Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

The following table presents a reconciliation of benefit obligations and plan assets.



	Pension Benefits						Postretirement Benefits
(In millions)	2017			2016			2017			2016
Benefit obligation as of January 1	$	2,729		$	2,821		$	15		$	23
Changes in benefit obligation:
Service cost	—			—			—			—
Interest cost	103			113			—			—
Participants' contributions	—			—			4			4
Plan amendments	—			—			—			—
Actuarial (gain) loss	99			68			(1		)	(6		)
Benefits paid	(170		)	(173		)	(7		)	(7		)
Foreign currency translation and other	10			(14		)	—			1
Settlements	(22		)	(86		)	—			—
Benefit obligation as of December 31	2,749			2,729			11			15
Fair value of plan assets as of January 1	2,193			2,267			—			—
Change in plan assets:
Actual return on plan assets	221			193			—			—
Company contributions	29			9			3			3
Participants' contributions	—			—			4			4
Benefits paid	(170		)	(173		)	(7		)	(7		)
Foreign currency translation and other	10			(15		)	—			—
Settlements	(22		)	(88		)	—			—
Fair value of plan assets as of December 31	2,261			2,193			—			—
Funded status	$	(488	)	$	(536	)	$	(11	)	$	(15	)
Amounts recognized on the Consolidated Balance Sheets as of December 31:
Other assets	$	4		$	4		$	—		$	—
Other liabilities	(492		)	(540		)	(11		)	(15		)
Net amount recognized	$	(488	)	$	(536	)	$	(11	)	$	(15	)
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit):
Prior service credit	$	—		$	—		$	(2	)	$	(4	)
Net actuarial loss	987			999			(4		)	(3		)
Net amount recognized	$	987		$	999		$	(6	)	$	(7	)

Components of net periodic cost (benefit)

The components of net periodic cost (benefit) are presented in the following table.



Years ended December 31
(In millions)	2017			2016			2015
Pension cost (benefit)
Service cost	$	—		$	—		$	4
Interest cost on projected benefit obligation	103			113			112
Expected return on plan assets	(154		)	(160		)	(174		)
Amortization of net actuarial loss	35			37			34
Settlement loss	9			—			—
Net periodic pension cost (benefit)	$	(7	)	$	(10	)	$	(24	)

Postretirement cost (benefit)
Interest cost on projected benefit obligation	$	—		$	—		$	1
Amortization of prior service credit	(2		)	(2		)	(3		)
Amortization of net actuarial loss	—			—			1
Net periodic postretirement cost (benefit)	$	(2	)	$	(2	)	$	(1	)

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)	2017			2016			2015
Pension and postretirement benefits
Amounts arising during the period	$	(31	)	$	(29	)	$	(111	)
Curtailment and other	—			—			56
Settlement	9			(2		)	—
Reclassification adjustment relating to prior service credit	(2		)	(2		)	(3		)
Reclassification adjustment relating to actuarial loss	35			37			35
Total increase (decrease) in Other comprehensive income	$	11		$	4		$	(23	)

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 AOCI into net periodic cost (benefit) during 2018.



(In millions)	Pension Benefits		Postretirement Benefits
Amortization of prior service credit	$	—	$	(2	)
Amortization of net actuarial loss	36		—
Total estimated amounts to be recognized	$	36	$	(2	)

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 presented in the following table.



December 31	2017		2016
Pension benefits
Discount rate	3.550	%	3.950	%
Expected long term rate of return	7.500		7.500
Postretirement benefits
Discount rate	2.750	%	2.750	%

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



Years ended December 31	2017		2016		2015
Pension benefits
Discount rate	3.950	%	4.150	%	3.850%/4.000%
Expected long term rate of return	7.500		7.500		7.500
Rate of compensation increases	N/A		N/A		3.920
Postretirement benefits
Discount rate	2.750	%	2.750	%	2.500	%

Fair value of plan assets measured on a recurring basis

Pension plan assets measured at fair value on a recurring basis as well as cash are presented in the following tables.



December 31, 2017
(In millions)	Level 1		Level 2		Level 3		Total
Assets
Fixed maturity securities:
Corporate bonds and other	$	—	$	522	$	10	$	532
States, municipalities and political subdivisions	—		62		—		62
Asset-backed	—		180		—		180
Total fixed maturity securities	—		764		10		774
Equity securities	405		122		—		527
Short term investments	23		11		—		34
Other assets	—		9		—		9
Cash	13		—		—		13
Total assets measured at fair value	$	441	$	906	$	10	1,357
Total limited partnerships measured at net asset value ⁽¹⁾							904
Total plan assets							$	2,261



December 31, 2016
(In millions)	Level 1		Level 2		Level 3		Total
Assets
Fixed maturity securities:
Corporate bonds and other	$	—	$	500	$	10	$	510
States, municipalities and political subdivisions	—		63		—		63
Asset-backed	—		179		—		179
Total fixed maturity securities	—		742		10		752
Equity securities	363		105		—		468
Short term investments	11		35		—		46
Other assets	—		37		—		37
Cash	14		—		—		14
Total assets measured at fair value	$	388	$	919	$	10	1,317
Total limited partnerships measured at net asset value ⁽¹⁾							876
Total plan assets							$	2,193

(1) 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 Plan's Statement of Financial Position.

Estimated future minimum benefit payments to participants

The table below presents the estimated future minimum benefit payments to participants as of December 31, 2017.



(In millions)	Pension Benefits		Postretirement Benefits
2018	$	183	$	2
2019	175		2
2020	176		2
2021	175		1
2022	177		1
2023-2027	871		2