Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

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


	Pension Benefits				Postretirement Benefits
(In millions)	2021		2020		2021		2020
Benefit obligation as of January 1	$	2,769	$	2,661	$	7	$	8
Changes in benefit obligation:
Interest cost	62		80		—		—
Participants' contributions	—		—		3		2
Actuarial (gain) loss	(84)		205		1		2
Benefits paid	(182)		(173)		(5)		(5)
Foreign currency translation and other	(2)		3		—		—
Settlements	(2)		(7)		—		—
Benefit obligation as of December 31	2,561		2,769		6		7
Fair value of plan assets as of January 1	2,420		2,285		—		—
Change in plan assets:
Actual return on plan assets	332		295		—		—
Company contributions	10		16		2		3
Participants' contributions	—		—		3		2
Benefits paid	(182)		(173)		(5)		(5)
Foreign currency translation and other	(1)		4		—		—
Settlements	(2)		(7)		—		—
Fair value of plan assets as of December 31	2,577		2,420		—		—
Funded status	$	16	$	(349)	$	(6)	$	(7)
Amounts recognized on the Consolidated Balance Sheets as of December 31:
Other assets	$	77	$	2	$	—	$	—
Other liabilities	(61)		(351)		(6)		(7)
Net amount recognized	$	16	$	(349)	$	(6)	$	(7)
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit):
Net actuarial (gain) loss	$	763	$	1,073	$	1	$	—
Net amount recognized	$	763	$	1,073	$	1	$	—

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)	2021		2020		2019
Net periodic pension cost (benefit)
Interest cost on projected benefit obligation	$	62	$	80	$	100
Expected return on plan assets	(154)		(155)		(142)
Amortization of net actuarial (gain) loss	46		45		39
Settlement loss	1		3		—
Total net periodic pension cost (benefit)	$	(45)	$	(27)	$	(3)

The following table indicates the line items in which the non-service cost (benefit) is presented in the Consolidated Statements of Operations.


Years ended December 31
(In millions)	2021		2020		2019
Non-Service Cost (benefit):
Insurance claims and policyholder's benefits	$	(13)	$	(8)	$	(1)
Other operating expenses	(32)		(19)		(2)
Total net periodic pension cost (benefit)	$	(45)	$	(27)	$	(3)

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)	2021		2020		2019
Pension and postretirement benefits
Amounts arising during the period	$	262	$	(67)	$	(112)
Settlement	1		3		—
Reclassification adjustment relating to prior service credit	—		—		—
Reclassification adjustment relating to actuarial loss	46		45		39
Total increase (decrease) in Other comprehensive income	$	309	$	(19)	$	(73)

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	2021		2020
Pension benefits
Discount rate	2.750	%	2.350	%
Interest crediting rate	3.000		3.000
Postretirement benefits
Discount rate	2.250	%	1.600	%

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	2021		2020		2019
Pension benefits
Discount rate	2.350	%	3.150	%	4.250	%
Expected long term rate of return	6.750		7.250		7.500
Interest crediting rate	3.000		5.000		5.000
Postretirement benefits
Discount rate	1.600	%	2.300	%	3.550	%

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, 2021
(In millions)	Level 1		Level 2		Level 3		Total
Assets
Fixed maturity securities:
Corporate bonds and other	$	—	$	645	$	8	$	653
States, municipalities and political subdivisions	—		30		—		30
Asset-backed	—		110		—		110
Total fixed maturity securities	—		785		8		793
Equity securities	732		141		—		873
Short term investments	45		—		—		45
Other assets	—		8		—		8
Cash	—		—		—		—
Total assets measured at fair value	$	777	$	934	$	8	1,719
Total equity securities measured at net asset value(1)							20
Total limited partnerships measured at net asset value (1)							838
Total							$	2,577


December 31, 2020
(In millions)	Level 1		Level 2		Level 3		Total
Assets
Fixed maturity securities:
Corporate bonds and other	$	—	$	643	$	9	$	652
States, municipalities and political subdivisions	—		32		—		32
Asset-backed	—		98		—		98
Total fixed maturity securities	—		773		9		782
Equity securities	666		137		—		803
Short term investments	20		38		—		58
Other assets	—		8		—		8
Cash	13		—		—		13
Total assets measured at fair value	$	699	$	956	$	9	1,664
Total limited partnerships measured at net asset value (1)							756
Total							$	2,420

(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, 2021.


(In millions)	Pension Benefits		Postretirement Benefits
2022	$	182	$	1
2023	179		1
2024	177		1
2025	175		—
2026	173		—
2027-2031	798		1