Business Segments (Tables)

12 Months Ended

Dec. 31, 2017

The Company's results of operations and selected balance sheet items by segment are presented in the following tables.



Year ended December 31, 2017	Specialty			Commercial			International			Life & Group			Corporate & Other
(In millions)	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
Net written premiums	$	2,771		$	2,882		$	881		$	536		$	—		$	(1	)	$	7,069
Operating revenues
Net earned premiums	$	2,753		$	2,840		$	857		$	539		$	—		$	(1	)	$	6,988
Net investment income	538			642			52			782			20			—			2,034
Other revenues	392			31			—			2			2			—			427
Total operating revenues	3,683			3,513			909			1,323			22			(1		)	9,449
Claims, Benefits and Expenses
Net incurred claims and benefits	1,535			1,928			575			1,269			(19		)	—			5,288
Policyholders’ dividends	4			18			—			—			—			—			22
Amortization of deferred acquisition costs	596			475			162			—			—			—			1,233
Other insurance related expenses	286			523			162			129			(1		)	(1		)	1,098
Other expenses	342			57			(7		)	7			192			—			591
Total claims, benefits and expenses	2,763			3,001			892			1,405			172			(1		)	8,232
Core income (loss) before income tax	920			512			17			(82		)	(150		)	—			1,217
Income tax (expense) benefit on core income (loss)	(310		)	(171		)	(9		)	132			60			—			(298		)
Core income (loss)	$	610		$	341		$	8		$	50		$	(90	)	$	—		919
Net realized investment gains (losses)																			93
Income tax (expense) benefit on net realized investment gains (losses)																			(30		)
Net realized investment gains (losses), after tax																			63
Net deferred tax asset remeasurement																			(83		)
Net income																			$	899



December 31, 2017
(In millions)
Reinsurance receivables	$	678	$	647	$	212	$	438	$	2,315	$	—	$	4,290
Insurance receivables	984		1,088		254		8		2		—		2,336
Deferred acquisition costs	319		222		93		—		—		—		634
Goodwill	117		—		31		—		—		—		148
Insurance reserves
Claim and claim adjustment expenses	5,848		8,585		1,636		3,499		2,436		—		22,004
Unearned premiums	2,035		1,394		472		128		—		—		4,029
Future policy benefits	—		—		—		11,179		—		—		11,179



Year ended December 31, 2016	Specialty			Commercial			International			Life & Group			Corporate & Other
(In millions)	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
Net written premiums	$	2,780		$	2,841		$	821		$	547		$	—		$	(1	)	$	6,988
Operating revenues
Net earned premiums	$	2,779		$	2,804		$	806		$	536		$	—		$	(1	)	$	6,924
Net investment income	516			638			51			767			16			—			1,988
Other revenues	362			32			—			(2		)	12			—			404
Total operating revenues	3,657			3,474			857			1,301			28			(1		)	9,316
Claims, Benefits and Expenses
Net incurred claims and benefits	1,467			1,927			492			1,286			98			—			5,270
Policyholders’ dividends	4			9			—			—			—			—			13
Amortization of deferred acquisition costs	591			470			174			—			—			—			1,235
Other insurance related expenses	301			560			133			132			(3		)	(1		)	1,122
Other expenses	312			36			24			8			209			—			589
Total claims, benefits and expenses	2,675			3,002			823			1,426			304			(1		)	8,229
Core income (loss) before income tax	982			472			34			(125		)	(276		)	—			1,087
Income tax (expense) benefit on core income (loss)	(332		)	(161		)	(13		)	145			98			—			(263		)
Core income (loss)	$	650		$	311		$	21		$	20		$	(178	)	$	—		824
Net realized investment gains (losses)																			50
Income tax (expense) benefit on net realized investment gains (losses)																			(15		)
Net realized investment gains (losses), after tax																			35
Net income																			$	859



December 31, 2016
(In millions)
Reinsurance receivables	$	760	$	621	$	131	$	462	$	2,479	$	—	$	4,453
Insurance receivables	982		1,021		233		17		2		—		2,255
Deferred acquisition costs	310		214		76		—		—		—		600
Goodwill	117		—		28		—		—		—		145
Insurance reserves
Claim and claim adjustment expenses	6,149		8,894		1,328		3,358		2,614		—		22,343
Unearned premiums	1,911		1,323		396		132		—		—		3,762
Future policy benefits	—		—		—		10,326		—		—		10,326



Year ended December 31, 2015	Specialty			Commercial						Life & Group			Corporate & Other
(In millions)	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
Net written premiums	$	2,781		$	2,818		$	822		$	542		$	1		$	(2	)	$	6,962
Operating revenues
Net earned premiums	$	2,782		$	2,788		$	804		$	548		$	1		$	(2	)	$	6,921
Net investment income	474			593			52			704			17			—			1,840
Other revenues	356			37			(1		)	7			11			(3		)	407
Total operating revenues	3,612			3,418			855			1,259			29			(5		)	9,168
Claims, Benefits and Expenses
Net incurred claims and benefits	1,597			1,814			479			1,421			61			—			5,372
Policyholders’ dividends	4			8			—			—			—			—			12
Amortization of deferred acquisition costs	589			469			168			314			—			—			1,540
Other insurance related expenses	278			538			138			142			(1		)	(2		)	1,093
Other expenses	301			28			12			11			186			(3		)	535
Total claims, benefits and expenses	2,769			2,857			797			1,888			246			(5		)	8,552
Core income (loss) before income tax	843			561			58			(629		)	(217		)	—			616
Income tax (expense) benefit on core income (loss)	(283		)	(192		)	(21		)	315			80			—			(101		)
Core income (loss)	$	560		$	369		$	37		$	(314	)	$	(137	)	$	—		515
Net realized investment gains (losses)																			(67		)
Income tax (expense) benefit on net realized investment gains (losses)																			31
Net realized investment gains (losses), after tax																			(36		)
Net income																			$	479

The following table presents operating revenue by line of business for each reportable segment.



Years ended December 31
(In millions)	2017			2016			2015
Specialty
Management & Professional Liability	$	2,591		$	2,617		$	2,647
Surety	541			529			504
Warranty & Alternative Risks	551			511			461
Specialty revenues	3,683			3,657			3,612
Commercial
Middle Market	1,907			1,768			1,641
Small Business	480			582			621
Other Commercial Insurance	1,126			1,124			1,156
Commercial revenues	3,513			3,474			3,418
International
Canada	224			203			213
CNA Europe	326			314			311
Hardy	359			340			331
International revenues	909			857			855
Life & Group revenues	1,323			1,301			1,259
Corporate & Other revenues	22			28			29
Eliminations	(1		)	(1		)	(5		)
Total operating revenues	9,449			9,316			9,168
Net realized investment gains (losses) ⁽¹⁾	93			50			(67		)
Total revenues	$	9,542		$	9,366		$	9,101


(1)	2017 Net realized investment gains (losses) includes a $42 million loss on the early redemption of the Company's $350 million senior notes due November 2019.