Pension Plans, Retirement Benefits and Savings Plans

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Pension Plans, Retirement Benefits and Savings Plans

PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS

The following table summarizes the components of net periodic benefit cost (benefit) for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended September 30, 2020 and 2019.

	Pension Plans				Postretirement Benefit Plans
(for the three months ended September 30, in millions)	2020		2019		2020		2019
Net Periodic Benefit Cost:
Service cost	$	34	$	30	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	$	29	$	35	$	1	$	2
Expected return on plan assets	(69)		(69)		—		—
Amortization of unrecognized:
Prior service benefit	(1)		—		(1)		(1)
Net actuarial (gain) loss	23		14		(1)		—
Total non-service cost (benefit)	(18)		(20)		(1)		1
Net periodic benefit cost (benefit)	$	16	$	10	$	(1)	$	1

The following table indicates the line items in which the respective service cost and non-service cost (benefit) are presented in the consolidated statement of income for the three months ended September 30, 2020 and 2019.

	Pension Plans				Postretirement Benefit Plans
(for the three months ended September 30, in millions)	2020		2019		2020		2019
Service Cost:
Claims and claim adjustment expenses	$	14	$	13	$	—	$	—
General and administrative expenses	20		17		—		—
Total service cost	34		30		—		—
Non-Service Cost (Benefit):
Claims and claim adjustment expenses	(8)		(9)		(1)		—
General and administrative expenses	(10)		(11)		—		1
Total non-service cost (benefit)	(18)		(20)		(1)		1
Net periodic benefit cost (benefit)	$	16	$	10	$	(1)	$	1

The following table summarizes the components of net periodic benefit cost (benefit) for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the nine months ended September 30, 2020 and 2019.

	Pension Plans				Postretirement Benefit Plans
(for the nine months ended September 30, in millions)	2020		2019		2020		2019
Net Periodic Benefit Cost:
Service cost	$	100	$	89	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	86		105		3		6
Expected return on plan assets	(206)		(206)		—		—
Amortization of unrecognized:
Prior service benefit	(1)		(1)		(3)		(3)
Net actuarial (gain) loss	69		42		(2)		—
Total non-service cost (benefit)	(52)		(60)		(2)		3
Net periodic benefit cost (benefit)	$	48	$	29	$	(2)	$	3

The following table indicates the line items in which the respective service cost and non-service benefit cost (benefit) are presented in the consolidated statement of income for the nine months ended September 30, 2020 and 2019.

	Pension Plans				Postretirement Benefit Plans
(for the nine months ended September 30, in millions)	2020		2019		2020		2019
Service Cost:
Claims and claim adjustment expenses	$	42	$	37	$	—	$	—
General and administrative expenses	58		52		—		—
Total service cost	100		89		—		—
Non-Service Cost (Benefit):
Claims and claim adjustment expenses	(22)		(25)		(1)		1
General and administrative expenses	(30)		(35)		(1)		2
Total non-service cost (benefit)	(52)		(60)		(2)		3
Net periodic benefit cost (benefit)	$	48	$	29	$	(2)	$	3