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Business Segments
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company's property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International. These three segments are collectively referred to as Property & Casualty Operations. The Company's operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other.
Effective January 1, 2021, and in connection with the ceding of certain legacy reserves under a retroactive reinsurance agreement executed in February 2021, management changed the segment presentation of a legacy portfolio of excess workers’ compensation policies relating to business written in 2007 and prior. This business, which was previously reported as part of the Commercial business segment, is now reported as part of the Corporate & Other business segment. Further information on this retroactive reinsurance agreement is provided in Note E. In addition, a determination was made to change the segment presentation of certain legacy mass tort reserves. Similar to the aforementioned excess workers’ compensation legacy business, these legacy mass tort reserves were previously reported in the Commercial business segment and are now reported as part of the Corporate & Other business segment. These changes were made to better reflect the manner in which the Company is organized for purposes of making operating decisions and assessing performance. Prior period information has been conformed to the new segment presentation.
The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements within CNAF's Annual Report on Form 10-K for the year ended December 31, 2020. The Company manages most of its assets on a legal entity basis, while segment operations are generally conducted across legal entities. As such, only Insurance and Reinsurance receivables, Insurance reserves, Deferred acquisition costs, Goodwill and Deferred non-insurance warranty acquisition expense and revenue are readily identifiable for individual segments. Distinct investment portfolios are not maintained for every individual segment; accordingly, allocation of assets to each segment is not performed. Therefore, a significant portion of Net investment income and Net investment gains or losses are allocated primarily based on each segment's net carried insurance reserves, as adjusted. All significant intersegment income and expense have been eliminated. Income taxes have been allocated on the basis of the taxable income of the segments.
In the following tables, certain financial measures are presented to provide information used by management to monitor the Company's operating performance. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio.
The performance of the Company's insurance operations is monitored by management through core income (loss), which is derived from certain income statement amounts. The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk.
Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of net investment gains or losses and any cumulative effects of changes in accounting guidance. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not necessarily reflective of our primary operations.
The Company's results of operations and selected balance sheet items by segment are presented in the following tables.
Three months ended June 30, 2021
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$762 $881 $266 $126 $— $— $2,035 
Net investment income134 174 14 265 4 — 591 
Non-insurance warranty revenue359 — — — — — 359 
Other revenues— 5 1 (1)2 (1)6 
Total operating revenues1,255 1,060 281 390 6 (1)2,991 
Claims, benefits and expenses      
Net incurred claims and benefits439 588 159 322 31 — 1,539 
Policyholders’ dividends1 6 — — — — 7 
Amortization of deferred acquisition costs159 148 50 — — — 357 
Non-insurance warranty expense332 — — — — — 332 
Other insurance related expenses71 136 39 25 — — 271 
Other expenses12 11 (3)2 40 (1)61 
Total claims, benefits and expenses1,014 889 245 349 71 (1)2,567 
Core income (loss) before income tax241 171 36 41 (65)— 424 
Income tax (expense) benefit on core income (loss)(53)(34)(10)2 12 — (83)
Core income (loss) $188 $137 $26 $43 $(53)$— 341 
Net investment gains (losses)38 
Income tax (expense) benefit on net investment gains (losses)(11)
Net investment gains (losses), after tax27 
Net income (loss)$368 
Three months ended June 30, 2020
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$705 $795 $224 $126 $— $— $1,850 
Net investment income133 161 14 206 20 — 534 
Non-insurance warranty revenue308 — — — — — 308 
Other revenues— 5 — — 1 (1)5 
Total operating revenues1,146 961 238 332 21 (1)2,697 
Claims, benefits and expenses      
Net incurred claims and benefits508 614 176 304 34 — 1,636 
Policyholders’ dividends1 5 — — — — 6 
Amortization of deferred acquisition costs153 147 42 — — — 342 
Non-insurance warranty expense285 — — — — — 285 
Other insurance related expenses73 124 39 25 (1)— 260 
Other expenses10 12 (2)— 36 (1)55 
Total claims, benefits and expenses1,030 902 255 329 69 (1)2,584 
Core income (loss) before income tax116 59 (17)3 (48)— 113 
Income tax (expense) benefit on core income (loss)(26)(10)3 11 8 — (14)
Core income (loss) $90 $49 $(14)$14 $(40)$— 99 
Net investment gains (losses)69 
Income tax (expense) benefit on net investment gains (losses)(17)
Net investment gains (losses), after tax52 
Net income (loss)$151 
Six months ended June 30, 2021
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$1,497 $1,736 $518 $246 $— $— $3,997 
Net investment income251 322 28 484 10 — 1,095 
Non-insurance warranty revenue697 — — — — — 697 
Other revenues— 10 1 — 3 (3)11 
Total operating revenues2,445 2,068 547 730 13 (3)5,800 
Claims, benefits and expenses      
Net incurred claims and benefits866 1,227 314 603 29 — 3,039 
Policyholders’ dividends2 11 — — — — 13 
Amortization of deferred acquisition costs313 301 102 — — — 716 
Non-insurance warranty expense643 — — — — — 643 
Other insurance related expenses141 251 74 50 10 — 526 
Other expenses23 20 (8)4 82 (3)118 
Total claims, benefits and expenses1,988 1,810 482 657 121 (3)5,055 
Core income (loss) before income tax457 258 65 73 (108)— 745 
Income tax (expense) benefit on core income (loss)(99)(52)(15)6 19 — (141)
Core income (loss) $358 $206 $50 $79 $(89)$— 604 
Net investment gains (losses)95 
Income tax (expense) benefit on net investment gains (losses)(19)
Net investment gains (losses), after tax76 
Net income (loss)$680 

June 30, 2021
(In millions)      
Reinsurance receivables$1,084 $814 $339 $414 $2,569 $— $5,220 
Insurance receivables1,108 1,509 365 6 — — 2,988 
Deferred acquisition costs340 277 104 — — — 721 
Goodwill117 — 31 — — — 148 
Deferred non-insurance warranty acquisition expense3,305 — — — — — 3,305 
Insurance reserves 
Claim and claim adjustment expenses6,178 8,533 2,225 3,754 2,790 — 23,480 
Unearned premiums2,767 2,086 616 123 — — 5,592 
Future policy benefits— — — 13,285 — — 13,285 
Deferred non-insurance warranty revenue4,309 — — — — — 4,309 
Six months ended June 30, 2020
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$1,390 $1,613 $463 $253 $— $— $3,719 
Net investment income189 203 29 414 28 — 863 
Non-insurance warranty revenue609 — — — — — 609 
Other revenues1 13 — — 2 (3)13 
Total operating revenues2,189 1,829 492 667 30 (3)5,204 
Claims, benefits and expenses    
Net incurred claims and benefits913 1,169 330 620 23 — 3,055 
Policyholders’ dividends2 10 — — — — 12 
Amortization of deferred acquisition costs304 291 91 — — — 686 
Non-insurance warranty expense566 — — — — — 566 
Other insurance related expenses142 251 75 51 (1)— 518 
Other expenses23 18 11 3 75 (3)127 
Total claims, benefits and expenses1,950 1,739 507 674 97 (3)4,964 
Core income (loss) before income tax239 90 (15)(7)(67)— 240 
Income tax (expense) benefit on core income (loss)(53)(18)3 25 10 — (33)
Core income (loss)$186 $72 $(12)$18 $(57)$— 207 
Net investment gains (losses)(147)
Income tax (expense) benefit on net investment gains (losses)30 
Net investment gains (losses), after tax(117)
Net income (loss)$90 
December 31, 2020
(In millions)
Reinsurance receivables$886 $848 $302 $390 $2,052 $— $4,478 
Insurance receivables1,052 1,254 328 4 2 — 2,640 
Deferred acquisition costs330 281 97 — — — 708 
Goodwill117 — 31 — — — 148 
Deferred non-insurance warranty acquisition expense3,068 — — — — — 3,068 
Insurance reserves 
Claim and claim adjustment expenses5,748 8,250 2,091 3,743 2,874 — 22,706 
Unearned premiums2,635 1,824 546 114 — — 5,119 
Future policy benefits— — — 13,318 — — 13,318 
Deferred non-insurance warranty revenue4,023 — — — — — 4,023 
The following table presents operating revenues by line of business for each reportable segment.
Periods ended June 30Three MonthsSix Months
(In millions)2021202020212020
Specialty
Management & Professional Liability$693 $645 $1,360 $1,213 
Surety155 153 297 291 
Warranty & Alternative Risks407 348 788 685 
Specialty revenues1,255 1,146 2,445 2,189 
Commercial
Middle Market381 355 756 690 
Construction324 275 633 525 
Small Business143 114 269 226 
Other Commercial212 217 410 388 
Commercial revenues1,060 961 2,068 1,829 
International
Canada87 68 166 141 
Europe115 94 226 186 
Hardy79 76 155 165 
International revenues281 238 547 492 
Life & Group revenues390 332 730 667 
Corporate & Other revenues 6 21 13 30 
Eliminations(1)(1)(3)(3)
Total operating revenues2,991 2,697 5,800 5,204 
Net investment gains (losses)38 69 95 (147)
Total revenues$3,029 $2,766 $5,895 $5,057