Business Segments (Tables)

6 Months Ended

Jun. 30, 2024

The Company's results of operations and selected balance sheet items by segment are presented in the following tables.


Three months ended June 30, 2024	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	831	$	1,247	$	311	$	109	$	—	$	—	$	2,498
Net investment income	154		175		32		239		18		—		618
Non-insurance warranty revenue	404		—		—		—		—		—		404
Other revenues	(1)		10		—		—		3		(3)		9
Total operating revenues	1,388		1,432		343		348		21		(3)		3,529
Claims, benefits and expenses
Net incurred claims and benefits	492		846		184		325		27		—		1,874
Policyholders’ dividends	3		5		—		—		—		—		8
Amortization of deferred acquisition costs	180		199		56		—		—		—		435
Non-insurance warranty expense	388		—		—		—		—		—		388
Other insurance related expenses	96		158		46		29		—		—		329
Other expenses	13		13		1		1		58		(3)		83
Total claims, benefits and expenses	1,172		1,221		287		355		85		(3)		3,117
Core income (loss) before income tax	216		211		56		(7)		(64)		—		412
Income tax (expense) benefit on core income (loss)	(47)		(44)		(12)		6		11		—		(86)
Core income (loss)	$	169	$	167	$	44	$	(1)	$	(53)	$	—	326
Net investment gains (losses)													(10)
Income tax (expense) benefit on net investment gains (losses)													1
Net investment gains (losses), after tax													(9)
Net income (loss)													$	317


Three months ended June 30, 2023	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	812	$	1,120	$	302	$	113	$	—	$	—	$	2,347
Net investment income	142		165		25		229		14		—		575
Non-insurance warranty revenue	407		—		—		—		—		—		407
Other revenues	—		6		1		—		2		(2)		7
Total operating revenues	1,361		1,291		328		342		16		(2)		3,336
Claims, benefits and expenses
Net incurred claims and benefits	474		740		185		344		29		—		1,772
Policyholders’ dividends	2		5		—		—		—		—		7
Amortization of deferred acquisition costs	168		175		60		—		—		—		403
Non-insurance warranty expense	384		—		—		—		—		—		384
Other insurance related expenses	94		158		35		31		—		—		318
Other expenses	12		10		(5)		—		44		(2)		59
Total claims, benefits and expenses	1,134		1,088		275		375		73		(2)		2,943
Core income (loss) before income tax	227		203		53		(33)		(57)		—		393
Income tax (expense) benefit on core income (loss)	(50)		(44)		(15)		13		11		—		(85)
Core income (loss)	$	177	$	159	$	38	$	(20)	$	(46)	$	—	308
Net investment gains (losses)													(32)
Income tax (expense) benefit on net investment gains (losses)													7
Net investment gains (losses), after tax													(25)
Net income (loss)													$	283


Six months ended June 30, 2024	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	1,645	$	2,449	$	626	$	219	$	—	$	—	$	4,939
Net investment income	304		351		63		470		39		—		1,227
Non-insurance warranty revenue	811		—		—		—		—		—		811
Other revenues	—		18		—		—		6		(6)		18
Total operating revenues	2,760		2,818		689		689		45		(6)		6,995
Claims, benefits and expenses
Net incurred claims and benefits	969		1,674		373		637		19		—		3,672
Policyholders’ dividends	5		12		—		—		—		—		17
Amortization of deferred acquisition costs	358		399		122		—		—		—		879
Non-insurance warranty expense	782		—		—		—		—		—		782
Other insurance related expenses	177		296		85		58		—		—		616
Other expenses	28		25		3		1		117		(6)		168
Total claims, benefits and expenses	2,319		2,406		583		696		136		(6)		6,134
Core income (loss) before income tax	441		412		106		(7)		(91)		—		861
Income tax (expense) benefit on core income (loss)	(95)		(87)		(25)		11		16		—		(180)
Core income (loss)	$	346	$	325	$	81	$	4	$	(75)	$	—	681
Net investment gains (losses)													(32)
Income tax (expense) benefit on net investment gains (losses)													6
Net investment gains (losses), after tax													(26)
Net income (loss)													$	655


June 30, 2024
(In millions)
Reinsurance receivables	$	1,513	$	1,306	$	487	$	90	$	2,278	$	—	$	5,674
Insurance receivables	1,020		2,375		441		4		1		—		3,841
Deferred acquisition costs	405		407		136		—		—		—		948
Goodwill	117		—		29		—		—		—		146
Deferred non-insurance warranty acquisition expense	3,598		—		—		—		—		—		3,598
Insurance reserves
Claim and claim adjustment expenses	7,319		10,617		2,783		651		2,604		—		23,974
Unearned premiums	3,197		3,318		787		107		—		—		7,409
Future policy benefits	—		—		—		13,211		—		—		13,211
Deferred non-insurance warranty revenue	4,623		—		—		—		—		—		4,623


Six months ended June 30, 2023	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	1,609	$	2,166	$	592	$	228	$	—	$	—	$	4,595
Net investment income	271		314		48		443		24		—		1,100
Non-insurance warranty revenue	814		—		—		—		—		—		814
Other revenues	—		13		1		—		5		(5)		14
Total operating revenues	2,694		2,493		641		671		29		(5)		6,523
Claims, benefits and expenses
Net incurred claims and benefits	939		1,428		374		655		22		—		3,418
Policyholders’ dividends	3		11		—		—		—		—		14
Amortization of deferred acquisition costs	333		344		105		—		—		—		782
Non-insurance warranty expense	768		—		—		—		—		—		768
Other insurance related expenses	180		300		82		60		1		—		623
Other expenses	26		16		(4)		1		85		(5)		119
Total claims, benefits and expenses	2,249		2,099		557		716		108		(5)		5,724
Core income (loss) before income tax	445		394		84		(45)		(79)		—		799
Income tax (expense) benefit on core income (loss)	(97)		(84)		(22)		22		15		—		(166)
Core income (loss)	$	348	$	310	$	62	$	(23)	$	(64)	$	—	633
Net investment gains (losses)													(67)
Income tax (expense) benefit on net investment gains (losses)													14
Net investment gains (losses), after tax													(53)
Net income (loss)													$	580


December 31, 2023
(In millions)
Reinsurance receivables	$	1,281	$	1,218	$	468	$	93	$	2,374	$	—	$	5,434
Insurance receivables	1,053		2,024		388		5		—		—		3,470
Deferred acquisition costs	392		371		133		—		—		—		896
Goodwill	117		—		29		—		—		—		146
Deferred non-insurance warranty acquisition expense	3,661		—		—		—		—		—		3,661
Insurance reserves
Claim and claim adjustment expenses	7,131		10,103		2,709		675		2,686		—		23,304
Unearned premiums	3,227		2,858		749		99		—		—		6,933
Future policy benefits	—		—		—		13,959		—		—		13,959
Deferred non-insurance warranty revenue	4,694		—		—		—		—		—		4,694

The following table presents operating revenues by line of business for each reportable segment.


Periods ended June 30	Three Months				Six Months
(In millions)	2024		2023		2024		2023
Specialty
Management & Professional Liability	$	733	$	718	$	1,462	$	1,423
Surety	196		183		378		351
Warranty & Alternative Risks	459		460		920		920
Specialty revenues	1,388		1,361		2,760		2,694
Commercial
Middle Market	427		419		859		817
Construction	483		420		938		805
Small Business	157		160		311		310
Other Commercial	365		292		710		561
Commercial revenues	1,432		1,291		2,818		2,493
International
Canada	99		96		197		189
Europe	147		135		290		262
Hardy	97		97		202		190
International revenues	343		328		689		641
Life & Group revenues	348		342		689		671
Corporate & Other revenues	21		16		45		29
Eliminations	(3)		(2)		(6)		(5)
Total operating revenues	3,529		3,336		6,995		6,523
Net investment gains (losses)	(10)		(32)		(32)		(67)
Total revenues	$	3,519	$	3,304	$	6,963	$	6,456