(State or other jurisdiction of |
(I.R.S. Employer | |
incorporation or organization) |
Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Item |
Page |
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No. |
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3 |
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7 |
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9 |
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13 |
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14 |
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15 |
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15 |
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1A |
16 |
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1B |
44 |
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2 |
44 |
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3 |
44 |
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4 |
44 |
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5 |
45 |
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6 |
47 |
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7 |
48 |
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7A |
79 |
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8 |
83 |
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9 |
162 |
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9A |
162 |
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9B |
162 |
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10 |
162 |
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11 |
163 |
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163 |
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13 |
163 |
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14 |
163 |
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15 |
164 |
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16 |
167 |
Item 1. |
Business. |
• | commercial property and casualty insurance (CNA Financial Corporation, an 89% owned subsidiary); |
• | operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc., a 53% owned subsidiary); |
• | transportation and storage of natural gas and natural gas liquids (Boardwalk Pipeline Partners, LP, a wholly owned subsidiary); |
• | operation of a chain of hotels (Loews Hotels Holding Corporation, a wholly owned subsidiary); and |
• | manufacture of rigid plastic packaging solutions (Altium Packaging LLC, formerly known as Consolidated Container Company LLC, a 99% owned subsidiary). |
• | professional liability coverages and risk management services to various professional firms, including architects, real estate agents, accounting firms and law firms; |
• | directors and officers (“D&O”), employment practices, fiduciary and fidelity coverages. Specific areas of focus include small and mid-size firms, public as well as privately held firms and not-for-profit organizations; |
• | insurance products to serve the health care industry including professional and general liability as well as associated standard property and casualty coverages. Key customer groups include aging services, allied medical facilities, dentists, physicians, hospitals, nurses and other medical practitioners. |
• | the Gulf of Mexico, including the U.S. and Mexico; |
• | South America, principally offshore Brazil and Trinidad and Tobago; |
• | Australia and Southeast Asia, including Malaysia, Myanmar and Vietnam; |
• | Europe, principally offshore the U.K.; |
• | East and West Africa; and |
• | the Mediterranean. |
Number of |
||||
Name and Location |
Rooms |
|||
Owned: |
||||
Loews Chicago Hotel, Chicago, Illinois |
400 |
|||
Loews Chicago O’Hare Hotel, Chicago, Illinois |
556 |
|||
Loews Coronado Bay Resort, San Diego, California |
439 |
|||
Loews Hotel 1000, Seattle, Washington |
120 |
|||
Loews Hotel Vogue, Montreal, Canada |
142 |
|||
Loews Miami Beach Hotel, Miami Beach, Florida |
790 |
|||
Loews Minneapolis Hotel, Minneapolis, Minnesota |
251 |
|||
Loews Philadelphia Hotel, Philadelphia, Pennsylvania |
581 |
|||
Loews Regency New York Hotel, New York, New York |
379 |
|||
Loews Vanderbilt Hotel, Nashville, Tennessee |
340 |
|||
Loews Ventana Canyon Resort, Tucson, Arizona |
398 |
|||
Joint Venture: |
||||
Hard Rock Hotel, at Universal Orlando, Orlando, Florida |
650 |
|||
Live! by Loews, Arlington, Texas |
300 |
|||
Loews Atlanta Hotel, Atlanta, Georgia |
414 |
|||
Loews Hollywood Hotel, Hollywood, California |
628 |
|||
Loews Portofino Bay Hotel, at Universal Orlando, Orlando, Florida |
750 |
|||
Loews Royal Pacific Resort, at Universal Orlando, Orlando, Florida |
1,000 |
|||
Loews Sapphire Falls Resort, at Universal Orlando, Orlando, Florida |
1,000 |
|||
Universal’s Aventura Hotel, Orlando, Florida |
600 |
|||
Universal’s Cabana Bay Beach Resort, Orlando, Florida |
2,200 |
|||
Universal’s Endless Summer Resort – Surfside Inn and Suites, Orlando, Florida |
750 |
|||
Management Contract: |
||||
Bisha Hotel and Residences, Toronto, Canada |
96 |
|||
Loews Boston Hotel, Boston, Massachusetts |
225 |
|||
Loews New Orleans Hotel, New Orleans, Louisiana |
285 |
|||
Loews San Francisco Hotel, San Francisco, California |
155 |
|||
Loews Santa Monica Beach Hotel, Santa Monica, California |
347 |
Note: |
Two owned hotels and many of the joint venture hotels are subject to land leases. |
• | In 2019, Live! by Loews in Arlington, Texas, a 300 guestroom hotel opened. Loews Hotels & Co serves as manager and has a joint venture interest; |
• | In 2019, the sale of Loews San Francisco Hotel in San Francisco, California, was completed. Loews Hotel & Co continues to serve as manager, which it is expected to do through March of 2020; |
• | In 2019, Universal’s Endless Summer Resort – Surfside Inn and Suites at Universal Orlando, a 750 guestroom hotel opened, and in 2020 Universal’s Endless Summer Resort – Dockside Inn and Suites at Universal Orlando, is expected to open with approximately 2,050 additional guestrooms. As with Loews Hotels & Co’s other properties at Universal Orlando, Loews Hotels & Co serves as manager and has a joint venture interest in these hotels; |
• | In 2020, Loews Kansas City Hotel in Kansas City, Missouri, an approximately 800 guestroom hotel in which Loews Hotels & Co will serve as manager and has a majority equity interest, is expected to open; |
• | In 2020, Live! by Loews in St. Louis, Missouri, an approximately 216 guestroom hotel in which Loews Hotels & Co will serve as manager and has a joint venture interest, is expected to open; and |
• | In 2022, Loews Coral Gables Hotel in Coral Gables, Florida, an approximately 242 guestroom hotel in which Loews Hotels & Co will serve as manager and will have a joint venture interest upon completion, is expected to be completed. |
First |
||||||||||
Became |
||||||||||
Name |
Position and Offices Held |
Age |
Officer |
|||||||
Marc A. Alpert |
Senior Vice President, General Counsel and Secretary |
57 |
2016 |
|||||||
David B. Edelson |
Senior Vice President and Chief Financial Officer |
60 |
2005 |
|||||||
Richard W. Scott |
Senior Vice President and Chief Investment Officer |
66 |
2009 |
|||||||
Kenneth I. Siegel |
Senior Vice President |
62 |
2009 |
|||||||
Andrew H. Tisch |
Office of the President, Co-Chairman of the Board |
70 |
1985 |
|||||||
and Chairman of the Executive Committee |
||||||||||
James S. Tisch |
Office of the President, President and |
67 |
1981 |
|||||||
Chief Executive Officer |
||||||||||
Jonathan M. Tisch |
Office of the President and Co-Chairman of the Board |
66 |
1987 |
● |
it may have difficulty satisfying its obligations with respect to its outstanding debt and, given the challenges to its business presented by the protracted industry downturn, its operational obligations; |
● |
it may have difficulty obtaining financing, including refinancing for its existing indebtedness upon maturity in the future for working capital, capital expenditures, acquisitions or other purposes; |
● |
it may need to use a substantial portion of available cash flow from operations to pay interest and principal on its debt, which would reduce the amount of money available to fund working capital requirements, capital expenditures and other general corporate or business activities; |
● |
vulnerability to the effects of general adverse economic conditions, such as the continuing protracted industry downturn, and adverse operating results, including negative cash flows, could increase; |
● |
flexibility in planning for, or reacting to, changes in its business and in its industry in general could be limited; |
● |
it may not have the ability to pursue business opportunities that become available; |
● |
the amount of debt and the amount it must pay to service its debt obligations could place Diamond Offshore at a competitive disadvantage compared to its competitors that have less debt; and |
● |
customers may react adversely to its significant debt level and seek alternative service providers. |
• | limit Boardwalk Pipelines’ ability to borrow money for its working capital, capital expenditures, debt service requirements or other general business activities; |
• | increase Boardwalk Pipelines’ vulnerability to general adverse economic and industry conditions; and |
• | limit Boardwalk Pipelines’ ability to respond to business opportunities, including growing its business through acquisitions. |
• | the diversion of management’s and employees’ attention from other business concerns; |
• | inaccurate assumptions about volume, revenues and project costs, including potential synergies; |
• | a decrease in Boardwalk Pipelines’ liquidity as a result of using available cash or borrowing capacity to finance the acquisition or project; |
• | a significant increase in interest expense or financial leverage if it incurs additional debt to finance the acquisition or project; |
• | inaccurate assumptions about the overall costs of debt; |
• | an inability to hire, train or retain qualified personnel to manage and operate the acquired business and assets or the developed assets; |
• | unforeseen difficulties operating in new product areas or new geographic areas; and |
• | changes in regulatory requirements or delays of regulatory approvals. |
• | an inability to integrate successfully the businesses Boardwalk Pipelines acquires; |
• | the assumption of unknown liabilities for which it is not indemnified, for which its indemnity is inadequate or for which its insurance policies may exclude from coverage; |
• | limitations on rights to indemnity from the seller; and |
• | customer or key employee losses of an acquired business. |
• | changes in general economic conditions, including the severity and duration of any downturn in the U.S. or global economy and financial markets; |
• | war, political conditions or civil unrest, terrorist activities or threats and heightened travel security measures instituted in response to these events; |
• | outbreaks of pandemic or contagious diseases, such as the recent coronavirus; |
• | natural or man-made disasters; |
• | any material reduction or prolonged interruption of public utilities and services; |
• | decreased corporate or government travel-related budgets and spending and cancellations, deferrals or renegotiations of group business due to adverse economic conditions or otherwise; |
• | decreased need for business-related travel due to innovations in business-related technology; |
• | competition from other hotels and alternative accommodations, such as Airbnb, in the markets in which Loews Hotels & Co operates; |
• | requirements for periodic capital reinvestment to maintain and upgrade hotels; |
• | increases in operating costs, including labor (such as from minimum wage increases), workers’ compensation, benefits, insurance, food and beverage, commodity costs, energy and unanticipated costs resulting from force majeure events, due to inflation, new or different federal, state or local governmental regulations, including tariffs, and other factors that may not be offset by increased revenues; |
• | the costs and administrative burdens associated with compliance with applicable laws and regulations; |
• | organized labor activities, which could cause a diversion of business from hotels involved in labor negotiations and loss of business for Loews Hotels & Co’s properties generally as a result of certain labor tactics; |
• | changes in the desirability of particular locations or travel patterns of customers, including with respect to the underlying attractions supporting Loews Hotels & Co’s existing and under development immersive destination properties, such as the Universal theme park for its Orlando, Florida properties, the stadiums in Arlington, Texas and St. Louis, Missouri for its Live! by Loews hotels and convention centers for properties in other markets; |
• | geographic concentration of operations and customers; |
• | shortages of desirable locations for development; and |
• | relationships with third-party property owners, developers, landlords and joint venture partners, including the risk that owners and/or partners may terminate management or joint venture agreements. |
• | real estate, insurance, zoning, tax, environmental and eminent domain laws; |
• | the ongoing need for owner-funded capital improvements and expenditures to maintain or upgrade properties; |
• | risks associated with mortgage debt, including the possibility of default, fluctuating interest rate levels and the availability of replacement financing; |
• | risks associated with the possibility that cost increases will outpace revenue increases and that, in the event of an economic slowdown, a high proportion of fixed costs will make it difficult to reduce costs to the extent required to offset declining revenues; |
• | risks associated with real estate leases, including the possibility of rent increases and the inability to renew or extend upon favorable terms; |
• | risks associated with real estate condominiums, including the possibility of special assessments by condominiums Loews Hotels & Co does not control; |
• | fluctuations in real estate values and potential impairments in the value of Loews Hotels & Co’s assets; and |
• | the relative illiquidity of real estate compared to some other assets. |
• | construction delays or cost overruns (including labor and materials or unforeseeable site conditions) that may increase project costs; cause new development projects to not be completed by lender imposed required completion dates or subject Loews Hotels & Co to cancellation penalties for reservations accepted; |
• | obtaining zoning, occupancy and other required permits or authorizations; |
• | changes in economic conditions that may result in weakened or lack of demand or negative project returns; |
• | governmental restrictions on the size or kind of development; |
• | projects financed with construction debt are subject to interest rate risk as uncertain timing and amount of draws make effective hedging difficult to obtain; |
• | force majeure events, including earthquakes, tornados, hurricanes or floods; and |
• | design defects that could increase costs. |
• | limit its ability to borrow money for its working capital, capital expenditures, debt service requirements or other corporate purposes; |
• | increase its vulnerability to general adverse economic and industry conditions; and |
• | limit its ability to respond to business opportunities, including growing its business through acquisitions. |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 | ||||||||
Loews Common Stock |
100.0 |
91.98 |
112.86 |
121.21 |
110.84 |
128.46 | |||||||
S&P 500 Index |
100.0 |
101.38 |
113.51 |
138.29 |
132.23 |
173.86 | |||||||
Loews Peer Group (a) |
100.0 |
94.68 |
109.90 |
113.20 |
106.21 |
130.57 |
(a) | The Loews Peer Group consists of the following companies that are industry competitors of our principal operating subsidiaries: Chubb Limited (name change from ACE Limited after it acquired The Chubb Corporation on January 15, 2016), W.R. Berkley Corporation, The Chubb Corporation (included through January 15, 2016 when it was acquired by ACE Limited), Energy Transfer Partners L.P. (included through October 18, 2018 when it merged with Energy Transfer Equity, L.P.), Valaris plc (name change from ENSCO plc), The Hartford Financial Services Group, Inc., Noble Corporation plc, Spectra Energy Corp (included through February 24, 2017 when it was acquired by Enbridge Inc.), Transocean Ltd. and The Travelers Companies, Inc. |
Number of |
||||||||||||
securities remaining |
||||||||||||
Number of |
available for future |
|||||||||||
securities to be |
issuance under |
|||||||||||
issued upon exercise |
Weighted average |
equity compensation |
||||||||||
of outstanding |
exercise price of |
plans (excluding |
||||||||||
options, warrants |
outstanding options, |
securities reflected |
||||||||||
Plan category |
and rights |
warrants and rights |
in the first column) |
|||||||||
Equity compensation plans approved by security holders (a) |
3,025,294 |
$ 41.11 |
5,597,156 |
|||||||||
Equity compensation plans not approved by security holders (b) |
N/A |
N/A |
N/A |
(a) | Reflects 2,469,756 outstanding stock appreciation rights awarded under the Loews Corporation 2000 Stock Option Plan, 531,427 outstanding unvested time-based and performance-based restricted stock units (“RSUs”) and 24,111 deferred vested time-based RSUs awarded under the Loews Corporation 2016 Incentive Compensation Plan. The weighted average exercise price does not take into account RSUs as they do not have an exercise price. |
(b) | We do not have equity compensation plans that have not been approved by our shareholders. |
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) |
||||||||||||
October 1, 2019 - October 31, 2019 |
2,565,169 |
$ 49.76 |
N/A |
N/A |
||||||||||||
November 1, 2019 - November 30, 2019 |
2,161,832 |
50.38 |
N/A |
N/A |
||||||||||||
December 1, 2019 - December 31, 2019 |
3,562,239 |
50.78 |
N/A |
N/A |
Year Ended December 31 |
2019 |
2018 |
2017 (a) |
2016 (a) |
2015 (a) |
|||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||
Results of Operations: |
||||||||||||||||||||
Revenues |
$ |
14,931 |
$ | 14,066 |
$ | 13,735 |
$ | 13,105 |
$ | 13,415 |
||||||||||
Income before income tax |
$ |
1,119 |
$ | 834 |
$ | 1,582 |
$ | 936 |
$ | 244 |
||||||||||
Net income |
$ |
871 |
$ | 706 |
$ | 1,412 |
$ | 716 |
$ | 287 |
||||||||||
Amounts attributable to noncontrolling interests |
61 |
(70 |
) | (248 |
) | (62 |
) | (27) |
||||||||||||
Net income attributable to Loews Corporation |
$ |
932 |
$ | 636 |
$ | 1,164 |
$ | 654 |
$ | 260 |
||||||||||
Diluted net income per share |
$ |
3.07 |
$ | 1.99 |
$ | 3.45 |
$ | 1.93 |
$ | 0.72 |
||||||||||
Financial Position: |
||||||||||||||||||||
Investments |
$ |
51,250 |
$ | 48,186 |
$ | 52,226 |
$ | 50,711 |
$ | 49,400 |
||||||||||
Total assets |
82,243 |
78,316 |
79,586 |
76,594 |
76,006 |
|||||||||||||||
Debt |
11,533 |
11,376 |
11,533 |
10,778 |
10,560 |
|||||||||||||||
Shareholders’ equity |
19,119 |
18,518 |
19,204 |
18,163 |
17,561 |
|||||||||||||||
Cash dividends per share |
0.25 |
0.25 |
0.25 |
0.25 |
0.25 |
|||||||||||||||
Book value per share |
65.71 |
59.34 |
57.83 |
53.96 |
51.67 |
|||||||||||||||
Shares outstanding |
290.97 |
312.07 |
332.09 |
336.62 |
339.90 |
(a) | On January 1, 2018, the Company adopted Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” and ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10); Recognition and Measurement of Financial Assets and Financial Liabilities.” Prior period revenues were not adjusted for the adoption of either of these standards. |
Page No. |
||||
49 |
||||
49 |
||||
49 |
||||
50 |
||||
54 |
||||
56 |
||||
60 |
||||
60 |
||||
61 |
||||
61 |
||||
62 |
||||
64 |
||||
65 |
||||
68 |
||||
77 |
||||
79 |
||||
79 |
Year Ended December 31 |
2019 |
2018 |
||||||
(In millions, except per share) |
||||||||
CNA Financial |
$ |
894 |
$ | 726 |
||||
Diamond Offshore |
(175) |
(112) |
||||||
Boardwalk Pipelines |
209 |
135 |
||||||
Loews Hotels & Co |
(31) |
48 |
||||||
Corporate |
35 |
(161) |
||||||
Net income attributable to Loews Corporation |
$ |
932 |
$ | 636 |
||||
Basic net income per common share |
$ |
3.08 |
$ | 1.99 |
||||
Diluted net income per common share |
3.07 |
1.99 |
||||||
Year Ended December 31 |
2019 |
2018 |
||||||||||
(In millions) |
||||||||||||
Revenues: |
||||||||||||
Insurance premiums |
$ |
7,428 |
$ | 7,312 |
||||||||
Net investment income |
2,118 |
1,817 |
||||||||||
Investment gains (losses) |
49 |
(57 |
) | |||||||||
Non-insurance warranty revenue |
1,161 |
1,007 |
||||||||||
Operating revenues and other |
32 |
55 |
||||||||||
Total |
10,788 |
10,134 |
||||||||||
Expenses: |
||||||||||||
Insurance claims and policyholders’ benefits |
5,806 |
5,572 |
||||||||||
Amortization of deferred acquisition costs |
1,383 |
1,335 |
||||||||||
Non-insurance warranty expense |
1,082 |
923 |
||||||||||
Other operating expenses |
1,141 |
1,203 |
||||||||||
Interest |
152 |
138 |
||||||||||
Total |
9,564 |
9,171 |
||||||||||
Income before income tax |
1,224 |
963 |
||||||||||
Income tax expense |
(224 |
) |
(151 |
) | ||||||||
Net income |
1,000 |
812 |
||||||||||
Amounts attributable to noncontrolling interests |
(106 |
) |
(86 |
) | ||||||||
Net income attributable to Loews Corporation |
$ |
894 |
$ | 726 |
||||||||
Year Ended December 31, 2019 |
Specialty |
Commercial |
International |
Total |
||||||||||||||
(In millions, except %) |
|
|
|
|
||||||||||||||
Gross written premiums |
$ 6,900 |
$ 3,693 |
$ 1,111 |
$ 11,704 |
||||||||||||||
Gross written premiums excluding third party captives |
3,015 |
3,609 |
1,111 |
7,735 |
||||||||||||||
Net written premiums |
2,848 |
3,315 |
971 |
7,134 |
||||||||||||||
Net earned premiums |
2,773 |
3,162 |
974 |
6,909 |
||||||||||||||
Net investment income |
556 |
654 |
63 |
1,273 |
||||||||||||||
Core income |
671 |
489 |
30 |
1,190 |
||||||||||||||
Other performance metrics: |
||||||||||||||||||
Loss and loss adjustment expense ratio |
57.5 |
% |
67.3 |
% |
64.1 |
% |
62.9 |
% |
||||||||||
Expense ratio |
32.5 |
32.9 |
37.7 |
33.5 |
||||||||||||||
Dividend ratio |
0.2 |
0.6 |
0.3 |
| ||||||||||||||
Combined ratio |
90.2 |
% |
100.8 |
% |
101.8 |
% |
96.7 |
% |
||||||||||
Rate |
5% |
3% |
8% |
5% |
||||||||||||||
Renewal premium change |
6 |
5 |
7 |
6 |
||||||||||||||
Retention |
87 |
86 |
71 |
84 |
||||||||||||||
New business |
$ 367 |
$ 683 |
$ 273 |
$ 1,323 |
Year Ended December 31, 2018 |
|
|
|
|
||||||||||||||||
Gross written premiums |
$ 6,904 |
$ 3,350 |
$ 1,150 |
$ 11,404 |
||||||||||||||||
Gross written premiums excluding third party captives |
2,834 |
3,267 |
1,150 |
7,251 |
||||||||||||||||
Net written premiums |
2,744 |
3,060 |
1,018 |
6,822 |
||||||||||||||||
Net earned premiums |
2,732 |
3,050 |
1,001 |
6,783 |
||||||||||||||||
Net investment income |
439 |
500 |
57 |
996 |
||||||||||||||||
Core income (loss) |
629 |
357 |
(19 |
) | 967 |
|||||||||||||||
Other performance metrics: |
||||||||||||||||||||
Loss and loss adjustment expense ratio |
55.9 |
% | 67.3 |
% | 69.8 |
% | 63.1 |
% | ||||||||||||
Expense ratio |
32.1 |
33.1 |
36.7 |
33.2 |
||||||||||||||||
Dividend ratio |
0.2 |
0.7 |
0.4 |
|
||||||||||||||||
Combined ratio |
88.2 |
% | 101.1 |
% | 106.5 |
% | 96.7 |
% | ||||||||||||
Rate |
2% |
1% |
4% |
2% |
||||||||||||||||
Renewal premium change |
5 |
5 |
6 |
5 |
||||||||||||||||
Retention |
85 |
85 |
77 |
84 |
||||||||||||||||
New business |
$ 353 |
$ 566 |
$ 307 |
$ 1,226 |
Years Ended December 31 |
2019 |
2018 |
||||||||||||||
(In millions) |
||||||||||||||||
Net earned premiums |
$ |
520 |
$ | 530 |
|
|||||||||||
Net investment income |
845 |
821 |
||||||||||||||
Core loss |
(211 |
) |
(122 |
) |
Year Ended December 31 |
2019 |
|
2018 |
|||||||||||||
(In millions) |
||||||||||||||||
Core income (loss): |
||||||||||||||||
Property & Casualty Operations |
$ |
1,190 |
$ | 967 |
||||||||||||
Other Insurance Operations |
(211 |
) |
(122 |
) | ||||||||||||
Total core income |
979 |
845 |
||||||||||||||
Investment gains (losses) (after tax) |
37 |
(43 |
) | |||||||||||||
Consolidating adjustments including purchase accounting and noncontrolling interests |
(122 |
) |
(76 |
) | ||||||||||||
Net income attributable to Loews Corporation |
$ |
894 |
$ | 726 |
||||||||||||
Year Ended December 31 |
2019 |
2018 |
||||||||||||||
(In millions) |
||||||||||||||||
Revenues: |
||||||||||||||||
Net investment income |
$ |
6 |
$ | 8 |
||||||||||||
Contract drilling revenues |
935 |
1,060 |
||||||||||||||
Other revenues |
47 |
25 |
||||||||||||||
Total |
988 |
1,093 |
||||||||||||||
Expenses: |
||||||||||||||||
Contract drilling expenses |
793 |
723 |
||||||||||||||
Other operating expenses: |
||||||||||||||||
Impairment of assets |
27 |
|||||||||||||||
Other expenses |
474 |
446 |
||||||||||||||
Interest |
123 |
123 |
||||||||||||||
Total |
1,390 |
1,319 |
||||||||||||||
Loss before income tax |
(402 |
) |
(226 |
) | ||||||||||||
Income tax benefit |
60 |
30 |
||||||||||||||
Amounts attributable to noncontrolling interests |
167 |
84 |
||||||||||||||
Net loss attributable to Loews Corporation |
$ |
(175 |
) |
$ | (112 |
) | ||||||||||
As of December 31, 2019 |
||||||
(In millions) |
||||||
Total projected operating revenues under committed firm agreements as of December 31, 2018 |
$ | 9,133 |
| |||
Adjustments for: |
||||||
Actual revenues recognized from firm agreements in 2019 (a) |
(1,157 |
) | ||||
Firm agreements entered into in 2019 |
1,353 |
|||||
Total projected operating revenues under committed firm agreements as of December 31, 2019 |
$ | 9,329 |
||||
(a) | Reflects an increase of $73 million in Boardwalk Pipelines’ actual 2019 revenues recognized from fixed fees under firm agreements as compared with its expected 2019 revenues from fixed fees under firm agreements, including agreements for transportation, storage and other services as of December 31, 2018, primarily due to an increase from contract renewals that occurred in 2019. |
Year Ended December 31 |
2019 |
2018 |
||||||||||||
(In millions) |
||||||||||||||
Revenues: |
||||||||||||||
Operating revenues and other |
$ |
1,300 |
$ | 1,227 |
||||||||||
Total |
1,300 |
1,227 |
||||||||||||
Expenses: |
||||||||||||||
Operating and other |
840 |
820 |
||||||||||||
Interest |
179 |
176 |
||||||||||||
Total |
1,019 |
996 |
||||||||||||
Income before income tax |
281 |
231 |
||||||||||||
Income tax expense |
(72 |
) |
(28 |
) | ||||||||||
Amounts attributable to noncontrolling interests |
(68 |
) | ||||||||||||
Net income attributable to Loews Corporation |
$ |
209 |
$ | 135 |
||||||||||
Year Ended December 31 |
2019 |
2018 |
||||||||||
(In millions) |
||||||||||||
Revenues: |
||||||||||||
Operating revenues |
$ |
578 |
$ | 628 |
||||||||
Gain on sale of owned hotel |
23 |
|||||||||||
Revenues related to reimbursable expenses |
114 |
104 |
||||||||||
Total |
692 |
755 |
||||||||||
Expenses: |
||||||||||||
Operating and other: |
||||||||||||
Operating |
493 |
533 |
||||||||||
Asset impairments |
99 |
22 |
||||||||||
Reimbursable expenses |
114 |
104 |
||||||||||
Depreciation |
61 |
67 |
||||||||||
Equity income from joint ventures |
(69 |
) |
(73 |
) | ||||||||
Interest |
22 |
29 |
||||||||||
Total |
720 |
682 |
||||||||||
Income (loss) before income tax |
(28 |
) |
73 |
|||||||||
Income tax expense |
(3 |
) |
(25 |
) | ||||||||
Net income (loss) attributable to Loews Corporation |
$ |
(31 |
) |
$ | 48 |
|||||||
Year Ended December 31 |
2019 |
2018 |
||||||||||
(In millions) |
||||||||||||
Revenues: |
||||||||||||
Net investment income (loss) |
$ |
230 |
$ | (10 |
) | |||||||
Operating revenues and other |
933 |
867 |
||||||||||
Total |
1,163 |
857 |
||||||||||
Expenses: |
||||||||||||
Operating and other |
1,004 |
956 |
||||||||||
Interest |
115 |
108 |
||||||||||
Total |
1,119 |
1,064 |
||||||||||
Income (loss) before income tax |
44 |
(207 |
) | |||||||||
Income tax (expense) benefit |
(9 |
) |
46 |
|||||||||
Net income (loss) attributable to Loews Corporation |
$ |
35 |
$ | (161 |
) | |||||||
Payments Due by Period |
||||||||||||||||||||||||
Less than |
More than |
|||||||||||||||||||||||
December 31, 2019 |
Total |
1 year |
1-3 years |
3-5 years |
5 years |
|||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
Debt (a) |
$ |
16,279 |
$ |
616 |
$ |
2,620 |
$ |
4,185 |
$ |
8,858 |
||||||||||||||
Operating leases |
860 |
114 |
215 |
170 |
361 |
|||||||||||||||||||
Claim and claim adjustment expense reserves (b) |
22,814 |
5,512 |
5,928 |
2,994 |
8,380 |
|||||||||||||||||||
Future policy benefit reserves (c) |
27,539 |
(350 |
) |
55 |
813 |
27,021 |
||||||||||||||||||
Purchase and other obligations |
485 |
262 |
83 |
80 |
60 |
|||||||||||||||||||
Total |
$ |
67,977 |
$ |
6,154 |
$ |
8,901 |
$ |
8,242 |
$ |
44,680 |
||||||||||||||
(a) | Includes estimated future interest payments. |
(b) | The claim and claim adjustment expense reserves reflected above are not discounted and represent CNA’s estimate of the amount and timing of the ultimate settlement and administration of gross claims based on its assessment of facts and circumstances known as of December 31, 2019. See the Insurance Reserves section of this MD&A for further information. |
(c) | The future policy benefit reserves reflected above are not discounted and represent CNA’s estimate of the ultimate amount and timing of the settlement of benefits based on its assessment of facts and circumstances known as of December 31, 2019. Additional information on future policy benefit reserves is included in Note 1 of the Notes to Consolidated Financial Statements included under Item 8. |
Year Ended December 31 |
2019 |
2018 |
||||||||
(In millions) |
||||||||||
Fixed income securities: |
||||||||||
Taxable fixed income securities |
$ |
1,538 |
$ | 1,449 |
||||||
Tax-exempt fixed income securities |
318 |
384 |
||||||||
Total fixed income securities |
1,856 |
1,833 |
||||||||
Limited partnership and common stock investments |
226 |
(42 |
) | |||||||
Other, net of investment expense |
36 |
26 |
||||||||
Pretax net investment income |
$ |
2,118 |
$ | 1,817 |
||||||
Fixed income securities after tax and noncontrolling interests |
$ |
1,358 |
$ | 1,351 |
||||||
Net investment income after tax and noncontrolling interests |
$ |
1,543 |
$ | 1,341 |
||||||
Effective income yield for the fixed income securities portfolio, before tax |
4.8% |
4.7% |
||||||||
Effective income yield for the fixed income securities portfolio, after tax |
3.9% |
3.9% |
||||||||
Limited partnership and common stock return |
11.7% |
(1.9)% |
Year Ended December 31 |
2019 |
2018 |
||||||||||||||
(In millions) |
||||||||||||||||
Investment gains (losses): |
||||||||||||||||
Fixed maturity securities: |
||||||||||||||||
Corporate and other bonds |
$ (8 |
) |
$ | 26 |
||||||||||||
States, municipalities and political subdivisions |
13 |
36 |
||||||||||||||
Asset-backed |
(11 |
) |
(58 |
) | ||||||||||||
Total fixed maturity securities |
(6 |
) |
4 |
|||||||||||||
Non-redeemable preferred stock |
66 |
(74 |
) | |||||||||||||
Short term and other |
(11 |
) |
13 |
|||||||||||||
Total investment gains (losses) |
49 |
(57 |
) | |||||||||||||
Income tax (expense) benefit |
(12 |
) |
14 |
|||||||||||||
Amounts attributable to noncontrolling interests |
(4 |
) |
5 |
|||||||||||||
Net investment gains (losses) attributable to Loews Corporation |
$ 33 |
$ | (38 |
) | ||||||||||||
December 31, 2019 |
December 31, 2018 |
|||||||||||||||||||
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 |
$ |
4,136 |
$ |
95 |
$ | 4,334 |
$ | (24 |
) | |||||||||||
AAA |
3,254 |
349 |
3,027 |
245 |
||||||||||||||||
AA |
6,663 |
801 |
6,510 |
512 |
||||||||||||||||
A |
9,062 |
1,051 |
8,768 |
527 |
||||||||||||||||
BBB |
16,839 |
1,684 |
14,205 |
274 |
||||||||||||||||
Non-investment grade |
2,253 |
101 |
2,702 |
(73 |
) | |||||||||||||||
Total |
$ |
42,207 |
$ |
4,081 |
$ | 39,546 |
$ | 1,461 |
||||||||||||
December 31, 2019 |
Estimated Fair Value |
Gross Unrealized Losses |
||||||||
(In millions) |
||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises |
$ |
271 |
$ |
3 |
||||||
AAA |
91 |
2 |
||||||||
AA |
165 |
1 |
||||||||
A |
667 |
6 |
||||||||
BBB |
832 |
13 |
||||||||
Non-investment grade |
394 |
20 |
||||||||
| ||||||||||
Total |
$ |
2,420 |
$ |
45 |
||||||
|
December 31, 2019 |
Estimated Fair Value |
Gross Unrealized Losses |
||||||||
(In millions) |
||||||||||
Due in one year or less |
$ |
77 |
$ |
1 |
||||||
Due after one year through five years |
613 |
15 |
||||||||
Due after five years through ten years |
1,367 |
16 |
||||||||
Due after ten years |
363 |
13 |
||||||||
| ||||||||||
Total |
$ |
2,420 |
$ |
45 |
||||||
|
December 31, 2019 |
December 31, 2018 |
|||||||||||||||||
Estimated Fair Value |
Effective Duration (In Years) |
Estimated Fair Value |
Effective Duration (In Years) |
|||||||||||||||
(In millions of dollars) |
||||||||||||||||||
Investments supporting Other Insurance Operations |
$ |
18,015 |
8.9 |
$ | 16,212 |
8.4 |
||||||||||||
Other investments |
26,813 |
4.1 |
25,428 |
4.4 |
||||||||||||||
|
||||||||||||||||||
Total |
$ |
44,828 |
6.0 |
$ | 41,640 |
6.0 |
||||||||||||
|
December 31 |
2019 |
2018 |
||||||||
(In millions) |
||||||||||
Short term investments: |
||||||||||
Commercial paper |
$ |
1,181 |
$ | 705 |
||||||
U.S. Treasury securities |
364 |
185 |
||||||||
Other |
316 |
396 |
||||||||
| ||||||||||
Total short term investments |
$ |
1,861 |
$ | 1,286 |
||||||
|
December 31 |
2019 |
2018 |
||||||||
(In millions) |
||||||||||
Gross Case Reserves |
$ |
6,276 |
$ | 6,671 |
||||||
Gross IBNR Reserves |
9,494 |
9,287 |
||||||||
| ||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves |
$ |
15,770 |
$ | 15,958 |
||||||
| ||||||||||
Net Case Reserves |
$ |
5,645 |
$ | 6,063 |
||||||
Net IBNR Reserves |
8,508 |
8,290 |
||||||||
| ||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves |
$ |
14,153 |
$ | 14,353 |
||||||
|
December 31 |
2019 |
2018 |
||||||||
(In millions) |
||||||||||
Gross Case Reserves |
$ |
1,137 |
$ | 1,208 |
||||||
Gross IBNR Reserves |
1,097 |
1,217 |
||||||||
| ||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves |
$ |
2,234 |
$ | 2,425 |
||||||
| ||||||||||
Net Case Reserves |
$ |
92 |
$ | 96 |
||||||
Net IBNR Reserves |
83 |
96 |
||||||||
| ||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves |
$ |
175 |
$ | 192 |
||||||
|
(In millions) |
||||||||
Long term care active life reserve - change in estimated reserve margin |
||||||||
September 30, 2018 estimated margin |
$ |
182 |
||||||
Changes in underlying discount rate assumptions |
(280 |
) |
||||||
Changes in underlying morbidity assumptions |
32 |
|||||||
Changes in underlying persistency assumptions and inforce policy inventory |
(234 |
) |
||||||
Changes in underlying premium rate action assumptions |
58 |
|||||||
Changes in underlying expense and other assumptions |
26 |
|||||||
|
||||||||
September 30, 2019 Premium Deficiency |
$ (216 |
) |
||||||
|
2019 GPV |
Estimated Reduction to Pretax Income |
|||
(In millions) |
||||
Hypothetical revisions |
||||
Morbidity: |
||||
5% increase in morbidity |
$ |
664 |
||
10% increase in morbidity |
1,329 |
|||
Persistency: |
||||
5% decrease in active life mortality and lapse |
$ |
208 |
||
10% decrease in active life mortality and lapse |
427 |
|||
Discount rates: |
||||
50 basis point decline in new money interest rates |
$ |
309 |
||
100 basis point decline in new money interest rates |
675 |
|||
Premium rate actions: |
||||
25% decrease in anticipated future premium rate increases |
$ |
58 |
||
50% decrease in anticipated future premium rate increases |
115 |
December 31, 2019 |
Claim and claim adjustment expenses |
Future policy benefits |
Total |
|||||||||
(In millions) |
||||||||||||
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 |
||||||
December 31, 2018 |
Claim and claim adjustment expenses |
Future policy benefits |
Total |
|||||||||
(In millions) |
||||||||||||
Long term care |
$ | 2,761 |
$ | 9,113 |
$ | 11,874 |
||||||
Structured settlement annuities |
530 |
530 |
||||||||||
Other |
14 |
14 |
||||||||||
Total |
3,305 |
9,113 |
12,418 |
|||||||||
Shadow adjustments (a) |
115 |
1,250 |
1,365 |
|||||||||
Ceded reserves (b) |
181 |
234 |
415 |
|||||||||
Total gross reserves |
$ | 3,601 |
$ | 10,597 |
$ | 14,198 |
||||||
(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. |
Increase (Decrease) |
||||||||||||||||
December 31, 2019 |
Fair Value Asset (Liability) |
Interest Rate Risk |
Equity Price Risk |
|||||||||||||
(In millions) |
||||||||||||||||
Fixed maturities – long |
$ |
53 |
||||||||||||||
Equity securities – long |
440 |
$ |
(110) |
|||||||||||||
– short |
(17 |
) |
4 |
|||||||||||||
Options – purchased |
1 |
3 |
||||||||||||||
– written |
(1 |
) |
(5) |
|||||||||||||
Other invested assets |
7 |
|||||||||||||||
Short term investments |
2,521 |
$ |
(5 |
) |
Increase (Decrease) | ||||||||||||||||||
December 31, 2019 |
Fair Value Asset (Liability) |
Interest Rate Risk |
Foreign Currency Risk |
Equity Price Risk |
||||||||||||||
(In millions) |
||||||||||||||||||
Fixed maturities (a) |
$ |
42,187 |
$ |
(2,669 |
) |
$ |
(458 |
) |
||||||||||
Equity securities |
865 |
(28 |
) |
(3 |
) |
$ |
(45) |
|||||||||||
Limited partnership investments |
2,004 |
(238) |
||||||||||||||||
Other invested assets |
65 |
(11 |
) |
|||||||||||||||
Mortgage loans |
1,025 |
(45 |
) |
|||||||||||||||
Short term investments |
2,107 |
(1 |
) |
(27 |
) |
|||||||||||||
Interest rate swaps (b) |
(8 |
) |
11 |
|||||||||||||||
Other derivatives |
(7 |
) |
16 |
(a) | From a financial reporting perspective, Shadow Adjustments related to life and group reserves would reduce the impact of the decrease in fixed maturity securities. |
(b) | The market risk at December 31, 2019 will generally be offset by recognition of the underlying hedged transaction. |
Increase (Decrease) | ||||||||||||||
December 31, 2018 |
Fair Value Asset (Liability) |
Interest Rate Risk |
Equity Price Risk |
|||||||||||
(In millions) |
||||||||||||||
Fixed maturities – long |
$ | 157 |
$ | (1 |
) | |||||||||
Equity securities – long |
495 |
$ | (124 |
) | ||||||||||
– short |
(6 |
) | 2 |
|||||||||||
Options – purchased |
18 |
28 |
||||||||||||
– written |
(17 |
) | (19 |
) | ||||||||||
Other invested assets |
5 |
|||||||||||||
Short term investments |
1,926 |
(4 |
) |
Increase (Decrease) | ||||||||||||||||||
December 31, 2018 |
Fair Value Asset (Liability) |
Interest Rate Risk |
Foreign Currency Risk |
Equity Price Risk |
||||||||||||||
(In millions) |
||||||||||||||||||
Fixed maturities |
$ | 39,542 |
$ | (2,440 |
) | $ | (406 |
) | ||||||||||
Equity securities |
780 |
(29 |
) | (3 |
) | $ | (46) |
|||||||||||
Limited partnership investments |
2,424 |
(308) |
||||||||||||||||
Other invested assets |
53 |
(9 |
) | |||||||||||||||
Mortgage loans |
827 |
(36 |
) | |||||||||||||||
Short term investments |
1,943 |
(1 |
) | (24 |
) | |||||||||||||
Interest rate swaps (a) |
11 |
22 |
||||||||||||||||
Other derivatives |
4 |
15 |
(a) | The market risk at December 31, 2018 will generally be offset by recognition of the underlying hedged transaction. |
Page No. | ||||||
84 | ||||||
85 | ||||||
90 | ||||||
92 | ||||||
93 | ||||||
94 | ||||||
96 | ||||||
98 | ||||||
1. |
98 | |||||
2. |
108 | |||||
3. |
109 | |||||
4. |
114 | |||||
5. |
120 | |||||
6. |
120 | |||||
7. |
122 | |||||
8. |
123 | |||||
9. |
138 | |||||
10. |
139 | |||||
11. |
143 | |||||
12. |
146 | |||||
13. |
147 | |||||
14. |
148 | |||||
15. |
149 | |||||
16. |
155 | |||||
17. |
156 | |||||
18. |
157 | |||||
19. |
157 | |||||
20. |
158 |
/s/ DELOITTE & TOUCHE LLP |
New York, NY |
February 11, 2020 |
○ |
We developed a range of independent estimates of P&C claim and claim adjustment expense reserves and compared our estimates to the recorded reserves. |
○ |
We compared our prior year estimates of expected incurred losses to actual experience during the most recent year to identify potential bias in the Company’s determination of P&C claim and claim adjustment expense reserves. |
○ |
We independently recalculated a sample of LTC future policy benefit reserves and compared our estimates to the recorded reserves. |
○ |
We evaluated the key assumptions applied in the GPV analysis, including comparing those assumptions to the Company’s historical experience, the underlying investment portfolio yield and market data. |
○ |
We assessed the Company’s projection of future cash flows to evaluate the reasonableness of the 2019 charge related to unlocking LTC future policy benefit reserves to recognize a premium deficiency as a result of the most recently completed GPV. |
○ |
Corroborating information used to identify impairment indicators through independent inquiries of offshore drilling marketing and operations personnel and by performing an independent assessment of potential indicators of impairment utilizing the individual drilling rig history, asset class history for dayrates, backlog and potential drilling rig opportunities. |
○ |
Considering industry and analysts reports and the impact of macroeconomic factors, such as future oil and gas prices, on the Company’s process for identifying indicators of impairment. |
○ |
Comparing the timing of impairments recorded by the Company with the timing of impairments recorded by the Company’s peers. |
○ |
Evaluating the reasonableness of the dayrate assumptions utilized in the Company’s probability-weighted undiscounted cash flow analyses by evaluating potential drilling rig opportunities and considering industry reports and data. |
○ |
Comparing the assumptions used in the Company’s previous undiscounted probability-weighted cash flow analyses to the assumptions used in the current undiscounted probability-weighted cash flow analyses to assess for management bias. |
/s/ DELOITTE & TOUCHE LLP |
New York, NY |
February 11, 2020 |
Assets: |
December 31 |
2019 |
2018 |
||||||
(Dollar amounts in millions, except per share data) |
||||||||
Investments: |
||||||||
Fixed maturities, amortized cost of $ |
$ |
$ | ||||||
Equity securities, cost of $ |
||||||||
Limited partnership investments |
||||||||
Other invested assets, primarily mortgage loans |
||||||||
Short term investments |
||||||||
Total investments |
||||||||
Cash |
||||||||
Receivables |
||||||||
Property, plant and equipment |
||||||||
Goodwill |
665 |
|||||||
Deferred non-insurance warranty acquisition expenses |
||||||||
Deferred acquisition costs of insurance subsidiaries |
||||||||
Other assets |
||||||||
Total assets |
$ |
$ | ||||||
Liabilities and Equity: |
December 31 |
2019 |
2018 |
||||||
(Dollar amounts in millions, except per share data) |
||||||||
Insurance reserves: |
||||||||
Claim and claim adjustment expense |
$ |
$ | ||||||
Future policy benefits |
||||||||
Unearned premiums |
||||||||
Total insurance reserves |
||||||||
Payable to brokers |
||||||||
Short term debt |
||||||||
Long term debt |
||||||||
Deferred income taxes |
||||||||
Deferred non-insurance warranty revenue |
||||||||
Other liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingent liabilities |
||||||||
Shareholders’ equity: |
||||||||
Preferred stock, $ |
||||||||
Authorized – |
||||||||
Common stock, $ |
||||||||
Authorized – |
||||||||
Issued – |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Less treasury stock, at cost ( |
( |
) | ( |
) | ||||
Total shareholders’ equity |
||||||||
Noncontrolling interests |
||||||||
Total equity |
||||||||
Total liabilities and equity |
$ |
$ | ||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions, except per share data) |
||||||||||||
Revenues: |
||||||||||||
Insurance premiums |
$ |
$ | $ | |||||||||
Net investment income |
||||||||||||
Investment gains (losses): |
||||||||||||
Other-than-temporary impairment losses |
( |
) | ( |
) | ( |
) | ||||||
Other net investment gains (losses) |
( |
) | ||||||||||
Total investment gains (losses) |
( |
) | ||||||||||
Non-insurance warranty revenue |
||||||||||||
Operating revenues and other |
||||||||||||
Total |
||||||||||||
Expenses: |
||||||||||||
Insurance claims and policyholders’ benefits |
||||||||||||
Amortization of deferred acquisition costs |
||||||||||||
Non-insurance warranty expense |
||||||||||||
Operating expenses and other |
||||||||||||
Interest |
||||||||||||
Total |
||||||||||||
Income before income tax |
||||||||||||
Income tax expense |
( |
) | ( |
) | ( |
) | ||||||
Net income |
||||||||||||
Amounts attributable to noncontrolling interests |
( |
) | ( |
) | ||||||||
Net income attributable to Loews Corporation |
$ |
$ | $ | |||||||||
Basic net income per common share |
$ |
$ | $ | |||||||||
Diluted net income per common share |
$ |
$ | $ | |||||||||
Basic weighted average number of shares outstanding |
||||||||||||
Diluted weighted average number of shares outstanding |
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Net income |
$ |
$ | $ | |||||||||
Other comprehensive income (loss), after tax Changes in: |
||||||||||||
Net unrealized losses on investments with other-than-temporary impairments |
( |
) | ( |
) | ( |
) | ||||||
Net other unrealized gains (losses) on investments |
( |
) | ||||||||||
Total unrealized gains (losses) on investments |
( |
) | ||||||||||
Unrealized gains (losses) on cash flow hedges |
( |
) | ||||||||||
Pension and postretirement benefits |
( |
) | ( |
) | ||||||||
Foreign currency translation |
( |
) | ||||||||||
Other comprehensive income (loss) |
( |
) | ||||||||||
Comprehensive income (loss) |
( |
) | ||||||||||
Amounts attributable to noncontrolling interests |
( |
) | ( |
) | ||||||||
Total comprehensive income (loss) attributable to Loews Corporation |
$ |
$ | ( |
) | $ | |||||||
Loews Corporation Shareholders |
||||||||||||||||||||||||||||
Accumulated |
Common |
|||||||||||||||||||||||||||
Additional |
Other |
Stock |
||||||||||||||||||||||||||
Common |
Paid-in |
Retained |
Comprehensive |
Held in |
Noncontrolling |
|||||||||||||||||||||||
Total |
Stock |
Capital |
Earnings |
Income (Loss) |
Treasury |
Interests |
||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||
Balance, January 1, 2017 |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | $ | - |
$ | |
|||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||
Other comprehensive income |
|
|
|
|||||||||||||||||||||||||
Dividends paid ($ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Purchases of Loews treasury stock |
( |
) | ( |
) | ||||||||||||||||||||||||
Retirement of treasury stock |
|
( |
) | ( |
) | |
||||||||||||||||||||||
Stock-based compensation |
|
|
|
|||||||||||||||||||||||||
Other |
( |
) | |
( |
) | |
||||||||||||||||||||||
Balance, December 31, 2017 |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | $ | ( |
) | $ | |
||||||||||||
Cumulative effect adjustments from changes in accounting standards |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Balance, January 1, 2018, as adjusted |
|
|
|
|
( |
) | ( |
) | |
|||||||||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Dividends paid ($ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Purchase of Boardwalk Pipelines common units |
( |
) | |
( |
) | ( |
) | |||||||||||||||||||||
Purchases of Loews treasury stock |
( |
) | ( |
) | ||||||||||||||||||||||||
Retirement of treasury stock |
- |
( |
) | ( |
) | |
||||||||||||||||||||||
Stock-based compensation |
|
|
|
|||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | |
|||||||||||||||||||||
Balance, December 31, 2018 |
$ | |
$ | |
$ | |
$ | |
$ | ( |
) | $ | ( |
) | $ | |
||||||||||||
Loews Corporation Shareholders |
||||||||||||||||||||||||||||
Accumulated |
Common |
|||||||||||||||||||||||||||
Additional |
Other |
Stock |
||||||||||||||||||||||||||
Common |
Paid-in |
Retained |
Comprehensive |
Held in |
Noncontrolling |
|||||||||||||||||||||||
Total |
Stock |
Capital |
Earnings |
Income (Loss) |
Treasury |
Interests |
||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||
Balance, December 31, 2018 |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
||||||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
Other comprehensive income |
|
|
|
|
|
|
|
|||||||||||||||||||||
Dividends paid ($ |
( |
) |
|
|
( |
) |
|
|
( |
) | ||||||||||||||||||
Purchase of subsidiary stock from noncontrolling interests |
|
( |
) |
|
|
|
|
|
( |
) | ||||||||||||||||||
Purchases of Loews treasury stock |
( |
) |
|
|
|
|
( |
) |
|
|||||||||||||||||||
Retirement of treasury stock |
- |
|
( |
) |
( |
) |
|
|
|
|||||||||||||||||||
Stock-based compensation |
|
|
|
|
|
|
|
|||||||||||||||||||||
Other |
( |
) |
|
( |
) |
( |
) |
|
|
|
||||||||||||||||||
Balance, December 31, 2019 |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
||||||||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Operating Activities: |
||||||||||||
Net income |
$ |
|
$ | |
$ | |
||||||
Adjustments to reconcile net income to net cash provided (used) by operating activities: |
||||||||||||
Investment (gains) losses |
( |
) | |
( |
||||||||
Equity method investees |
|
|
|
|||||||||
Amortization of investments |
( |
) | ( |
) | ( |
|||||||
Depreciation and amortization |
|
|
|
|||||||||
Asset impairments |
|
|
|
|||||||||
Provision for deferred income taxes |
|
|
( |
|||||||||
Other non-cash items |
|
|
|
|||||||||
Changes in operating assets and liabilities, net: |
||||||||||||
Receivables |
|
( |
) | |
||||||||
Deferred acquisition costs |
( |
) | ( |
) | ( |
|||||||
Insurance reserves |
|
|
|
|||||||||
Other assets |
( |
) | ( |
) | ( |
|||||||
Other liabilities |
|
( |
) | |
||||||||
Trading securities |
( |
) | |
|
||||||||
Net cash flow provided by operating activities |
|
|
|
|||||||||
Investing Activities: |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of fixed maturities |
( |
) | ( |
) | ( |
|||||||
Proceeds from sales of fixed maturities |
|
|
|
|||||||||
Proceeds from maturities of fixed maturities |
|
|
|
|||||||||
Purchases of limited partnership investments |
( |
) | ( |
) | ( |
|||||||
Proceeds from sales of limited partnership investments |
|
|
|
|||||||||
Purchases of property, plant and equipment |
( |
) | ( |
) | ( |
|||||||
Acquisitions |
( |
) | ( |
) | ( |
|||||||
Dispositions |
|
|
|
|||||||||
Change in short term investments |
( |
) | ( |
) | ( |
|||||||
Other, net |
( |
) | ( |
) | ( |
|||||||
Net cash flow used by investing activities |
( |
) | ( |
) | ( |
|||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Financing Activities: |
||||||||||||
Dividends paid |
$ |
( |
) |
$ | ( |
) | $ | ( |
||||
Dividends paid to noncontrolling interests |
( |
) |
( |
) | ( |
|||||||
Purchase of Boardwalk Pipeline common units |
|
( |
) | |||||||||
Purchases of Loews treasury stock |
( |
) |
( |
) | ( |
|||||||
Purchases of subsidiary stock from noncontrolling interests |
( |
) |
||||||||||
Principal payments on debt |
( |
) |
( |
) | ( |
|||||||
Issuance of debt |
|
|
|
|||||||||
Other, net |
( |
) |
|
( |
||||||||
Net cash flow (used) provided by financing activities |
( |
) |
( |
) | |
|||||||
Effect of foreign exchange rate on cash |
|
( |
) | |
||||||||
Net change in cash |
( |
) |
( |
) | |
|||||||
Cash, beginning of year |
|
|
|
|||||||||
Cash, end of year |
$ |
|
$ | |
$ | |
||||||
Year Ended December 31 |
2019 |
2018 |
||||||
(In millions) |
||||||||
Total assets |
$ |
$ |
||||||
Total liabilities |
|
|
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
Revenues |
$ |
$ |
$ |
|||||||||
Net income |
|
|
|
Years |
||||
Pipeline equipment |
||||
Offshore drilling equipment |
||||
Other |
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Fixed maturity securities |
$ |
$ | $ | |||||||||
Limited partnership investments |
||||||||||||
Short term investments |
||||||||||||
Equity securities |
||||||||||||
Income (loss) from trading portfolio (a) |
( |
) | ||||||||||
Other |
||||||||||||
Total investment income |
||||||||||||
Investment expenses |
( |
) | ( |
) | ( |
) | ||||||
Net investment income |
$ |
$ | $ | |||||||||
(a) |
Net unrealized gains (losses) related to changes in fair value on securities still held were $ |
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Fixed maturity securities |
$ |
( |
) |
$ |
$ |
|||||||
Equity securities |
( |
) | ||||||||||
Derivative instruments |
( |
) |
( |
) | ||||||||
Short term investments and other |
||||||||||||
Investment gains (losses) (a) |
$ |
$ | ( |
) | $ | |||||||
(a) | Gross investment gains on available-for-sale securities were $investment losses on available-for-sale securities were $ investment g of $ains Net investment losses of $ were recognized due to the change in fair value of non-redeemable preferred stock still held for the year ended December 31, 2018. |
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Fixed maturity securities |
$ |
$ | ( |
) | $ | |||||||
Equity securities (a) |
||||||||||||
Other |
( |
) | ||||||||||
Total net change in unrealized gains (losses) on investments |
$ |
$ | ( |
) | $ | |||||||
(a) |
Due to the adoption of ASU 2016-01 on January 1, 2018, the change in fair value of equity securities is now recognized through the income statement. See Note 1 for further discussion on the standard. |
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Fixed maturity securities available-for-sale: |
||||||||||||
Corporate and other bonds |
$ |
$ | $ | |||||||||
Asset-backed |
||||||||||||
Total fixed maturity securities available-for-sale |
||||||||||||
Equity securities available-for-sale |
||||||||||||
Net OTTI losses recognized in earnings |
$ |
$ | $ | |||||||||
December 31, 2019 |
Cost Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Loss es |
Estimated Fair Value |
Unrealized OTTI (Gains) |
|||||||||||||||
(In millions) |
||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
Corporate and other bonds |
$ |
$ |
$ |
$ |
||||||||||||||||
States, municipalities and political subdivisions |
||||||||||||||||||||
Asset-backed: |
||||||||||||||||||||
Residential mortgage-backed |
$ |
) | ||||||||||||||||||
Commercial mortgage-backed |
||||||||||||||||||||
Other asset-backed |
( |
) | ||||||||||||||||||
Total asset-backed |
( |
|||||||||||||||||||
U.S. Treasury and obligations of government- |
||||||||||||||||||||
Foreign government |
||||||||||||||||||||
Redeemable preferred stock |
||||||||||||||||||||
Fixed maturities available-for-sale |
( |
|||||||||||||||||||
Fixed maturities trading |
||||||||||||||||||||
Total fixed maturities |
$ |
$ |
$ |
$ |
$ () |
|||||||||||||||
December 31, 2018 |
Cost or Amortized Cost |
Gross Unrealized Gains |
Gross Losses |
Estimated Fair Value |
Unrealized OTTI Losses (Gains) |
|||||||||||||||
(In millions) |
||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
Corporate and other bonds |
$ |
|
$ |
$ |
$ |
|||||||||||||||
States, municipalities and political subdivisions |
||||||||||||||||||||
Asset-backed: |
||||||||||||||||||||
Residential mortgage-backed |
$ ( |
) | ||||||||||||||||||
Commercial mortgage-backed |
||||||||||||||||||||
Other asset-backed |
||||||||||||||||||||
Total asset-backed |
( |
) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises |
||||||||||||||||||||
Foreign government |
||||||||||||||||||||
Redeemable preferred stock |
||||||||||||||||||||
Fixed maturities available-for-sale |
( |
) | ||||||||||||||||||
Fixed maturities trading |
||||||||||||||||||||
Total fixed maturities |
$ |
|
$ |
$ |
$ |
$ |
( |
) | ||||||||||||
|
Less than 12 Months |
|
12 Months or Longer |
|
Total | |||||||||||||||||||
December 31, 2019 |
|
|
Estimated Fair V alue |
|
|
|
Gross Unrealized Losses |
|
|
|
Estimated Fair Value |
|
|
|
Gross Unrealized Losses |
|
|
|
Estimated Fair Value |
|
|
|
Gross Unrealized Losses |
|
(In millions ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Fixed maturity securities: |
||||||||||||||||||||||||
Corporate and other bonds |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
States, municipalities and political subdivisions |
|
|
|
|
|
|
||||||||||||||||||
Asset-backed: |
||||||||||||||||||||||||
Residential mortgage-backed |
|
|
|
|
|
|
||||||||||||||||||
Commercial mortgage-backed |
|
|
|
|
|
|
||||||||||||||||||
Other asset-backed |
|
|
|
|
|
|
||||||||||||||||||
Total asset-backed |
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises |
|
|
|
|
|
|
||||||||||||||||||
Foreign government |
|
|
|
|
|
|
||||||||||||||||||
Total fixed maturity securities |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
December 31, 2018 |
||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||
Corporate and other bonds |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
States, municipalities and political subdivisions |
|
|
|
|
|
|
||||||||||||||||||
Asset-backed: |
||||||||||||||||||||||||
Residential mortgage-backed |
|
|
|
|
|
|
||||||||||||||||||
Commercial mortgage-backed |
|
|
|
|
|
|
||||||||||||||||||
Other asset-backed |
|
|
|
|
|
|
||||||||||||||||||
Total asset-backed |
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises |
|
|
|
|||||||||||||||||||||
Foreign government |
|
|
|
|
|
|
||||||||||||||||||
Total fixed maturity securities |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Beginning balance of credit losses on fixed maturity securities |
$ |
|
$ | |
$ | |
||||||
Reductions for securities sold during the period |
( |
) | ( |
) | ( |
) | ||||||
Ending balance of credit losses on fixed maturity securities |
$ |
|
$ | |
$ | |
||||||
December 31 |
2019 |
2018 |
||||||||||||||
Cost Cost |
Estimated Fair Value |
Cost Cost |
Estimated Fair Value |
|||||||||||||
(In millions) |
|
|
|
|
||||||||||||
Due in one year or less |
$ |
$ |
$ |
$ |
||||||||||||
Due after one year through five years |
|
|
|
|
||||||||||||
Due after five years through ten years |
|
|
|
|
||||||||||||
Due after ten years |
|
|
|
|
||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
December 31 |
2019 |
2018 |
||||||||||||||||||||||
Contractual/ |
Contractual/ |
|||||||||||||||||||||||
Notional |
Estimated Fair Value |
Notional |
Estimated Fair Value |
|||||||||||||||||||||
Amount |
Asset |
(Liability) |
Amount |
Asset |
(Liability) |
|||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
With hedge designation: |
||||||||||||||||||||||||
Interest rate swaps |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||||
Without hedge designation: |
||||||||||||||||||||||||
Equity markets: |
||||||||||||||||||||||||
Options – purchased |
$ |
|||||||||||||||||||||||
– written |
( |
$ |
( |
) | ||||||||||||||||||||
Commodity futures – long |
||||||||||||||||||||||||
Embedded derivative on funds withheld liability |
( |
• | 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. |
December 31, 2019 |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
(In millions) |
||||||||||||||||
Fixed maturity securities: |
||||||||||||||||
Corporate bonds and other |
$ |
$ |
$ |
$ |
||||||||||||
States, municipalities and political subdivisions |
||||||||||||||||
Asset-backed |
||||||||||||||||
Fixed maturities available-for-sale |
||||||||||||||||
Fixed maturities trading |
||||||||||||||||
Total fixed maturities |
$ |
$ |
$ |
$ |
||||||||||||
Equity securities |
$ |
$ |
$ |
$ |
||||||||||||
Short term and other |
||||||||||||||||
Receivables |
||||||||||||||||
Payable to brokers |
( |
) | ( |
) | ( |
) | ||||||||||
December 31, 2018 |
||||||||||||||||
Fixed maturity securities: |
||||||||||||||||
Corporate bonds and other |
$ | $ | $ | $ | ||||||||||||
States, municipalities and political subdivisions |
||||||||||||||||
Asset-backed |
||||||||||||||||
Fixed maturities available-for-sale |
||||||||||||||||
Fixed maturities trading |
||||||||||||||||
Total fixed maturities |
$ | $ | $ | $ | ||||||||||||
Equity securities |
$ | $ | $ | $ | ||||||||||||
Short term and other |
||||||||||||||||
Receivables |
||||||||||||||||
Payable to brokers |
( |
) | ( |
Unrealized |
||||||||||||||||||||||||||||||||||||||||||||
Gains |
||||||||||||||||||||||||||||||||||||||||||||
Unrealized |
(Losses) |
|||||||||||||||||||||||||||||||||||||||||||
Gains |
Recognized in |
|||||||||||||||||||||||||||||||||||||||||||
(Losses) |
Other |
|||||||||||||||||||||||||||||||||||||||||||
Recognized in |
Comprehensive |
|||||||||||||||||||||||||||||||||||||||||||
Net Realized Investment |
Net Income |
Income (Loss) |
||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) and Net |
(Loss) on Level |
on Level 3 |
||||||||||||||||||||||||||||||||||||||||||
Change in Unrealized |
3 Assets and |
Assets and |
||||||||||||||||||||||||||||||||||||||||||
Investment Gains (Losses) |
Transfers |
Transfers |
Liabilities |
Liabilities |
||||||||||||||||||||||||||||||||||||||||
Balance, |
Included in |
Included in |
into |
out of |
Balance, |
Held at |
Held at |
|||||||||||||||||||||||||||||||||||||
2019 |
January 1 |
Net Income |
OCI |
Purchases |
Sales |
Settlements |
Level 3 |
Level 3 |
December 31 |
December 31 |
December 31 |
|||||||||||||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other |
$ |
$ |
$ |
$ |
( |
$ |
( |
$ |
$ |
|||||||||||||||||||||||||||||||||||
Asset-backed |
( |
$ |
( |
|||||||||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale |
$ |
- |
$ |
- |
( |
( |
$ |
- |
||||||||||||||||||||||||||||||||||||
Fixed maturities trading |
( |
( |
||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities |
$ |
$ |
( |
$ |
$ |
$ |
- |
$ |
( |
$ |
$ |
( |
$ |
$ |
( |
$ |
||||||||||||||||||||||||||||
Equity securities |
$ |
$ |
( |
$ |
$ |
$ |
( |
Unrealized |
||||||||||||||||||||||||||||||||||||||||||||
Gains |
||||||||||||||||||||||||||||||||||||||||||||
Unrealized |
(Losses) |
|||||||||||||||||||||||||||||||||||||||||||
Gains |
Recognized in |
|||||||||||||||||||||||||||||||||||||||||||
(Losses) |
Other |
|||||||||||||||||||||||||||||||||||||||||||
Recognized in |
Comprehensive |
|||||||||||||||||||||||||||||||||||||||||||
Net Realized Investment |
Net Income |
Income (Loss) |
||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) and Net |
(Loss) on Level |
on Level 3 |
||||||||||||||||||||||||||||||||||||||||||
Change in Unrealized |
3 Assets and |
Assets and |
||||||||||||||||||||||||||||||||||||||||||
Investment Gains (Losses) |
Transfers |
Transfers |
Liabilities |
Liabilities |
||||||||||||||||||||||||||||||||||||||||
Balance, |
Included in |
Included in |
into |
out of |
Balance, |
Held at |
Held at |
|||||||||||||||||||||||||||||||||||||
2018 |
January 1 |
Net Income |
OCI |
Purchases |
Sales |
Settlements |
Level 3 |
Level 3 |
December 31 |
December 31 |
December 31 |
|||||||||||||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other |
$ |
$ |
( |
$ |
( |
$ |
$ |
( |
$ |
( |
$ |
$ |
( |
$ |
$ |
( |
) | |||||||||||||||||||||||||||
States, municipalities and political subdivisions |
( |
- |
||||||||||||||||||||||||||||||||||||||||||
Asset-backed |
( |
( |
( |
( |
$ |
( |
( |
) | ||||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale |
( |
( |
( |
( |
( |
( |
) | |||||||||||||||||||||||||||||||||||||
Fixed maturities trading |
( |
|||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities |
$ |
$ |
$ |
( |
$ |
$ |
( |
$ |
( ) |
$ |
$ |
( |
$ |
$ |
- |
$ |
( |
) | ||||||||||||||||||||||||||
Equity securities |
$ |
$ |
( |
$ |
( |
$ |
$ |
( |
Major Category of Assets and Liabilities |
Consolidated Statements of Income 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 |
Range |
||||||||||||||||
Estimated |
Valuation |
Unobservable |
(Weighted |
|||||||||||||
December 31, 2019 |
Fair Value |
Techniques |
Inputs |
Average) |
||||||||||||
(In millions) |
||||||||||||||||
Fixed maturity securities |
$ |
Discounted cash |
Credit |
% ) |
||||||||||||
December 31, 2018 |
||||||||||||||||
Fixed maturity securities |
$ |
Discounted cash |
Credit spread |
) |
Carrying |
Estimated Fair Value |
|||||||||||||||||||
December 31, 2019 |
Amount |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||||
(In millions) |
||||||||||||||||||||
Assets: |
||||||||||||||||||||
Other invested assets, primarily mortgage loans |
$ |
|
|
|
$ |
|
$ |
|
||||||||||||
Liabilities: |
||||||||||||||||||||
Short term debt |
|
|
$ |
|
|
|
||||||||||||||
Long term debt |
|
|
|
|
|
|||||||||||||||
December 31, 2018 |
||||||||||||||||||||
Assets: |
||||||||||||||||||||
Other invested assets, primarily mortgage loans |
$ | |
$ | |
$ | |
||||||||||||||
Liabilities: |
||||||||||||||||||||
Short term debt |
|
$ | |
|
||||||||||||||||
Long term debt |
|
|
|
|
December 31 |
2019 |
2018 |
||||||
(In millions) |
||||||||
Reinsurance (Note 16) |
$ |
|
$ | |
||||
Insurance |
|
|
||||||
Receivable from brokers |
|
|
||||||
Accrued investment income |
|
|
||||||
Federal income taxes |
|
|
||||||
Other, primarily customer accounts |
|
|
||||||
Total |
|
|
||||||
Less: allowance for doubtful accounts on reinsurance receivables |
|
|
||||||
allowance for other doubtful accounts |
|
|
||||||
Receivables |
$ |
|
$ | |
||||
December 31 |
2019 |
2018 |
||||||
(In millions) |
||||||||
Pipeline equipment (net of accumulated depreciation of $ |
$ |
|
$ | |
||||
Offshore drilling equipment (net of accumulated depreciation of $ |
|
|
||||||
Other (net of accumulated depreciation of $ ) |
|
|
||||||
Construction in process |
|
|
||||||
Property, plant and equipment |
$ |
|
$ | |
||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||||||||||||||
|
Depre- |
Capital |
Depre- |
Capital |
Depre- |
Capital |
||||||||||||||||||
|
ciation |
Expend. |
ciation |
Expend. |
ciation |
Expend. |
||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
CNA Financial |
$ |
|
$ |
|
$ | |
$ | |
$ | |
$ | |
||||||||||||
Diamond Offshore |
|
|
|
|
|
|
||||||||||||||||||
Boardwalk Pipelines |
|
|
|
|
|
|
||||||||||||||||||
Loews Hotels & Co |
|
|
|
|
|
|
||||||||||||||||||
Corporate |
|
|
|
|
|
|
||||||||||||||||||
Total |
$ |
|
$ |
|
$ | |
$ | |
$ | |
$ | |
||||||||||||
CNA |
Boardwalk |
|||||||||||||||
Financial |
Pipelines |
Corporate |
Total |
|||||||||||||
(In millions) |
||||||||||||||||
Balance, December 31, 2017 |
$ | $ | $ | $ | ||||||||||||
Acquisition |
||||||||||||||||
Other adjustments |
( |
) | ( |
|||||||||||||
Balance, December 31, 2018 |
||||||||||||||||
Acquisition s |
||||||||||||||||
Other adjustments |
||||||||||||||||
Balance, December 31, 2019 |
$ |
$ |
$ |
$ |
||||||||||||
December 31, 2019 |
December 31, 2018 |
|||||||||||||||
Gross |
Gross |
|||||||||||||||
Carrying |
Accumulated |
Carrying |
Accumulated |
|||||||||||||
Amount |
Amortization |
Amount |
Amortization |
|||||||||||||
(In millions) |
||||||||||||||||
Finite-lived intangible assets: |
||||||||||||||||
Customer relationships |
$ |
$ | ||||||||||||||
Other |
||||||||||||||||
Total finite-lived intangible assets |
||||||||||||||||
Indefinite-lived intangible assets |
||||||||||||||||
Total other intangible assets |
$ |
$ | ||||||||||||||
December 31 |
2019 |
|||
(In millions) |
||||
Net liability for unpaid claim and claim adjustment expenses: |
||||
Property & Casualty Operations |
$ |
|||
Other Insurance Operations (a) |
||||
Total net claim and claim adjustment expenses |
||||
Reinsurance receivables: (b) |
||||
Property & Casualty Operations |
||||
Other Insurance Operations (c) |
||||
Total reinsurance receivables |
||||
Total gross liability for unpaid claims and claims adjustment expenses |
$ |
|||
(a) |
Other Insurance Operations amounts are primarily related to long term care claim reserves, which are long duration insurance contracts, but also include amounts related to unfunded structured settlements arising from short duration insurance contracts. |
(b) |
Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses. |
(c) |
The Other Insurance Operations reinsurance receivables are primarily related to A&EP claims covered under the loss portfolio transfer ( “ LPT ” ) |
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Reserves, beginning of year: |
||||||||||||
Gross |
$ |
$ | $ | |||||||||
Ceded |
||||||||||||
Net reserves, beginning of year |
||||||||||||
Net incurred claim and claim adjustment expenses: |
||||||||||||
Provision for insured events of current year |
||||||||||||
Decrease in provision for insured events of prior years |
( |
) | ( |
) | ( |
) | ||||||
Amortization of discount |
||||||||||||
Total net incurred (a) |
||||||||||||
Net payments attributable to: |
||||||||||||
Current year events |
( |
) | ( |
) | ( |
) | ||||||
Prior year events |
( |
) | ( |
) | ( |
) | ||||||
Total net payments |
( |
) | ( |
) | ( |
) | ||||||
Foreign currency translation adjustment and other |
( |
) | ||||||||||
Net reserves, end of year |
||||||||||||
Ceded reserves, end of year |
||||||||||||
Gross reserves, end of year |
$ |
$ | $ | |||||||||
(a) | Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Statements of Income 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. |
● |
Paid development |
● |
Incurred development |
● |
Loss ratio |
● |
Bornhuetter-Ferguson using premiums and paid loss |
● |
Bornhuetter-Ferguson using premiums and incurred loss |
● |
Frequency times severity |
● |
Stochastic modeling |
Property |
Other |
|||||||||||
and Casualty |
Insurance |
|||||||||||
December 31, 2019 |
Operations |
Operations |
Total |
|||||||||
(In millions) |
||||||||||||
Gross Case Reserves |
$ |
$ |
$ |
|||||||||
Gross IBNR Reserves |
||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves |
$ |
$ |
$ |
|||||||||
Net Case Reserves |
$ |
$ |
$ |
|||||||||
Net IBNR Reserves |
||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves |
$ |
$ |
$ |
|||||||||
December 31, 2018 |
||||||||||||
Gross Case Reserves |
$ | $ | $ | |||||||||
Gross IBNR Reserves |
||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves |
$ | $ | $ | |||||||||
Net Case Reserves |
$ | $ | $ | |||||||||
Net IBNR Reserves |
||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves |
$ | $ | $ | |||||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Medical professional liability |
$ |
$ | $ | |||||||||
Other professional liability and management liability |
( |
( |
( |
|||||||||
Surety |
( |
( |
( |
|||||||||
Commercial auto |
( |
( |
||||||||||
General liability |
( |
|||||||||||
Workers’ compensation |
( |
( |
( |
|||||||||
Other |
( |
( |
( |
|||||||||
Total pretax favorable development |
$ |
( |
$ | ( |
$ | ( |
||||||
December 31 |
2019 |
|||
(In millions) |
||||
Medical professional liability |
$ |
|||
Other professional liability and management liability |
||||
Surety |
||||
Commercial auto |
||||
General liability |
||||
Workers’ compensation |
||||
Other |
||||
Total net liability for unpaid claim and claim adjustment expenses |
$ |
|||
December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses |
Cumulative |
|||||||||||||||||||||||||||||||||||||||||||||||
Number of |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
2010 (a) |
2011 (a) |
2012 (a) |
2013 (a) |
2014 (a) |
2015 (a) |
2016 (a) |
2017 (a) |
2018 (a) |
2019 |
IBNR |
Claims |
||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data) |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
$ |
||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 |
||||||||||||||||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net Strengthening (Releases) of Prior Accident Year Reserves |
||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
) |
||||||||||||||||||||||||||
2011 |
( |
) |
( |
) |
- |
|||||||||||||||||||||||||||||||||||||||||||
2012 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
2015 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
2016 |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net development for the accident years presented above |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net development for accident years prior to 2010 |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
|||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses |
Cumulative |
|||||||||||||||||||||||||||||||||||||||||||||||
Number of |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
2010 (a) |
2011 (a) |
2012 (a) |
2013 (a) |
2014 (a) |
2015 (a) |
2016 (a) |
2017 (a) |
2018 (a) |
2019 |
IBNR |
Claims |
||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data) |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
$ |
||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 |
||||||||||||||||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Years Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
- |
$ |
$ |
- |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
- |
$ |
( |
) |
|||||||||||||||||||||||||
2011 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||
2012 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
2013 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||
2014 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2015 |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||
2016 |
( |
) |
- |
|||||||||||||||||||||||||||||||||||||||||||||
2017 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net development for the accident years presented above |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Total net development for accident years prior to 2010 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
|||||||||||||||||||||||||||||||||||||||
(a) |
Data presented for these calendar years is required supplemental information, which is unaudited. |
December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses |
Cumulative |
|||||||||||||||||||||||||||||||||||||||||||||||
Number of |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
2010 (a) |
2011 (a) |
2012 (a) |
2013 (a) |
2014 (a) |
2015 (a) |
2016 (a) |
2017 (a) |
2018 (a) |
2019 |
IBNR |
Claims |
||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data) |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
- |
||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
$ |
||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 |
||||||||||||||||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Years Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
- |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
- |
$ |
( |
) |
||||||||||||||||||||||
2011 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
- |
( |
) |
|||||||||||||||||||||||||||||||||
2012 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
2013 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||
2014 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||
2015 |
- |
( |
) |
( |
) |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||||||
2016 |
- |
( |
) |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||||||||
2017 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2018 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
Total net development for the accident years presented above |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Total net development for accident years prior to 2010 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development |
( |
) |
- |
( |
) |
|||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
|||||||||||||||||||||||||||||||||||||||
(a) |
Data presented for these calendar years is required supplemental information, which is unaudited. |
December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses |
Cumulative |
|||||||||||||||||||||||||||||||||||||||||||||||
Number of |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
2010 (a) |
2011 (a) |
2012 (a) |
2013 (a) |
2014 (a) |
2015 (a) |
2016 (a) |
2017 (a) |
2018 (a) |
2019 |
IBNR |
Claims |
||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data) |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||||||||||||
2011 |
- |
|||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
$ |
||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 |
||||||||||||||||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Years Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
- |
$ |
- |
$ |
||||||||||||||||||||||||||||||
2011 |
( |
) |
( |
) |
- |
- |
( |
) |
||||||||||||||||||||||||||||||||||||||||
2012 |
( |
) |
- |
( |
) |
|||||||||||||||||||||||||||||||||||||||||||
2013 |
- |
( |
) |
( |
) |
- |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||
2014 |
( |
) |
( |
) |
( |
) |
- |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||||
2015 |
( |
) |
( |
) |
- |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||||||
2016 |
( |
) |
- |
- |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2017 |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
2018 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
Total net development for the accident years presented above |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Total net development for accident years prior to 2010 |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
( |
) |
$ |
$ |
( |
) |
|||||||||||||||||||||||||||||||||||||||||
(a) |
Data presented for these calendar years is required supplemental information, which is unaudited. |
December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses |
Cumulative |
|||||||||||||||||||||||||||||||||||||||||||||||
Number of |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
2010 (a) |
2011 (a) |
2012 (a) |
2013 (a) |
2014 (a) |
2015 (a) |
2016 (a) |
2017 (a) |
2018 (a) |
2019 |
IBNR |
Claims |
||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data) |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
$ |
||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 |
||||||||||||||||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
( |
) |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
- |
$ |
( |
) |
$ |
|||||||||||||||||||||||||||
2011 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||
2012 |
( |
) |
( |
) |
- |
( |
) |
|||||||||||||||||||||||||||||||||||||||||
2013 |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||
2014 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
2015 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
- |
- |
- |
|||||||||||||||||||||||||||||||||||||||||||||
2018 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
Total net development for the accident years presented above |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Total net development for accident years prior to 2010 |
- |
- |
||||||||||||||||||||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
( |
) |
$ |
$ |
|||||||||||||||||||||||||||||||||||||||||||
(a) |
Data presented for these calendar years is required supplemental information, which is unaudited. |
December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses |
Cumulative |
|||||||||||||||||||||||||||||||||||||||||||||||
Number of |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
2010 (a) |
2011 (a) |
2012 (a) |
2013 (a) |
2014 (a) |
2015 (a) |
2016 (a) |
2017 (a) |
2018 (a) |
2019 |
IBNR |
Claims |
||||||||||||||||||||||||||||||||||||
(In millions, except reported claims data) |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
$ |
||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||||||||||||||||
2012 |
||||||||||||||||||||||||||||||||||||||||||||||||
2013 |
||||||||||||||||||||||||||||||||||||||||||||||||
2014 |
||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
||||||||||||||||||||||||||||||||||||||||||||||||
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||
2017 |
||||||||||||||||||||||||||||||||||||||||||||||||
2018 |
||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 |
||||||||||||||||||||||||||||||||||||||||||||||||
Other (b) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Liability for unallocated claim adjustment expenses for accident years presented |
||||||||||||||||||||||||||||||||||||||||||||||||
Total net liability for unpaid claim and claim adjustment expenses |
$ |
|||||||||||||||||||||||||||||||||||||||||||||||
Years Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
December 31 |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
||||||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||||||||||||||||||||||
2011 |
( |
) |
- |
( |
) |
|||||||||||||||||||||||||||||||||||||||||||
2012 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2013 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2014 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||
2015 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2016 |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||
2017 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
2018 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
Total net development for the accident years presented above |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Adjustment for development on a discounted basis |
( |
) |
- |
|||||||||||||||||||||||||||||||||||||||||||||
Total net development for accident years prior to 2010 |
||||||||||||||||||||||||||||||||||||||||||||||||
Total unallocated claim adjustment expense development |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
|||||||||||||||||||||||||||||||||||||||
(a) |
Data presented for these calendar years is required supplemental information, which is unaudited. |
(b) |
Other includes the effect of discounting lifetime claim reserves. |
Average Annual Percentage Payout of Ultimate Net Incurred Claim and Allocated Claim Adjustment Expenses in Year: |
||||||||||||||||||||||||||||||||||||||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
Total |
||||||||||||||||||||||||||||||||||
Medical professional liability |
% | % | % | % | % | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||
Other professional liability and management liability |
||||||||||||||||||||||||||||||||||||||||||||
Surety (a) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
Commercial auto |
||||||||||||||||||||||||||||||||||||||||||||
General liability |
||||||||||||||||||||||||||||||||||||||||||||
Workers’ compensation |
(a) | Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables. |
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Additional amounts ceded under LPT: |
||||||||||||
Net A&EP adverse development before consideration of LPT |
$ |
$ | $ | |||||||||
Provision for uncollectible third-party reinsurance on A&EP |
( |
) |
( |
) | ||||||||
Total additional amounts ceded under LPT |
||||||||||||
Retroactive reinsurance benefit recognized |
( |
) |
( |
) | ( |
) | ||||||
Pretax impact of deferred retroactive reinsurance |
$ |
$ | $ | ( |
) | |||||||
As of December 31, 2019 |
Operating Leases |
|||
(In millions) |
||||
2020 |
$ |
|||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
Thereafter |
||||
Total |
||||
Less: discount |
||||
Total lease liabilities |
$ |
|||
As of December 31, 2019 |
||||
Weighted average remaining lease term |
Y ears | |||
Weighted average discount rate |
% |
Future Minimum Lease |
||||||||
Year Ended December 31 |
Payments |
Receipts |
||||||
(In millions) |
||||||||
2019 |
$ |
$ |
||||||
2020 |
||||||||
2021 |
||||||||
2022 |
||||||||
2023 |
||||||||
Thereafter |
||||||||
Total |
$ |
$ |
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Income tax expense (benefit): |
||||||||||||
Federal: |
||||||||||||
Current |
$ |
$ | $ | |||||||||
Deferred |
( |
) | ||||||||||
State and city: |
||||||||||||
Current |
||||||||||||
Deferred |
||||||||||||
Foreign |
||||||||||||
Total |
$ |
$ | $ | |||||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Income ( before income tax: loss ) |
||||||||||||
U.S. |
$ |
$ | $ | |||||||||
Foreign |
( |
) |
||||||||||
Total |
$ |
$ | $ | |||||||||
Income tax expense at statutory rate |
$ |
$ | $ | |||||||||
Increase (decrease) in income tax expense resulting from: |
||||||||||||
Effect of the Tax Act |
( |
) |
( |
) | ( |
) | ||||||
Exempt investment income |
( |
) |
( |
) | ( |
) | ||||||
Foreign related tax differential |
( |
) |
( |
) | ||||||||
Taxes related to domestic affiliate |
( |
) |
( |
) | ||||||||
Partnership earnings not subject to taxes |
( |
) | ( |
) | ||||||||
Valuation allowance |
||||||||||||
Unrecognized tax positions, settlements and adjustments relating to prior years |
( |
) | ||||||||||
State taxes |
||||||||||||
Other |
||||||||||||
Income tax expense |
$ |
$ | $ | |||||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Balance at January 1 |
$ |
$ | $ | |||||||||
Additions for tax positions related to the current year |
||||||||||||
Additions for tax positions related to a prior year |
||||||||||||
Reductions for tax positions related to a prior year |
( |
) |
( |
) | ( |
) | ||||||
Lapse of statute of limitations |
( |
) |
( |
) | ( |
) | ||||||
Balance at December 31 |
$ |
$ | $ | |||||||||
December 31 |
2019 |
2018 |
||||||
(In millions) |
||||||||
Deferred tax assets: |
||||||||
Insurance reserves: |
||||||||
Property and casualty claim and claim adjustment expense reserves |
$ |
$ | ||||||
Unearned premium reserves |
||||||||
Receivables |
||||||||
Employee benefits |
||||||||
Deferred retroactive reinsurance benefit |
||||||||
Net operating loss carryforwards |
||||||||
Tax credit carryforwards |
||||||||
Net unrealized losses |
||||||||
Basis differential in investment in subsidiary |
||||||||
Disallowed interest deduction |
||||||||
Other |
||||||||
Total deferred tax assets |
||||||||
Valuation allowance |
( |
) |
( |
) | ||||
Net deferred tax assets |
||||||||
Deferred tax liabilities: |
||||||||
Deferred acquisition costs |
( |
) |
( |
) | ||||
Net unrealized gains |
( |
) |
||||||
Property, plant and equipment |
( |
) |
( |
) | ||||
Basis differential in investment in subsidiary |
( |
) |
( |
) | ||||
Other liabilities |
( |
) |
( |
) | ||||
Total deferred tax liabilities |
( |
) |
( |
) | ||||
Net deferred tax liabilities (a) |
$ |
( |
) |
$ | ( |
) | ||
(a) | Includes $ |
December 31 |
2019 |
2018 |
||||||
(In millions) |
||||||||
Loews Corporation (Parent Company): |
||||||||
Senior: |
||||||||
$ |
$ | |||||||
CNA Financial: |
||||||||
Senior: |
||||||||
F inance |
||||||||
Diamond Offshore: |
||||||||
Senior: |
||||||||
Boardwalk Pipelines: |
||||||||
Senior: |
||||||||
Variable rate revolving credit facility due |
||||||||
Finance lease obligation |
||||||||
Loews Hotels & Co: |
||||||||
Senior debt, principally mortgages (effective interest rates approximate and ) |
||||||||
Altium Packaging : |
||||||||
Senior: |
||||||||
Variable rate asset based lending facility due |
||||||||
Variable rate term loan due |
||||||||
Variable rate term loan due |
||||||||
Finance lease obligation |
||||||||
Less unamortized discount and issuance costs |
||||||||
Debt |
$ |
$ | ||||||
December 31, 2019 |
Principal |
Unamortized Discount and Issuance Costs |
Net |
Short Term Debt |
Long Term Debt |
|||||||||||||||
(In millions) |
||||||||||||||||||||
Loews Corporation |
$ |
$ |
$ |
$ |
||||||||||||||||
CNA Financial |
||||||||||||||||||||
Diamond Offshore |
||||||||||||||||||||
Boardwalk Pipelines |
||||||||||||||||||||
Loews Hotels & Co |
$ |
|||||||||||||||||||
Altium Packaging |
||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Net Unrealized Gains (Losses) on Investments with OTTI Losses |
Net Other Unrealized Gains (Losses) on 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, 2017 |
$ |
$ |
$ |
( |
) | $ |
( |
) | $ |
( |
) | $ |
( |
) | ||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $ |
( |
) | ( |
) | ||||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Other comprehensive income (loss) |
( |
) | ||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Balance, December 31, 2017 |
– |
( |
) | ( |
) | ( |
) | |||||||||||||||||
Cumulative effect adjustment from changes in accounting standards , after tax of $ |
( |
) |
( |
) | ||||||||||||||||||||
Balance, January 1, 2018, as adjusted |
– |
( |
) | ( |
) | ( |
) | |||||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $ |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $ |
( |
) | ||||||||||||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Amounts attributable to noncontrolling interests |
||||||||||||||||||||||||
Purchase of Boardwalk Pipelines common units |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Balance, December 31, 2018 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $ |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $( |
( |
) |
||||||||||||||||||||||
Other comprehensive income (loss) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Amounts attributable to noncontrolling interests |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Balance, December 31, 2019 |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||||||||
Major Category of AOCI |
Affected Line Item | |
Net unrealized gains (losses) on investments with OTTI losses |
Investment gains (losses) | |
Net other unrealized gains (losses) on 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 |
Year Ended December 31 |
2019 |
2018 |
2017 (a) |
|||||||||
(In millions) |
||||||||||||
Non-insurance warranty – CNA Financial |
$ |
$ | $ | |||||||||
Contract drilling – Diamond Offshore |
$ |
$ | $ | |||||||||
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines |
||||||||||||
Lodging and related services – Loews Hotels & Co |
||||||||||||
Rigid plastic packaging and recycled resin – Corporate |
||||||||||||
Total revenues from contracts with customers |
||||||||||||
Other revenues |
||||||||||||
Operating revenues and other |
$ |
$ | $ | |||||||||
(a) | Prior period amounts have not been adjusted under the modified retrospective method of adoption for ASU 2014-09. |
Statutory Capital and Surplus |
Statutory Net Income |
|||||||||||||||||||
December 31 |
Year Ended December 31 |
|||||||||||||||||||
2019(a) |
2018 |
2019(a) |
2018 |
2017 |
||||||||||||||||
(In millions) |
||||||||||||||||||||
Combined Continental Casualty Companies |
$ |
$ | $ |
$ | $ |
(a) | Information derived from the statutory-basis financial statements to be filed with insurance regulators. |
Pension Benefits |
Other Postretirement Benefits |
|||||||||||||||||||||||
December 31 |
2019 |
2018 |
2017 |
2019 |
2018 |
2017 |
||||||||||||||||||
Discount rate |
% |
% | % | % |
% | % | ||||||||||||||||||
Expected long term rate of return on plan assets |
% |
% | % | % |
% | % | ||||||||||||||||||
Interest crediting rate |
% |
% | % | |||||||||||||||||||||
Rate of compensation increase |
% |
% | % |
Pension Benefits |
Other Postretirement Benefits |
|||||||||||||||||||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
2019 |
2018 |
2017 |
||||||||||||||||||
Discount rate |
% |
% | % | % |
% | % | ||||||||||||||||||
Expected long term rate of return on plan assets |
% |
% | % | % |
% | % | ||||||||||||||||||
Interest crediting rate |
% |
% | % | |||||||||||||||||||||
Rate of compensation increase |
% |
% | % |
December 31 |
2019 |
2018 |
2017 |
|||||||||
Health care cost trend rate assumed for next year |
% | % | ||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) |
% | % | ||||||||||
Year that the rate reaches the ultimate trend rate |
Pension Benefits |
Other Postretirement Benefits |
|||||||||||||||||||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
2019 |
2018 |
2017 |
||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
Service cost |
$ |
$ | $ | $ | $ | |||||||||||||||||||
Interest cost |
$ |
|||||||||||||||||||||||
Expected return on plan assets |
( |
) |
( |
) | ( |
) | ( |
) |
( |
) | ( |
) | ||||||||||||
Amortization of unrecognized |
||||||||||||||||||||||||
net loss |
( |
) |
( |
) |
||||||||||||||||||||
Amortization of unrecognized prior |
||||||||||||||||||||||||
service benefit |
( |
) |
( |
) | ||||||||||||||||||||
Settlements and curtailments |
||||||||||||||||||||||||
Net periodic benefit cost |
$ |
$ | ( |
) | $ | $ |
) |
$ | ( |
) | $ | ( |
) | |||||||||||
Pension Benefits |
Other Postretirement Benefits |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
(In millions) |
||||||||||||||||
Change in benefit obligation: |
||||||||||||||||
Benefit obligation at January 1 |
$ |
$ | $ |
$ | ||||||||||||
Acquisitions |
||||||||||||||||
Service cost |
||||||||||||||||
Interest cost |
||||||||||||||||
Plan participants’ contributions |
||||||||||||||||
Amendments |
||||||||||||||||
Actuarial (gain) loss |
( |
) | ( |
) | ||||||||||||
Benefits paid from plan assets |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Settlements and curtailments |
( |
) |
( |
) | ||||||||||||
Foreign exchange |
( |
) | ||||||||||||||
Benefit obligation at December 31 |
||||||||||||||||
Change in plan assets: |
||||||||||||||||
Fair value of plan assets at January 1 |
||||||||||||||||
Acquisitions |
||||||||||||||||
Actual return on plan assets |
( |
) | ||||||||||||||
Company contributions |
||||||||||||||||
Plan participants’ contributions |
||||||||||||||||
Benefits paid from plan assets |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Settlements |
( |
) |
( |
) | ||||||||||||
Foreign exchange |
( |
) | ||||||||||||||
Fair value of plan assets at December 31 |
||||||||||||||||
Funded status |
$ |
( |
) |
$ | ( |
) | $ |
$ | ||||||||
Pension |
Other Postretirement Benefits |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
(In millions) |
||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consist of: |
||||||||||||||||
Other assets |
$ |
$ |
$ |
$ |
||||||||||||
Other liabilities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Net amount recognized |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
||||||||
Amounts recognized in Accumulated other comprehensive income (loss), not yet recognized in net periodic (benefit) cost: |
||||||||||||||||
Prior service credit |
$ | ( |
) |
$ |
( |
) |
$ | ( |
) | |||||||
Net actuarial loss |
$ |
( |
) |
( |
) | |||||||||||
Net amount recognized |
$ |
$ | $ |
( |
) |
$ | ( |
) | ||||||||
Information for plans with projected and accumulated benefit obligations in excess of plan assets: |
||||||||||||||||
Projected benefit obligation |
$ |
$ |
||||||||||||||
Accumulated benefit obligation |
$ |
$ |
||||||||||||||
Fair value of plan assets |
Expected future benefit payments |
Pension Benefits |
Other Postretirement Benefits |
||||||
(In millions) |
||||||||
2020 |
$ | $ | ||||||
2021 |
||||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 – 2029 |
December 31, 2019 |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
(In millions) |
||||||||||||||||
Plan assets at fair value: |
||||||||||||||||
Fixed maturity securities: |
||||||||||||||||
Corporate and other bonds |
$ |
$ |
$ |
|||||||||||||
States, municipalities and political subdivisions |
||||||||||||||||
Asset-backed |
||||||||||||||||
Total fixed maturities |
$ |
– |
||||||||||||||
Equity securities |
||||||||||||||||
Short term investments |
||||||||||||||||
Fixed income mutual funds |
||||||||||||||||
Other assets |
||||||||||||||||
Total plan assets at fair value |
$ |
$ |
$ |
$ |
||||||||||||
Plan assets at net asset value: (a) |
||||||||||||||||
Limited partnerships |
||||||||||||||||
Total plan assets |
$ |
$ |
$ |
$ |
||||||||||||
December 31, 2018 |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Plan assets at fair value: |
||||||||||||||||
Fixed maturity securities: |
||||||||||||||||
Corporate and other bonds |
$ | $ | $ | |||||||||||||
States, municipalities and political subdivisions |
||||||||||||||||
Asset-backed |
||||||||||||||||
Total fixed maturities |
$ | – |
||||||||||||||
Equity securities |
||||||||||||||||
Short term investments |
||||||||||||||||
Fixed income mutual funds |
||||||||||||||||
Other assets |
||||||||||||||||
Total plan assets at fair value |
$ | $ | $ | $ | ||||||||||||
Plan assets at net asset value: (a) |
||||||||||||||||
Limited partnerships |
||||||||||||||||
Total plan assets |
$ | $ | $ | $ | ||||||||||||
(a) | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
December 31, 2019 |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
(In millions) |
||||||||||||||||
Fixed maturity securities: |
||||||||||||||||
Corporate and other bonds |
$ |
$ |
||||||||||||||
States, municipalities and political subdivisions |
||||||||||||||||
Asset-backed |
||||||||||||||||
Total fixed maturities |
$ |
- |
$ |
- |
||||||||||||
Short term investments |
||||||||||||||||
Fixed income mutual funds |
||||||||||||||||
Total |
$ |
$ |
$ |
- |
$ |
|||||||||||
December 31, 2018 |
||||||||||||||||
Fixed maturity securities: |
||||||||||||||||
Corporate and other bonds |
$ | $ | ||||||||||||||
States, municipalities and political subdivisions |
||||||||||||||||
Asset-backed |
||||||||||||||||
Total fixed maturities |
$ | - |
$ | - |
||||||||||||
Short term investments |
||||||||||||||||
Fixed income mutual funds |
||||||||||||||||
Total |
$ | $ | $ | - |
$ | |||||||||||
December 31 |
2019 |
2018 |
||||||
(In millions) |
||||||||
Reinsurance receivables related to insurance reserves: |
||||||||
Ceded claim and claim adjustment expenses |
$ |
$ | ||||||
Ceded future policy benefits |
||||||||
Reinsurance receivables related to paid losses |
||||||||
Reinsurance receivables |
||||||||
Less allowance for doubtful accounts |
||||||||
Reinsurance receivables, net of allowance for doubtful accounts |
$ |
$ | ||||||
Direct |
Assumed |
Ceded |
Net |
Assumed/ Net % |
||||||||||||||||
(In millions) |
||||||||||||||||||||
Year Ended December 31, 2019 |
||||||||||||||||||||
Property and casualty |
$ |
|
$ |
|
$ |
|
$ |
|
|
% | ||||||||||
Long term care |
|
|
|
|
|
|||||||||||||||
Earned premiums |
$ |
|
$ |
|
$ |
|
$ |
|
|
% | ||||||||||
Year Ended December 31, 2018 |
||||||||||||||||||||
Property and casualty |
$ | |
$ | |
$ | |
$ | |
|
% | ||||||||||
Long term care |
|
|
|
|
||||||||||||||||
Earned premiums |
$ | |
$ | |
$ | |
$ | |
|
% | ||||||||||
Year Ended December 31, 2017 |
||||||||||||||||||||
Property and casualty |
$ | |
$ | |
$ | |
$ | |
|
% | ||||||||||
Long term care |
|
|
|
|
||||||||||||||||
Earned premiums |
$ | |
$ | |
$ | |
$ | |
|
% | ||||||||||
2019 Quarter Ended |
Dec. 31 |
Sept. 30 |
June 30 |
March 31 |
||||||||||||
(In millions, except per share data) |
||||||||||||||||
Total revenues |
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Net income (a) (b) |
|
|
|
|
||||||||||||
Per share-basic and diluted |
|
|
|
|
2018 Quarter Ended |
||||||||||||||||
Total revenues |
$ | |
$ | |
$ | |
$ | |
||||||||
Net income (loss) ( c ) |
( |
) | |
|
|
|||||||||||
Per share-basic and diluted |
( |
) | |
|
|
(a) |
Net income for the fourth quarter of 2019 includes net i $n vestment income of limited partnership of s and equity securities partially offset by asset impairment charges $ million (after tax). |
(b) |
Net income for the third quarter of 2019 included a $ |
( c ) |
Net loss for the fourth quarter of 2018 includes a loss on limited partnership and common stock investments of $ |
Year Ended December 31, 2019 |
CNA Financial |
Diamond Offshore |
Boardwalk Pipelines |
Loews Hotels & Co |
Corporate |
Total |
||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Insurance premiums |
$ |
|
|
|
|
|
$ |
|
||||||||||||||||
Net investment income |
|
$ |
|
|
$ |
|
$ |
|
|
|||||||||||||||
Investment gains |
|
|
|
|
|
|
||||||||||||||||||
Non-insurance warranty revenue |
|
|
|
|
|
|
||||||||||||||||||
Operating revenues and other |
|
|
$ |
|
|
|
|
|||||||||||||||||
Total |
|
|
|
|
|
|
||||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Insurance claims and policyholders’ benefits |
|
|
|
|
|
|
||||||||||||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
|
||||||||||||||||||
Non-insurance warranty expense |
|
|
|
|
|
|
||||||||||||||||||
Operating expenses and other |
|
|
|
|
|
|
||||||||||||||||||
Interest |
|
|
|
|
|
|
||||||||||||||||||
Total |
|
|
|
|
|
|
||||||||||||||||||
Income (loss) before income tax |
|
( |
) |
|
( |
) |
|
|
||||||||||||||||
Income tax (expense) benefit |
( |
) |
|
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||
Net income (loss) |
|
( |
) |
|
( |
) |
|
|
||||||||||||||||
Amounts attributable to noncontrolling interests |
( |
) |
|
|
|
|
|
|||||||||||||||||
Net income (loss) attributable to Loews Corporation |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
|
||||||||||
December 31, 2019 |
||||||||||||||||||||||||
Total assets |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Year Ended December 31, 2018 |
CNA Financial |
Diamond Offshore |
Boardwalk Pipelines |
Loews Hotels & Co |
Corporate |
Total |
||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Insurance premiums |
$ | |
$ | |
||||||||||||||||||||
Net investment income (loss) |
|
$ | |
$ | |
$ | ( |
) | |
|||||||||||||||
Investment losses |
( |
) | ( |
) | ||||||||||||||||||||
Non-insurance warranty revenue |
|
|
||||||||||||||||||||||
Operating revenues and other |
|
|
$ | |
|
|
|
|||||||||||||||||
Total |
|
|
|
|
|
|
||||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Insurance claims and policyholders’ benefits |
|
|
||||||||||||||||||||||
Amortization of deferred acquisition costs |
|
|
||||||||||||||||||||||
Non-insurance warranty expense |
|
|
||||||||||||||||||||||
Operating expenses and other |
|
|
|
|
|
|
||||||||||||||||||
Interest |
|
|
|
|
|
|
||||||||||||||||||
Total |
|
|
|
|
|
|
||||||||||||||||||
Income (loss) before income tax |
|
( |
) | |
|
( |
) | |
||||||||||||||||
Income tax (expense) benefit |
( |
) | |
( |
) | ( |
) | |
( |
) | ||||||||||||||
Net income (loss) |
|
( |
) | |
|
( |
) | |
||||||||||||||||
Amounts attributable to noncontrolling interests |
( |
) | |
( |
) | ( |
) | |||||||||||||||||
Net income (loss) attributable to Loews Corporation |
$ | |
$ | ( |
) | $ | |
$ | |
$ | ( |
) | $ | |
||||||||||
December 31, 2018 |
||||||||||||||||||||||||
Total assets |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
Year Ended December 31, 2017 |
CNA Financial |
Diamond Offshore |
Boardwalk Pipelines |
Loews Hotels & Co |
Corporate |
Total |
||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Insurance premiums |
$ | |
$ | |
||||||||||||||||||||
Net investment income |
|
$ | |
$ | |
|
||||||||||||||||||
Investment gains |
|
|
||||||||||||||||||||||
Non-insurance warranty revenue |
|
|
||||||||||||||||||||||
Operating revenues and other |
|
|
$ | |
$ | |
|
|
||||||||||||||||
Total |
|
|
|
|
|
|
||||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Insurance claims and policyholders’ benefits |
|
|
||||||||||||||||||||||
Amortization of deferred acquisition costs |
|
|
||||||||||||||||||||||
Non-insurance warranty expense |
|
|
||||||||||||||||||||||
Operating expenses and other |
|
|
|
|
|
|
||||||||||||||||||
Interest |
|
|
|
|
|
|
||||||||||||||||||
Total |
|
|
|
|
|
|
||||||||||||||||||
Income (loss) before income tax |
|
( |
) | |
|
( |
) | |
||||||||||||||||
Income tax (expense) benefit |
( |
) | |
|
( |
) | |
( |
) | |||||||||||||||
Net income (loss) |
|
( |
) | |
|
( |
) | |
||||||||||||||||
Amounts attributable to noncontrolling interests |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Net income (loss) attributable to Loews Corporation |
$ | |
$ | ( |
) | $ | |
$ | |
$ | ( |
) | $ | |
||||||||||
Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 9A. |
Controls and Procedures. |
Item 9B. |
Other Information. |
Item 10. |
Directors, Executive Officers and Corporate Governance. |
Item 15. |
Exhibits and Financial Statement Schedules. |
Page Number |
||||
2. Financial Statement Schedules: |
||||
Loews Corporation and Subsidiaries: |
||||
170 |
||||
172 |
Description |
Exhibit Number |
|||||
3. Exhibits: |
||||||
(3) |
Articles of Incorporation and By-Laws |
|||||
3.01 |
||||||
3.02 |
||||||
(4) |
Instruments Defining the Rights of Security Holders, Including Indentures |
|||||
4.01* |
||||||
Registrant hereby agrees to furnish to the Commission upon request copies of instruments with respect to long term debt, pursuant to Item 601(b)(4)(iii) of Regulation S-K |
4.02 |
|||||
(10) |
Material Contracts |
|||||
10.01 + |
Description |
Exhibit Number |
|||||
|
10.02 + |
|||||
10.03 + |
||||||
10.04 + |
||||||
10.05 + |
||||||
10.06 + |
||||||
10.07 + |
||||||
10.08* |
+ | |||||
10.09 + |
||||||
10.10 + |
||||||
10.11 |
Description |
Exhibit Number |
|||||
10.12 + |
||||||
10.13+ |
||||||
10.14+ |
||||||
10.15+ |
||||||
10.16 + |
||||||
10.17 + |
||||||
10.18+ |
||||||
10.19 + |
||||||
10.20 + |
Description |
Exhibit Number |
|||||
(21) |
Subsidiaries of the Registrant |
|||||
21.01* |
||||||
(23) |
Consent of Experts and Counsel |
|||||
23.01* |
||||||
(24) |
24.01* |
|||||
(31) |
Rule 13a-14(a)/15d-14(a) Certifications |
|||||
31.01* |
||||||
31.02* |
||||||
(32) |
Section 1350 Certifications |
|||||
32.01* |
||||||
32.02* |
||||||
(100) |
XBRL Related Documents |
|||||
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* |
* | Filed herewith. |
+ |
Management contract or compensatory plan or arrangement. |
Item 16. |
Form 10-K Summary. |
LOEWS CORPORATION | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(David B. Edelson, Senior Vice President and Chief Financial Officer) |
Dated: February 11, 2020 |
By |
* | ||||
(James S. Tisch, President, | ||||||
Chief Executive Officer and Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(David B. Edelson, Senior Vice President and | ||||||
Chief Financial Officer) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Mark S. Schwartz, Vice President and | ||||||
Chief Accounting Officer) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Ann E. Berman, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Joseph L. Bower, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Charles D. Davidson, Director) |
Dated: February 11, 2020 |
By |
* | ||||
(Charles M. Diker, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Paul J. Fribourg, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Walter L. Harris, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Philip A. Laskawy, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Susan P. Peters, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Andrew H. Tisch, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Jonathan M. Tisch, Director) | ||||||
Dated: February 11, 2020 |
By |
* | ||||
(Anthony Welters, Director) |
*By: |
/s/ Marc A. Alpert | |
(Marc A. Alpert, Senior Vice President, General Counsel and Secretary) Attorney-in-Fact |
December 31 |
2019 |
2018 |
||||||
(In millions) |
||||||||
Current assets, principally investment in short term instruments |
$ |
$ | ||||||
Investments in securities |
||||||||
Investments in capital stocks of subsidiaries, at equity |
||||||||
Other assets |
||||||||
Total assets |
$ |
$ | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current liabilities |
$ |
$ | ||||||
Long term debt |
||||||||
Deferred income tax and other |
||||||||
Total liabilities |
||||||||
Shareholders’ equity |
||||||||
Total liabilities and shareholders’ equity |
$ |
$ | ||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Revenues: |
||||||||||||
Equity in income of subsidiaries (a) |
$ |
$ |
$ |
|||||||||
Net investment income (loss), interest and other |
( |
) | ||||||||||
Total |
||||||||||||
Expenses: |
||||||||||||
Administrative |
||||||||||||
Interest |
||||||||||||
Total |
||||||||||||
Income before income tax |
||||||||||||
Income tax (expense) benefit |
( |
) |
||||||||||
Net income |
||||||||||||
Equity in other comprehensive income (loss) of subsidiaries |
( |
) | ||||||||||
Total comprehensive income (loss) |
$ |
$ | ( |
) | $ | |||||||
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Operating Activities: |
||||||||||||
Net income |
$ |
$ | $ | |||||||||
Adjustments to reconcile net income to net cash provided (used) by operating activities: |
||||||||||||
Equity method investees |
( |
) | ||||||||||
Provision for deferred income taxes |
||||||||||||
Changes in operating assets and liabilities, net: |
||||||||||||
Receivables |
||||||||||||
Accounts payable and accrued liabilities |
( |
) |
( |
) | ||||||||
Trading securities |
( |
) |
||||||||||
Other, net |
( |
) | ||||||||||
Investing Activities: |
||||||||||||
Investments in and advances to subsidiaries |
( |
) | ||||||||||
Change in investments, primarily short term |
( |
) | ||||||||||
Purchase of Boardwalk Pipelines common units |
( |
) | ||||||||||
Acquisition |
( |
) | ||||||||||
Other |
( |
) | ( |
) | ||||||||
( |
) | ( |
) | |||||||||
Financing Activities: |
||||||||||||
Dividends paid |
( |
) |
( |
) | ( |
) | ||||||
Purchases of treasury shares |
( |
) |
( |
) | ( |
) | ||||||
Other |
( |
) |
( |
) | ||||||||
( |
) |
( |
) | ( |
) | |||||||
Net change in cash |
( |
) |
- |
|||||||||
Cash, beginning of year |
||||||||||||
Cash, end of year |
$ |
$ | $ | - |
||||||||
(a) |
Cash dividends paid to the Company by affiliates amounted to $ |
Consolidated Property and Casualty Operations |
December 31 |
2019 |
2018 |
||||||
(In millions) |
||||||||
Deferred acquisition costs |
$ |
|
$ | |
||||
Reserves for unpaid claim and claim adjustment expenses |
|
|
||||||
Discount deducted from claim and claim adjustment expense |
|
|
|
|
|
|
|
|
reserves above (based on interest rates ranging from |
|
|
||||||
Unearned premiums |
|
|
Year Ended December 31 |
2019 |
2018 |
2017 |
|||||||||
(In millions) |
||||||||||||
Net written premiums |
$ |
|
$ | |
$ | |
||||||
Net earned premiums |
|
|
|
|||||||||
Net investment income |
|
|
|
|||||||||
Incurred claim and claim adjustment expenses related to current year |
|
|
|
|||||||||
Incurred claim and claim adjustment expenses related to prior years |
( |
) |
( |
) | ( |
) | ||||||
Amortization of deferred acquisition costs |
|
|
|
|||||||||
Paid claim and claim adjustment expenses |
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