Business Segments (Tables)

9 Months Ended

Sep. 30, 2024

Significant components of the Company's continuing operations and selected balance sheet items

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


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

Operating revenues
Net earned premiums	$	848	$	1,325	$	311	$	110	$	—	$	(1)	$	2,593
Net investment income	157		183		32		240		14		—		626
Non-insurance warranty revenue	401		—		—		—		—		—		401
Other revenues	1		5		—		—		3		(1)		8
Total operating revenues	1,407		1,513		343		350		17		(2)		3,628
Claims, benefits and expenses
Net incurred claims and benefits	509		954		195		336		16		—		2,010
Policyholders’ dividends	2		7		—		—		—		—		9
Amortization of deferred acquisition costs	188		209		60		—		—		—		457
Non-insurance warranty expense	387		—		—		—		—		—		387
Other insurance related expenses	90		158		44		30		—		(1)		321
Other expenses	13		8		(8)		1		56		(1)		69
Total claims, benefits and expenses (1)	1,189		1,336		291		367		72		(2)		3,253
Core income (loss) before income tax	218		177		52		(17)		(55)		—		375
Income tax (expense) benefit on core income (loss)	(47)		(38)		(16)		8		11		—		(82)
Core income (loss)	$	171	$	139	$	36	$	(9)	$	(44)	$	—	293
Net investment gains (losses)													(10)
Income tax (expense) benefit on net investment gains (losses)													3
Net investment gains (losses), after tax													(7)
Pension settlement transaction gains (losses)													(4)
Income tax (expense) benefit on pension settlement transaction gains (losses)													1
Pension settlement transaction gains (losses), after tax													(3)
Net income (loss)													$	283

(1) Excludes the impact of pension settlement transaction gains (losses). See Note H to the Condensed Consolidated Financial Statements for additional information.


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

Operating revenues
Net earned premiums	$	829	$	1,170	$	296	$	112	$	—	$	(1)	$	2,406
Net investment income	136		156		26		216		19		—		553
Non-insurance warranty revenue	407		—		—		—		—		—		407
Other revenues	—		9		(1)		—		2		(2)		8
Total operating revenues	1,372		1,335		321		328		21		(3)		3,374
Claims, benefits and expenses
Net incurred claims and benefits	480		807		178		343		10		—		1,818
Policyholders’ dividends	2		6		—		—		—		—		8
Amortization of deferred acquisition costs	175		188		63		—		—		—		426
Non-insurance warranty expense	386		—		—		—		—		—		386
Other insurance related expenses	89		156		20		29		1		(1)		294
Other expenses	13		11		6		(1)		51		(2)		78
Total claims, benefits and expenses	1,145		1,168		267		371		62		(3)		3,010
Core income (loss) before income tax	227		167		54		(43)		(41)		—		364
Income tax (expense) benefit on core income (loss)	(49)		(34)		(14)		14		8		—		(75)
Core income (loss)	$	178	$	133	$	40	$	(29)	$	(33)	$	—	289
Net investment gains (losses)													(38)
Income tax (expense) benefit on net investment gains (losses)													7
Net investment gains (losses), after tax													(31)
Net income (loss)													$	258


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

Operating revenues
Net earned premiums	$	2,493	$	3,774	$	937	$	329	$	—	$	(1)	$	7,532
Net investment income	461		534		95		710		53		—		1,853
Non-insurance warranty revenue	1,212		—		—		—		—		—		1,212
Other revenues	1		23		—		—		9		(7)		26
Total operating revenues	4,167		4,331		1,032		1,039		62		(8)		10,623
Claims, benefits and expenses
Net incurred claims and benefits	1,478		2,628		568		973		35		—		5,682
Policyholders’ dividends	7		19		—		—		—		—		26
Amortization of deferred acquisition costs	546		608		182		—		—		—		1,336
Non-insurance warranty expense	1,169		—		—		—		—		—		1,169
Other insurance related expenses	267		454		129		88		—		(1)		937
Other expenses	41		33		(5)		2		173		(7)		237
Total claims, benefits and expenses (1)	3,508		3,742		874		1,063		208		(8)		9,387
Core income (loss) before income tax	659		589		158		(24)		(146)		—		1,236
Income tax (expense) benefit on core income (loss)	(142)		(125)		(41)		19		27		—		(262)
Core income (loss)	$	517	$	464	$	117	$	(5)	$	(119)	$	—	974
Net investment gains (losses)													(42)
Income tax (expense) benefit on net investment gains (losses)													9
Net investment gains (losses), after tax													(33)
Pension settlement transaction gains (losses)													(4)
Income tax (expense) benefit on pension settlement transaction gains (losses)													1
Pension settlement transaction gains (losses), after tax													(3)
Net income (loss)													$	938


September 30, 2024
(In millions)
Reinsurance receivables	$	1,509	$	1,456	$	533	$	86	$	2,236	$	—	$	5,820
Insurance receivables	986		2,149		375		3		1		—		3,514
Deferred acquisition costs	413		400		130		—		—		—		943
Goodwill	117		—		30		—		—		—		147
Deferred non-insurance warranty acquisition expense	3,571		—		—		—		—		—		3,571
Insurance reserves
Claim and claim adjustment expenses	7,328		11,018		2,990		650		2,572		—		24,558
Unearned premiums	3,218		3,186		755		100		—		—		7,259
Future policy benefits	—		—		—		14,047		—		—		14,047
Deferred non-insurance warranty revenue	4,594		—		—		—		—		—		4,594

(1) Excludes the impact of pension settlement transaction gains (losses). See Note H to the Condensed Consolidated Financial Statements for additional information.


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

Operating revenues
Net earned premiums	$	2,438	$	3,336	$	888	$	340	$	—	$	(1)	$	7,001
Net investment income	407		470		74		659		43		—		1,653
Non-insurance warranty revenue	1,221		—		—		—		—		—		1,221
Other revenues	—		22		—		—		7		(7)		22
Total operating revenues	4,066		3,828		962		999		50		(8)		9,897
Claims, benefits and expenses
Net incurred claims and benefits	1,419		2,235		552		998		32		—		5,236
Policyholders’ dividends	5		17		—		—		—		—		22
Amortization of deferred acquisition costs	508		532		168		—		—		—		1,208
Non-insurance warranty expense	1,154		—		—		—		—		—		1,154
Other insurance related expenses	269		456		102		89		2		(1)		917
Other expenses	39		27		2		—		136		(7)		197
Total claims, benefits and expenses	3,394		3,267		824		1,087		170		(8)		8,734
Core income (loss) before income tax	672		561		138		(88)		(120)		—		1,163
Income tax (expense) benefit on core income (loss)	(146)		(118)		(36)		36		23		—		(241)
Core income (loss)	$	526	$	443	$	102	$	(52)	$	(97)	$	—	922
Net investment gains (losses)													(105)
Income tax (expense) benefit on net investment gains (losses)													21
Net investment gains (losses), after tax													(84)
Net income (loss)													$	838


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

Revenues by line of business

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


Periods ended September 30	Three Months				Nine Months
(In millions)	2024		2023		2024		2023
Specialty
Management & Professional Liability	$	753	$	723	$	2,215	$	2,146
Surety	202		189		580		540
Warranty & Alternative Risks	452		460		1,372		1,380
Specialty revenues	1,407		1,372		4,167		4,066
Commercial
Middle Market	448		437		1,307		1,254
Construction	521		444		1,459		1,249
Small Business	161		160		472		470
Other Commercial	383		294		1,093		855
Commercial revenues	1,513		1,335		4,331		3,828
International
Canada	99		98		296		287
Europe	150		139		440		401
Hardy	94		84		296		274
International revenues	343		321		1,032		962
Life & Group revenues	350		328		1,039		999
Corporate & Other revenues	17		21		62		50
Eliminations	(2)		(3)		(8)		(8)
Total operating revenues	3,628		3,374		10,623		9,897
Net investment gains (losses)	(10)		(38)		(42)		(105)
Total revenues	$	3,618	$	3,336	$	10,581	$	9,792