Business Segments (Tables)

6 Months Ended

Jun. 30, 2021

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		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	762	$	881	$	266	$	126	$	—	$	—	$	2,035
Net investment income	134		174		14		265		4		—		591
Non-insurance warranty revenue	359		—		—		—		—		—		359
Other revenues	—		5		1		(1)		2		(1)		6
Total operating revenues	1,255		1,060		281		390		6		(1)		2,991
Claims, benefits and expenses
Net incurred claims and benefits	439		588		159		322		31		—		1,539
Policyholders’ dividends	1		6		—		—		—		—		7
Amortization of deferred acquisition costs	159		148		50		—		—		—		357
Non-insurance warranty expense	332		—		—		—		—		—		332
Other insurance related expenses	71		136		39		25		—		—		271
Other expenses	12		11		(3)		2		40		(1)		61
Total claims, benefits and expenses	1,014		889		245		349		71		(1)		2,567
Core income (loss) before income tax	241		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 tax													27
Net income (loss)													$	368


Three months ended June 30, 2020	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	705	$	795	$	224	$	126	$	—	$	—	$	1,850
Net investment income	133		161		14		206		20		—		534
Non-insurance warranty revenue	308		—		—		—		—		—		308
Other revenues	—		5		—		—		1		(1)		5
Total operating revenues	1,146		961		238		332		21		(1)		2,697
Claims, benefits and expenses
Net incurred claims and benefits	508		614		176		304		34		—		1,636
Policyholders’ dividends	1		5		—		—		—		—		6
Amortization of deferred acquisition costs	153		147		42		—		—		—		342
Non-insurance warranty expense	285		—		—		—		—		—		285
Other insurance related expenses	73		124		39		25		(1)		—		260
Other expenses	10		12		(2)		—		36		(1)		55
Total claims, benefits and expenses	1,030		902		255		329		69		(1)		2,584
Core income (loss) before income tax	116		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 tax													52
Net income (loss)													$	151


Six months ended June 30, 2021	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	1,497	$	1,736	$	518	$	246	$	—	$	—	$	3,997
Net investment income	251		322		28		484		10		—		1,095
Non-insurance warranty revenue	697		—		—		—		—		—		697
Other revenues	—		10		1		—		3		(3)		11
Total operating revenues	2,445		2,068		547		730		13		(3)		5,800
Claims, benefits and expenses
Net incurred claims and benefits	866		1,227		314		603		29		—		3,039
Policyholders’ dividends	2		11		—		—		—		—		13
Amortization of deferred acquisition costs	313		301		102		—		—		—		716
Non-insurance warranty expense	643		—		—		—		—		—		643
Other insurance related expenses	141		251		74		50		10		—		526
Other expenses	23		20		(8)		4		82		(3)		118
Total claims, benefits and expenses	1,988		1,810		482		657		121		(3)		5,055
Core income (loss) before income tax	457		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 tax													76
Net income (loss)													$	680


June 30, 2021
(In millions)
Reinsurance receivables	$	1,084	$	814	$	339	$	414	$	2,569	$	—	$	5,220
Insurance receivables	1,108		1,509		365		6		—		—		2,988
Deferred acquisition costs	340		277		104		—		—		—		721
Goodwill	117		—		31		—		—		—		148
Deferred non-insurance warranty acquisition expense	3,305		—		—		—		—		—		3,305
Insurance reserves
Claim and claim adjustment expenses	6,178		8,533		2,225		3,754		2,790		—		23,480
Unearned premiums	2,767		2,086		616		123		—		—		5,592
Future policy benefits	—		—		—		13,285		—		—		13,285
Deferred non-insurance warranty revenue	4,309		—		—		—		—		—		4,309


Six months ended June 30, 2020	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	1,390	$	1,613	$	463	$	253	$	—	$	—	$	3,719
Net investment income	189		203		29		414		28		—		863
Non-insurance warranty revenue	609		—		—		—		—		—		609
Other revenues	1		13		—		—		2		(3)		13
Total operating revenues	2,189		1,829		492		667		30		(3)		5,204
Claims, benefits and expenses
Net incurred claims and benefits	913		1,169		330		620		23		—		3,055
Policyholders’ dividends	2		10		—		—		—		—		12
Amortization of deferred acquisition costs	304		291		91		—		—		—		686
Non-insurance warranty expense	566		—		—		—		—		—		566
Other insurance related expenses	142		251		75		51		(1)		—		518
Other expenses	23		18		11		3		75		(3)		127
Total claims, benefits and expenses	1,950		1,739		507		674		97		(3)		4,964
Core income (loss) before income tax	239		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 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.


Periods ended June 30	Three Months				Six Months
(In millions)	2021		2020		2021		2020
Specialty
Management & Professional Liability	$	693	$	645	$	1,360	$	1,213
Surety	155		153		297		291
Warranty & Alternative Risks	407		348		788		685
Specialty revenues	1,255		1,146		2,445		2,189
Commercial
Middle Market	381		355		756		690
Construction	324		275		633		525
Small Business	143		114		269		226
Other Commercial	212		217		410		388
Commercial revenues	1,060		961		2,068		1,829
International
Canada	87		68		166		141
Europe	115		94		226		186
Hardy	79		76		155		165
International revenues	281		238		547		492
Life & Group revenues	390		332		730		667
Corporate & Other revenues	6		21		13		30
Eliminations	(1)		(1)		(3)		(3)
Total operating revenues	2,991		2,697		5,800		5,204
Net investment gains (losses)	38		69		95		(147)
Total revenues	$	3,029	$	2,766	$	5,895	$	5,057