Business Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments

Note 20. 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.

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 of London marketplace. Other Non-Core primarily includes the results of CNA’s long term care business that is in run-off and also includes certain 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 32 drilling rigs, including one newbuild rig which is under construction, and four jack-up rigs which are being marketed for sale. On December 31, 2015, Diamond Offshore’s drilling rigs were located offshore of seven 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 and Texas, with approximately 14,525 miles of pipeline.

Loews Hotels operates a chain of 24 hotels, 23 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 following tables set forth the Company’s consolidated revenues and income (loss) by business segment:

Year Ended December 31	2015		2014		2013
(In millions)
Revenues (a):
CNA Financial:
Property and Casualty:
Specialty	$	3,579	$	3,708	$	3,676
Commercial		3,371		3,683		3,984
International		856		973		981
Other Non-Core		1,295		1,328		1,291
Total CNA Financial		9,101		9,692		9,932
Diamond Offshore		2,428		2,825		2,926
Boardwalk Pipeline		1,254		1,236		1,232
Loews Hotels		604		475		380
Corporate and other		28		97		143
Total	$	13,415	$	14,325	$	14,613

Year Ended December 31	2015			2014			2013
(In millions)
Income (loss) before income tax and noncontrolling interests (a)(b):
CNA Financial:
Property and Casualty:
Specialty	$	810		$	967		$	1,005
Commercial		514			477			662
International		59			102			117
Other Non-Core		(830	)		(331	)		(501	)
Total CNA Financial		553			1,215			1,283
Diamond Offshore		(402	)		514			774
Boardwalk Pipeline		227			140			241
Loews Hotels		28			21			(4	)
Corporate and other		(162	)		(80	)		(17	)
Total	$	244		$	1,810		$	2,277
Net income (loss) (a)(b):
CNA Financial:
Property and Casualty:
Specialty	$	483		$	578		$	598
Commercial		303			285			394
International		34			62			65
Other Non-Core		(387	)		(123	)		(230	)
Total CNA Financial		433			802			827
Diamond Offshore		(156	)		183			257
Boardwalk Pipeline		74			18			78
Loews Hotels		12			11			(3	)
Corporate and other		(103	)		(52	)		(10	)
Income from continuing operations		260			962			1,149
Discontinued operations, net					(371	)		(554	)
Total	$	260		$	591		$	595
(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	2015			2014			2013
Revenues and Income (loss) before income tax and noncontrolling interests:
CNA Financial:
Property and Casualty:
Specialty	$	(33	)	$	15		$	(5	)
Commercial		(47	)		16			(15	)
International		1			(1	)		5
Other Non-Core		8			24			31
Total	$	(71	)	$	54		$	16
Net income (loss):
CNA Financial:
Property and Casualty:
Specialty	$	(19	)	$	9		$	(2	)
Commercial		(28	)		9			(9	)
International		1			(1	)		3
Other Non-Core		12			15			18
Total	$	(34	)	$	32		$	10

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

Year Ended December 31	2015					2014					2013
	Income			Interest		Income			Interest		Income			Interest
	Taxes			Expense		Taxes			Expense		Taxes			Expense
CNA Financial:
Property and Casualty:
Specialty	$	271				$	324				$	340
Commercial		175					159					223
International		22		$	1		34		$	1		45		$	1
Other Non-Core		(397	)		154		(195	)		182		(245	)		165
Total CNA Financial		71			155		322			183		363			166
Diamond Offshore		(117	)		94		142			62		245			25
Boardwalk Pipeline		46			176		11			165		56			163
Loews Hotels		16			21		10			14		(1	)		9
Corporate and other		(59	)		74		(28	)		74		(7	)		62
Total	$	(43	)	$	520	$	457		$	498	$	656		$	425