Business Segments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
(In millions)
Operating revenues
Net earned premiums	$	688		$	763		$	243		$	130		$	—		$	—		$	1,824
Net investment income	134			154			15			205			7			—			515
Non-insurance warranty revenue	285			—			—			—			—			—			285
Other revenues	(1		)	3			1			—			2			(1		)	4
Total operating revenues	1,106			920			259			335			9			(1		)	2,628
Claims, benefits and expenses
Net incurred claims and benefits	395			507			147			309			(12		)	—			1,346
Policyholders’ dividends	1			5			—			—			—			—			6
Amortization of deferred acquisition costs	152			130			56			—			—			—			338
Non-insurance warranty expense	263			—			—			—			—			—			263
Other insurance related expenses	76			119			34			30			(1		)	—			258
Other expenses	12			7			3			2			34			(1		)	57
Total claims, benefits and expenses	899			768			240			341			21			(1		)	2,268
Core income (loss) before income tax	207			152			19			(6		)	(12		)	—			360
Income tax (expense) benefit on core income (loss)	(46		)	(32		)	(2		)	13			1			—			(66		)
Core income (loss)	$	161		$	120		$	17		$	7		$	(11	)	$	—		294
Net investment gains (losses)																			(18		)
Income tax (expense) benefit on net investment gains (losses)																			2
Net investment gains (losses), after tax																			(16		)
Net income																			$	278

Three months ended June 30, 2018	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations		Total
(In millions)
Operating revenues
Net earned premiums	$	683		$	753		$	248		$	131		$	—		$	—	$	1,815
Net investment income	130			157			15			198			6			—		506
Non-insurance warranty revenue	248			—			—			—			—			—		248
Other revenues	—			8			(1		)	—			(1		)	—		6
Total operating revenues	1,061			918			262			329			5			—		2,575
Claims, benefits and expenses
Net incurred claims and benefits	372			470			166			327			(14		)	—		1,321
Policyholders’ dividends	1			5			—			—			—			—		6
Amortization of deferred acquisition costs	149			127			83			—			—			—		359
Non-insurance warranty expense	225			—			—			—			—			—		225
Other insurance related expenses	70			126			10			30			—			—		236
Other expenses	12			10			7			1			67			—		97
Total claims, benefits and expenses	829			738			266			358			53			—		2,244
Core income (loss) before income tax	232			180			(4		)	(29		)	(48		)	—		331
Income tax (expense) benefit on core income (loss)	(49		)	(37		)	(3		)	19			9			—		(61		)
Core income (loss)	$	183		$	143		$	(7	)	$	(10	)	$	(39	)	$	—	270
Net investment gains (losses)																		(1		)
Income tax (expense) benefit on net investment gains (losses)																		1
Net investment gains (losses), after tax																		—
Net income																		$	270

Six months ended June 30, 2019	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
(In millions)
Operating revenues
Net earned premiums	$	1,349		$	1,526		$	493		$	260		$	—		$	(1	)	$	3,627
Net investment income	289			344			30			409			14			—			1,086
Non-insurance warranty revenue	566			—			—			—			—			—			566
Other revenues	—			10			1			1			4			(3		)	13
Total operating revenues	2,204			1,880			524			670			18			(4		)	5,292
Claims, benefits and expenses
Net incurred claims and benefits	787			1,017			309			617			(33		)	—			2,697
Policyholders’ dividends	2			10			—			—			—			—			12
Amortization of deferred acquisition costs	299			257			124			—			—			—			680
Non-insurance warranty expense	523			—			—			—			—			—			523
Other insurance related expenses	146			249			59			58			(2		)	(1		)	509
Other expenses	24			18			7			4			73			(3		)	123
Total claims, benefits and expenses	1,781			1,551			499			679			38			(4		)	4,544
Core income (loss) before income tax	423			329			25			(9		)	(20		)	—			748
Income tax (expense) benefit on core income (loss)	(93		)	(70		)	(2		)	26			3			—			(136		)
Core income (loss)	$	330		$	259		$	23		$	17		$	(17	)	$	—		612
Net investment gains (losses)																			13
Income tax (expense) benefit on net investment gains (losses)																			(5		)
Net investment gains (losses), after tax																			8
Net income																			$	620

June 30, 2019
(In millions)
Reinsurance receivables	$	696	$	766	$	242	$	399	$	2,160	$	—		$	4,263
Insurance receivables	1,002		1,362		318		7		1		—			2,690
Deferred acquisition costs	316		264		101		—		—		—			681
Goodwill	117		—		29		—		—		—			146
Deferred non-insurance warranty acquisition expense	2,678		—		—		—		—		—			2,678
Insurance reserves
Claim and claim adjustment expenses	5,396		8,580		1,800		3,710		2,243		—			21,729
Unearned premiums	2,261		1,721		534		133		—		(1		)	4,648
Future policy benefits	—		—		—		11,537		—		—			11,537
Deferred non-insurance warranty revenue	3,595		—		—		—		—		—			3,595

Six months ended June 30, 2018	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
(In millions)
Operating revenues
Net earned premiums	$	1,355		$	1,496		$	484		$	265		$	—		$	—		$	3,600
Net investment income	252			306			29			398			11			—			996
Non-insurance warranty revenue	486			—			—			—			—			—			486
Other revenues	1			16			(1		)	1			—			(1		)	16
Total operating revenues	2,094			1,818			512			664			11			(1		)	5,098
Claims, benefits and expenses
Net incurred claims and benefits	751			938			308			630			27			—			2,654
Policyholders’ dividends	2			10			—			—			—			—			12
Amortization of deferred acquisition costs	294			248			113			—			—			—			655
Non-insurance warranty expense	441			—			—			—			—			—			441
Other insurance related expenses	134			253			66			60			—			—			513
Other expenses	23			21			3			3			109			(1		)	158
Total claims, benefits and expenses	1,645			1,470			490			693			136			(1		)	4,433
Core income (loss) before income tax	449			348			22			(29		)	(125		)	—			665
Income tax (expense) benefit on core income (loss)	(95		)	(72		)	(6		)	33			26			—			(114		)
Core income (loss)	$	354		$	276		$	16		$	4		$	(99	)	$	—		551
Net investment gains (losses)																			11
Income tax (expense) benefit on net investment gains (losses)																			(1		)
Net investment gains (losses), after tax																			10
Net income																			$	561

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.

Periods ended June 30	Three Months						Six Months
(In millions)	2019			2018			2019			2018
Specialty
Management & Professional Liability	$	629		$	627		$	1,265		$	1,251
Surety	151			145			290			274
Warranty & Alternative Risks	326			289			649			569
Specialty revenues	1,106			1,061			2,204			2,094
Commercial
Middle Market	545			521			1,092			1,025
Small Business	115			120			236			239
Other Commercial Insurance	260			277			552			554
Commercial revenues	920			918			1,880			1,818
International
Canada	68			63			134			121
Europe	88			91			179			179
Hardy	103			108			211			212
International revenues	259			262			524			512
Life & Group revenues	335			329			670			664
Corporate & Other revenues	9			5			18			11
Eliminations	(1		)	—			(4		)	(1		)
Total operating revenues	2,628			2,575			5,292			5,098
Net investment gains (losses)	(18		)	(1		)	13			11
Total revenues	$	2,610		$	2,574		$	5,305		$	5,109