Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Funded status

The following table provides a reconciliation of benefit obligations and plan assets for the years ended December 31, 2012 and 2011.

Funded Status

	Pension Benefits						Postretirement Benefits
(In millions)	2012			2011			2012			2011
Benefit obligation at January 1	$	3,003		$	2,798		$	49		$	95
Changes in benefit obligation:
Service cost	12			13			—			1
Interest cost	135			146			2			3
Participants' contributions	—			—			5			6
Plan amendments	—			—			—			(12		)
Actuarial (gain) loss	266			263			3			(18		)
Benefits paid	(164		)	(163		)	(12		)	(13		)
Foreign currency translation and other	19			—			—			—
Reduction of benefit obligations due to disposition of subsidiary	—			(54		)	—			(13		)
Benefit obligation at December 31	3,271			3,003			47			49
Fair value of plan assets at January 1	2,212			2,258			—			—
Change in plan assets:
Actual return on plan assets	245			82			—			—
Company contributions	115			89			7			7
Participants' contributions	—			—			5			6
Benefits paid	(164		)	(163		)	(12		)	(13		)
Foreign currency translation and other	17			—			—			—
Reduction of plan assets due to disposition of subsidiary	—			(54		)	—			—
Fair value of plan assets at December 31	2,425			2,212			—			—
Funded status	$	(846	)	$	(791	)	$	(47	)	$	(49	)
Amounts recognized on the Consolidated Balance Sheets at December 31:
Other assets	$	—		$	1		$	—		$	—
Other liabilities	(846		)	(792		)	(47		)	(49		)
Net amount recognized	$	(846	)	$	(791	)	$	(47	)	$	(49	)
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit):
Prior service credit	$	—		$	—		$	(116	)	$	(134	)
Net actuarial loss	1,213			1,060			11			9
Net amount recognized	$	1,213		$	1,060		$	(105	)	$	(125	)

Components of net periodic cost (benefit)

Net Periodic Cost (Benefit)

Years ended December 31
(In millions)	2012			2011			2010
Pension cost (benefit)
Service cost	$	12		$	13		$	16
Interest cost on projected benefit obligation	135			146			149
Expected return on plan assets	(171		)	(172		)	(162		)
Amortization of net actuarial (gain) loss	39			25			24
Net periodic pension cost (benefit)	$	15		$	12		$	27
Postretirement cost (benefit)
Service cost	$	—		$	1		$	1
Interest cost on projected benefit obligation	2			3			7
Amortization of prior service credit	(18		)	(19		)	(16		)
Amortization of net actuarial (gain) loss	1			—			1
Net periodic postretirement cost (benefit)	$	(15	)	$	(15	)	$	(7	)

Schedule of amounts recognized in Other comprehensive income

The amounts recognized in Other comprehensive income are presented in the following table.

Years ended December 31
(In millions)	2012			2011			2010
Pension and postretirement benefits
Amounts arising during the period	$	(195	)	$	(325	)	$	44
Reclassification adjustment relating to prior service credit	(18		)	(19		)	(16		)
Reclassification adjustment relating to actuarial loss	40			25			25
Total increase (decrease) in Other comprehensive income	$	(173	)	$	(319	)	$	53

Schedule of estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during next fiscal year

The table below presents the estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during 2013.

(In millions)	Pension Benefits		Postretirement Benefits
Amortization of prior service credit	$	—	$	(18	)
Amortization of net actuarial loss	47		1
Total estimated amounts to be recognized	$	47	$	(17	)

Actuarial assumptions for benefit obligations and for net cost or benefit

Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are set forth in the following table.

Actuarial Assumptions for Benefit Obligations

December 31	2012		2011
Pension benefits
Discount rate	3.800	%	4.600	%
Expected long term rate of return	7.750		8.000
Rate of compensation increases	4.066		4.125
Postretirement benefits
Discount rate	2.800	%	3.750	%

Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are set forth in the following table.

Actuarial Assumptions for Net Cost or Benefit

Years ended December 31	2012		2011		2010
Pension benefits
Discount rate	4.600	%	5.375	%	5.700	%
Expected long term rate of return	8.000		8.000		8.000
Rate of compensation increases	4.125		5.030		5.030
Postretirement benefits
Discount rate	3.750	%	4.375	%	4.875 / 5.500%

Fair value of plan assets measured on a recurring basis

Pension plan assets measured at fair value on a recurring basis are summarized below.

December 31, 2012
(In millions)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Assets
Fixed maturity securities:
Corporate and other bonds	$	—	$	436	$	11	$	447
States, municipalities and political subdivisions	—		91		—		91
Asset-backed:
Residential mortgage-backed	—		161		—		161
Commercial mortgage-backed	—		105		—		105
Total asset-backed	—		266		—		266
Total fixed maturity securities	—		793		11		804
Equity securities	386		102		5		493
Derivative financial instruments	1		—		—		1
Short term investments	37		82		—		119
Limited partnerships:
Hedge funds	—		537		359		896
Private equity	—		—		62		62
Total limited partnerships	—		537		421		958
Other assets	—		40		—		40
Investment contracts with insurance company	—		—		10		10
Total assets	$	424	$	1,554	$	447	$	2,425

December 31, 2011
(In millions)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Assets
Fixed maturity securities:
Corporate and other bonds	$	—	$	377	$	10	$	387
States, municipalities and political subdivisions	—		104		—		104
Asset-backed:
Residential mortgage-backed	—		198		—		198
Commercial mortgage-backed	—		68		—		68
Other asset-backed	—		10		—		10
Total asset-backed	—		276		—		276
Total fixed maturity securities	—		757		10		767
Equity securities	353		75		5		433
Short term investments	63		35		—		98
Limited partnerships:
Hedge funds	—		488		330		818
Private equity	—		—		65		65
Total limited partnerships	—		488		395		883
Other assets	—		21		—		21
Investment contracts with insurance company	—		—		10		10
Total assets	$	416	$	1,376	$	420	$	2,212

Reconciliation of level 3 plan assets

The tables below present a reconciliation for all pension plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2012 and 2011.

Level 3 (In millions)	Balance at January 1, 2012		Actual return on assets still held at December 31, 2012		Actual return on assets sold during the year ended December 31, 2012		Purchases, sales, and settlements			Net transfers into (out of) Level 3		Balance at December 31, 2012
Fixed maturity securities:
Corporate and other bonds	$	10	$	1	$	—	$	—		$	—	$	11
Equity securities	5		—		—		—			—		5
Limited partnerships:
Hedge funds	330		41		3		(15		)	—		359
Private equity	65		8		—		(11		)	—		62
Total limited partnerships	395		49		3		(26		)	—		421
Investment contracts with insurance company	10		—		—		—			—		10
Total	$	420	$	50	$	3	$	(26	)	$	—	$	447

Level 3 (In millions)	Balance at January 1, 2011		Actual return on assets still held at December 31, 2011			Actual return on assets sold during the year ended December 31, 2011		Purchases, sales, and settlements			Net transfers into (out of) Level 3		Balance at December 31, 2011
Fixed maturity securities:
Corporate and other bonds	$	10	$	—		$	—	$	—		$	—	$	10
Asset-backed:
Commercial mortgage-backed	9		—			—		(9		)	—		—
Other asset-backed	1		—			—		(1		)	—		—
Total asset-backed	10		—			—		(10		)	—		—
Total fixed maturity securities	20		—			—		(10		)	—		10
Equity securities	6		(1		)	—		—			—		5
Limited partnerships:
Hedge funds	394		5			5		(74		)	—		330
Private equity	59		9			—		(3		)	—		65
Total limited partnerships	453		14			5		(77		)	—		395
Investment contracts with insurance company	9		1			—		—			—		10
Total	$	488	$	14		$	5	$	(87	)	$	—	$	420

Estimated future minimum benefit payments to participants

Estimated Future Minimum Benefit Payments to Participants

(In millions)	Pension Benefits		Postretirement Benefits
2013	$	186	$	6
2014	187		5
2015	193		5
2016	194		5
2017	200		5
2018-2022	1,024		16

Significant assumptions used to estimate fair value of stock options and SARS

The following table presents the significant assumptions used to estimate the fair value of granted stock options and SARs for the years ended December 31, 2012, 2011 and 2010.

Years ended December 31	2012		2011		2010
Weighted average expected life of the securities granted (in years)	5.68		5.61		5.61
Estimate of the underlying common stock's volatility	40.39	%	39.88	%	39.58	%
Expected dividend yield	2.1	%	1.5	%	—	%
Risk free interest rate	1.0	%	2.2	%	2.6	%

Stock option and SARS activity

The following table presents activity for stock options and SARs under the Plan in 2012.

	Number of Awards		Weighted-Average Exercise Price per Award		Aggregate Intrinsic Value			Weighted-Average Remaining Contractual Term (in years)
Outstanding at January 1, 2012	1,319,350		$	26.01
Awards granted	10,000		28.32
Awards exercised	(62,450	)	20.56
Awards forfeited, canceled or expired	(108,200	)	30.14
Outstanding at December 31, 2012	1,158,700		$	25.93	$	5	million	4.98
Outstanding, fully vested and expected to vest	1,134,399		$	25.93	$	5	million	4.92
Outstanding, exercisable	917,700		$	26.79	$	4	million	4.38

Weighted-average grant date fair value for awards granted, total intrinsic value for awards exercised and total fair value for awards vested

The following table presents weighted-average grant date fair value for awards granted, total intrinsic value for awards exercised and total fair value for awards vested for the years ended December 31, 2012, 2011 and 2010.

Years ended December 31	2012			2011			2010
Weighted-average grant date fair value	$	8.81		$	9.38		$	10.49
Total intrinsic value of awards exercised	$	548	thousand	$	481	thousand	$	350	thousand
Fair value of awards vested	$	1	million	$	2	million	$	2	million

Restricted shares, performance-based restricted stock units and performance share unit activity

The following table presents activity for restricted shares, performance-based RSUs and performance share units under the Plan in 2012.

	Number of Awards		Weighted-Average Grant Date Fair Value
Balance at January 1, 2012	639,422		$	23.55
Awards granted	386,353		28.37
Awards vested	(140,299	)	19.71
Awards forfeited, canceled or expired	(16,623	)	27.27
Performance-based adjustment	13,468		26.79
Balance at December 31, 2012	882,321		$	26.15