Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

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



	Pension Benefits						Postretirement Benefits
(In millions)	2019			2018			2019			2018
Benefit obligation as of January 1	$	2,466		$	2,749		$	9		$	11
Changes in benefit obligation:
Service cost	—			—			—			—
Interest cost	100			93			—			—
Participants' contributions	—			—			4			3
Actuarial (gain) loss	261			(187		)	1			—
Benefits paid	(169		)	(166		)	(6		)	(5		)
Foreign currency translation and other	3			(7		)	—			—
Settlements	—			(16		)	—			—
Benefit obligation as of December 31	2,661			2,466			8			9
Fair value of plan assets as of January 1	2,025			2,261			—			—
Change in plan assets:
Actual return on plan assets	292			(69		)	—			—
Company contributions	134			23			2			2
Participants' contributions	—			—			4			3
Benefits paid	(169		)	(166		)	(6		)	(5		)
Foreign currency translation and other	3			(8		)	—			—
Settlements	—			(16		)	—			—
Fair value of plan assets as of December 31	2,285			2,025			—			—
Funded status	$	(376	)	$	(441	)	$	(8	)	$	(9	)
Amounts recognized on the Consolidated Balance Sheets as of December 31:
Other assets	$	5		$	9		$	—		$	—
Other liabilities	(381		)	(450		)	(8		)	(9		)
Net amount recognized	$	(376	)	$	(441	)	$	(8	)	$	(9	)
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit):
Prior service credit	$	—		$	—		$	—		$	—
Net actuarial (gain) loss	1,056			984			(2		)	(3		)
Net amount recognized	$	1,056		$	984		$	(2	)	$	(3	)

Components of net periodic cost (benefit)

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



Years ended December 31
(In millions)	2019			2018			2017
Net periodic pension cost (benefit)
Service cost	$	—		$	—		$	—
Non-service cost (benefit):
Interest cost on projected benefit obligation	100			93			103
Expected return on plan assets	(142		)	(159		)	(154		)
Amortization of net actuarial (gain) loss	39			37			35
Settlement loss	—			6			9
Total non-service cost (benefit)	(3		)	(23		)	(7		)
Total net periodic pension cost (benefit)	$	(3	)	$	(23	)	$	(7	)

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)	2019			2018			2017
Pension and postretirement benefits
Amounts arising during the period	$	(112	)	$	(41	)	$	(31	)
Settlement	—			6			9
Reclassification adjustment relating to prior service credit	—			(2		)	(2		)
Reclassification adjustment relating to actuarial loss	39			36			35
Total increase (decrease) in Other comprehensive income	$	(73	)	$	(1	)	$	11

Schedule of estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during next fiscal year

The amounts recognized in Other comprehensive income are presented in the following table.



Years ended December 31
(In millions)	2019			2018			2017
Pension and postretirement benefits
Amounts arising during the period	$	(112	)	$	(41	)	$	(31	)
Settlement	—			6			9
Reclassification adjustment relating to prior service credit	—			(2		)	(2		)
Reclassification adjustment relating to actuarial loss	39			36			35
Total increase (decrease) in Other comprehensive income	$	(73	)	$	(1	)	$	11

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. The interest crediting rate is the weighted average interest rate applied to the individual pension balances for employees who elected to cease accruals effective December 31, 1999.



December 31	2019		2018
Pension benefits
Discount rate	3.150	%	4.250	%
Interest crediting rate	5.000		5.000
Postretirement benefits
Discount rate	2.300	%	3.550	%

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	2019		2018		2017
Pension benefits
Discount rate	4.250	%	3.550	%	3.950	%
Expected long term rate of return	7.500		7.500		7.500
Interest crediting rate	5.000		5.000		5.000
Postretirement benefits
Discount rate	3.550	%	2.750	%	2.750	%

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, 2019
(In millions)	Level 1		Level 2		Level 3		Total
Assets
Fixed maturity securities:
Corporate bonds and other	$	—	$	587	$	10	$	597
States, municipalities and political subdivisions	—		51		—		51
Asset-backed	—		154		—		154
Total fixed maturity securities	—		792		10		802
Equity securities	458		128		—		586
Short term investments	55		7		—		62
Other assets	—		9		—		9
Cash	13		—		—		13
Total assets measured at fair value	$	526	$	936	$	10	1,472
Total limited partnerships measured at net asset value ⁽¹⁾							813
Total							$	2,285



December 31, 2018
(In millions)	Level 1		Level 2		Level 3		Total
Assets
Fixed maturity securities:
Corporate bonds and other	$	—	$	472	$	10	$	482
States, municipalities and political subdivisions	—		58		—		58
Asset-backed	—		165		—		165
Total fixed maturity securities	—		695		10		705
Equity securities	331		110		—		441
Short term investments	27		54		—		81
Other assets	—		9		—		9
Cash	—		—		—		—
Total assets measured at fair value	$	358	$	868	$	10	1,236
Total limited partnerships measured at net asset value ⁽¹⁾							789
Total							$	2,025

(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.

Schedule of expected benefit payments

The table below presents the estimated future minimum benefit payments to participants as of December 31, 2019.



(In millions)	Pension Benefits		Postretirement Benefits
2020	$	178	$	1
2021	176		1
2022	180		1
2023	178		1
2024	178		1
2025-2029	841		2