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Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2013
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, 2013 and 2012.
Funded Status
 
Pension Benefits
 
Postretirement Benefits
(In millions)
2013
 
2012
 
2013
 
2012
Benefit obligation at January 1
$
3,271

 
$
3,003

 
$
47

 
$
49

Changes in benefit obligation:
 
 
 
 
 
 
 
Service cost
12

 
12

 
1

 
—

Interest cost
121

 
135

 
1

 
2

Participants' contributions
—

 
—

 
5

 
5

Actuarial (gain) loss
(289
)
 
266

 
(3
)
 
3

Benefits paid
(165
)
 
(164
)
 
(12
)
 
(12
)
Settlements
(8
)
 
—

 
—

 
—

Foreign currency translation and other
1

 
19

 
1

 
—

Benefit obligation at December 31
2,943

 
3,271


40


47

Fair value of plan assets at January 1
2,425

 
2,212

 
—

 
—

Change in plan assets:
 
 
 
 
 
 
 
Actual return on plan assets
311

 
245

 
—

 
—

Company contributions
92

 
115

 
7

 
7

Participants' contributions
—

 
—

 
5

 
5

Benefits paid
(165
)
 
(164
)
 
(12
)
 
(12
)
Settlements
(8
)
 
—

 
—

 
—

Foreign currency translation and other
1

 
17

 
—

 
—

Fair value of plan assets at December 31
2,656

 
2,425

 
—

 
—

Funded status
$
(287
)
 
$
(846
)
 
$
(40
)
 
$
(47
)
Amounts recognized on the Consolidated Balance Sheets at December 31:
 
 
 
 
 
 
 
Other assets
$
9

 
$
—

 
$
—

 
$
—

Other liabilities
(296
)
 
(846
)
 
(40
)
 
(47
)
Net amount recognized
$
(287
)
 
$
(846
)
 
$
(40
)
 
$
(47
)
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit):
 
 
 
 
 
 
 
Prior service credit
$
—

 
$
—

 
$
(98
)
 
$
(116
)
Net actuarial loss
745

 
1,213

 
8

 
11

Net amount recognized
$
745

 
$
1,213

 
$
(90
)
 
$
(105
)
Components of net periodic cost (benefit)
Net Periodic Cost (Benefit)
Years ended December 31
 
 
 
 
 
(In millions)
2013
 
2012
 
2011
Pension cost (benefit)
 
 
 
 
 
Service cost
$
12

 
$
12

 
$
13

Interest cost on projected benefit obligation
121

 
135

 
146

Expected return on plan assets
(181
)
 
(171
)
 
(172
)
Amortization of net actuarial (gain) loss
47

 
39

 
25

Settlement loss
3

 
—

 
—

Net periodic pension cost (benefit)
$
2

 
$
15

 
$
12

 
 
 
 
 
 
Postretirement cost (benefit)
 
 
 
 
 
Service cost
$
1

 
$
—

 
$
1

Interest cost on projected benefit obligation
1

 
2

 
3

Amortization of prior service credit
(18
)
 
(18
)
 
(19
)
Amortization of net actuarial (gain) loss
2

 
1

 
—

Net periodic postretirement cost (benefit)
$
(14
)
 
$
(15
)
 
$
(15
)
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)
2013
 
2012
 
2011
Pension and postretirement benefits
 
 
 
 
 
Amounts arising during the period
$
422

 
$
(195
)
 
$
(325
)
Reclassification adjustment relating to prior service credit
(18
)
 
(18
)
 
(19
)
Reclassification adjustment relating to actuarial loss
49

 
40

 
25

Total increase (decrease) in Other comprehensive income
$
453

 
$
(173
)
 
$
(319
)
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 2014.
(In millions)
 
Pension
Benefits
 
Postretirement Benefits
Amortization of prior service credit
 
$
—

 
$
(18
)
Amortization of net actuarial loss
 
25

 
—

Total estimated amounts to be recognized
 
$
25

 
$
(18
)
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
2013
 
2012
Pension benefits
 
 
 
Discount rate
4.650
%
 
3.800
%
Expected long term rate of return
7.500

 
7.750

Rate of compensation increases
3.990

 
4.066

Postretirement benefits
 
 
 
Discount rate
3.600
%
 
2.800
%
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
2013
 
2012
 
2011
Pension benefits
 
 
 
 
 
Discount rate
3.800
%
 
4.600
%
 
5.375
%
Expected long term rate of return
7.750

 
8.000

 
8.000

Rate of compensation increases
4.066

 
4.125

 
5.030

Postretirement benefits
 
 
 
 
 
Discount rate
2.800
%
 
3.750
%
 
4.375
%
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, 2013
 
 
 
 
 
 
 
 
(In millions)
 
Level 1
 
Level 2
 
Level 3
 
Total Assets
at Fair Value
Assets
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
Corporate and other bonds
 
$
—

 
$
505

 
$
15

 
$
520

States, municipalities and political subdivisions
 
—

 
73

 
—

 
73

Asset-backed:
 
 
 
 
 
 
 
 
Residential mortgage-backed
 
—

 
130

 
—

 
130

Commercial mortgage-backed
 
—

 
106

 
—

 
106

Other asset-backed
 
—

 
12

 
—

 
12

Total asset-backed
 
—

 
248

 
—

 
248

Total fixed maturity securities
 
—

 
826

 
15

 
841

Equity securities
 
480

 
117

 
8

 
605

Derivative financial instruments
 
2

 
—

 
—

 
2

Short term investments
 
45

 
49

 
—

 
94

Limited partnerships:
 
 
 
 
 
 
 
 
Hedge funds
 
—

 
647

 
322

 
969

Private equity
 
—

 
—

 
114

 
114

Total limited partnerships
 
—

 
647

 
436

 
1,083

Other assets
 
—

 
31

 
—

 
31

Total assets
 
$
527

 
$
1,670

 
$
459

 
$
2,656


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
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, 2013 and 2012.
Level 3
(In millions)
Balance at January 1, 2013
 
Actual return on assets still held at December 31, 2013
 
Actual return on assets sold during the year ended December 31, 2013
 
Purchases, sales, and settlements
 
Net transfers into (out of) Level 3
 
Balance at December 31, 2013
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
11

 
$
(1
)
 
$
—

 
$
5

 
$
—

 
$
15

Equity securities
5

 
3

 
—

 
—

 
—

 
8

Limited partnerships:
 
 
 
 
 
 
 
 
 
 
 
Hedge funds
359

 
56

 
—

 
(77
)
 
(16
)
 
322

Private equity
62

 
—

 
—

 
52

 
—

 
114

Total limited partnerships
421

 
56

 
—

 
(25
)
 
(16
)
 
436

Investment contracts with insurance company
10

 
—

 
—

 
(10
)
 
—

 
—

Total
$
447

 
$
58

 
$
—

 
$
(30
)
 
$
(16
)
 
$
459


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
Estimated future minimum benefit payments to participants
Estimated Future Minimum Benefit Payments to Participants
(In millions)
Pension Benefits
 
Postretirement Benefits
2014
$
189

 
$
5

2015
191

 
4

2016
194

 
5

2017
199

 
4

2018
203

 
4

2019-2023
1,013

 
14
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 and 2011.
Years ended December 31
2012
 
2011
Weighted average expected life of the securities granted (in years)
5.68

 
5.61

Estimate of the underlying common stock's volatility
40.39
%
 
39.88
%
Expected dividend yield
2.1
%
 
1.5
%
Risk free interest rate
1.0
%
 
2.2
%
Stock option and SARS activity
The following table presents activity for stock options and SARs under the Plan in 2013.
 
 
Number of Awards
 
Weighted-Average Exercise Price per Award
 
Aggregate Intrinsic Value
 
Weighted-Average Remaining Contractual Term (in years)
Outstanding at January 1, 2013
 
1,158,700

 
$
25.93

 
 
 
 
Awards granted
 
—

 
—

 
 
 
 
Awards exercised
 
(117,950
)
 
21.19

 
 
 
 
Awards forfeited, canceled or expired
 
(4,100
)
 
30.66

 
 
 
 
Outstanding at December 31, 2013
 
1,036,650

 
$
26.45

 
$
17
 million
 
4.16
Outstanding, fully vested and expected to vest
 
1,032,849

 
$
26.45

 
$
17
 million
 
4.15
Outstanding, exercisable
 
936,650

 
$
26.42

 
$
15
 million
 
3.87
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, 2013, 2012 and 2011.
Years ended December 31
2013
 
2012
 
2011
Weighted-average grant date fair value

 
$
8.81

 
$
9.38

Total intrinsic value of awards exercised
$
1,495
 thousand
 
$
548
 thousand
 
$
481
 thousand
Fair value of awards vested
$
1
 million
 
$
1
 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 2013.
 
Number of Awards
 
Weighted-Average Grant Date Fair Value
Balance at January 1, 2013
882,321

 
$
26.15

Awards granted
351,364

 
31.80

Awards vested
(417,955
)
 
24.04

Awards forfeited, canceled or expired
(13,770
)
 
28.72

Performance-based adjustment
45,714

 
28.39

Balance at December 31, 2013
847,674

 
$
29.61