Business Segments (Tables)

9 Months Ended

Sep. 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 September 30, 2019	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
(In millions)
Operating revenues
Net earned premiums	$	712		$	813		$	236		$	130		$	—		$	(1	)	$	1,890
Net investment income	121			136			17			207			6			—			487
Non-insurance warranty revenue	292			—			—			—			—			—			292
Other revenues	1			10			(1		)	(1		)	1			(1		)	9
Total operating revenues	1,126			959			252			336			7			(2		)	2,678
Claims, benefits and expenses
Net incurred claims and benefits	411			564			163			476			(7		)	—			1,607
Policyholders’ dividends	2			5			—			—			—			—			7
Amortization of deferred acquisition costs	155			134			56			—			—			—			345
Non-insurance warranty expense	278			—			—			—			—			—			278
Other insurance related expenses	71			123			35			29			—			(1		)	257
Other expenses	13			9			7			1			35			(1		)	64
Total claims, benefits and expenses	930			835			261			506			28			(2		)	2,558
Core income (loss) before income tax	196			124			(9		)	(170		)	(21		)	—			120
Income tax (expense) benefit on core income (loss)	(43		)	(27		)	—			48			4			—			(18		)
Core income (loss)	$	153		$	97		$	(9	)	$	(122	)	$	(17	)	$	—		102
Net investment gains (losses)																			7
Income tax (expense) benefit on net investment gains (losses)																			(2		)
Net investment gains (losses), after tax																			5
Net income																			$	107

Three months ended September 30, 2018	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
(In millions)
Operating revenues
Net earned premiums	$	684		$	782		$	255		$	133		$	—		$	(1	)	$	1,853
Net investment income	124			144			14			200			5			—			487
Non-insurance warranty revenue	258			—			—			—			—			—			258
Other revenues	—			8			1			(1		)	2			—			10
Total operating revenues	1,066			934			270			332			7			(1		)	2,608
Claims, benefits and expenses
Net incurred claims and benefits	373			496			172			277			(12		)	—			1,306
Policyholders’ dividends	1			5			—			—			—			—			6
Amortization of deferred acquisition costs	153			127			57			—			—			—			337
Non-insurance warranty expense	235			—			—			—			—			—			235
Other insurance related expenses	68			133			36			31			(1		)	(1		)	266
Other expenses	11			10			3			2			44			—			70
Total claims, benefits and expenses	841			771			268			310			31			(1		)	2,220
Core income (loss) before income tax	225			163			2			22			(24		)	—			388
Income tax (expense) benefit on core income (loss)	(48		)	(36		)	(1		)	10			4			—			(71		)
Core income (loss)	$	177		$	127		$	1		$	32		$	(20	)	$	—		317
Net investment gains (losses)																			14
Income tax (expense) benefit on net investment gains (losses)																			(1		)
Net investment gains (losses), after tax																			13
Net deferred tax asset remeasurement																			6
Net income																			$	336

Nine months ended September 30, 2019	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
(In millions)
Operating revenues
Net earned premiums	$	2,061		$	2,339		$	729		$	390		$	—		$	(2	)	$	5,517
Net investment income	410			480			47			616			20			—			1,573
Non-insurance warranty revenue	858			—			—			—			—			—			858
Other revenues	1			20			—			—			5			(4		)	22
Total operating revenues	3,330			2,839			776			1,006			25			(6		)	7,970
Claims, benefits and expenses
Net incurred claims and benefits	1,198			1,581			472			1,093			(40		)	—			4,304
Policyholders’ dividends	4			15			—			—			—			—			19
Amortization of deferred acquisition costs	454			391			180			—			—			—			1,025
Non-insurance warranty expense	801			—			—			—			—			—			801
Other insurance related expenses	217			372			94			87			(2		)	(2		)	766
Other expenses	37			27			14			5			108			(4		)	187
Total claims, benefits and expenses	2,711			2,386			760			1,185			66			(6		)	7,102
Core income (loss) before income tax	619			453			16			(179		)	(41		)	—			868
Income tax (expense) benefit on core income (loss)	(136		)	(97		)	(2		)	74			7			—			(154		)
Core income (loss)	$	483		$	356		$	14		$	(105	)	$	(34	)	$	—		714
Net investment gains (losses)																			20
Income tax (expense) benefit on net investment gains (losses)																			(7		)
Net investment gains (losses), after tax																			13
Net income																			$	727

September 30, 2019
(In millions)
Reinsurance receivables	$	599	$	759	$	242	$	394	$	2,098	$	—		$	4,092
Insurance receivables	992		1,243		260		8		1		—			2,504
Deferred acquisition costs	314		264		90		—		—		—			668
Goodwill	117		—		28		—		—		—			145
Deferred non-insurance warranty acquisition expense	2,772		—		—		—		—		—			2,772
Insurance reserves
Claim and claim adjustment expenses	5,285		8,610		1,802		3,707		2,192		—			21,596
Unearned premiums	2,329		1,679		475		126		—		(1		)	4,608
Future policy benefits	—		—		—		12,305		—		—			12,305
Deferred non-insurance warranty revenue	3,707		—		—		—		—		—			3,707

Nine months ended September 30, 2018	Specialty			Commercial			International			Life & Group			Corporate & Other			Eliminations			Total
(In millions)
Operating revenues
Net earned premiums	$	2,039		$	2,278		$	739		$	398		$	—		$	(1	)	$	5,453
Net investment income	376			450			43			598			16			—			1,483
Non-insurance warranty revenue	744			—			—			—			—			—			744
Other revenues	1			24			—			—			2			(1		)	26
Total operating revenues	3,160			2,752			782			996			18			(2		)	7,706
Claims, benefits and expenses
Net incurred claims and benefits	1,124			1,434			480			907			15			—			3,960
Policyholders’ dividends	3			15			—			—			—			—			18
Amortization of deferred acquisition costs	447			375			170			—			—			—			992
Non-insurance warranty expense	676			—			—			—			—			—			676
Other insurance related expenses	202			386			102			91			(1		)	(1		)	779
Other expenses	34			31			6			5			153			(1		)	228
Total claims, benefits and expenses	2,486			2,241			758			1,003			167			(2		)	6,653
Core income (loss) before income tax	674			511			24			(7		)	(149		)	—			1,053
Income tax (expense) benefit on core income (loss)	(143		)	(108		)	(7		)	43			30			—			(185		)
Core income (loss)	$	531		$	403		$	17		$	36		$	(119	)	$	—		868
Net investment gains (losses)																			25
Income tax (expense) benefit on net investment gains (losses)																			(2		)
Net investment gains (losses), after tax																			23
Net deferred tax asset remeasurement																			6
Net income																			$	897

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 September 30	Three Months						Nine Months
(In millions)	2019			2018			2019			2018
Specialty
Management & Professional Liability	$	638		$	616		$	1,903		$	1,867
Surety	156			153			446			427
Warranty & Alternative Risks	332			297			981			866
Specialty revenues	1,126			1,066			3,330			3,160
Commercial
Middle Market	560			530			1,652			1,555
Small Business	115			125			351			364
Other Commercial Insurance	284			279			836			833
Commercial revenues	959			934			2,839			2,752
International
Canada	70			66			204			187
Europe	91			94			270			273
Hardy	91			110			302			322
International revenues	252			270			776			782
Life & Group revenues	336			332			1,006			996
Corporate & Other revenues	7			7			25			18
Eliminations	(2		)	(1		)	(6		)	(2		)
Total operating revenues	2,678			2,608			7,970			7,706
Net investment gains (losses)	7			14			20			25
Total revenues	$	2,685		$	2,622		$	7,990		$	7,731