Business Segments (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Significant components of the Company's continuing operations and selected balance sheet items

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

Three months ended March 31, 2019	Specialty			Commercial			International		Life & Group			Corporate & Other
(In millions)															Eliminations			Total
Operating revenues
Net earned premiums	$	661		$	763		$	250	$	130		$	—		$	(1	)	$	1,803
Net investment income	155			190			15		204			7			—			571
Non-insurance warranty revenue	281			—			—		—			—			—			281
Other revenues	1			7			—		1			2			(2		)	9
Total operating revenues	1,098			960			265		335			9			(3		)	2,664
Claims, benefits and expenses
Net incurred claims and benefits	392			510			162		308			(21		)	—			1,351
Policyholders’ dividends	1			5			—		—			—			—			6
Amortization of deferred acquisition costs	147			127			68		—			—			—			342
Non-insurance warranty expense	260			—			—		—			—			—			260
Other insurance related expenses	70			130			25		28			(1		)	(1		)	251
Other expenses	12			11			4		2			39			(2		)	66
Total claims, benefits and expenses	882			783			259		338			17			(3		)	2,276
Core income (loss) before income tax	216			177			6		(3		)	(8		)	—			388
Income tax (expense) benefit on core income (loss)	(47		)	(38		)	—		13			2			—			(70		)
Core income (loss)	$	169		$	139		$	6	$	10		$	(6	)	$	—		318
Net investment gains (losses)																		31
Income tax (expense) benefit on net investment gains (losses)																		(7		)
Net investment gains (losses), after tax																		24
Net income																		$	342

March 31, 2019
(In millions)
Reinsurance receivables	$	674	$	761	$	237	$	408	$	2,226	$	—		$	4,306
Insurance receivables	933		1,234		302		7		—		—			2,476
Deferred acquisition costs	315		247		102		—		—		—			664
Goodwill	117		—		30		—		—		—			147
Deferred non-insurance warranty acquisition expense	2,576		—		—		—		—		—			2,576
Insurance reserves
Claim and claim adjustment expenses	5,470		8,623		1,787		3,645		2,311		—			21,836
Unearned premiums	2,201		1,553		528		142		—		(2		)	4,422
Future policy benefits	—		—		—		11,078		—		—			11,078
Deferred non-insurance warranty revenue	3,472		—		—		—		—		—			3,472

Three months ended March 31, 2018	Specialty			Commercial			International			Life & Group		Corporate & Other
(In millions)															Eliminations			Total
Operating revenues
Net earned premiums	$	672		$	743		$	236		$	134	$	—		$	—		$	1,785
Net investment income	122			149			14			200		5			—			490
Non-insurance warranty revenue	238			—			—			—		—			—			238
Other revenues	1			8			—			1		1			(1		)	10
Total operating revenues	1,033			900			250			335		6			(1		)	2,523
Claims, benefits and expenses
Net incurred claims and benefits	379			468			142			303		41			—			1,333
Policyholders’ dividends	1			5			—			—		—			—			6
Amortization of deferred acquisition costs	145			121			30			—		—			—			296
Non-insurance warranty expense	216			—			—			—		—			—			216
Other insurance related expenses	64			127			56			30		—			—			277
Other expenses	11			11			(4		)	2		42			(1		)	61
Total claims, benefits and expenses	816			732			224			335		83			(1		)	2,189
Core income (loss) before income tax	217			168			26			—		(77		)	—			334
Income tax (expense) benefit on core income (loss)	(46		)	(35		)	(3		)	14		17			—			(53		)
Core income (loss)	$	171		$	133		$	23		$	14	$	(60	)	$	—		281
Net investment gains (losses)																		12
Income tax (expense) benefit on net investment gains (losses)																		(2		)
Net investment gains (losses), after tax																		10
Net income																		$	291

December 31, 2018
(In millions)
Reinsurance receivables	$	649	$	795	$	250	$	414	$	2,347		$	—	$	4,455
Insurance receivables	947		1,277		284		9		(152		)	—		2,365
Deferred acquisition costs	308		230		95		—		—			—		633
Goodwill	117		—		29		—		—			—		146
Deferred non-insurance warranty acquisition expense	2,513		—		—		—		—			—		2,513
Insurance reserves
Claim and claim adjustment expenses	5,465		8,743		1,750		3,601		2,425			—		21,984
Unearned premiums	2,132		1,454		475		122		—			—		4,183
Future policy benefits	—		—		—		10,597		—			—		10,597
Deferred non-insurance warranty revenue	3,402		—		—		—		—			—		3,402

Revenues by line of business

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

Three months ended March 31
(In millions)	2019			2018
Specialty
Management & Professional Liability	$	636		$	624
Surety	139			129
Warranty & Alternative Risks	323			280
Specialty revenues	1,098			1,033
Commercial
Middle Market	547			504
Small Business	121			119
Other Commercial Insurance	292			277
Commercial revenues	960			900
International
Canada	66			58
Europe	91			88
Hardy	108			104
International revenues	265			250
Life & Group revenues	335			335
Corporate & Other revenues	9			6
Eliminations	(3		)	(1		)
Total operating revenues	2,664			2,523
Net investment gains (losses)	31			12
Total revenues	$	2,695		$	2,535