|
$
|
(780
|
)
|
$
|
(145
|
)
|
$
|
3
|
|||||||||
Other comprehensive income (loss) before reclassifications, after tax of $0, $(11), $1, $0 and $0
|
44
|
(4
|
)
|
(31
|
)
|
9
|
||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $0, $0, $(2) and $0
|
(3
|
)
|
10
|
7
|
||||||||||||||||||||
Other comprehensive income (loss)
|
-
|
41
|
(4
|
)
|
10
|
(31
|
)
|
16
|
||||||||||||||||
Amounts attributable to noncontrolling interests
|
(5
|
)
|
3
|
(2
|
)
|
|||||||||||||||||||
Balance, September 30, 2019
|
$
|
18
|
$
|
953
|
$
|
(11
|
)
|
$
|
(770
|
)
|
$
|
(173
|
)
|
$
|
17
|
|
Net Unrealized
Gains (Losses)
on Investments
with an
Allowance for
Credit Losses
|
Net Unrealized
Gains (Losses)
on Other
Investments
|
Unrealized
Gains (Losses)
on Cash Flow
Hedges
|
Pension and
Postretirement
Benefits
|
Foreign
Currency
Translation
|
Total
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Balance, July 1, 2020
|
$
|
(8
|
)
|
$
|
1,050
|
$
|
(25
|
)
|
$
|
(837
|
)
|
$
|
(175
|
)
|
$
|
5
|
||||||||
Other comprehensive income (loss) before reclassifications, after tax of $0, $(63), $0, $0 and $0
|
2
|
231
|
(2
|
)
|
(2
|
)
|
38
|
267
|
||||||||||||||||
Reclassification of (income) losses from accumulated other comprehensive income, after tax of $(1), $7, $0, $(3) and $0
|
4
|
(24
|
)
|
3
|
9
|
(8
|
)
|
|||||||||||||||||
Other comprehensive income
|
6
|
207
|
1
|
7
|
38
|
259
|
||||||||||||||||||
Amounts attributable to noncontrolling interests
|
(1
|
)
|
(22
|
)
|
(3
|
)
|
(26
|
)
|
||||||||||||||||
Balance, September 30, 2020
|
$
|
(3
|
)
|
$
|
1,235
|
$
|
(24
|
)
|
$
|
(830
|
)
|
$
|
(140
|
)
|
$
|
238
|
|
Net Unrealized
Gains (Losses)
on Investments
with OTTI
Losses
|
Net Unrealized
Gains (Losses)
on Other
Investments
|
Unrealized
Gains (Losses)
on Cash Flow
Hedges
|
Pension and
Postretirement
Benefits
|
Foreign
Currency
Translation
|
Total
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Balance, January 1, 2019
|
$
|
14
|
$
|
57
|
$
|
5
|
$
|
(793
|
)
|
$
|
(163
|
)
|
$
|
(880
|
)
|
|||||||||
Other comprehensive income (loss) before reclassifications, after tax of $(2), $(265), $5, $0 and $0
|
3
|
999
|
(16
|
)
|
(1
|
)
|
(11
|
)
|
974
|
|||||||||||||||
Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(1), $0, $(7) and $0
|
1
|
4
|
26
|
31
|
||||||||||||||||||||
Other comprehensive income (loss)
|
4
|
1,003
|
(16
|
)
|
25
|
(11
|
)
|
1,005
|
||||||||||||||||
Amounts attributable to noncontrolling interests
|
(107
|
)
|
(2
|
)
|
1
|
(108
|
)
|
|||||||||||||||||
Balance, September 30, 2019
|
$
|
18
|
$
|
953
|
$
|
(11
|
)
|
$
|
(770
|
)
|
$
|
(173
|
)
|
$
|
17
|
|
Net Unrealized
Gains (Losses)
on Investments
with an
Allowance for
Credit Losses
|
Net Unrealized
Gains (Losses)
on Other
Investments
|
Unrealized
Gains (Losses)
on Cash Flow
Hedges
|
Pension and
Postretirement
Benefits
|
Foreign
Currency
Translation
|
Total
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Balance, January 1, 2020 (a)
|
$
|
-
|
$
|
918
|
$
|
(6
|
)
|
$
|
(855
|
)
|
$
|
(125
|
)
|
$
|
(68
|
)
|
||||||||
Other comprehensive income (loss) before reclassifications, after tax of $13, $(97), $8, $0 and $0
|
(48
|
)
|
374
|
(22
|
)
|
(3
|
)
|
(17
|
)
|
284
|
||||||||||||||
Reclassification of (income) losses from accumulated other comprehensive income, after tax of $(12), $5, $(1), $(8) and $0
|
45
|
(20
|
)
|
4
|
30
|
59
|
||||||||||||||||||
Other comprehensive income (loss)
|
(3
|
)
|
354
|
(18
|
)
|
27
|
(17
|
)
|
343
|
|||||||||||||||
Amounts attributable to noncontrolling interests
|
(37
|
)
|
(2
|
)
|
2
|
(37
|
)
|
|||||||||||||||||
Balance, September 30, 2020
|
$
|
(3
|
)
|
$
|
1,235
|
$
|
(24
|
)
|
$
|
(830
|
)
|
$
|
(140
|
)
|
$
|
238
|
(a) |
On January 1, 2020, the Company adopted ASU 2016-13; see Note 1. The Net Unrealized Gains (Losses) on Investments with OTTI Losses column that tracked the change in unrealized gains (losses) on investments with OTTI losses has been replaced with the Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses column. The balance as of January 1, 2020 in the Net Unrealized Gains (Losses) on Investments with OTTI Losses column is now reported in the Net Unrealized Gains (Losses) on Other Investments column. Prior period amounts were not adjusted for the adoption of this standard.
|
Major Category of AOCI
|
Affected Line Item
|
Net unrealized gains (losses) on investments with an allowance for credit losses, Net unrealized gains (losses) on investments with OTTI losses and Net unrealized gains (losses) on other investments
|
Investment gains (losses)
|
Unrealized gains (losses) on cash flow hedges
|
Operating revenues and other, Interest expense and Operating expenses and other
|
Pension and postretirement benefits
|
Operating expenses and other
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Non-insurance warranty – CNA Financial
|
$
|
317
|
$
|
292
|
$
|
926
|
$
|
858
|
||||||||
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines
|
280
|
287
|
898
|
947
|
||||||||||||
Lodging and related services – Loews Hotels & Co
|
36
|
147
|
194
|
512
|
||||||||||||
Rigid plastic packaging and recycled resin – Corporate
|
253
|
252
|
753
|
689
|
||||||||||||
Contract drilling – Diamond Offshore (a)
|
254
|
300
|
704
|
|||||||||||||
Total revenues from contracts with customers
|
569
|
940
|
2,145
|
2,852
|
||||||||||||
Other revenues
|
40
|
20
|
96
|
54
|
||||||||||||
Operating revenues and other
|
$
|
609
|
$
|
960
|
$
|
2,241
|
$
|
2,906
|
(a) |
Revenues presented for Diamond Offshore reflect the periods prior to the deconsolidation. See Notes 2 and 14 for further discussion.
|
As of September 30, 2020
|
||||
(In millions)
|
||||
A- to A++
|
$
|
2,729
|
||
B- to B++
|
874
|
|||
Insolvent
|
4
|
|||
Total voluntary reinsurance outstanding balance (a)
|
$
|
3,607
|
(a) |
Expected credit losses for legacy A&EP receivables are ceded to NICO and the reinsurance limit on the LPT has not been exhausted, therefore no allowance is recorded for these receivables and they are excluded from the table above. See Note 6 for more information on the LPT. Also excluded are receivables from involuntary pools.
|
|
Pension Benefits
|
|||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Service cost
|
$
|
2
|
$
|
2
|
$
|
5
|
||||||||||
Interest cost
|
$
|
24
|
29
|
70
|
88
|
|||||||||||
Expected return on plan assets
|
(43
|
)
|
(39
|
)
|
(130
|
)
|
(119
|
)
|
||||||||
Amortization of unrecognized net loss
|
12
|
10
|
35
|
33
|
||||||||||||
Amortization of unrecognized prior service cost
|
1
|
|||||||||||||||
Settlement charge
|
1
|
1
|
8
|
3
|
||||||||||||
Curtailment gain
|
(1
|
)
|
(1
|
)
|
||||||||||||
Net periodic (benefit) cost
|
$
|
(6
|
)
|
$
|
2
|
$
|
(14
|
)
|
$
|
9
|
|
Other Postretirement Benefits
|
|||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Interest cost
|
-
|
$
|
1
|
$
|
1
|
$
|
2
|
|||||||||
Expected return on plan assets
|
(2
|
)
|
(2
|
)
|
||||||||||||
Amortization of unrecognized net gain
|
(1
|
)
|
(1
|
)
|
||||||||||||
Net periodic benefit
|
$
|
-
|
$
|
-
|
$
|
(1
|
)
|
$
|
(1
|
)
|
September 30, 2020
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate
|
Diamond
Offshore (a)
|
Total
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Total assets
|
$
|
62,728
|
$
|
9,666
|
$
|
1,685
|
$
|
5,385
|
$
|
-
|
$
|
79,464
|
||||||||||||
December 31, 2019
|
||||||||||||||||||||||||
Total assets
|
$
|
60,583
|
$
|
9,248
|
$
|
1,728
|
$
|
4,850
|
$
|
5,834
|
$
|
82,243
|
Three Months Ended September 30, 2020
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate
|
Total
|
|||||||||||||||
(In millions)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Insurance premiums
|
$
|
1,953
|
$
|
1,953
|
||||||||||||||||
Net investment income
|
517
|
$
|
23
|
540
|
||||||||||||||||
Investment gains
|
46
|
46
|
||||||||||||||||||
Non-insurance warranty revenue
|
317
|
317
|
||||||||||||||||||
Operating revenues and other
|
7
|
$
|
289
|
$
|
60
|
253
|
609
|
|||||||||||||
Total
|
2,840
|
289
|
60
|
276
|
3,465
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Insurance claims and policyholders’ benefits
|
1,616
|
1,616
|
||||||||||||||||||
Amortization of deferred acquisition costs
|
360
|
360
|
||||||||||||||||||
Non-insurance warranty expense
|
293
|
293
|
||||||||||||||||||
Operating expenses and other
|
268
|
219
|
114
|
275
|
876
|
|||||||||||||||
Interest
|
52
|
44
|
8
|
33
|
137
|
|||||||||||||||
Total
|
2,589
|
263
|
122
|
308
|
3,282
|
|||||||||||||||
Income (loss) before income tax
|
251
|
26
|
(62
|
)
|
(32
|
)
|
183
|
|||||||||||||
Income tax (expense) benefit
|
(36
|
)
|
(6
|
)
|
15
|
6
|
(21
|
)
|
||||||||||||
Net income (loss)
|
215
|
20
|
(47
|
)
|
(26
|
)
|
162
|
|||||||||||||
Amounts attributable to noncontrolling interests
|
(23
|
)
|
(23
|
)
|
||||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
192
|
$
|
20
|
$
|
(47
|
)
|
$
|
(26
|
)
|
$
|
139
|
Three Months Ended September 30, 2019
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate
|
Diamond
Offshore (a)
|
Total
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Insurance premiums
|
$
|
1,890
|
$
|
1,890
|
||||||||||||||||||||
Net investment income
|
487
|
$
|
36
|
$
|
2
|
525
|
||||||||||||||||||
Investment gains
|
8
|
8
|
||||||||||||||||||||||
Non-insurance warranty revenue
|
292
|
292
|
||||||||||||||||||||||
Operating revenues and other
|
9
|
$
|
296
|
$
|
156
|
250
|
249
|
960
|
||||||||||||||||
Total
|
2,686
|
296
|
156
|
286
|
251
|
3,675
|
||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Insurance claims and policyholders’ benefits
|
1,614
|
1,614
|
||||||||||||||||||||||
Amortization of deferred acquisition costs
|
345
|
345
|
||||||||||||||||||||||
Non-insurance warranty expense
|
278
|
278
|
||||||||||||||||||||||
Operating expenses and other
|
291
|
212
|
145
|
264
|
322
|
1,234
|
||||||||||||||||||
Interest
|
31
|
45
|
6
|
31
|
31
|
144
|
||||||||||||||||||
Total
|
2,559
|
257
|
151
|
295
|
353
|
3,615
|
||||||||||||||||||
Income (loss) before income tax
|
127
|
39
|
5
|
(9
|
)
|
(102
|
)
|
60
|
||||||||||||||||
Income tax (expense) benefit
|
(20
|
)
|
(10
|
)
|
(2
|
)
|
1
|
10
|
(21
|
)
|
||||||||||||||
Net income (loss)
|
107
|
29
|
3
|
(8
|
)
|
(92
|
)
|
39
|
||||||||||||||||
Amounts attributable to noncontrolling interests
|
(11
|
)
|
44
|
33
|
||||||||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
96
|
$
|
29
|
$
|
3
|
$
|
(8
|
)
|
$
|
(48
|
)
|
$
|
72
|
Nine Months Ended September 30, 2020
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate
|
Diamond
Offshore (a)
|
Total
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Insurance premiums
|
$
|
5,672
|
$
|
5,672
|
||||||||||||||||||||
Net investment income (loss)
|
1,380
|
$
|
(33
|
)
|
1,347
|
|||||||||||||||||||
Investment losses
|
(101
|
)
|
(1,211
|
)
|
(1,312
|
)
|
||||||||||||||||||
Non-insurance warranty revenue
|
926
|
926
|
||||||||||||||||||||||
Operating revenues and other
|
20
|
$
|
926
|
$
|
236
|
754
|
$
|
305
|
2,241
|
|||||||||||||||
Total
|
7,897
|
926
|
236
|
(490
|
)
|
305
|
8,874
|
|||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Insurance claims and policyholders’ benefits
|
4,683
|
4,683
|
||||||||||||||||||||||
Amortization of deferred acquisition costs
|
1,046
|
1,046
|
||||||||||||||||||||||
Non-insurance warranty expense
|
859
|
859
|
||||||||||||||||||||||
Operating expenses and other
|
851
|
633
|
404
|
810
|
1,196
|
3,894
|
||||||||||||||||||
Interest
|
114
|
127
|
24
|
96
|
43
|
404
|
||||||||||||||||||
Total
|
7,553
|
760
|
428
|
906
|
1,239
|
10,886
|
||||||||||||||||||
Income (loss) before income tax
|
344
|
166
|
(192
|
)
|
(1,396
|
)
|
(934
|
)
|
(2,012
|
)
|
||||||||||||||
Income tax (expense) benefit
|
(40
|
)
|
(43
|
)
|
48
|
293
|
26
|
284
|
||||||||||||||||
Net income (loss)
|
304
|
123
|
(144
|
)
|
(1,103
|
)
|
(908
|
)
|
(1,728
|
)
|
||||||||||||||
Amounts attributable to noncontrolling interests
|
(32
|
)
|
432
|
400
|
||||||||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
272
|
$
|
123
|
$
|
(144
|
)
|
$
|
(1,103
|
)
|
$
|
(476
|
)
|
$
|
(1,328
|
)
|
Nine Months Ended September 30, 2019
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate
|
Diamond
Offshore (a)
|
Total
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Insurance premiums
|
$
|
5,517
|
$
|
5,517
|
||||||||||||||||||||
Net investment income
|
1,573
|
$
|
1
|
$
|
153
|
$
|
6
|
1,733
|
||||||||||||||||
Investment gains
|
41
|
41
|
||||||||||||||||||||||
Non-insurance warranty revenue
|
858
|
858
|
||||||||||||||||||||||
Operating revenues and other
|
22
|
$
|
969
|
521
|
689
|
705
|
2,906
|
|||||||||||||||||
Total
|
8,011
|
969
|
522
|
842
|
711
|
11,055
|
||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Insurance claims and policyholders’ benefits
|
4,323
|
4,323
|
||||||||||||||||||||||
Amortization of deferred acquisition costs
|
1,025
|
1,025
|
||||||||||||||||||||||
Non-insurance warranty expense
|
801
|
801
|
||||||||||||||||||||||
Operating expenses and other
|
854
|
616
|
464
|
740
|
940
|
3,614
|
||||||||||||||||||
Interest
|
120
|
136
|
16
|
85
|
92
|
449
|
||||||||||||||||||
Total
|
7,123
|
752
|
480
|
825
|
1,032
|
10,212
|
||||||||||||||||||
Income (loss) before income tax
|
888
|
217
|
42
|
17
|
(321
|
)
|
843
|
|||||||||||||||||
Income tax (expense) benefit
|
(161
|
)
|
(56
|
)
|
(14
|
)
|
(4
|
)
|
52
|
(183
|
)
|
|||||||||||||
Net income (loss)
|
727
|
161
|
28
|
13
|
(269
|
)
|
660
|
|||||||||||||||||
Amounts attributable to noncontrolling interests
|
(77
|
)
|
132
|
55
|
||||||||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
650
|
$
|
161
|
$
|
28
|
$
|
13
|
$
|
(137
|
)
|
$
|
715
|
(a) |
Amounts presented for Diamond Offshore reflect the periods prior to the deconsolidation.
|
|
Page
No.
|
Overview
|
39
|
Results of Operations
|
40
|
Consolidated Financial Results
|
40
|
CNA Financial
|
41
|
Boardwalk Pipelines
|
51
|
Loews Hotels & Co
|
53
|
Corporate
|
54
|
Diamond Offshore
|
55
|
Liquidity and Capital Resources
|
56
|
Parent Company
|
56
|
Subsidiaries
|
56
|
Investments
|
57
|
Critical Accounting Estimates
|
61
|
Accounting Standards Update
|
61
|
Forward-Looking Statements
|
61
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions, except per share data)
|
||||||||||||||||
CNA Financial
|
$
|
192
|
$
|
96
|
$
|
272
|
$
|
650
|
||||||||
Boardwalk Pipelines
|
20
|
29
|
123
|
161
|
||||||||||||
Loews Hotels & Co
|
(47
|
)
|
3
|
(144
|
)
|
28
|
||||||||||
Corporate
|
(26
|
)
|
(8
|
)
|
(1,103
|
)
|
13
|
|||||||||
Diamond Offshore (a)
|
(48
|
)
|
(476
|
)
|
(137
|
)
|
||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
139
|
$
|
72
|
$
|
(1,328
|
)
|
$
|
715
|
|||||||
Basic and diluted net income (loss) per share
|
$
|
0.50
|
$
|
0.24
|
$
|
(4.70
|
)
|
$
|
2.34
|
(a)
|
Amounts presented for Diamond Offshore reflect the periods prior to deconsolidation. See Notes 2 and 14 of the Notes to the Consolidated Condensed Financial Statements included under Item 1.
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Insurance premiums
|
$
|
1,953
|
$
|
1,890
|
$
|
5,672
|
$
|
5,517
|
||||||||
Net investment income
|
517
|
487
|
1,380
|
1,573
|
||||||||||||
Investment gains (losses)
|
46
|
8
|
(101
|
)
|
41
|
|||||||||||
Non-insurance warranty revenue
|
317
|
292
|
926
|
858
|
||||||||||||
Other revenues
|
7
|
9
|
20
|
22
|
||||||||||||
Total
|
2,840
|
2,686
|
7,897
|
8,011
|
||||||||||||
Expenses:
|
||||||||||||||||
Insurance claims and policyholders’ benefits
|
1,616
|
1,614
|
4,683
|
4,323
|
||||||||||||
Amortization of deferred acquisition costs
|
360
|
345
|
1,046
|
1,025
|
||||||||||||
Non-insurance warranty expense
|
293
|
278
|
859
|
801
|
||||||||||||
Other operating expenses
|
268
|
291
|
851
|
854
|
||||||||||||
Interest
|
52
|
31
|
114
|
120
|
||||||||||||
Total
|
2,589
|
2,559
|
7,553
|
7,123
|
||||||||||||
Income before income tax
|
251
|
127
|
344
|
888
|
||||||||||||
Income tax expense
|
(36
|
)
|
(20
|
)
|
(40
|
)
|
(161
|
)
|
||||||||
Net income
|
215
|
107
|
304
|
727
|
||||||||||||
Amounts attributable to noncontrolling interests
|
(23
|
)
|
(11
|
)
|
(32
|
)
|
(77
|
)
|
||||||||
Net income attributable to Loews Corporation
|
$
|
192
|
$
|
96
|
$
|
272
|
$
|
650
|
Three Months Ended September 30, 2020
|
Specialty
|
Commercial
|
International
|
Total
|
||||||||||||
(In millions, except %)
|
||||||||||||||||
Gross written premiums
|
$
|
1,855
|
$
|
915
|
$
|
238
|
$
|
3,008
|
||||||||
Gross written premiums excluding third
|
||||||||||||||||
party captives
|
861
|
915
|
238
|
2,014
|
||||||||||||
Net written premiums
|
795
|
804
|
222
|
1,821
|
||||||||||||
Net earned premiums
|
734
|
857
|
236
|
1,827
|
||||||||||||
Net investment income
|
126
|
165
|
15
|
306
|
||||||||||||
Core income
|
168
|
52
|
27
|
247
|
||||||||||||
Other performance metrics:
|
||||||||||||||||
Loss ratio excluding catastrophes
|
||||||||||||||||
and development
|
60.0
|
%
|
61.0
|
%
|
60.1
|
%
|
60.5
|
%
|
||||||||
Effect of catastrophe impacts
|
1.0
|
17.0
|
3.0
|
8.7
|
||||||||||||
Effect of development-related items
|
(2.0
|
)
|
0.6
|
0.1
|
(0.4
|
)
|
||||||||||
Loss ratio
|
59.0
|
%
|
78.6
|
%
|
63.2
|
%
|
68.8
|
%
|
||||||||
Expense ratio
|
30.5
|
32.3
|
34.9
|
31.8
|
||||||||||||
Dividend ratio
|
0.6
|
0.3
|
||||||||||||||
Combined ratio
|
89.5
|
%
|
111.5
|
%
|
98.1
|
%
|
100.9
|
%
|
||||||||
Combined ratio excluding catastrophes and development
|
90.5
|
%
|
93.9
|
%
|
95.0
|
%
|
92.6
|
%
|
||||||||
Rate
|
13
|
%
|
11
|
%
|
16
|
%
|
12
|
%
|
||||||||
Renewal premium change
|
12
|
8
|
14
|
10
|
||||||||||||
Retention
|
86
|
81
|
70
|
82
|
||||||||||||
New business
|
$
|
104
|
$
|
168
|
$
|
58
|
$
|
330
|
Three Months Ended September 30, 2019
|
Specialty
|
Commercial
|
International
|
Total
|
||||||||||||
Gross written premiums
|
$
|
1,766
|
$
|
860
|
$
|
226
|
$
|
2,852
|
||||||||
Gross written premiums excluding third
|
||||||||||||||||
party captives
|
778
|
852
|
226
|
1,856
|
||||||||||||
Net written premiums
|
732
|
775
|
201
|
1,708
|
||||||||||||
Net earned premiums
|
712
|
813
|
236
|
1,761
|
||||||||||||
Net investment income
|
121
|
136
|
17
|
274
|
||||||||||||
Core income (loss)
|
153
|
97
|
(9
|
)
|
241
|
|||||||||||
Other performance metrics:
|
||||||||||||||||
Loss ratio excluding catastrophes
|
||||||||||||||||
and development
|
60.1
|
%
|
61.5
|
%
|
67.3
|
%
|
61.7
|
%
|
||||||||
Effect of catastrophe impacts
|
0.5
|
3.0
|
1.7
|
1.8
|
||||||||||||
Effect of development-related items
|
(2.8
|
)
|
4.8
|
0.4
|
1.2
|
|||||||||||
Loss ratio
|
57.8
|
%
|
69.3
|
%
|
69.4
|
%
|
64.7
|
%
|
||||||||
Expense ratio
|
31.8
|
31.7
|
38.0
|
32.5
|
||||||||||||
Dividend ratio
|
0.2
|
0.6
|
0.4
|
|||||||||||||
Combined ratio
|
89.8
|
%
|
101.6
|
%
|
107.4
|
%
|
97.6
|
%
|
||||||||
Combined ratio excluding catastrophes and development
|
92.1
|
%
|
93.8
|
%
|
105.3
|
%
|
94.6
|
%
|
||||||||
Rate
|
6
|
%
|
4
|
%
|
10
|
%
|
6
|
%
|
||||||||
Renewal premium change
|
9
|
5
|
6
|
7
|
||||||||||||
Retention
|
87
|
86
|
74
|
84
|
||||||||||||
New business
|
$
|
91
|
$
|
173
|
$
|
52
|
$
|
316
|
Nine Months Ended September 30, 2020
|
Specialty
|
Commercial
|
International
|
Total
|
||||||||||||
(In millions, except %)
|
||||||||||||||||
Gross written premiums
|
$
|
5,331
|
$
|
3,103
|
$
|
822
|
$
|
9,256
|
||||||||
Gross written premiums excluding third party captives
|
2,413
|
3,018
|
822
|
6,253
|
||||||||||||
Net written premiums
|
2,231
|
2,703
|
680
|
5,614
|
||||||||||||
Net earned premiums
|
2,124
|
2,470
|
699
|
5,293
|
||||||||||||
Net investment income
|
315
|
389
|
44
|
748
|
||||||||||||
Core income
|
354
|
96
|
15
|
465
|
||||||||||||
Other performance metrics:
|
||||||||||||||||
Loss ratio excluding catastrophes
|
||||||||||||||||
and development
|
59.8
|
%
|
60.4
|
%
|
60.1
|
%
|
60.1
|
%
|
||||||||
Effect of catastrophe impacts
|
5.7
|
14.3
|
8.9
|
10.1
|
||||||||||||
Effect of development-related items
|
(2.1
|
)
|
2.1
|
(0.4
|
)
|
0.1
|
||||||||||
Loss ratio
|
63.4
|
%
|
76.8
|
%
|
68.6
|
%
|
70.3
|
%
|
||||||||
Expense ratio
|
31.5
|
33.2
|
35.6
|
32.9
|
||||||||||||
Dividend ratio
|
0.1
|
0.6
|
0.3
|
|||||||||||||
Combined ratio
|
95.0
|
%
|
110.6
|
%
|
104.2
|
%
|
103.5
|
%
|
||||||||
Combined ratio excluding catastrophes and development
|
91.4
|
%
|
94.2
|
%
|
95.7
|
%
|
93.3
|
%
|
||||||||
Rate
|
11
|
%
|
9
|
%
|
12
|
%
|
11
|
%
|
||||||||
Renewal premium change
|
11
|
8
|
11
|
9
|
||||||||||||
Retention
|
85
|
84
|
71
|
82
|
||||||||||||
New business
|
$
|
275
|
$
|
564
|
$
|
187
|
$
|
1,026
|
Nine Months Ended September 30, 2019
|
||||||||||||||||
Gross written premiums
|
$
|
5,191
|
$
|
2,825
|
$
|
837
|
$
|
8,853
|
||||||||
Gross written premiums excluding third
|
||||||||||||||||
party captives
|
2,263
|
2,742
|
837
|
5,842
|
||||||||||||
Net written premiums
|
2,143
|
2,536
|
709
|
5,388
|
||||||||||||
Net earned premiums
|
2,061
|
2,339
|
729
|
5,129
|
||||||||||||
Net investment income
|
410
|
480
|
47
|
937
|
||||||||||||
Core income
|
483
|
356
|
14
|
853
|
||||||||||||
Other performance metrics:
|
||||||||||||||||
Loss ratio excluding catastrophes
|
||||||||||||||||
and development
|
60.2
|
%
|
61.8
|
%
|
61.4
|
%
|
61.1
|
%
|
||||||||
Effect of catastrophe impacts
|
0.8
|
4.3
|
1.4
|
2.5
|
||||||||||||
Effect of development-related items
|
(2.9
|
)
|
1.5
|
1.9
|
(0.2
|
)
|
||||||||||
Loss ratio
|
58.1
|
%
|
67.6
|
%
|
64.7
|
%
|
63.4
|
%
|
||||||||
Expense ratio
|
32.6
|
32.7
|
37.5
|
33.3
|
||||||||||||
Dividend ratio
|
0.2
|
0.6
|
0.4
|
|||||||||||||
Combined ratio
|
90.9
|
%
|
100.9
|
%
|
102.2
|
%
|
97.1
|
%
|
||||||||
Combined ratio excluding catastrophes and development
|
93.0
|
%
|
95.1
|
%
|
98.9
|
%
|
94.8
|
%
|
||||||||
Rate
|
4
|
%
|
3
|
%
|
7
|
%
|
4
|
%
|
||||||||
Renewal premium change
|
7
|
5
|
5
|
6
|
||||||||||||
Retention
|
88
|
86
|
70
|
84
|
||||||||||||
New business
|
$
|
274
|
$
|
522
|
$
|
207
|
$
|
1,003
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Net earned premiums
|
$
|
127
|
$
|
130
|
$
|
380
|
$
|
390
|
||||||||
Net investment income
|
211
|
213
|
632
|
636
|
||||||||||||
Core loss
|
(54
|
)
|
(139
|
)
|
(65
|
)
|
(139
|
)
|
September 30, 2020
|
Estimated Reduction to Pretax Income
|
|||
(In millions)
|
||||
Hypothetical revisions
|
||||
Morbidity:
|
||||
2.5% increase in morbidity
|
$
|
339
|
||
5% increase in morbidity
|
677
|
|||
Persistency:
|
||||
5% decrease in active life mortality and lapse
|
$
|
254
|
||
10% decrease in active life mortality and lapse
|
469
|
|||
Discount rates:
|
||||
25 basis point decline in new money interest rates
|
$
|
175
|
||
50 basis point decline in new money interest rates
|
356
|
|||
Premium rate actions:
|
||||
25% decrease in anticipated future premium rate increases
|
$
|
66
|
||
50% decrease in anticipated future premium rate increases
|
132
|
September 30, 2020
|
Claim and claim adjustment
expenses
|
Future
policy benefits
|
Total
|
|||||||||
(In millions)
|
||||||||||||
Long term care
|
$
|
2,866
|
$
|
9,678
|
$
|
12,544
|
||||||
Structured settlement annuities
|
547
|
547
|
||||||||||
Other
|
12
|
12
|
||||||||||
Total
|
3,425
|
9,678
|
13,103
|
|||||||||
Shadow adjustments (a)
|
204
|
3,035
|
3,239
|
|||||||||
Ceded reserves (b)
|
137
|
265
|
402
|
|||||||||
Total gross reserves
|
$
|
3,766
|
$
|
12,978
|
$
|
16,744
|
December 31, 2019
|
||||||||||||
Long term care
|
$
|
2,863
|
$
|
9,470
|
$
|
12,333
|
||||||
Structured settlement annuities
|
515
|
515
|
||||||||||
Other
|
12
|
12
|
||||||||||
Total
|
3,390
|
9,470
|
12,860
|
|||||||||
Shadow adjustments (a)
|
167
|
2,615
|
2,782
|
|||||||||
Ceded reserves (b)
|
159
|
226
|
385
|
|||||||||
Total gross reserves
|
$
|
3,716
|
$
|
12,311
|
$
|
16,027
|
(a) |
To the extent that unrealized gains on fixed income securities supporting long term care products and annuity contracts would result in a premium deficiency if those gains were realized, an increase in Insurance reserves is recorded, after tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (loss) (“Shadow Adjustments”).
|
(b) |
Ceded reserves relate to claim or policy reserves fully reinsured in connection with a sale or exit from the underlying business.
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Core income (loss):
|
||||||||||||||||
Property & Casualty Operations
|
$
|
247
|
$
|
241
|
$
|
465
|
$
|
853
|
||||||||
Other Insurance Operations
|
(54
|
)
|
(139
|
)
|
(65
|
)
|
(139
|
)
|
||||||||
Total core income
|
193
|
102
|
400
|
714
|
||||||||||||
Investment gains (losses)
|
36
|
6
|
(81
|
)
|
30
|
|||||||||||
Consolidating adjustments including noncontrolling interests
|
(37
|
)
|
(12
|
)
|
(47
|
)
|
(94
|
)
|
||||||||
Net income attributable to Loews Corporation
|
$
|
192
|
$
|
96
|
$
|
272
|
$
|
650
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Operating revenues and other
|
$
|
289
|
$
|
296
|
$
|
926
|
$
|
969
|
||||||||
Total
|
289
|
296
|
926
|
969
|
||||||||||||
Expenses:
|
||||||||||||||||
Operating and other
|
219
|
212
|
633
|
616
|
||||||||||||
Interest
|
44
|
45
|
127
|
136
|
||||||||||||
Total
|
263
|
257
|
760
|
752
|
||||||||||||
Income before income tax
|
26
|
39
|
166
|
217
|
||||||||||||
Income tax expense
|
(6
|
)
|
(10
|
)
|
(43
|
)
|
(56
|
)
|
||||||||
Net income attributable to Loews Corporation
|
$
|
20
|
$
|
29
|
$
|
123
|
$
|
161
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Operating revenue
|
$
|
22
|
$
|
127
|
$
|
140
|
$
|
437
|
||||||||
Gain on sale of assets
|
24
|
37
|
||||||||||||||
Revenues related to reimbursable expenses
|
14
|
29
|
59
|
85
|
||||||||||||
Total
|
60
|
156
|
236
|
522
|
||||||||||||
Expenses:
|
||||||||||||||||
Operating and other:
|
||||||||||||||||
Operating
|
53
|
113
|
219
|
372
|
||||||||||||
Asset impairments
|
10
|
30
|
11
|
|||||||||||||
Reimbursable expenses
|
14
|
29
|
59
|
85
|
||||||||||||
Depreciation
|
15
|
14
|
45
|
45
|
||||||||||||
Equity (income) loss from joint ventures
|
22
|
(11
|
)
|
51
|
(49
|
)
|
||||||||||
Interest
|
8
|
6
|
24
|
16
|
||||||||||||
Total
|
122
|
151
|
428
|
480
|
||||||||||||
Income (loss) before income tax
|
(62
|
)
|
5
|
(192
|
)
|
42
|
||||||||||
Income tax (expense) benefit
|
15
|
(2
|
)
|
48
|
(14
|
)
|
||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
(47
|
)
|
$
|
3
|
$
|
(144
|
)
|
$
|
28
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Net investment income (loss)
|
$
|
23
|
$
|
36
|
$
|
(33
|
)
|
$
|
153
|
|||||||
Investment loss
|
(1,211
|
)
|
||||||||||||||
Operating revenues and other
|
253
|
250
|
754
|
689
|
||||||||||||
Total
|
276
|
286
|
(490
|
)
|
842
|
|||||||||||
Expenses:
|
||||||||||||||||
Operating and other
|
275
|
264
|
810
|
740
|
||||||||||||
Interest
|
33
|
31
|
96
|
85
|
||||||||||||
Total
|
308
|
295
|
906
|
825
|
||||||||||||
Income (loss) before income tax
|
(32
|
)
|
(9
|
)
|
(1,396
|
)
|
17
|
|||||||||
Income tax (expense) benefit
|
6
|
1
|
293
|
(4
|
)
|
|||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
(26
|
)
|
$
|
(8
|
)
|
$
|
(1,103
|
)
|
$
|
13
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Fixed income securities:
|
||||||||||||||||
Taxable fixed income securities
|
$
|
363
|
$
|
383
|
$
|
1,094
|
$
|
1,151
|
||||||||
Tax-exempt fixed income securities
|
80
|
79
|
238
|
241
|
||||||||||||
Total fixed income securities
|
443
|
462
|
1,332
|
1,392
|
||||||||||||
Limited partnership investments
|
64
|
12
|
38
|
125
|
||||||||||||
Common stock
|
7
|
6
|
(8
|
)
|
32
|
|||||||||||
Other, net of investment expense
|
3
|
7
|
18
|
24
|
||||||||||||
Pretax net investment income
|
$
|
517
|
$
|
487
|
$
|
1,380
|
$
|
1,573
|
||||||||
Fixed income securities after tax and noncontrolling interests
|
$
|
326
|
$
|
337
|
$
|
977
|
$
|
1,018
|
||||||||
Net investment income after tax and noncontrolling interests
|
$
|
377
|
$
|
356
|
$
|
1,011
|
$
|
1,147
|
Effective income yield for the fixed income securities portfolio, before tax
|
4.5
|
%
|
4.8
|
%
|
4.6
|
%
|
4.8
|
%
|
||||||||
Effective income yield for the fixed income securities portfolio, after tax
|
3.7
|
%
|
3.9
|
%
|
3.7
|
%
|
3.9
|
%
|
||||||||
Limited partnership and common stock return
|
4.1
|
%
|
0.9
|
%
|
1.7
|
%
|
7.7
|
%
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(In millions)
|
||||||||||||||||
Investment gains (losses):
|
||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||
Corporate and other bonds
|
$
|
14
|
$
|
7
|
$
|
(105
|
)
|
|||||||||
States, municipalities and political subdivisions
|
6
|
1
|
39
|
$
|
13
|
|||||||||||
Asset-backed
|
6
|
(5
|
)
|
34
|
(19
|
)
|
||||||||||
Total fixed maturity securities
|
26
|
3
|
(32
|
)
|
(6
|
)
|
||||||||||
Non-redeemable preferred stock
|
25
|
7
|
(45
|
)
|
60
|
|||||||||||
Short term and other
|
(5
|
)
|
(2
|
)
|
(24
|
)
|
(13
|
)
|
||||||||
Total investment gains (losses)
|
46
|
8
|
(101
|
)
|
41
|
|||||||||||
Income tax (expense) benefit
|
(10
|
)
|
(2
|
)
|
20
|
(11
|
)
|
|||||||||
Amounts attributable to noncontrolling interests
|
(3
|
)
|
(1
|
)
|
9
|
(3
|
)
|
|||||||||
Investment gains (losses) attributable to Loews Corporation
|
$
|
33
|
$
|
5
|
$
|
(72
|
)
|
$
|
27
|
|
September 30, 2020
|
December 31, 2019
|
||||||||||||||
Estimated
Fair Value
|
Net
Unrealized
Gains
(Losses)
|
Estimated
Fair Value
|
Net
Unrealized
Gains
(Losses)
|
|||||||||||||
(In millions)
|
||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises
|
$
|
4,026
|
$
|
127
|
$
|
4,136
|
$
|
95
|
||||||||
AAA
|
3,623
|
452
|
3,254
|
349
|
||||||||||||
AA
|
6,773
|
961
|
6,663
|
801
|
||||||||||||
A
|
9,470
|
1,296
|
9,062
|
1,051
|
||||||||||||
BBB
|
17,488
|
2,105
|
16,839
|
1,684
|
||||||||||||
Non-investment grade
|
2,521
|
38
|
2,253
|
101
|
||||||||||||
Total
|
$
|
43,901
|
$
|
4,979
|
$
|
42,207
|
$
|
4,081
|
September 30, 2020
|
Estimated
Fair Value
|
Gross
Unrealized
Losses
|
||||||
(In millions)
|
||||||||
U.S. Government, Government agencies and Government-sponsored enterprises
|
$
|
99
|
$
|
1
|
||||
AAA
|
37
|
1
|
||||||
AA
|
244
|
9
|
||||||
A
|
642
|
21
|
||||||
BBB
|
1,264
|
71
|
||||||
Non-investment grade
|
816
|
78
|
||||||
Total
|
$
|
3,102
|
$
|
181
|
September 30, 2020
|
Estimated
Fair Value
|
Gross
Unrealized
Losses
|
||||||
(In millions)
|
||||||||
Due in one year or less
|
$
|
142
|
$
|
8
|
||||
Due after one year through five years
|
819
|
54
|
||||||
Due after five years through ten years
|
1,479
|
83
|
||||||
Due after ten years
|
662
|
36
|
||||||
Total
|
$
|
3,102
|
$
|
181
|
|
September 30, 2020
|
December 31, 2019
|
|||||
Estimated
Fair Value
|
Effective
Duration
(Years)
|
Estimated
Fair Value
|
Effective
Duration
(Years)
|
||||
(In millions of dollars)
|
|||||||
Investments supporting Other Insurance Operations
|
$
|
18,700
|
9.0
|
$
|
18,015
|
8.9
|
|
Other investments
|
27,408
|
4.5
|
26,813
|
4.1
|
|||
Total
|
$
|
46,108
|
6.3
|
$
|
44,828
|
6.0
|
|
September 30,
2020
|
December 31,
2019
|
||||||
(In millions)
|
||||||||
Short term investments:
|
||||||||
Commercial paper
|
$
|
1,181
|
||||||
U.S. Treasury securities
|
$
|
1,247
|
364
|
|||||
Other
|
215
|
316
|
||||||
Total short term investments
|
$
|
1,462
|
$
|
1,861
|
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 of shares
(or approximate dollar value)
of shares that may yet be
purchased under the plans or
programs (in millions)
|
||||||||||||
July 1, 2020 -
|
||||||||||||||||
July 31, 2020
|
-
|
N/A
|
N/A
|
N/A
|
||||||||||||
August 1, 2020 -
|
||||||||||||||||
August 31, 2020
|
1,250,171
|
$
|
36.56
|
N/A
|
N/A
|
|||||||||||
September 1, 2020 -
|
||||||||||||||||
September 30, 2020
|
4,154,083
|
35.82
|
N/A
|
N/A
|
Description of Exhibit
|
Exhibit
Number
|
Certification by the Chief Executive Officer of the Company pursuant to Rule 13a-14(a) and Rule 15d-14(a)
|
|
Certification by the Chief Financial Officer of the Company pursuant to Rule 13a-14(a) and Rule 15d-14(a)
|
|
Certification by the Chief Executive Officer of the Company pursuant to 18 U.S.C. Section 1350 (as adopted by Section 906 of the Sarbanes-Oxley Act of 2002)
|
|
Certification by the Chief Financial Officer of the Company pursuant to 18 U.S.C. Section 1350 (as adopted by Section 906 of the Sarbanes-Oxley Act of 2002)
|
|
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*
|
LOEWS CORPORATION
|
||
(Registrant)
|
||
Dated: November 2, 2020
|
By:
|
/s/ David B. Edelson
|
DAVID B. EDELSON
|
||
Senior Vice President and
|
||
Chief Financial Officer
|
||
(Duly authorized officer
|
||
and principal financial
|
||
officer)
|
1 Year Loews Chart |
1 Month Loews Chart |
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