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Business Segments
 12 Months Ended
Dec. 31, 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. Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters. Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers. The International segment underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of insurance companies based in the U.K. and Luxembourg and Hardy, the Company's Lloyd's syndicate.
The Company's operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other. Life & Group primarily includes the results of the long-term care business that is in run-off. Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt and the results of certain property and casualty business in run-off, including CNA Re, A&EP, a legacy portfolio of EWC policies and certain legacy mass tort reserves.
The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements. 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.
Approximately 11%, 10% and 10% of the Company's direct written premiums were derived from outside the United States for the years ended December 31, 2023, 2022 and 2021.
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.
Year ended December 31, 2023
Specialty
Commercial		InternationalLife &
Group		Corporate
& Other		  
(In millions)EliminationsTotal
Net written premiums$3,329 $4,880 $1,237 $447 $— $(1)$9,892 
Operating revenues 
Net earned premiums$3,307 $4,547 $1,176 $451 $— $(1)$9,480 
Net investment income558 645 103 896 62 — 2,264 
Non-insurance warranty revenue1,624 — — — — — 1,624 
Other revenues1 29 — (1)11 (10)30 
Total operating revenues5,490 5,221 1,279 1,346 73 (11)13,398 
Claims, benefits and expenses      
Net incurred claims and benefits1,923 2,995 722 1,317 82 — 7,039 
Policyholders’ dividends8 21 — — — — 29 
Amortization of deferred acquisition costs686 729 229 — — — 1,644 
Non-insurance warranty expense1,544 — — — — — 1,544 
Other insurance related expenses373 620 139 118 2 (1)1,251 
Other expenses53 30 (4)1 204 (10)274 
Total claims, benefits and expenses4,587 4,395 1,086 1,436 288 (11)11,781 
Core income (loss) before income tax903 826 193 (90)(215)— 1,617 
Income tax (expense) benefit on core income (loss)(195)(174)(48)42 42 — (333)
Core income (loss) $708 $652 $145 $(48)$(173)$— 1,284 
Net investment gains (losses)(99)
Income tax (expense) benefit on net investment gains (losses)20 
Net investment gains (losses), after tax(79)
Net income (loss)$1,205 
December 31, 2023
(In millions)      
Reinsurance receivables$1,281 $1,218 $468 $93 $2,374 $— $5,434 
Insurance receivables1,053 2,024 388 5 — — 3,470 
Deferred acquisition costs392 371 133 — — — 896 
Goodwill117 — 29 — — — 146 
Deferred non-insurance warranty acquisition expense3,661 — — — — — 3,661 
Insurance reserves 
Claim and claim adjustment expenses7,131 10,103 2,709 675 2,686 — 23,304 
Unearned premiums3,227 2,858 749 99 — — 6,933 
Future policy benefits— — — 13,959 — — 13,959 
Deferred non-insurance warranty revenue4,694 — — — — — 4,694 
Year ended December 31, 2022
Specialty
Commercial		International
Life &
Group (1)
Corporate
& Other		  
(In millions)Eliminations
Total (1)
Net written premiums$3,306 $4,193 $1,164 $467 $(1)$(1)$9,128 
Operating revenues 
Net earned premiums$3,203 $3,923 $1,070 $473 $(1)$(1)$8,667 
Net investment income431 488 63 804 19 — 1,805 
Non-insurance warranty revenue1,574 — — — — — 1,574 
Other revenues1 30 1 (1)6 (5)32 
Total operating revenues5,209 4,441 1,134 1,276 24 (6)12,078 
Claims, benefits and expenses    
Net incurred claims and benefits1,839 2,607 637 1,469 76 — 6,628 
Policyholders’ dividends6 19 — — — — 25 
Amortization of deferred acquisition costs656 634 200 — — — 1,490 
Non-insurance warranty expense1,471 — — — — — 1,471 
Other insurance related expenses336 557 146 118 4 (1)1,160 
Other expenses51 36 26 9 174 (5)291 
Total claims, benefits and expenses4,359 3,853 1,009 1,596 254 (6)11,065 
Core income (loss) before income tax850 588 125 (320)(230)— 1,013 
Income tax (expense) benefit on core income (loss)(182)(122)(19)99 47 — (177)
Core income (loss)$668 $466 $106 $(221)$(183)$— 836 
Net investment gains (losses)(199)
Income tax (expense) benefit on net investment gains (losses)45 
Net investment gains (losses), after tax(154)
Net income (loss)$682 
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 Consolidated Financial Statements for additional information.
Year ended December 31, 2021
Specialty
Commercial
Life &
Group (1)
Corporate
& Other
(In millions)InternationalEliminations
Total (1)
Net written premiums$3,225 $3,595 $1,101 $485 $— $(1)$8,405 
Operating revenues 
Net earned premiums$3,076 $3,552 $1,057 $491 $— $(1)$8,175 
Net investment income497 624 57 966 15 — 2,159 
Non-insurance warranty revenue1,430 — — — — — 1,430 
Other revenues1 23 — — 6 (6)24 
Total operating revenues5,004 4,199 1,114 1,457 21 (7)11,788 
Claims, benefits and expenses     
Net incurred claims and benefits1,787 2,540 652 1,261 109 — 6,349 
Policyholders’ dividends3 19 — — — — 22 
Amortization of deferred acquisition costs643 594 206 — — — 1,443 
Non-insurance warranty expense1,328 — — — — — 1,328 
Other insurance related expenses296 511 144 103 9 (1)1,062 
Other expenses47 38 (2)10 155 (6)242 
Total claims, benefits and expenses4,104 3,702 1,000 1,374 273 (7)10,446 
Core income (loss) before income tax900 497 114 83 (252)— 1,342 
Income tax (expense) benefit on core income (loss)(196)(103)(28)25 48 — (254)
Core income (loss)$704 $394 $86 $108 $(204)$— 1,088 
Net investment gains (losses)120 
Income tax (expense) benefit on net investment gains (losses)(24)
Net investment gains (losses), after tax96 
Net income (loss)$1,184 
Year ended December 31, 2021
(In millions)
Reinsurance receivables$1,200 $923 $381 $401 $2,579 $— $5,484 
Insurance receivables1,136 1,488 340 6 4 — 2,974 
Deferred acquisition costs363 278 96 — — — 737 
Goodwill117 — 31 — — — 148 
Deferred non-insurance warranty acquisition expense3,476 — — — — — 3,476 
Insurance reserves 
Claim and claim adjustment expenses6,433 8,890 2,280 848 2,817 — 21,268 
Unearned premiums3,001 2,066 585 109 — — 5,761 
Future policy benefits— — — 18,298 — — 18,298 
Deferred non-insurance warranty revenue4,503 — — — — — 4,503 
(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 Consolidated Financial Statements for additional information.
The following table presents operating revenues by line of business for each reportable segment.
Years ended December 31
(In millions)202320222021
Specialty
Management & Professional Liability$2,931 $2,771 $2,776 
Surety731 652 604 
Warranty & Alternative Risks1,828 1,786 1,624 
Specialty revenues5,490 5,209 5,004 
Commercial
Middle Market1,696 1,532 1,508 
Construction1,678 1,421 1,322 
Small Business631 581 558 
Other Commercial1,216 907 811 
Commercial revenues5,221 4,441 4,199 
International
Canada383 366 344 
Europe532 466 473 
Hardy364 302 297 
International revenues1,279 1,134 1,114 
Life & Group revenues1,346 1,276 1,457 
Corporate & Other revenues 73 24 21 
Eliminations(11)(6)(7)
Total operating revenues13,398 12,078 11,788 
Net investment gains (losses)(99)(199)120 
Total revenues$13,299 $11,879 $11,908