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Goodwill and Other Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill by segment [Table Text Block]
The following table presents the carrying amount of the Company’s goodwill by segment.  Each reportable segment includes goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates.
(in millions)
 
June 30,
2018
 
December 31,
2017
Business Insurance
 
$
2,573

 
$
2,585

Bond & Specialty Insurance
 
550

 
550

Personal Insurance
 
782

 
790

Other
 
26

 
26

Total
 
$
3,931

 
$
3,951


Other intangible assets subject to amortization [Table Text Block]
The following tables present a summary of the Company’s other intangible assets by major asset class.
(at June 30, 2018, in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Subject to amortization
 
 
 
 
 
 
Customer-related
 
$
100

 
$
7

 
$
93

Contract-based (1)
 
208

 
171

 
37

Total subject to amortization
 
308

 
178

 
130

Not subject to amortization
 
226

 

 
226

Total
 
$
534

 
$
178

 
$
356

 
(at December 31, 2017, in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Subject to amortization
 
 
 
 
 
 
Customer-related
 
$
77

 
$
4

 
$
73

Contract-based (1)
 
209

 
167

 
42

Total subject to amortization
 
286

 
171

 
115

Not subject to amortization
 
227

 

 
227

Total
 
$
513

 
$
171

 
$
342

 _________________________________________________________
(1)
Contract-based intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangible assets. Fair value adjustments recorded in connection with insurance acquisitions were based on management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves.  The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the amounts measured in accordance with the acquirer’s accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods.
Other intangible assets not subject to amortization [Table Text Block]
The following tables present a summary of the Company’s other intangible assets by major asset class.
(at June 30, 2018, in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Subject to amortization
 
 
 
 
 
 
Customer-related
 
$
100

 
$
7

 
$
93

Contract-based (1)
 
208

 
171

 
37

Total subject to amortization
 
308

 
178

 
130

Not subject to amortization
 
226

 

 
226

Total
 
$
534

 
$
178

 
$
356

 
(at December 31, 2017, in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Subject to amortization
 
 
 
 
 
 
Customer-related
 
$
77

 
$
4

 
$
73

Contract-based (1)
 
209

 
167

 
42

Total subject to amortization
 
286

 
171

 
115

Not subject to amortization
 
227

 

 
227

Total
 
$
513

 
$
171

 
$
342

 _________________________________________________________
(1)
Contract-based intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangible assets. Fair value adjustments recorded in connection with insurance acquisitions were based on management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves.  The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the amounts measured in accordance with the acquirer’s accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods.