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Business Segments
 9 Months Ended
Sep. 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 September 30, 2023
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$829 $1,170 $296 $112 $— $(1)$2,406 
Net investment income136 156 26 216 19 — 553 
Non-insurance warranty revenue407 — — — — — 407 
Other revenues— 9 (1)— 2 (2)8 
Total operating revenues1,372 1,335 321 328 21 (3)3,374 
Claims, benefits and expenses 
Net incurred claims and benefits480 807 178 343 10 — 1,818 
Policyholders’ dividends2 6 — — — — 8 
Amortization of deferred acquisition costs175 188 63 — — — 426 
Non-insurance warranty expense386 — — — — — 386 
Other insurance related expenses89 156 20 29 1 (1)294 
Other expenses13 11 6 (1)51 (2)78 
Total claims, benefits and expenses1,145 1,168 267 371 62 (3)3,010 
Core income (loss) before income tax227 167 54 (43)(41)— 364 
Income tax (expense) benefit on core income (loss)(49)(34)(14)14 8 — (75)
Core income (loss) $178 $133 $40 $(29)$(33)$— 289 
Net investment gains (losses)(38)
Income tax (expense) benefit on net investment gains (losses)7 
Net investment gains (losses), after tax(31)
Net income (loss)$258 
Three months ended September 30, 2022
Specialty
Commercial		International
Life &
Group (1)
Corporate
& Other		  
(In millions)Eliminations
Total (1)
Operating revenues 
Net earned premiums$810 $1,023 $270 $118 $— $— $2,221 
Net investment income102 112 16 187 5 — 422 
Non-insurance warranty revenue399 — — — — — 399 
Other revenues(1)13 — — 1 (2)11 
Total operating revenues1,310 1,148 286 305 6 (2)3,053 
Claims, benefits and expenses    
Net incurred claims and benefits 459 733 169 525 (13)— 1,873 
Policyholders’ dividends2 5 — — — — 7 
Amortization of deferred acquisition costs169 163 51 — — — 383 
Non-insurance warranty expense371 — — — — — 371 
Other insurance related expenses88 145 35 29 1 (1)297 
Other expenses15 3 11 2 47 (1)77 
Total claims, benefits and expenses1,104 1,049 266 556 35 (2)3,008 
Core income (loss) before income tax206 99 20 (251)(29)— 45 
Income tax (expense) benefit on core income (loss)(45)(19)(1)59 4 — (2)
Core income (loss)$161 $80 $19 $(192)$(25)$— 43 
Net investment gains (losses)(96)
Income tax (expense) benefit on net investment gains (losses)11 
Net investment gains (losses), after tax(85)
Net income (loss)$(42)
(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.
Nine months ended September 30, 2023
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Operating revenues 
Net earned premiums$2,438 $3,336 $888 $340 $— $(1)$7,001 
Net investment income407 470 74 659 43 — 1,653 
Non-insurance warranty revenue1,221 — — — — — 1,221 
Other revenues— 22 — — 7 (7)22 
Total operating revenues4,066 3,828 962 999 50 (8)9,897 
Claims, benefits and expenses    
Net incurred claims and benefits 1,419 2,235 552 998 32 — 5,236 
Policyholders’ dividends5 17 — — — — 22 
Amortization of deferred acquisition costs508 532 168 — — — 1,208 
Non-insurance warranty expense1,154 — — — — — 1,154 
Other insurance related expenses269 456 102 89 2 (1)917 
Other expenses39 27 2 — 136 (7)197 
Total claims, benefits and expenses3,394 3,267 824 1,087 170 (8)8,734 
Core income (loss) before income tax672 561 138 (88)(120)— 1,163 
Income tax (expense) benefit on core income (loss)(146)(118)(36)36 23 — (241)
Core income (loss)$526 $443 $102 $(52)$(97)$— 922 
Net investment gains (losses)(105)
Income tax (expense) benefit on net investment gains (losses)21 
Net investment gains (losses), after tax(84)
Net income (loss)$838 
September 30, 2023
(In millions)      
Reinsurance receivables$1,384 $1,217 $455 $97 $2,316 $— $5,469 
Insurance receivables1,010 1,880 346 4 — — 3,240 
Deferred acquisition costs398 358 124 — — — 880 
Goodwill117 — 28 — — — 145 
Deferred non-insurance warranty acquisition expense3,688 — — — — — 3,688 
Insurance reserves
Claim and claim adjustment expenses7,090 9,902 2,572 649 2,623 — 22,836 
Unearned premiums3,202 2,764 717 106 — — 6,789 
Future policy benefits— — — 12,654 — — 12,654 
Deferred non-insurance warranty revenue4,736 — — — — — 4,736 
Nine months ended September 30, 2022
Specialty
Commercial		International
Life &
Group (1)
Corporate
& Other		  
(In millions)Eliminations
Total (1)
Operating revenues 
Net earned premiums$2,376 $2,901 $803 $356 $(1)$— $6,435 
Net investment income305 343 44 600 10 — 1,302 
Non-insurance warranty revenue1,173 — — — — — 1,173 
Other revenues— 25 — — 4 (5)24 
Total operating revenues3,854 3,269 847 956 13 (5)8,934 
Claims, benefits and expenses    
Net incurred claims and benefits 1,360 1,916 487 1,140 36 — 4,939 
Policyholders’ dividends5 15 — — — — 20 
Amortization of deferred acquisition costs488 467 146 — — — 1,101 
Non-insurance warranty expense1,092 — — — — — 1,092 
Other insurance related expenses250 409 112 89 4 (1)863 
Other expenses40 21 25 7 133 (4)222 
Total claims, benefits and expenses3,235 2,828 770 1,236 173 (5)8,237 
Core income (loss) before income tax619 441 77 (280)(160)— 697 
Income tax (expense) benefit on core income (loss)(134)(91)(14)84 29 — (126)
Core income (loss)$485 $350 $63 $(196)$(131)$— 571 
Net investment gains (losses)(166)
Income tax (expense) benefit on net investment gains (losses)38 
Net investment gains (losses), after tax(128)
Net income (loss)$443 
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 September 30Three MonthsNine Months
(In millions)2023202220232022
Specialty
Management & Professional Liability$723 $688 $2,146 $2,041 
Surety189 171 540 481 
Warranty & Alternative Risks460 451 1,380 1,332 
Specialty revenues1,372 1,310 4,066 3,854 
Commercial
Middle Market437 397 1,254 1,133 
Construction444 372 1,249 1,046 
Small Business160 149 470 430 
Other Commercial294 230 855 660 
Commercial revenues1,335 1,148 3,828 3,269 
International
Canada98 93 287 272 
Europe139 112 401 350 
Hardy84 81 274 225 
International revenues321 286 962 847 
Life & Group revenues328 305 999 956 
Corporate & Other revenues 21 6 50 13 
Eliminations(3)(2)(8)(5)
Total operating revenues3,374 3,053 9,897 8,934 
Net investment gains (losses)(38)(96)(105)(166)
Total revenues$3,336 $2,957 $9,792 $8,768