Business Segments (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Significant components of the Company's continuing operations and selected balance sheet items

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		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	829	$	1,170	$	296	$	112	$	—	$	(1)	$	2,406
Net investment income	136		156		26		216		19		—		553
Non-insurance warranty revenue	407		—		—		—		—		—		407
Other revenues	—		9		(1)		—		2		(2)		8
Total operating revenues	1,372		1,335		321		328		21		(3)		3,374
Claims, benefits and expenses
Net incurred claims and benefits	480		807		178		343		10		—		1,818
Policyholders’ dividends	2		6		—		—		—		—		8
Amortization of deferred acquisition costs	175		188		63		—		—		—		426
Non-insurance warranty expense	386		—		—		—		—		—		386
Other insurance related expenses	89		156		20		29		1		(1)		294
Other expenses	13		11		6		(1)		51		(2)		78
Total claims, benefits and expenses	1,145		1,168		267		371		62		(3)		3,010
Core income (loss) before income tax	227		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 income	102		112		16		187		5		—		422
Non-insurance warranty revenue	399		—		—		—		—		—		399
Other revenues	(1)		13		—		—		1		(2)		11
Total operating revenues	1,310		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’ dividends	2		5		—		—		—		—		7
Amortization of deferred acquisition costs	169		163		51		—		—		—		383
Non-insurance warranty expense	371		—		—		—		—		—		371
Other insurance related expenses	88		145		35		29		1		(1)		297
Other expenses	15		3		11		2		47		(1)		77
Total claims, benefits and expenses	1,104		1,049		266		556		35		(2)		3,008
Core income (loss) before income tax	206		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		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Operating revenues
Net earned premiums	$	2,438	$	3,336	$	888	$	340	$	—	$	(1)	$	7,001
Net investment income	407		470		74		659		43		—		1,653
Non-insurance warranty revenue	1,221		—		—		—		—		—		1,221
Other revenues	—		22		—		—		7		(7)		22
Total operating revenues	4,066		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’ dividends	5		17		—		—		—		—		22
Amortization of deferred acquisition costs	508		532		168		—		—		—		1,208
Non-insurance warranty expense	1,154		—		—		—		—		—		1,154
Other insurance related expenses	269		456		102		89		2		(1)		917
Other expenses	39		27		2		—		136		(7)		197
Total claims, benefits and expenses	3,394		3,267		824		1,087		170		(8)		8,734
Core income (loss) before income tax	672		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 receivables	1,010		1,880		346		4		—		—		3,240
Deferred acquisition costs	398		358		124		—		—		—		880
Goodwill	117		—		28		—		—		—		145
Deferred non-insurance warranty acquisition expense	3,688		—		—		—		—		—		3,688
Insurance reserves
Claim and claim adjustment expenses	7,090		9,902		2,572		649		2,623		—		22,836
Unearned premiums	3,202		2,764		717		106		—		—		6,789
Future policy benefits	—		—		—		12,654		—		—		12,654
Deferred non-insurance warranty revenue	4,736		—		—		—		—		—		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 income	305		343		44		600		10		—		1,302
Non-insurance warranty revenue	1,173		—		—		—		—		—		1,173
Other revenues	—		25		—		—		4		(5)		24
Total operating revenues	3,854		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’ dividends	5		15		—		—		—		—		20
Amortization of deferred acquisition costs	488		467		146		—		—		—		1,101
Non-insurance warranty expense	1,092		—		—		—		—		—		1,092
Other insurance related expenses	250		409		112		89		4		(1)		863
Other expenses	40		21		25		7		133		(4)		222
Total claims, benefits and expenses	3,235		2,828		770		1,236		173		(5)		8,237
Core income (loss) before income tax	619		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 receivables	1,082		1,728		369		8		—		—		3,187
Deferred acquisition costs	381		321		104		—		—		—		806
Goodwill	117		—		27		—		—		—		144
Deferred non-insurance warranty acquisition expense	3,671		—		—		—		—		—		3,671
Insurance reserves
Claim and claim adjustment expenses	6,878		9,395		2,403		695		2,749		—		22,120
Unearned premiums	3,193		2,425		653		103		—		—		6,374
Future policy benefits	—		—		—		13,480		—		—		13,480
Deferred non-insurance warranty revenue	4,714		—		—		—		—		—		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.

Revenues by line of business

The following table presents operating revenues by line of business for each reportable segment.

Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Specialty
Management & Professional Liability	$	723	$	688	$	2,146	$	2,041
Surety	189		171		540		481
Warranty & Alternative Risks	460		451		1,380		1,332
Specialty revenues	1,372		1,310		4,066		3,854
Commercial
Middle Market	437		397		1,254		1,133
Construction	444		372		1,249		1,046
Small Business	160		149		470		430
Other Commercial	294		230		855		660
Commercial revenues	1,335		1,148		3,828		3,269
International
Canada	98		93		287		272
Europe	139		112		401		350
Hardy	84		81		274		225
International revenues	321		286		962		847
Life & Group revenues	328		305		999		956
Corporate & Other revenues	21		6		50		13
Eliminations	(3)		(2)		(8)		(5)
Total operating revenues	3,374		3,053		9,897		8,934
Net investment gains (losses)	(38)		(96)		(105)		(166)
Total revenues	$	3,336	$	2,957	$	9,792	$	8,768