(Exact name of registrant as specified in its charter) |
(State or other jurisdiction | (Commission | (IRS Employer | ||||||||||||
of incorporation) | File Number) | Identification No.) |
NOT APPLICABLE | ||
(Former name or former address, if changed since last report.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | Description | |||||||
CNA Financial Corporation press release, issued May 1, 2023, providing information on the first quarter 2023 results of operations. | ||||||||
CNA Financial Corporation financial supplement, posted on its website May 1, 2023, providing supplemental financial information on the first quarter 2023. | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CNA Financial Corporation | ||||||||
(Registrant) | ||||||||
Date: May 1, 2023 | By | /s/ Scott R. Lindquist | ||||||
(Signature) | ||||||||
Scott R. Lindquist Executive Vice President and Chief Financial Officer |
Results for the Three Months Ended March 31 | |||||||||||
($ millions, except per share data) | 2023 | 2022 (a) | |||||||||
Net income | $ | 297 | $ | 295 | |||||||
Core income (b) | 325 | 298 | |||||||||
Net income per diluted share | $ | 1.09 | $ | 1.08 | |||||||
Core income per diluted share | 1.19 | 1.09 |
March 31, 2023 | December 31, 2022 (a) | ||||||||||||||||
Book value per share | $ | 32.00 | $ | 31.55 | |||||||||||||
Book value per share excluding AOCI | 44.21 | 44.83 |
Results for the Three Months Ended March 31 | |||||||||||||||||
($ millions) | 2023 | 2022 | |||||||||||||||
Gross written premiums ex. 3rd party captives | $ | 2,724 | $ | 2,454 | |||||||||||||
GWP ex. 3rd party captives change (% year over year) | 11 | % | |||||||||||||||
Net written premiums | $ | 2,247 | $ | 2,023 | |||||||||||||
NWP change (% year over year) | 11 | % | |||||||||||||||
Net earned premiums | $ | 2,133 | $ | 1,940 | |||||||||||||
NEP change (% year over year) | 10 | % | |||||||||||||||
Underwriting gain | $ | 130 | $ | 156 | |||||||||||||
Net investment income | $ | 301 | $ | 235 | |||||||||||||
Core income | $ | 346 | $ | 321 | |||||||||||||
Loss ratio excluding catastrophes and development | 59.8 | % | 60.1 | % | |||||||||||||
Effect of catastrophe impacts | 2.4 | 1.0 | |||||||||||||||
Effect of development-related items | 0.7 | (0.5) | |||||||||||||||
Loss ratio | 62.9 | % | 60.6 | % | |||||||||||||
Expense ratio | 30.7 | % | 31.0 | % | |||||||||||||
Combined ratio | 93.9 | % | 91.9 | % | |||||||||||||
Combined ratio excluding catastrophes and development | 90.8 | % | 91.4 | % |
Results for the Three Months Ended March 31 | |||||||||||||||||
($ millions) | 2023 | 2022 | |||||||||||||||
Gross written premiums ex. 3rd party captives | $ | 886 | $ | 885 | |||||||||||||
GWP ex. 3rd party captives change (% year over year) | — | % | |||||||||||||||
Net written premiums | $ | 788 | $ | 771 | |||||||||||||
NWP change (% year over year) | 2 | % | |||||||||||||||
Net earned premiums | $ | 797 | $ | 772 | |||||||||||||
NEP change (% year over year) | 3 | % | |||||||||||||||
Underwriting gain | $ | 80 | $ | 88 | |||||||||||||
Loss ratio excluding catastrophes and development | 58.4 | % | 58.9 | % | |||||||||||||
Effect of catastrophe impacts | — | — | |||||||||||||||
Effect of development-related items | — | (1.3) | |||||||||||||||
Loss ratio | 58.4 | % | 57.6 | % | |||||||||||||
Expense ratio | 31.4 | % | 30.9 | % | |||||||||||||
Combined ratio | 90.0 | % | 88.7 | % | |||||||||||||
Combined ratio excluding catastrophes and development | 90.0 | % | 90.0 | % |
Results for the Three Months Ended March 31 | |||||||||||||||||
($ millions) | 2023 | 2022 | |||||||||||||||
Gross written premiums ex. 3rd party captives | $ | 1,440 | $ | 1,206 | |||||||||||||
GWP ex. 3rd party captives change (% year over year) | 19 | % | |||||||||||||||
Net written premiums | $ | 1,188 | $ | 1,001 | |||||||||||||
NWP change (% year over year) | 19 | % | |||||||||||||||
Net earned premiums | $ | 1,046 | $ | 904 | |||||||||||||
NEP change (% year over year) | 16 | % | |||||||||||||||
Underwriting gain | $ | 41 | $ | 48 | |||||||||||||
Loss ratio excluding catastrophes and development | 61.5 | % | 61.5 | % | |||||||||||||
Effect of catastrophe impacts | 4.2 | 1.8 | |||||||||||||||
Effect of development-related items | — | — | |||||||||||||||
Loss ratio | 65.7 | % | 63.3 | % | |||||||||||||
Expense ratio | 29.8 | % | 30.7 | % | |||||||||||||
Combined ratio | 96.0 | % | 94.5 | % | |||||||||||||
Combined ratio excluding catastrophes and development | 91.8 | % | 92.7 | % |
Results for the Three Months Ended March 31 | |||||||||||||||||
($ millions) | 2023 | 2022 | |||||||||||||||
Gross written premiums | $ | 398 | $ | 363 | |||||||||||||
GWP change (% year over year) | 10 | % | |||||||||||||||
Net written premiums | $ | 271 | $ | 251 | |||||||||||||
NWP change (% year over year) | 8 | % | |||||||||||||||
Net earned premiums | $ | 290 | $ | 264 | |||||||||||||
NEP change (% year over year) | 10 | % | |||||||||||||||
Underwriting gain | $ | 9 | $ | 20 | |||||||||||||
Loss ratio excluding catastrophes and development | 57.5 | % | 58.6 | % | |||||||||||||
Effect of catastrophe impacts | 2.8 | 1.2 | |||||||||||||||
Effect of development-related items | 5.1 | — | |||||||||||||||
Loss ratio | 65.4 | % | 59.8 | % | |||||||||||||
Expense ratio | 31.8 | % | 32.6 | % | |||||||||||||
Combined ratio | 97.2 | % | 92.4 | % | |||||||||||||
Combined ratio excluding catastrophes and development | 89.3 | % | 91.2 | % |
Results for the Three Months Ended March 31 | |||||||||||||||||
($ millions) | 2023 | 2022 (a) | |||||||||||||||
Net earned premiums | $ | 115 | $ | 120 | |||||||||||||
Net investment income | 214 | 212 | |||||||||||||||
Core (loss) income | (3) | 5 |
Results for the Three Months Ended March 31 | |||||||||||||||||
($ millions) | 2023 | 2022 | |||||||||||||||
Net investment income | $ | 10 | $ | 1 | |||||||||||||
Insurance claims and policyholders' benefits | (7) | (8) | |||||||||||||||
Interest expense | 28 | 28 | |||||||||||||||
Core loss | (18) | (28) |
Results for the Three Months Ended March 31 | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Net investment income | $ | 525 | $ | 448 |
Media: | Analysts: | |||||||
Jennifer Vaupel, 847-224-2464 | Ralitza Todorova, 312-822-3834 | |||||||
Results for the Three Months Ended March 31 | |||||||||||
($ millions) | 2023 | 2022 (a) | |||||||||
Net income | $ | 297 | $ | 295 | |||||||
Less: Net investment (losses) gains | (28) | (3) | |||||||||
Core income | $ | 325 | $ | 298 |
Results for the Three Months Ended March 31 | |||||||||||
2023 | 2022 (a) | ||||||||||
Net income per diluted share | $ | 1.09 | $ | 1.08 | |||||||
Less: Net investment (losses) gains | (0.10) | (0.01) | |||||||||
Core income per diluted share | $ | 1.19 | $ | 1.09 |
March 31, 2023 | December 31, 2022 (a) | ||||||||||
Book value per share | $ | 32.00 | $ | 31.55 | |||||||
Less: Per share impact of AOCI | (12.21) | (13.28) | |||||||||
Book value per share excluding AOCI | $ | 44.21 | $ | 44.83 |
Results for the Three Months Ended March 31 | ||||||||||||||
($ millions) | 2023 | 2022 (a) | ||||||||||||
Annualized net income | $ | 1,189 | $ | 1,179 | ||||||||||
Average stockholders' equity including AOCI (b) | 8,607 | 10,401 | ||||||||||||
Return on equity | 13.8 | % | 11.3 | % | ||||||||||
Annualized core income | $ | 1,299 | $ | 1,191 | ||||||||||
Average stockholders' equity excluding AOCI (b) | 12,060 | 12,271 | ||||||||||||
Core return on equity | 10.8 | % | 9.7 | % |
Page | |||||
Consolidated Results | |||||
Prior Year Quarterly Components of Income (Loss), Per Share Data and Return on Equity, As Adjusted for LDTI | |||||
Impacts of LDTI on Selected Balance Sheet Data | |||||
Results of Operations | |||||
Prior Year Quarterly Life & Group, As Adjusted for LDTI | |||||
Investment Information | |||||
Investments - Commercial Real Estate Exposure | |||||
Other | |||||
Three months ended March 31 | ||||||||||||||||||||
(In millions) | 2023 | 2022 (1) | Change | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Net earned premiums | $ | 2,248 | $ | 2,059 | 9 | % | ||||||||||||||
Net investment income | 525 | 448 | 17 | |||||||||||||||||
Net investment (losses) gains | (35) | (11) | ||||||||||||||||||
Non-insurance warranty revenue | 407 | 382 | ||||||||||||||||||
Other revenues | 7 | 7 | ||||||||||||||||||
Total revenues | 3,152 | 2,885 | 9 | |||||||||||||||||
Claims, Benefits and Expenses: | ||||||||||||||||||||
Insurance claims and policyholders' benefits (re-measurement gain (loss) of $1 and $5) | 1,653 | 1,478 | ||||||||||||||||||
Amortization of deferred acquisition costs | 379 | 344 | ||||||||||||||||||
Non-insurance warranty expense | 384 | 354 | ||||||||||||||||||
Other operating expenses | 337 | 326 | ||||||||||||||||||
Interest | 28 | 28 | ||||||||||||||||||
Total claims, benefits and expenses | 2,781 | 2,530 | (10) | |||||||||||||||||
Income (loss) before income tax | 371 | 355 | ||||||||||||||||||
Income tax (expense) benefit | (74) | (60) | ||||||||||||||||||
Net income (loss) | $ | 297 | $ | 295 | 1 | % |
Three months ended March 31 | ||||||||||||||
(In millions, except per share data) | 2023 | 2022 (1) | ||||||||||||
Components of Income (Loss) | ||||||||||||||
Core income (loss) | $ | 325 | $ | 298 | ||||||||||
Net investment gains (losses) | (28) | (3) | ||||||||||||
Net income (loss) | $ | 297 | $ | 295 | ||||||||||
Diluted Earnings (Loss) Per Common Share | ||||||||||||||
Core income (loss) | $ | 1.19 | $ | 1.09 | ||||||||||
Net investment gains (losses) | (0.10) | (0.01) | ||||||||||||
Diluted earnings (loss) per share | $ | 1.09 | $ | 1.08 | ||||||||||
Weighted Average Outstanding Common Stock and Common Stock Equivalents | ||||||||||||||
Basic | 271.3 | 271.8 | ||||||||||||
Diluted | 272.3 | 272.9 | ||||||||||||
Return on Equity | ||||||||||||||
Net income (loss) (2) | 13.8 | % | 11.3 | % | ||||||||||
Core income (loss) (3) | 10.8 | 9.7 |
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(In millions, except per share data) | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | ||||||||||||||||||||||||||||||||
Components of Income (Loss) | ||||||||||||||||||||||||||||||||||||||
Core income (loss) (1) | $ | 298 | $ | 230 | $ | 43 | (2) | $ | 265 | $ | 836 | $ | 1,088 | |||||||||||||||||||||||||
Net investment gains (losses) | (3) | (40) | (85) | (26) | (154) | 96 | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 295 | $ | 190 | $ | (42) | $ | 239 | $ | 682 | $ | 1,184 | ||||||||||||||||||||||||||
Diluted Earnings (Loss) Per Common Share | ||||||||||||||||||||||||||||||||||||||
Core income (loss) | $ | 1.09 | $ | 0.84 | $ | 0.16 | $ | 0.97 | $ | 3.07 | $ | 3.99 | ||||||||||||||||||||||||||
Net investment gains (losses) | (0.01) | (0.15) | (0.31) | (0.10) | (0.56) | 0.35 | ||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 1.08 | $ | 0.69 | $ | (0.15) | $ | 0.87 | $ | 2.51 | $ | 4.34 | ||||||||||||||||||||||||||
Weighted Average Outstanding Common Stock and Common Stock Equivalents | ||||||||||||||||||||||||||||||||||||||
Basic | 271.8 | 271.7 | 271.4 | 271.3 | 271.6 | 271.8 | ||||||||||||||||||||||||||||||||
Diluted | 272.9 | 272.6 | 272.3 | 272.3 | 272.5 | 272.8 | ||||||||||||||||||||||||||||||||
Return on Equity | ||||||||||||||||||||||||||||||||||||||
Net income (loss) (3) | 11.3 | % | 8.1 | % | (2.0) | % | 11.5 | % | 6.9 | % | 9.9 | % | ||||||||||||||||||||||||||
Core income (loss) (4) | 9.7 | 7.6 | 1.4 | 8.8 | 6.8 | 8.9 | ||||||||||||||||||||||||||||||||
(In millions, except per share data) | March 31, 2023 | December 31, 2022 (1) | |||||||||
Total investments | $ | 44,023 | $ | 43,177 | |||||||
Reinsurance receivables, net of allowance for uncollectible receivables | 5,484 | 5,416 | |||||||||
Total assets | 62,055 | 61,000 | |||||||||
Insurance reserves: | |||||||||||
Claim and claim adjustment expenses (2) | 22,409 | 22,120 | |||||||||
Unearned premiums | 6,581 | 6,374 | |||||||||
Future policy benefits (2) | 13,976 | 13,480 | |||||||||
Debt | 2,782 | 2,781 | |||||||||
Total liabilities | 53,388 | 52,452 | |||||||||
Accumulated other comprehensive income (loss) (3) | (3,308) | (3,598) | |||||||||
Total stockholders' equity | 8,667 | 8,548 | |||||||||
Book value per common share | $ | 32.00 | $ | 31.55 | |||||||
Book value per common share excluding AOCI | $ | 44.21 | $ | 44.83 | |||||||
Outstanding shares of common stock (in millions of shares) | 270.9 | 270.9 | |||||||||
Statutory capital and surplus - Combined Continental Casualty Companies (4) | $ | 10,453 | $ | 10,572 |
Three months ended March 31 | 2023 | 2022 | |||||||||
Net cash flows provided (used) by operating activities | $ | 436 | $ | 645 | |||||||
Net cash flows provided (used) by investing activities | 51 | (129) | |||||||||
Net cash flows provided (used) by financing activities | (480) | (688) | |||||||||
Net cash flows provided (used) by operating, investing and financing activities | $ | 7 | $ | (172) |
(In millions) | December 31, 2022 | December 31, 2021 | ||||||||||||
Total Assets | ||||||||||||||
Prior to adoption | $ | 60,927 | $ | 66,639 | ||||||||||
Effect of adoption | 73 | 453 | ||||||||||||
As reported | $ | 61,000 | $ | 67,092 | ||||||||||
Insurance Reserves: | ||||||||||||||
Claim and claim adjustment expenses | ||||||||||||||
Prior to adoption | $ | 25,099 | $ | 24,174 | ||||||||||
Effect of adoption | (2,979) | (2,905) | ||||||||||||
As reported | $ | 22,120 | $ | 21,269 | ||||||||||
Future policy benefits | ||||||||||||||
Prior to adoption | $ | 10,151 | $ | 13,236 | ||||||||||
Effect of adoption | 3,329 | 5,062 | ||||||||||||
As reported | $ | 13,480 | $ | 18,298 | ||||||||||
Total Liabilities | ||||||||||||||
Prior to adoption | $ | 52,102 | $ | 53,830 | ||||||||||
Effect of adoption | 350 | 2,157 | ||||||||||||
As reported | $ | 52,452 | $ | 55,987 | ||||||||||
Accumulated other comprehensive income (loss) | ||||||||||||||
Prior to adoption | $ | (3,557) | $ | 320 | ||||||||||
Effect of adoption | (41) | (1,680) | ||||||||||||
As reported | $ | (3,598) | $ | (1,360) | ||||||||||
Total stockholders' equity | ||||||||||||||
Prior to adoption | $ | 8,825 | $ | 12,809 | ||||||||||
Effect of adoption | (277) | (1,704) | ||||||||||||
As reported | $ | 8,548 | $ | 11,105 | ||||||||||
Three months ended March 31 | ||||||||||||||||||||
(In millions) | 2023 | 2022 | Change | |||||||||||||||||
Gross written premiums | $ | 3,620 | $ | 3,417 | 6 | % | ||||||||||||||
Gross written premiums ex. 3rd party captives | 2,724 | 2,454 | 11 | |||||||||||||||||
Net written premiums | 2,247 | 2,023 | 11 | |||||||||||||||||
Net earned premiums | 2,133 | 1,940 | 10 | |||||||||||||||||
Net investment income | 301 | 235 | 28 | |||||||||||||||||
Non-insurance warranty revenue | 407 | 382 | ||||||||||||||||||
Other revenues | 7 | 8 | ||||||||||||||||||
Total operating revenues | 2,848 | 2,565 | 11 | |||||||||||||||||
Insurance claims and policyholders' benefits | 1,349 | 1,182 | ||||||||||||||||||
Amortization of deferred acquisition costs | 379 | 344 | ||||||||||||||||||
Non-insurance warranty expense | 384 | 354 | ||||||||||||||||||
Other insurance related expenses | 275 | 258 | ||||||||||||||||||
Other expenses | 21 | 21 | ||||||||||||||||||
Total claims, benefits and expenses | 2,408 | 2,159 | (12) | |||||||||||||||||
Core income (loss) before income tax | 440 | 406 | ||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (94) | (85) | ||||||||||||||||||
Core income (loss) | $ | 346 | $ | 321 | 8 | % | ||||||||||||||
Other Performance Metrics | ||||||||||||||||||||
Underwriting gain (loss) | $ | 130 | $ | 156 | (17) | % | ||||||||||||||
Loss & LAE ratio | 62.9 | % | 60.6 | % | (2.3) | pts | ||||||||||||||
Expense ratio | 30.7 | 31.0 | 0.3 | |||||||||||||||||
Dividend ratio | 0.3 | 0.3 | — | |||||||||||||||||
Combined ratio | 93.9 | % | 91.9 | % | (2.0) | pts | ||||||||||||||
Combined ratio excluding catastrophes and development | 90.8 | % | 91.4 | % | 0.6 | pts | ||||||||||||||
Net accident year catastrophe losses incurred | $ | 52 | $ | 19 | ||||||||||||||||
Effect on loss & LAE ratio | 2.4 | % | 1.0 | % | (1.4) | pts | ||||||||||||||
Net prior year development and other: (favorable) / unfavorable | $ | 15 | $ | (10) | ||||||||||||||||
Effect on loss & LAE ratio | 0.7 | % | (0.5) | % | (1.2) | pts | ||||||||||||||
Rate | 5 | % | 7 | % | (2) | pts | ||||||||||||||
Renewal premium change | 7 | % | 10 | % | (3) | pts | ||||||||||||||
Retention | 86 | % | 84 | % | 2 | pts | ||||||||||||||
New business | $ | 503 | $ | 451 | 12 | % |
Three months ended March 31 | ||||||||||||||||||||
(In millions) | 2023 | 2022 | Change | |||||||||||||||||
Gross written premiums | $ | 1,780 | $ | 1,846 | (4) | % | ||||||||||||||
Gross written premiums ex. 3rd party captives | 886 | 885 | — | |||||||||||||||||
Net written premiums | 788 | 771 | 2 | |||||||||||||||||
Net earned premiums | 797 | 772 | 3 | |||||||||||||||||
Net investment income | 129 | 103 | 25 | |||||||||||||||||
Non-insurance warranty revenue | 407 | 382 | ||||||||||||||||||
Other revenues | — | 1 | ||||||||||||||||||
Total operating revenues | 1,333 | 1,258 | 6 | |||||||||||||||||
Insurance claims and policyholders' benefits | 466 | 446 | ||||||||||||||||||
Amortization of deferred acquisition costs | 165 | 157 | ||||||||||||||||||
Non-insurance warranty expense | 384 | 354 | ||||||||||||||||||
Other insurance related expenses | 86 | 81 | ||||||||||||||||||
Other expenses | 14 | 13 | ||||||||||||||||||
Total claims, benefits and expenses | 1,115 | 1,051 | (6) | |||||||||||||||||
Core income (loss) before income tax | 218 | 207 | ||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (47) | (44) | ||||||||||||||||||
Core income (loss) | $ | 171 | $ | 163 | 5 | % | ||||||||||||||
Other Performance Metrics | ||||||||||||||||||||
Underwriting gain (loss) | $ | 80 | $ | 88 | (9) | % | ||||||||||||||
Loss & LAE ratio | 58.4 | % | 57.6 | % | (0.8) | pts | ||||||||||||||
Expense ratio | 31.4 | 30.9 | (0.5) | |||||||||||||||||
Dividend ratio | 0.2 | 0.2 | — | |||||||||||||||||
Combined ratio | 90.0 | % | 88.7 | % | (1.3) | pts | ||||||||||||||
Combined ratio excluding catastrophes and development | 90.0 | % | 90.0 | % | — | pts | ||||||||||||||
Net accident year catastrophe losses incurred | $ | — | $ | — | ||||||||||||||||
Effect on loss & LAE ratio | — | % | — | % | — | pts | ||||||||||||||
Net prior year development and other: (favorable) / unfavorable | $ | — | $ | (10) | ||||||||||||||||
Effect on loss & LAE ratio | — | % | (1.3) | % | (1.3) | pts | ||||||||||||||
Rate | 2 | % | 10 | % | (8) | pts | ||||||||||||||
Renewal premium change | 4 | % | 11 | % | (7) | pts | ||||||||||||||
Retention | 88 | % | 84 | % | 4 | pts | ||||||||||||||
New business | $ | 108 | $ | 145 | (26) | % |
Three months ended March 31 | ||||||||||||||||||||
(In millions) | 2023 | 2022 | Change | |||||||||||||||||
Gross written premiums | $ | 1,442 | $ | 1,208 | 19 | % | ||||||||||||||
Gross written premiums ex. 3rd party captives | 1,440 | 1,206 | 19 | |||||||||||||||||
Net written premiums | 1,188 | 1,001 | 19 | |||||||||||||||||
Net earned premiums | 1,046 | 904 | 16 | |||||||||||||||||
Net investment income | 149 | 118 | 26 | |||||||||||||||||
Other revenues | 7 | 8 | ||||||||||||||||||
Total operating revenues | 1,202 | 1,030 | 17 | |||||||||||||||||
Insurance claims and policyholders' benefits | 694 | 578 | ||||||||||||||||||
Amortization of deferred acquisition costs | 169 | 148 | ||||||||||||||||||
Other insurance related expenses | 142 | 130 | ||||||||||||||||||
Other expenses | 6 | 7 | ||||||||||||||||||
Total claims, benefits and expenses | 1,011 | 863 | (17) | |||||||||||||||||
Core income (loss) before income tax | 191 | 167 | ||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (40) | (35) | ||||||||||||||||||
Core income (loss) | $ | 151 | $ | 132 | 14 | % | ||||||||||||||
Other Performance Metrics | ||||||||||||||||||||
Underwriting gain (loss) | $ | 41 | $ | 48 | (15) | % | ||||||||||||||
Loss & LAE ratio | 65.7 | % | 63.3 | % | (2.4) | pts | ||||||||||||||
Expense ratio | 29.8 | 30.7 | 0.9 | |||||||||||||||||
Dividend ratio | 0.5 | 0.5 | — | |||||||||||||||||
Combined ratio | 96.0 | % | 94.5 | % | (1.5) | pts | ||||||||||||||
Combined ratio excluding catastrophes and development | 91.8 | % | 92.7 | % | 0.9 | pts | ||||||||||||||
Net accident year catastrophe losses incurred | $ | 44 | $ | 16 | ||||||||||||||||
Effect on loss & LAE ratio | 4.2 | % | 1.8 | % | (2.4) | pts | ||||||||||||||
Net prior year development and other: (favorable) / unfavorable | $ | — | $ | — | ||||||||||||||||
Effect on loss & LAE ratio | — | % | — | % | — | pts | ||||||||||||||
Rate | 7 | % | 5 | % | 2 | pts | ||||||||||||||
Renewal premium change | 9 | % | 8 | % | 1 | pts | ||||||||||||||
Retention | 86 | % | 87 | % | (1) | pts | ||||||||||||||
New business | $ | 310 | $ | 228 | 36 | % |
Three months ended March 31 | ||||||||||||||||||||
(In millions) | 2023 | 2022 | Change | |||||||||||||||||
Gross written premiums | $ | 398 | $ | 363 | 10 | % | ||||||||||||||
Net written premiums | 271 | 251 | 8 | |||||||||||||||||
Net earned premiums | 290 | 264 | 10 | |||||||||||||||||
Net investment income | 23 | 14 | 64 | |||||||||||||||||
Other revenues | — | (1) | ||||||||||||||||||
Total operating revenues | 313 | 277 | 13 | |||||||||||||||||
Insurance claims and policyholders' benefits | 189 | 158 | ||||||||||||||||||
Amortization of deferred acquisition costs | 45 | 39 | ||||||||||||||||||
Other insurance related expenses | 47 | 47 | ||||||||||||||||||
Other expenses | 1 | 1 | ||||||||||||||||||
Total claims, benefits and expenses | 282 | 245 | (15) | |||||||||||||||||
Core income (loss) before income tax | 31 | 32 | ||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (7) | (6) | ||||||||||||||||||
Core income (loss) | $ | 24 | $ | 26 | (8) | % | ||||||||||||||
Other Performance Metrics | ||||||||||||||||||||
Underwriting gain (loss) | $ | 9 | $ | 20 | (55) | % | ||||||||||||||
Loss & LAE ratio | 65.4 | % | 59.8 | % | (5.6) | pts | ||||||||||||||
Expense ratio | 31.8 | 32.6 | 0.8 | |||||||||||||||||
Dividend ratio | — | — | — | |||||||||||||||||
Combined ratio | 97.2 | % | 92.4 | % | (4.8) | pts | ||||||||||||||
Combined ratio excluding catastrophes and development | 89.3 | % | 91.2 | % | 1.9 | pts | ||||||||||||||
Net accident year catastrophe losses incurred | $ | 8 | $ | 3 | ||||||||||||||||
Effect on loss & LAE ratio | 2.8 | % | 1.2 | % | (1.6) | pts | ||||||||||||||
Net prior year development and other: (favorable) / unfavorable | $ | 15 | $ | — | ||||||||||||||||
Effect on loss & LAE ratio | 5.1 | % | — | % | (5.1) | pts | ||||||||||||||
Rate | 4 | % | 9 | % | (5) | pts | ||||||||||||||
Renewal premium change | 8 | % | 12 | % | (4) | pts | ||||||||||||||
Retention | 83 | % | 73 | % | 10 | pts | ||||||||||||||
New business | $ | 85 | $ | 78 | 9 | % |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 (1) | |||||||||
Net earned premiums | $ | 115 | $ | 120 | |||||||
Net investment income | 214 | 212 | |||||||||
Other revenues | — | (1) | |||||||||
Total operating revenues | 329 | 331 | |||||||||
Insurance claims and policyholders' benefits | 311 | 304 | |||||||||
Other insurance related expenses | 29 | 31 | |||||||||
Other expenses | 1 | 3 | |||||||||
Total claims, benefits and expenses | 341 | 338 | |||||||||
Core income (loss) before income tax | (12) | (7) | |||||||||
Income tax (expense) benefit on core income (loss) | 9 | 12 | |||||||||
Core income (loss) | $ | (3) | $ | 5 |
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(In millions) | Q1 | Q2 | Q3 | Q4 | Full Year | Full Year | |||||||||||||||||||||||||||||
Net earned premiums | $ | 120 | $ | 118 | $ | 118 | $ | 117 | $ | 473 | $ | 491 | |||||||||||||||||||||||
Net investment income | 212 | 201 | 187 | 204 | 804 | 966 | |||||||||||||||||||||||||||||
Other revenues | (1) | 1 | — | (1) | (1) | — | |||||||||||||||||||||||||||||
Total operating revenues | 331 | 320 | 305 | 320 | 1,276 | 1,457 | |||||||||||||||||||||||||||||
Insurance claims and policyholders' benefits | 304 | 311 | 525 | 329 | 1,469 | 1,261 | |||||||||||||||||||||||||||||
Other insurance related expenses | 31 | 29 | 29 | 29 | 118 | 103 | |||||||||||||||||||||||||||||
Other expenses | 3 | 2 | 2 | 2 | 9 | 10 | |||||||||||||||||||||||||||||
Total claims, benefits and expenses | 338 | 342 | 556 | 360 | 1,596 | 1,374 | |||||||||||||||||||||||||||||
Core income (loss) before income tax | (7) | (22) | (251) | (40) | (320) | 83 | |||||||||||||||||||||||||||||
Income tax (expense) benefit on core income (loss) | 12 | 13 | 59 | 15 | 99 | 25 | |||||||||||||||||||||||||||||
Core income (loss) (1) | $ | 5 | $ | (9) | $ | (192) | (2) | $ | (25) | $ | (221) | $ | 108 |
Three months ended March 31 | |||||||||||
(In millions) | 2023 | 2022 | |||||||||
Net earned premiums | $ | — | $ | (1) | |||||||
Net investment income | 10 | 1 | |||||||||
Other revenues | — | — | |||||||||
Total operating revenues | 10 | — | |||||||||
Insurance claims and policyholders' benefits | (7) | (8) | |||||||||
Other insurance related expenses | 1 | 2 | |||||||||
Other expenses | 38 | 39 | |||||||||
Total claims, benefits and expenses | 32 | 33 | |||||||||
Core income (loss) before income tax | (22) | (33) | |||||||||
Income tax (expense) benefit on core income (loss) | 4 | 5 | |||||||||
Core income (loss) | $ | (18) | $ | (28) | |||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In millions) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate and other bonds | $ | 22,915 | $ | (1,238) | $ | 21,429 | $ | (1,708) | |||||||||||||||
States, municipalities and political subdivisions: | |||||||||||||||||||||||
Tax-exempt | 4,383 | 71 | 4,633 | (45) | |||||||||||||||||||
Taxable | 3,618 | (402) | 3,684 | (556) | |||||||||||||||||||
Total states, municipalities and political subdivisions | 8,001 | (331) | 8,317 | (601) | |||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||
RMBS | 2,659 | (407) | 2,631 | (442) | |||||||||||||||||||
CMBS | 1,631 | (237) | 1,635 | (251) | |||||||||||||||||||
Other ABS | 3,165 | (298) | 2,927 | (359) | |||||||||||||||||||
Total asset-backed | 7,455 | (942) | 7,193 | (1,052) | |||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 124 | (2) | 110 | (1) | |||||||||||||||||||
Foreign government | 609 | (38) | 575 | (42) | |||||||||||||||||||
Redeemable preferred stock | 3 | — | 3 | — | |||||||||||||||||||
Total fixed maturity securities | 39,107 | (2,551) | 37,627 | (3,404) | |||||||||||||||||||
Equities: | |||||||||||||||||||||||
Common stock | 206 | — | 185 | — | |||||||||||||||||||
Non-redeemable preferred stock | 476 | — | 489 | — | |||||||||||||||||||
Total equities | 682 | — | 674 | — | |||||||||||||||||||
Limited partnership investments: | |||||||||||||||||||||||
Hedge funds | 434 | — | 456 | — | |||||||||||||||||||
Private equity funds | 1,548 | — | 1,470 | — | |||||||||||||||||||
Total limited partnership investments | 1,982 | — | 1,926 | — | |||||||||||||||||||
Other invested assets | 79 | — | 78 | — | |||||||||||||||||||
Mortgage loans | 1,006 | — | 1,040 | — | |||||||||||||||||||
Short term investments | 1,167 | — | 1,832 | 1 | |||||||||||||||||||
Total investments | $ | 44,023 | $ | (2,551) | $ | 43,177 | $ | (3,403) | |||||||||||||||
Net receivable/(payable) on investment activity | $ | (1) | $ | 8 | |||||||||||||||||||
Effective duration (in years) | 6.8 | 6.6 | |||||||||||||||||||||
Weighted average rating | A | A |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In millions) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate and other bonds | $ | 13,881 | $ | (1,056) | $ | 13,165 | $ | (1,260) | |||||||||||||||
States, municipalities and political subdivisions: | |||||||||||||||||||||||
Tax-exempt | 1,200 | (175) | 1,197 | (211) | |||||||||||||||||||
Taxable | 1,955 | (405) | 1,986 | (486) | |||||||||||||||||||
Total states, municipalities and political subdivisions | 3,155 | (580) | 3,183 | (697) | |||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||
RMBS | 2,645 | (407) | 2,617 | (442) | |||||||||||||||||||
CMBS | 1,602 | (234) | 1,606 | (248) | |||||||||||||||||||
Other ABS | 2,564 | (235) | 2,374 | (276) | |||||||||||||||||||
Total asset-backed | 6,811 | (876) | 6,597 | (966) | |||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 123 | (2) | 109 | (1) | |||||||||||||||||||
Foreign government | 580 | (30) | 546 | (34) | |||||||||||||||||||
Redeemable preferred stock | 3 | — | 3 | — | |||||||||||||||||||
Total fixed maturity securities | 24,553 | (2,544) | 23,603 | (2,958) | |||||||||||||||||||
Equities: | |||||||||||||||||||||||
Common stock | 206 | — | 185 | — | |||||||||||||||||||
Non-redeemable preferred stock | 62 | — | 73 | — | |||||||||||||||||||
Total equities | 268 | — | 258 | — | |||||||||||||||||||
Limited partnership investments: | |||||||||||||||||||||||
Hedge funds | 240 | — | 252 | — | |||||||||||||||||||
Private equity funds | 857 | — | 814 | — | |||||||||||||||||||
Total limited partnership investments | 1,097 | — | 1,066 | — | |||||||||||||||||||
Other invested assets | 79 | — | 78 | — | |||||||||||||||||||
Mortgage loans | 797 | — | 830 | — | |||||||||||||||||||
Short term investments | 1,148 | — | 1,772 | 1 | |||||||||||||||||||
Total investments | $ | 27,942 | $ | (2,544) | $ | 27,607 | $ | (2,957) | |||||||||||||||
Net receivable/(payable) on investment activity | $ | (4) | $ | (3) | |||||||||||||||||||
Effective duration (in years) | 4.8 | 4.7 | |||||||||||||||||||||
Weighted average rating | A | A |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In millions) | Carrying Value | Net Unrealized Gains (Losses) | Carrying Value | Net Unrealized Gains (Losses) | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate and other bonds | $ | 9,034 | $ | (182) | $ | 8,264 | $ | (448) | |||||||||||||||
States, municipalities and political subdivisions: | |||||||||||||||||||||||
Tax-exempt | 3,183 | 246 | 3,436 | 166 | |||||||||||||||||||
Taxable | 1,663 | 3 | 1,698 | (70) | |||||||||||||||||||
Total states, municipalities and political subdivisions | 4,846 | 249 | 5,134 | 96 | |||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||
RMBS | 14 | — | 14 | — | |||||||||||||||||||
CMBS | 29 | (3) | 29 | (3) | |||||||||||||||||||
Other ABS | 601 | (63) | 553 | (83) | |||||||||||||||||||
Total asset-backed | 644 | (66) | 596 | (86) | |||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 1 | — | 1 | — | |||||||||||||||||||
Foreign government | 29 | (8) | 29 | (8) | |||||||||||||||||||
Redeemable preferred stock | — | — | — | — | |||||||||||||||||||
Total fixed maturity securities | 14,554 | (7) | 14,024 | (446) | |||||||||||||||||||
Equities: | |||||||||||||||||||||||
Common stock | — | — | — | — | |||||||||||||||||||
Non-redeemable preferred stock | 414 | — | 416 | — | |||||||||||||||||||
Total equities | 414 | — | 416 | — | |||||||||||||||||||
Limited partnership investments: | |||||||||||||||||||||||
Hedge funds | 194 | — | 204 | — | |||||||||||||||||||
Private equity funds | 691 | — | 656 | — | |||||||||||||||||||
Total limited partnership investments | 885 | — | 860 | — | |||||||||||||||||||
Other invested assets | — | — | — | — | |||||||||||||||||||
Mortgage loans | 209 | — | 210 | — | |||||||||||||||||||
Short term investments | 19 | — | 60 | — | |||||||||||||||||||
Total investments | $ | 16,081 | $ | (7) | $ | 15,570 | $ | (446) | |||||||||||||||
Net receivable/(payable) on investment activity | $ | 3 | $ | 11 | |||||||||||||||||||
Effective duration (in years) | 10.1 | 9.9 | |||||||||||||||||||||
Weighted average rating | A- | A |
March 31, 2023 | U.S. Government, Government agencies and Government-sponsored enterprises | AAA | AA | A | BBB | Non-investment grade | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Fair Value | Net Unrealized Gains (Losses) | Fair Value | Net Unrealized Gains (Losses) | Fair Value | Net Unrealized Gains (Losses) | Fair Value | Net Unrealized Gains (Losses) | Fair Value | Net Unrealized Gains (Losses) | Fair Value | Net Unrealized Gains (Losses) | Fair Value | Net Unrealized Gains (Losses) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | — | $ | 30 | $ | (1) | $ | 480 | $ | (28) | $ | 6,150 | $ | (221) | $ | 14,714 | $ | (852) | $ | 1,541 | $ | (136) | $ | 22,915 | $ | (1,238) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | — | 1,220 | (3) | 4,748 | (291) | 1,738 | 20 | 294 | (57) | 1 | — | 8,001 | (331) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | 2,357 | (298) | 249 | (112) | — | — | 10 | — | 13 | — | 30 | 3 | 2,659 | (407) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | — | — | 367 | (29) | 630 | (97) | 214 | (34) | 283 | (51) | 137 | (26) | 1,631 | (237) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other ABS | — | — | 383 | (9) | 227 | (39) | 1,219 | (95) | 1,174 | (128) | 162 | (27) | 3,165 | (298) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total asset-backed | 2,357 | (298) | 999 | (150) | 857 | (136) | 1,443 | (129) | 1,470 | (179) | 329 | (50) | 7,455 | (942) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 124 | (2) | — | — | — | — | — | — | — | — | — | — | 124 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government | — | — | 171 | (6) | 325 | (18) | 82 | (12) | 31 | (2) | — | — | 609 | (38) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | — | — | — | — | — | — | — | — | — | — | 3 | — | 3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 2,481 | $ | (300) | $ | 2,420 | $ | (160) | $ | 6,410 | $ | (473) | $ | 9,413 | $ | (342) | $ | 16,509 | $ | (1,090) | $ | 1,874 | $ | (186) | $ | 39,107 | $ | (2,551) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of total fixed maturity securities | 6 | % | 6 | % | 16 | % | 25 | % | 42 | % | 5 | % | 100 | % |
March 31, 2023 | March 31, 2023 | |||||||||||||||||||||||||
(In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | (In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||||||||||||||
Commercial mortgage-backed: | Corporate and other bonds - REITs: | |||||||||||||||||||||||||
Single asset, single borrower: | Retail | $ | 452 | $ | (43) | |||||||||||||||||||||
Office | $ | 323 | $ | (67) | Office | 261 | (30) | |||||||||||||||||||
Retail | 304 | (40) | Industrial | 85 | (3) | |||||||||||||||||||||
Lodging | 201 | (22) | Other (1) | 418 | (34) | |||||||||||||||||||||
Industrial | 84 | (7) | Total corporate and other bonds - REITs (2) | $ | 1,216 | $ | (110) | |||||||||||||||||||
Multifamily | 53 | (4) | ||||||||||||||||||||||||
Total single asset, single borrower | 965 | (140) | ||||||||||||||||||||||||
Conduits (multi property, multi borrower pools) | 666 | (97) | ||||||||||||||||||||||||
Total commercial mortgage-backed | $ | 1,631 | $ | (237) | ||||||||||||||||||||||
March 31, 2023 | March 31, 2023 | |||||||||||||||||||||||||
(In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | (In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||||||||||||||
Commercial mortgage-backed: | Corporate and other bonds - REITs: | |||||||||||||||||||||||||
AAA | $ | 367 | $ | (29) | AA | $ | 11 | $ | (1) | |||||||||||||||||
AA | 630 | (97) | A | 239 | (10) | |||||||||||||||||||||
A | 214 | (34) | BBB | 948 | (97) | |||||||||||||||||||||
BBB | 283 | (51) | Non-investment grade | 18 | (2) | |||||||||||||||||||||
Non-investment grade | 137 | (26) | Total corporate and other bonds - REITs (2) | $ | 1,216 | $ | (110) | |||||||||||||||||||
Total commercial mortgage-backed | $ | 1,631 | $ | (237) | ||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
(In millions) | Carrying Value | Percentage of Total | ||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||
Retail | $ | 461 | 44 | % | ||||||||||||||||||||||
Office | 263 | 26 | % | |||||||||||||||||||||||
Industrial | 119 | 12 | % | |||||||||||||||||||||||
Other | 187 | 18 | % | |||||||||||||||||||||||
Total mortgage loans | $ | 1,030 | 100 | % | (1) Other includes a diversified mix of property type strategies including self-storage, healthcare and apartments. | |||||||||||||||||||||
Less: Allowance for expected credit losses | (24) | |||||||||||||||||||||||||
Total mortgage loans - net of allowance | $ | 1,006 | (2) REITs - Real estate investment trusts | |||||||||||||||||||||||
Three months ended March 31 | Consolidated | |||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Taxable fixed income securities | $ | 430 | $ | 368 | ||||||||||
Tax-exempt fixed income securities | 49 | 73 | ||||||||||||
Total fixed income securities | 479 | 441 | ||||||||||||
Common stock | 3 | (10) | ||||||||||||
Limited partnerships - hedge funds | 14 | (10) | ||||||||||||
Limited partnerships - private equity funds | 11 | 28 | ||||||||||||
Total limited partnership and common stock investments | 28 | 8 | ||||||||||||
Other, net of investment expense | 18 | (1) | ||||||||||||
Net investment income | $ | 525 | $ | 448 | ||||||||||
Effective income yield for fixed income securities portfolio | 4.6 | % | 4.3 | % | ||||||||||
Limited partnership and common stock return | 1.3 | 0.4 |
Property & Casualty and Corporate & Other | ||||||||||||||
Three months ended March 31 | ||||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Taxable fixed income securities | $ | 261 | $ | 225 | ||||||||||
Tax-exempt fixed income securities | 11 | 11 | ||||||||||||
Total fixed income securities | 272 | 236 | ||||||||||||
Common stock | 3 | (10) | ||||||||||||
Limited partnerships - hedge funds | 8 | (5) | ||||||||||||
Limited partnerships - private equity funds | 6 | 15 | ||||||||||||
Total limited partnership and common stock investments | 17 | — | ||||||||||||
Other, net of investment expense | 22 | — | ||||||||||||
Net investment income | 311 | 236 | ||||||||||||
Effective income yield for fixed income securities portfolio | 4.0 | % | 3.6 | % |
Three months ended March 31 | Life & Group | |||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Taxable fixed income securities | $ | 169 | $ | 143 | ||||||||||
Tax-exempt fixed income securities | 38 | 62 | ||||||||||||
Total fixed income securities | 207 | 205 | ||||||||||||
Common stock | — | — | ||||||||||||
Limited partnerships - hedge funds | 6 | (5) | ||||||||||||
Limited partnerships - private equity funds | 5 | 13 | ||||||||||||
Total limited partnership and common stock investments | 11 | 8 | ||||||||||||
Other, net of investment expense | (4) | (1) | ||||||||||||
Net investment income | $ | 214 | $ | 212 | ||||||||||
Effective income yield for fixed income securities portfolio | 5.5 | % | 5.5 | % |
Three months ended March 31 | Consolidated | |||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Fixed maturity securities: | ||||||||||||||
Corporate and other bonds | $ | (23) | $ | 3 | ||||||||||
States, municipalities and political subdivisions | 10 | 3 | ||||||||||||
Asset-backed | (9) | (8) | ||||||||||||
Total fixed maturity securities | (22) | (2) | ||||||||||||
Non-redeemable preferred stock | (14) | (38) | ||||||||||||
Derivatives, short term and other | 1 | 29 | ||||||||||||
Net investment gains (losses) | (35) | (11) | ||||||||||||
Income tax benefit (expense) on net investment gains (losses) | 7 | 8 | ||||||||||||
Net investment gains (losses), after tax | $ | (28) | $ | (3) |
Three months ended March 31, 2023 (In millions) | Specialty | Commercial | International | P&C Operations | Life & Group (1) | Corporate & Other | Total Operations | ||||||||||||||||||||||||||||||||||
Claim & claim adjustment expense reserves, beginning of period | |||||||||||||||||||||||||||||||||||||||||
Gross | $ | 6,878 | $ | 9,395 | $ | 2,403 | $ | 18,676 | $ | 695 | $ | 2,749 | $ | 22,120 | |||||||||||||||||||||||||||
Ceded | 1,315 | 965 | 400 | 2,680 | 101 | 2,410 | 5,191 | ||||||||||||||||||||||||||||||||||
Net | 5,563 | 8,430 | 2,003 | 15,996 | 594 | 339 | 16,929 | ||||||||||||||||||||||||||||||||||
Net incurred claim & claim adjustment expenses | 465 | 687 | 189 | 1,341 | 8 | 1 | 1,350 | ||||||||||||||||||||||||||||||||||
Net claim & claim adjustment expense payments | (388) | (594) | (110) | (1,092) | (12) | (10) | (1,114) | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment and other | — | 2 | 21 | 23 | 12 | — | 35 | ||||||||||||||||||||||||||||||||||
Claim & claim adjustment expense reserves, end of period | |||||||||||||||||||||||||||||||||||||||||
Net | 5,640 | 8,525 | 2,103 | 16,268 | 602 | 330 | 17,200 | ||||||||||||||||||||||||||||||||||
Ceded | 1,336 | 1,003 | 399 | 2,738 | 102 | 2,369 | 5,209 | ||||||||||||||||||||||||||||||||||
Gross | $ | 6,976 | $ | 9,528 | $ | 2,502 | $ | 19,006 | $ | 704 | $ | 2,699 | $ | 22,409 |
March 31, 2023 | |||||||||||||||||
(In millions) | Claim and claim adjustment expenses | Future policy benefits | Total | ||||||||||||||
Long term care | $ | — | $ | 13,976 | $ | 13,976 | |||||||||||
Structured settlement annuities and other | 602 | — | 602 | ||||||||||||||
Total | 602 | 13,976 | 14,578 | ||||||||||||||
Ceded reserves | 102 | — | 102 | ||||||||||||||
Total gross reserves | $ | 704 | $ | 13,976 | $ | 14,680 |
December 31, 2022 | |||||||||||||||||
(In millions) | Claim and claim adjustment expenses | Future policy benefits | Total | ||||||||||||||
Long term care, as previously reported | $ | 2,979 | $ | 10,151 | $ | 13,130 | |||||||||||
Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits (1) | (2,979) | 2,979 | — | ||||||||||||||
Impact of LDTI | — | 350 | 350 | ||||||||||||||
Long term care, as adjusted | $ | — | $ | 13,480 | $ | 13,480 | |||||||||||
Structured settlement annuities and other | 594 | — | 594 | ||||||||||||||
Total | 594 | 13,480 | 14,074 | ||||||||||||||
Ceded reserves | 101 | — | 101 | ||||||||||||||
Total gross reserves | $ | 695 | $ | 13,480 | $ | 14,175 |
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