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Business Segments
 6 Months Ended
Jun. 30, 2023
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.
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, 2022. 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. 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, 2023
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$812 $1,120 $302 $113 $— $— $2,347 
Net investment income142 165 25 229 14 — 575 
Non-insurance warranty revenue407 — — — — — 407 
Other revenues— 6 1 — 2 (2)7 
Total operating revenues1,361 1,291 328 342 16 (2)3,336 
Claims, benefits and expenses 
Net incurred claims and benefits474 740 185 344 29 — 1,772 
Policyholders’ dividends2 5 — — — — 7 
Amortization of deferred acquisition costs168 175 60 — — — 403 
Non-insurance warranty expense384 — — — — — 384 
Other insurance related expenses94 158 35 31 — — 318 
Other expenses12 10 (5)— 44 (2)59 
Total claims, benefits and expenses1,134 1,088 275 375 73 (2)2,943 
Core income (loss) before income tax227 203 53 (33)(57)— 393 
Income tax (expense) benefit on core income (loss)(50)(44)(15)13 11 — (85)
Core income (loss) $177 $159 $38 $(20)$(46)$— 308 
Net investment gains (losses)(32)
Income tax (expense) benefit on net investment gains (losses)7 
Net investment gains (losses), after tax(25)
Net income (loss)$283 
Three months ended June 30, 2022
Specialty
Commercial		International
Life &
Group (1)
Corporate
& Other		  
(In millions)Eliminations
Total (1)
Operating revenues 
Net earned premiums$794 $974 $269 $118 $— $— $2,155 
Net investment income100 113 14 201 4 — 432 
Non-insurance warranty revenue392 — — — — — 392 
Other revenues— 4 1 1 1 (1)6 
Total operating revenues1,286 1,091 284 320 5 (1)2,985 
Claims, benefits and expenses    
Net incurred claims and benefits 456 610 160 311 57 — 1,594 
Policyholders’ dividends2 5 — — — — 7 
Amortization of deferred acquisition costs162 156 56 — — — 374 
Non-insurance warranty expense367 — — — — — 367 
Other insurance related expenses81 134 30 29 1 — 275 
Other expenses12 11 13 2 45 (1)82 
Total claims, benefits and expenses1,080 916 259 342 103 (1)2,699 
Core income (loss) before income tax206 175 25 (22)(98)— 286 
Income tax (expense) benefit on core income (loss)(45)(37)(7)13 20 — (56)
Core income (loss)$161 $138 $18 $(9)$(78)$— 230 
Net investment gains (losses)(59)
Income tax (expense) benefit on net investment gains (losses)19 
Net investment gains (losses), after tax(40)
Net income (loss)$190 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Condensed Consolidated Financial Statements for additional information.
Six months ended June 30, 2023
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$1,609 $2,166 $592 $228 $— $— $4,595 
Net investment income271 314 48 443 24 — 1,100 
Non-insurance warranty revenue814 — — — — — 814 
Other revenues— 13 1 — 5 (5)14 
Total operating revenues2,694 2,493 641 671 29 (5)6,523 
Claims, benefits and expenses    
Net incurred claims and benefits 939 1,428 374 655 22 — 3,418 
Policyholders’ dividends3 11 — — — — 14 
Amortization of deferred acquisition costs333 344 105 — — — 782 
Non-insurance warranty expense768 — — — — — 768 
Other insurance related expenses180 300 82 60 1 — 623 
Other expenses26 16 (4)1 85 (5)119 
Total claims, benefits and expenses2,249 2,099 557 716 108 (5)5,724 
Core income (loss) before income tax445 394 84 (45)(79)— 799 
Income tax (expense) benefit on core income (loss)(97)(84)(22)22 15 — (166)
Core income (loss)$348 $310 $62 $(23)$(64)$— 633 
Net investment gains (losses)(67)
Income tax (expense) benefit on net investment gains (losses)14 
Net investment gains (losses), after tax(53)
Net income (loss)$580 
June 30, 2023
(In millions)      
Reinsurance receivables$1,530 $1,153 $445 $100 $2,375 $— $5,603 
Insurance receivables1,034 2,050 462 4 1 — 3,551 
Deferred acquisition costs395 359 131 — — — 885 
Goodwill117 — 29 — — — 146 
Deferred non-insurance warranty acquisition expense3,689 — — — — — 3,689 
Insurance reserves
Claim and claim adjustment expenses7,183 9,674 2,583 688 2,674 — 22,802 
Unearned premiums3,194 2,882 790 112 — — 6,978 
Future policy benefits— — — 13,666 — — 13,666 
Deferred non-insurance warranty revenue4,735 — — — — — 4,735 
Six months ended June 30, 2022
Specialty
Commercial		International
Life &
Group (1)
Corporate
& Other		  
(In millions)Eliminations
Total (1)
Operating revenues 
Net earned premiums$1,566 $1,878 $533 $238 $(1)$— $4,214 
Net investment income203 231 28 413 5 — 880 
Non-insurance warranty revenue774 — — — — — 774 
Other revenues1 12 — — 3 (3)13 
Total operating revenues2,544 2,121 561 651 7 (3)5,881 
Claims, benefits and expenses    
Net incurred claims and benefits 901 1,183 318 615 49 — 3,066 
Policyholders’ dividends3 10 — — — — 13 
Amortization of deferred acquisition costs319 304 95 — — — 718 
Non-insurance warranty expense721 — — — — — 721 
Other insurance related expenses162 264 77 60 3 — 566 
Other expenses25 18 14 5 86 (3)145 
Total claims, benefits and expenses2,131 1,779 504 680 138 (3)5,229 
Core income (loss) before income tax413 342 57 (29)(131)— 652 
Income tax (expense) benefit on core income (loss)(89)(72)(13)25 25 — (124)
Core income (loss)$324 $270 $44 $(4)$(106)$— 528 
Net investment gains (losses)(70)
Income tax (expense) benefit on net investment gains (losses)27 
Net investment gains (losses), after tax(43)
Net income (loss)$485 
December 31, 2022
(In millions)
Reinsurance receivables$1,384 $1,062 $414 $101 $2,477 $— $5,438 
Insurance receivables1,082 1,728 369 8 — — 3,187 
Deferred acquisition costs381 321 104 — — — 806 
Goodwill117 — 27 — — — 144 
Deferred non-insurance warranty acquisition expense3,671 — — — — — 3,671 
Insurance reserves
Claim and claim adjustment expenses6,878 9,395 2,403 695 2,749 — 22,120 
Unearned premiums3,193 2,425 653 103 — — 6,374 
Future policy benefits— — — 13,480 — — 13,480 
Deferred non-insurance warranty revenue4,714 — — — — — 4,714 
(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Condensed Consolidated Financial Statements for additional information.
The following table presents operating revenues by line of business for each reportable segment.
Periods ended June 30Three MonthsSix Months
(In millions)2023202220232022
Specialty
Management & Professional Liability$718 $680 $1,423 $1,353 
Surety183 162 351 310 
Warranty & Alternative Risks460 444 920 881 
Specialty revenues1,361 1,286 2,694 2,544 
Commercial
Middle Market419 374 817 736 
Construction420 350 805 674 
Small Business160 143 310 281 
Other Commercial292 224 561 430 
Commercial revenues1,291 1,091 2,493 2,121 
International
Canada96 91 189 179 
Europe135 118 262 238 
Hardy97 75 190 144 
International revenues328 284 641 561 
Life & Group revenues342 320 671 651 
Corporate & Other revenues 16 5 29 7 
Eliminations(2)(1)(5)(3)
Total operating revenues3,336 2,985 6,523 5,881 
Net investment gains (losses)(32)(59)(67)(70)
Total revenues$3,304 $2,926 $6,456 $5,811