Business Segments (Tables)

3 Months Ended

Mar. 31, 2021

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


Three months ended March 31, 2021	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	735	$	855	$	252	$	120	$	—	$	—	$	1,962
Net investment income	117		148		14		219		6		—		504
Non-insurance warranty revenue	338		—		—		—		—		—		338
Other revenues	—		5		—		1		1		(2)		5
Total operating revenues	1,190		1,008		266		340		7		(2)		2,809
Claims, benefits and expenses
Net incurred claims and benefits	427		639		155		281		(2)		—		1,500
Policyholders’ dividends	1		5		—		—		—		—		6
Amortization of deferred acquisition costs	154		153		52		—		—		—		359
Non-insurance warranty expense	311		—		—		—		—		—		311
Other insurance related expenses	70		115		35		25		10		—		255
Other expenses	11		9		(5)		2		42		(2)		57
Total claims, benefits and expenses	974		921		237		308		50		(2)		2,488
Core income (loss) before income tax	216		87		29		32		(43)		—		321
Income tax (expense) benefit on core income (loss)	(46)		(18)		(5)		4		7		—		(58)
Core income (loss)	$	170	$	69	$	24	$	36	$	(36)	$	—	263
Net investment gains (losses)													57
Income tax (expense) benefit on net investment gains (losses)													(8)
Net investment gains (losses), after tax													49
Net income (loss)													$	312


March 31, 2021
(In millions)
Reinsurance receivables	$	957	$	859	$	300	$	389	$	2,628	$	—	$	5,133
Insurance receivables	1,004		1,322		357		2		—		—		2,685
Deferred acquisition costs	340		299		102		—		—		—		741
Goodwill	117		—		31		—		—		—		148
Deferred non-insurance warranty acquisition expense	3,149		—		—		—		—		—		3,149
Insurance reserves
Claim and claim adjustment expenses	5,916		8,449		2,142		3,726		2,823		—		23,056
Unearned premiums	2,666		1,930		588		135		—		—		5,319
Future policy benefits	—		—		—		12,772		—		—		12,772
Deferred non-insurance warranty revenue	4,119		—		—		—		—		—		4,119


Three months ended March 31, 2020	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	685	$	818	$	239	$	127	$	—	$	—	$	1,869
Net investment income	56		42		15		208		8		—		329
Non-insurance warranty revenue	301		—		—		—		—		—		301
Other revenues	1		8		—		—		1		(2)		8
Total operating revenues	1,043		868		254		335		9		(2)		2,507
Claims, benefits and expenses
Net incurred claims and benefits	405		555		154		316		(11)		—		1,419
Policyholders’ dividends	1		5		—		—		—		—		6
Amortization of deferred acquisition costs	151		144		49		—		—		—		344
Non-insurance warranty expense	281		—		—		—		—		—		281
Other insurance related expenses	69		127		36		26		—		—		258
Other expenses	13		6		13		3		39		(2)		72
Total claims, benefits and expenses	920		837		252		345		28		(2)		2,380
Core income (loss) before income tax	123		31		2		(10)		(19)		—		127
Income tax (expense) benefit on core income (loss)	(27)		(8)		—		14		2		—		(19)
Core income (loss)	$	96	$	23	$	2	$	4	$	(17)	$	—	108
Net investment gains (losses)													(216)
Income tax (expense) benefit on net investment gains (losses)													47
Net investment gains (losses), after tax													(169)
Net income (loss)													$	(61)


December 31, 2020
(In millions)
Reinsurance receivables	$	886	$	848	$	302	$	390	$	2,052	$	—	$	4,478
Insurance receivables	1,052		1,254		328		4		2		—		2,640
Deferred acquisition costs	330		281		97		—		—		—		708
Goodwill	117		—		31		—		—		—		148
Deferred non-insurance warranty acquisition expense	3,068		—		—		—		—		—		3,068
Insurance reserves
Claim and claim adjustment expenses	5,748		8,250		2,091		3,743		2,874		—		22,706
Unearned premiums	2,635		1,824		546		114		—		—		5,119
Future policy benefits	—		—		—		13,318		—		—		13,318
Deferred non-insurance warranty revenue	4,023		—		—		—		—		—		4,023

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


Three months ended March 31
(In millions)	2021		2020
Specialty
Management & Professional Liability	$	667	$	568
Surety	142		138
Warranty & Alternative Risks	381		337
Specialty revenues	1,190		1,043
Commercial
Middle Market	375		335
Construction	309		250
Small Business	126		112
Other Commercial	198		171
Commercial revenues	1,008		868
International
Canada	79		73
Europe	111		92
Hardy	76		89
International revenues	266		254
Life & Group revenues	340		335
Corporate & Other revenues	7		9
Eliminations	(2)		(2)
Total operating revenues	2,809		2,507
Net investment gains (losses)	57		(216)
Total revenues	$	2,866	$	2,291