Business Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

Note 21.  Business Segments

The Company’s reportable segments are primarily based on its individual operating subsidiaries. Each of the principal operating subsidiaries are headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position. Investment gains (losses) and the related income taxes, excluding those of CNA, are included in the Corporate and other segment. The Company revised its CNA related segments in the fourth quarter of 2014 as a result of realigned management responsibilities at CNA. Results of CNA Europe and Canada that were previously included in the Specialty and Commercial segments and results of Hardy that were previously included in the Other Non-Core segment are now included in the International segment. Prior period segment disclosures have been conformed to the current year presentation. The new segment structure reflects the way management currently reviews results and makes business decisions.

CNA’s results are reported in four business segments: Specialty, Commercial, International and Other Non-Core. Specialty provides a broad array of professional, financial and specialty property and casualty products and services, through a network of independent agents, brokers and managing general underwriters. Commercial includes property and casualty coverages sold to small businesses and middle market entities and organizations primarily through an independent agency distribution system. Commercial also includes commercial insurance and risk management products sold to large corporations primarily through insurance brokers. International provides management and professional liability coverages as well as a broad range of other property and casualty insurance products and services abroad through a network of brokers, independent agencies and managing general underwriters, as well as the Lloyd’s marketplace. Other Non-Core primarily includes the results of CNA’s individual and group long term care businesses that are in run-off and also includes corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re and A&EP.

Diamond Offshore owns and operates offshore drilling rigs that are chartered on a contract basis for fixed terms by companies engaged in exploration and production of hydrocarbons. Offshore rigs are mobile units that can be relocated based on market demand. Diamond Offshore’s fleet consists of 38 drilling rigs, excluding three mid-water rigs that Diamond Offshore plans to retire and scrap and including two newbuild rigs which are under construction. On December 31, 2014, Diamond Offshore’s drilling rigs were located offshore eight countries in addition to the United States.

Boardwalk Pipeline is engaged in the interstate transportation and storage of natural gas and NGLs and gathering and processing of natural gas. This segment consists of interstate natural gas pipeline systems originating in the Gulf Coast region, Oklahoma and Arkansas, and extending north and east through the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, natural gas storage facilities in four states and NGL pipelines and storage facilities in Louisiana, with approximately 14,625 miles of pipeline.

Loews Hotels operates a chain of 21 hotels, 20 of which are in the United States and one of which is in Canada.

The Corporate and other segment consists primarily of corporate investment income, corporate interest expense and other unallocated expenses.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. In addition, CNA does not maintain a distinct investment portfolio for every insurance segment, and accordingly, allocation of assets to each segment is not performed. Therefore, a significant portion of net investment income and investment gains (losses) are allocated based on each segment’s carried insurance reserves, as adjusted.

The HighMount and CAC businesses are reported as discontinued operations in the Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012. See Notes 2 and 20 for further discussion of discontinued operations.

The following tables set forth the Company’s consolidated revenues and income (loss) by business segment:

Year Ended December 31	2014		2013		2012
(In millions)
Revenues (a):
CNA Financial:
Property and Casualty:
Specialty	$	3,708	$	3,676	$	3,522
Commercial		3,683		3,984		3,869
International		973		981		712
Other Non-Core		1,328		1,291		1,261
Total CNA Financial		9,692		9,932		9,364
Diamond Offshore		2,825		2,926		3,072
Boardwalk Pipeline		1,236		1,232		1,187
Loews Hotels		475		380		397
Corporate and other		97		143		52
Total	$	14,325	$	14,613	$	14,072
Income (loss) before income tax and noncontrolling interests (a)(b):
CNA Financial:
Property and Casualty:
Specialty	$	967	$	1,005	$	715
Commercial		477		662		399
International		102		117		98
Other Non-Core		(331)		(501)		(345)
Total CNA Financial		1,215		1,283		867
Diamond Offshore		514		774		917
Boardwalk Pipeline		140		241		304
Loews Hotels		21		(4)		14
Corporate and other		(80)		(17)		(80)
Total	$	1,810	$	2,277	$	2,022
Net income (loss) (a)(b):
CNA Financial:
Property and Casualty:
Specialty	$	578	$	598	$	425
Commercial		285		394		241
International		62		65		51
Other Non-Core		(123)		(230)		(154)
Total CNA Financial		802		827		563
Diamond Offshore		183		257		337
Boardwalk Pipeline		18		78		111
Loews Hotels		11		(3)		7
Corporate and other		(52)		(10)		(50)
Income from continuing operations		962		1,149		968
Discontinued operations, net		(371)		(554)		(400)
Total	$	591	$	595	$	568

(a) Investment gains (losses) included in Revenues, Income (loss) before income tax and noncontrolling interests and Net income (loss) are as follows:

Year Ended December 31	2014		2013		2012
Revenues and Income (loss) before income tax and noncontrolling interests:
CNA Financial:
Property and Casualty:
Specialty	$	15	$	(5)	$	18
Commercial		16		(15)		34
International		(1)		5		7
Other Non-Core		24		31		(8)
Total CNA Financial		54		16		51
Corporate and other						(3)
Total	$	54	$	16	$	48
Net income (loss):
CNA Financial:
Property and Casualty:
Specialty	$	9	$	(2)	$	10
Commercial		9		(9)		20
International		(1)		3		5
Other Non-Core		15		18		(5)
Total CNA Financial		32		10		30
Corporate and other						(2)
Total	$	32	$	10	$	28

(b) Income taxes and interest expense are as follows:

Year Ended December 31	2014				2013				2012
	Income Taxes		Interest Expense		Income Taxes		Interest Expense		Income Taxes		Interest Expense
CNA Financial:
Property and Casualty:
Specialty	$	324			$	340			$	243
Commercial		159				223				131
International		34	$	1		45	$	1		42	$	1
Other Non-Core		(195)		182		(245)		165		(174)		169
Total CNA Financial		322		183		363		166		242		170
Diamond Offshore		142		62		245		25		223		46
Boardwalk Pipeline		11		165		56		163		70		166
Loews Hotels		10		14		(1)		9		7		11
Corporate and other		(28)		74		(7)		62		(29)		33
Total	$	457	$	498	$	656	$	425	$	513	$	426