Page Number | |
Consolidated Results | |
Financial Highlights | 1 |
Reconciliation to Net Income and Earnings Per Share | 2 |
Statement of Income | 3 |
Net Income by Major Component and Combined Ratio | 4 |
Core Income | 5 |
Selected Statistics - Property and Casualty Operations | 6 |
Written and Earned Premiums - Property and Casualty Operations | 7 |
Business Insurance | |
Segment Income | 8 |
Segment Income by Major Component and Combined Ratio | 9 |
Selected Statistics | 10 |
Net Written Premiums | 11 |
Bond & Specialty Insurance | |
Segment Income | 12 |
Segment Income by Major Component and Combined Ratio | 13 |
Selected Statistics | 14 |
Net Written Premiums | 15 |
Personal Insurance | |
Segment Income | 16 |
Segment Income by Major Component and Combined Ratio | 17 |
Selected Statistics | 18 |
Net Written Premiums | 19 |
Selected Statistics - Domestic Agency Automobile | 20 |
Selected Statistics - Domestic Agency Homeowners and Other | 21 |
Supplemental Detail | |
Interest Expense and Other | 22 |
Consolidated Balance Sheet | 23 |
Investment Portfolio | 24 |
Investment Portfolio - Fixed Maturities Data | 25 |
Investment Income | 26 |
Net Realized and Unrealized Investment Gains (Losses) included in Shareholders’ Equity | 27 |
Reinsurance Recoverables | 28 |
Net Reserves for Losses and Loss Adjustment Expense | 29 |
Asbestos and Environmental Reserves | 30 |
Capitalization | 31 |
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation | 32 |
Statement of Cash Flows | 33 |
Statement of Cash Flows (continued) | 34 |
Glossary of Financial Measures and Description of Reportable Business Segments | 35-36 |
($ and shares in millions, except for per share data) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Net income | $ | 796 | $ | 557 | $ | 396 | $ | 873 | $ | 600 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 3.01 | $ | 2.11 | $ | 1.52 | $ | 3.37 | $ | 2.34 | ||||||||||
Diluted | $ | 2.99 | $ | 2.10 | $ | 1.50 | $ | 3.35 | $ | 2.33 | ||||||||||
Core income | $ | 755 | $ | 537 | $ | 378 | $ | 867 | $ | 676 | ||||||||||
Core income per share: | ||||||||||||||||||||
Basic | $ | 2.85 | $ | 2.04 | $ | 1.45 | $ | 3.35 | $ | 2.64 | ||||||||||
Diluted | $ | 2.83 | $ | 2.02 | $ | 1.43 | $ | 3.32 | $ | 2.62 | ||||||||||
Return on equity | 13.5 | % | 9.0 | % | 6.2 | % | 13.5 | % | 9.4 | % | ||||||||||
Core return on equity | 13.0 | % | 9.2 | % | 6.5 | % | 14.8 | % | 11.5 | % | ||||||||||
Total assets, at period end | $ | 107,246 | $ | 108,572 | $ | 110,241 | $ | 110,122 | $ | 109,436 | ||||||||||
Total equity, at period end | $ | 24,340 | $ | 25,321 | $ | 25,607 | $ | 25,943 | $ | 25,204 | ||||||||||
Book value per share, at period end | $ | 92.94 | $ | 97.26 | $ | 99.21 | $ | 101.55 | $ | 99.69 | ||||||||||
Less: Net unrealized investment gains, net of tax | 3.85 | 7.21 | 9.12 | 8.79 | 7.06 | |||||||||||||||
Adjusted book value per share, at period end | $ | 89.09 | $ | 90.05 | $ | 90.09 | $ | 92.76 | $ | 92.63 | ||||||||||
Weighted average number of common shares outstanding (basic) | 262.9 | 261.3 | 259.2 | 256.8 | 254.4 | |||||||||||||||
Weighted average number of common shares outstanding and common stock equivalents (diluted) | 264.8 | 263.7 | 261.8 | 259.0 | 255.9 | |||||||||||||||
Common shares outstanding at period end | 261.9 | 260.3 | 258.1 | 255.5 | 252.8 | |||||||||||||||
Common stock dividends declared | $ | 204 | $ | 217 | $ | 215 | $ | 212 | $ | 210 | ||||||||||
Common stock repurchased: | ||||||||||||||||||||
Under Board of Directors authorization | ||||||||||||||||||||
Shares | 2.9 | 2.6 | 2.5 | 2.8 | 3.5 | |||||||||||||||
Cost | $ | 375 | $ | 375 | $ | 375 | $ | 375 | $ | 425 | ||||||||||
Other | ||||||||||||||||||||
Shares | 0.3 | — | — | 0.1 | 0.3 | |||||||||||||||
Cost | $ | 46 | $ | 1 | $ | — | $ | 1 | $ | 46 | ||||||||||
($ and shares in millions, except earnings per share) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Net income | ||||||||||||||||||||
Net income | $ | 796 | $ | 557 | $ | 396 | $ | 873 | $ | 600 | ||||||||||
Adjustments: | ||||||||||||||||||||
Net realized investment (gains) losses, after-tax | (41 | ) | (20 | ) | (18 | ) | (6 | ) | 76 | |||||||||||
Core income | $ | 755 | $ | 537 | $ | 378 | $ | 867 | $ | 676 | ||||||||||
Basic earnings per share | ||||||||||||||||||||
Net income | $ | 3.01 | $ | 2.11 | $ | 1.52 | $ | 3.37 | $ | 2.34 | ||||||||||
Adjustments: | ||||||||||||||||||||
Net realized investment (gains) losses, after-tax | (0.16 | ) | (0.07 | ) | (0.07 | ) | (0.02 | ) | 0.30 | |||||||||||
Core income | $ | 2.85 | $ | 2.04 | $ | 1.45 | $ | 3.35 | $ | 2.64 | ||||||||||
Diluted earnings per share | ||||||||||||||||||||
Net income | $ | 2.99 | $ | 2.10 | $ | 1.50 | $ | 3.35 | $ | 2.33 | ||||||||||
Adjustments: | ||||||||||||||||||||
Net realized investment (gains) losses, after-tax | (0.16 | ) | (0.08 | ) | (0.07 | ) | (0.03 | ) | 0.29 | |||||||||||
Core income | $ | 2.83 | $ | 2.02 | $ | 1.43 | $ | 3.32 | $ | 2.62 | ||||||||||
Basic and Diluted | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Net income, as reported | $ | 796 | $ | 557 | $ | 396 | $ | 873 | $ | 600 | ||||||||||
Participating share-based awards - allocated income | (5 | ) | (4 | ) | (3 | ) | (7 | ) | (5 | ) | ||||||||||
Net income available to common shareholders - basic and diluted | $ | 791 | $ | 553 | $ | 393 | $ | 866 | $ | 595 | ||||||||||
Common Shares | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Weighted average shares outstanding | 262.9 | 261.3 | 259.2 | 256.8 | 254.4 | |||||||||||||||
Diluted | ||||||||||||||||||||
Weighted average shares outstanding | 262.9 | 261.3 | 259.2 | 256.8 | 254.4 | |||||||||||||||
Weighted average effects of dilutive securities - stock options and performance shares | 1.9 | 2.4 | 2.6 | 2.2 | 1.5 | |||||||||||||||
Diluted weighted average shares outstanding | 264.8 | 263.7 | 261.8 | 259.0 | 255.9 | |||||||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Revenues | ||||||||||||||||||||
Premiums | $ | 6,855 | $ | 6,988 | $ | 7,179 | $ | 7,250 | $ | 7,229 | ||||||||||
Net investment income | 582 | 648 | 622 | 616 | 611 | |||||||||||||||
Fee income | 109 | 116 | 121 | 113 | 108 | |||||||||||||||
Net realized investment gains (losses) | 53 | 25 | 23 | 12 | (98 | ) | ||||||||||||||
Other revenues | 72 | 57 | 68 | 72 | 58 | |||||||||||||||
Total revenues | 7,671 | 7,834 | 8,013 | 8,063 | 7,908 | |||||||||||||||
Claims and expenses | ||||||||||||||||||||
Claims and claim adjustment expenses | 4,442 | 4,821 | 5,230 | 4,640 | 4,789 | |||||||||||||||
Amortization of deferred acquisition costs | 1,117 | 1,134 | 1,169 | 1,181 | 1,178 | |||||||||||||||
General and administrative expenses | 1,057 | 1,125 | 1,098 | 1,085 | 1,137 | |||||||||||||||
Interest expense | 88 | 89 | 84 | 83 | 84 | |||||||||||||||
Total claims and expenses | 6,704 | 7,169 | 7,581 | 6,989 | 7,188 | |||||||||||||||
Income before income taxes | 967 | 665 | 432 | 1,074 | 720 | |||||||||||||||
Income tax expense | 171 | 108 | 36 | 201 | 120 | |||||||||||||||
Net income | $ | 796 | $ | 557 | $ | 396 | $ | 873 | $ | 600 | ||||||||||
Investment impairments | ||||||||||||||||||||
Total investment impairments | $ | (1 | ) | $ | (1 | ) | $ | — | $ | (1 | ) | $ | (16 | ) | ||||||
Credit losses recognized in net realized investment gains (losses) | $ | (1 | ) | $ | (1 | ) | $ | — | $ | (2 | ) | $ | (16 | ) | ||||||
Non-credit losses recognized in other comprehensive income | $ | — | $ | — | $ | — | $ | 1 | $ | — | ||||||||||
Other statistics | ||||||||||||||||||||
Effective tax rate on net investment income | 14.7 | % | 15.4 | % | 15.2 | % | 14.8 | % | 15.1 | % | ||||||||||
Net investment income (after-tax) | $ | 496 | $ | 548 | $ | 528 | $ | 525 | $ | 519 | ||||||||||
Catastrophes, net of reinsurance: | ||||||||||||||||||||
Pre-tax | $ | 193 | $ | 367 | $ | 241 | $ | 85 | $ | 333 | ||||||||||
After-tax | $ | 152 | $ | 290 | $ | 190 | $ | 67 | $ | 263 | ||||||||||
Prior year reserve development - favorable (unfavorable): | ||||||||||||||||||||
Pre-tax | $ | 51 | $ | 123 | $ | (294 | ) | $ | 60 | $ | 27 | |||||||||
After-tax | $ | 41 | $ | 99 | $ | (232 | ) | $ | 45 | $ | 21 | |||||||||
($ in millions, net of tax) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Underwriting gain (loss) | $ | 307 | $ | 52 | $ | (101 | ) | $ | 396 | $ | 220 | |||||||||
Net investment income | 496 | 548 | 528 | 525 | 519 | |||||||||||||||
Other income (expense), including interest expense | (48 | ) | (63 | ) | (49 | ) | (54 | ) | (63 | ) | ||||||||||
Core income | 755 | 537 | 378 | 867 | 676 | |||||||||||||||
Net realized investment gains (losses) | 41 | 20 | 18 | 6 | (76 | ) | ||||||||||||||
Net income | $ | 796 | $ | 557 | $ | 396 | $ | 873 | $ | 600 | ||||||||||
Combined ratio (1) (2) | ||||||||||||||||||||
Loss and loss adjustment expense ratio | 64.0 | % | 68.2 | % | 72.0 | % | 63.3 | % | 65.5 | % | ||||||||||
Underwriting expense ratio | 29.7 | % | 30.2 | % | 29.5 | % | 29.1 | % | 30.0 | % | ||||||||||
Combined ratio | 93.7 | % | 98.4 | % | 101.5 | % | 92.4 | % | 95.5 | % | ||||||||||
Impact on combined ratio: | ||||||||||||||||||||
Net (favorable) unfavorable prior year reserve development | (0.7 | )% | (1.8 | )% | 4.1 | % | (0.8 | )% | (0.4 | )% | ||||||||||
Catastrophes, net of reinsurance | 2.8 | % | 5.3 | % | 3.3 | % | 1.1 | % | 4.6 | % | ||||||||||
Underlying combined ratio | 91.6 | % | 94.9 | % | 94.1 | % | 92.1 | % | 91.3 | % | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Billing and policy fees and other | $ | 27 | $ | 26 | $ | 28 | $ | 27 | $ | 28 | ||||||||||
Fee income: | ||||||||||||||||||||
Loss and loss adjustment expenses | $ | 40 | $ | 45 | $ | 47 | $ | 42 | $ | 41 | ||||||||||
Underwriting expenses | 69 | 71 | 74 | 71 | 67 | |||||||||||||||
Total fee income | $ | 109 | $ | 116 | $ | 121 | $ | 113 | $ | 108 | ||||||||||
Non-insurance general and administrative expenses | $ | 47 | $ | 50 | $ | 48 | $ | 56 | $ | 55 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Revenues | ||||||||||||||||||||
Premiums | $ | 6,855 | $ | 6,988 | $ | 7,179 | $ | 7,250 | $ | 7,229 | ||||||||||
Net investment income | 582 | 648 | 622 | 616 | 611 | |||||||||||||||
Fee income | 109 | 116 | 121 | 113 | 108 | |||||||||||||||
Other revenues | 72 | 57 | 68 | 72 | 58 | |||||||||||||||
Total revenues | 7,618 | 7,809 | 7,990 | 8,051 | 8,006 | |||||||||||||||
Claims and expenses | ||||||||||||||||||||
Claims and claim adjustment expenses | 4,442 | 4,821 | 5,230 | 4,640 | 4,789 | |||||||||||||||
Amortization of deferred acquisition costs | 1,117 | 1,134 | 1,169 | 1,181 | 1,178 | |||||||||||||||
General and administrative expenses | 1,057 | 1,125 | 1,098 | 1,085 | 1,137 | |||||||||||||||
Interest expense | 88 | 89 | 84 | 83 | 84 | |||||||||||||||
Total claims and expenses | 6,704 | 7,169 | 7,581 | 6,989 | 7,188 | |||||||||||||||
Core income before income taxes | 914 | 640 | 409 | 1,062 | 818 | |||||||||||||||
Income tax expense | 159 | 103 | 31 | 195 | 142 | |||||||||||||||
Core income | $ | 755 | $ | 537 | $ | 378 | $ | 867 | $ | 676 | ||||||||||
Other statistics | ||||||||||||||||||||
Effective tax rate on net investment income | 14.7 | % | 15.4 | % | 15.2 | % | 14.8 | % | 15.1 | % | ||||||||||
Net investment income (after-tax) | $ | 496 | $ | 548 | $ | 528 | $ | 525 | $ | 519 | ||||||||||
Catastrophes, net of reinsurance: | ||||||||||||||||||||
Pre-tax | $ | 193 | $ | 367 | $ | 241 | $ | 85 | $ | 333 | ||||||||||
After-tax | $ | 152 | $ | 290 | $ | 190 | $ | 67 | $ | 263 | ||||||||||
Prior year reserve development - favorable (unfavorable): | ||||||||||||||||||||
Pre-tax | $ | 51 | $ | 123 | $ | (294 | ) | $ | 60 | $ | 27 | |||||||||
After-tax | $ | 41 | $ | 99 | $ | (232 | ) | $ | 45 | $ | 21 | |||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Statutory underwriting | ||||||||||||||||||||
Gross written premiums | $ | 7,839 | $ | 7,824 | $ | 8,022 | $ | 7,378 | $ | 8,152 | ||||||||||
Net written premiums | $ | 7,057 | $ | 7,450 | $ | 7,569 | $ | 7,075 | $ | 7,346 | ||||||||||
Net earned premiums | $ | 6,855 | $ | 6,988 | $ | 7,179 | $ | 7,250 | $ | 7,229 | ||||||||||
Losses and loss adjustment expenses | 4,389 | 4,764 | 5,166 | 4,578 | 4,733 | |||||||||||||||
Underwriting expenses | 2,116 | 2,217 | 2,179 | 2,072 | 2,193 | |||||||||||||||
Statutory underwriting gain (loss) | 350 | 7 | (166 | ) | 600 | 303 | ||||||||||||||
Policyholder dividends | 13 | 9 | 15 | 10 | 12 | |||||||||||||||
Statutory underwriting gain (loss) after policyholder dividends | $ | 337 | $ | (2 | ) | $ | (181 | ) | $ | 590 | $ | 291 | ||||||||
Other statutory statistics | ||||||||||||||||||||
Reserves for losses and loss adjustment expenses | $ | 42,581 | $ | 42,979 | $ | 43,624 | $ | 43,743 | $ | 43,913 | ||||||||||
Increase in reserves | $ | 172 | $ | 398 | $ | 645 | $ | 119 | $ | 170 | ||||||||||
Statutory capital and surplus | $ | 21,074 | $ | 21,080 | $ | 20,780 | $ | 21,330 | $ | 20,808 | ||||||||||
Net written premiums/surplus (1) | 1.33:1 | 1.34:1 | 1.38:1 | 1.37:1 | 1.41:1 | |||||||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Written premiums | ||||||||||||||||||||
Gross | $ | 7,839 | $ | 7,824 | $ | 8,022 | $ | 7,378 | $ | 8,152 | ||||||||||
Ceded | (782 | ) | (374 | ) | (453 | ) | (303 | ) | (806 | ) | ||||||||||
Net | $ | 7,057 | $ | 7,450 | $ | 7,569 | $ | 7,075 | $ | 7,346 | ||||||||||
Earned premiums | ||||||||||||||||||||
Gross | $ | 7,282 | $ | 7,429 | $ | 7,636 | $ | 7,723 | $ | 7,683 | ||||||||||
Ceded | (427 | ) | (441 | ) | (457 | ) | (473 | ) | (454 | ) | ||||||||||
Net | $ | 6,855 | $ | 6,988 | $ | 7,179 | $ | 7,250 | $ | 7,229 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Revenues | ||||||||||||||||||||
Premiums | $ | 3,742 | $ | 3,783 | $ | 3,882 | $ | 3,893 | $ | 3,864 | ||||||||||
Net investment income | 427 | 481 | 457 | 451 | 453 | |||||||||||||||
Fee income | 104 | 111 | 114 | 108 | 102 | |||||||||||||||
Other revenues | 43 | 30 | 39 | 43 | 31 | |||||||||||||||
Total revenues | 4,316 | 4,405 | 4,492 | 4,495 | 4,450 | |||||||||||||||
Claims and expenses | ||||||||||||||||||||
Claims and claim adjustment expenses | 2,580 | 2,686 | 3,028 | 2,669 | 2,791 | |||||||||||||||
Amortization of deferred acquisition costs | 615 | 618 | 634 | 636 | 636 | |||||||||||||||
General and administrative expenses | 632 | 686 | 657 | 652 | 685 | |||||||||||||||
Total claims and expenses | 3,827 | 3,990 | 4,319 | 3,957 | 4,112 | |||||||||||||||
Segment income before income taxes | 489 | 415 | 173 | 538 | 338 | |||||||||||||||
Income tax expense (benefit) | 75 | 64 | (6 | ) | 90 | 49 | ||||||||||||||
Segment income | $ | 414 | $ | 351 | $ | 179 | $ | 448 | $ | 289 | ||||||||||
Other statistics | ||||||||||||||||||||
Effective tax rate on net investment income | 14.6 | % | 15.3 | % | 15.1 | % | 14.8 | % | 15.0 | % | ||||||||||
Net investment income (after-tax) | $ | 365 | $ | 407 | $ | 389 | $ | 384 | $ | 385 | ||||||||||
Catastrophes, net of reinsurance: | ||||||||||||||||||||
Pre-tax | $ | 95 | $ | 211 | $ | 116 | $ | 48 | $ | 195 | ||||||||||
After-tax | $ | 75 | $ | 167 | $ | 91 | $ | 37 | $ | 154 | ||||||||||
Prior year reserve development - favorable (unfavorable): | ||||||||||||||||||||
Pre-tax | $ | (21 | ) | $ | 71 | $ | (316 | ) | $ | 8 | $ | 5 | ||||||||
After-tax | $ | (16 | ) | $ | 57 | $ | (249 | ) | $ | 5 | $ | 3 | ||||||||
($ in millions, net of tax) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Underwriting gain (loss) | $ | 44 | $ | (48 | ) | $ | (210 | ) | $ | 65 | $ | (84 | ) | |||||||
Net investment income | 365 | 407 | 389 | 384 | 385 | |||||||||||||||
Other income (expense) | 5 | (8 | ) | — | (1 | ) | (12 | ) | ||||||||||||
Segment income | $ | 414 | $ | 351 | $ | 179 | $ | 448 | $ | 289 | ||||||||||
Combined ratio (1) (2) | ||||||||||||||||||||
Loss and loss adjustment expense ratio | 67.6 | % | 69.6 | % | 76.6 | % | 67.3 | % | 70.9 | % | ||||||||||
Underwriting expense ratio | 30.5 | % | 31.5 | % | 30.4 | % | 30.2 | % | 31.3 | % | ||||||||||
Combined ratio | 98.1 | % | 101.1 | % | 107.0 | % | 97.5 | % | 102.2 | % | ||||||||||
Impact on combined ratio: | ||||||||||||||||||||
Net (favorable) unfavorable prior year reserve development | 0.6 | % | (1.9 | )% | 8.1 | % | (0.2 | )% | (0.1 | )% | ||||||||||
Catastrophes, net of reinsurance | 2.5 | % | 5.6 | % | 3.0 | % | 1.3 | % | 5.0 | % | ||||||||||
Underlying combined ratio | 95.0 | % | 97.4 | % | 95.9 | % | 96.4 | % | 97.3 | % | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Billing and policy fees and other | $ | 4 | $ | 3 | $ | 5 | $ | 4 | $ | 4 | ||||||||||
Fee income: | ||||||||||||||||||||
Loss and loss adjustment expenses | $ | 40 | $ | 45 | $ | 47 | $ | 42 | $ | 41 | ||||||||||
Underwriting expenses | 64 | 66 | 67 | 66 | 61 | |||||||||||||||
Total fee income | $ | 104 | $ | 111 | $ | 114 | $ | 108 | $ | 102 | ||||||||||
Non-insurance general and administrative expenses | $ | 38 | $ | 41 | $ | 39 | $ | 43 | $ | 47 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Statutory underwriting | ||||||||||||||||||||
Gross written premiums | $ | 4,730 | $ | 4,193 | $ | 4,271 | $ | 3,957 | $ | 4,794 | ||||||||||
Net written premiums | $ | 4,163 | $ | 3,874 | $ | 3,889 | $ | 3,703 | $ | 4,190 | ||||||||||
Net earned premiums | $ | 3,742 | $ | 3,783 | $ | 3,882 | $ | 3,893 | $ | 3,864 | ||||||||||
Losses and loss adjustment expenses | 2,529 | 2,631 | 2,969 | 2,608 | 2,737 | |||||||||||||||
Underwriting expenses | 1,226 | 1,226 | 1,164 | 1,133 | 1,247 | |||||||||||||||
Statutory underwriting gain (loss) | (13 | ) | (74 | ) | (251 | ) | 152 | (120 | ) | |||||||||||
Policyholder dividends | 11 | 7 | 11 | 7 | 10 | |||||||||||||||
Statutory underwriting gain (loss) after policyholder dividends | $ | (24 | ) | $ | (81 | ) | $ | (262 | ) | $ | 145 | $ | (130 | ) | ||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Net written premiums by market | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Select Accounts | $ | 785 | $ | 756 | $ | 695 | $ | 675 | $ | 799 | ||||||||||
Middle Market | 2,410 | 2,009 | 2,150 | 2,061 | 2,408 | |||||||||||||||
National Accounts | 304 | 223 | 273 | 251 | 301 | |||||||||||||||
National Property and Other | 387 | 588 | 553 | 437 | 428 | |||||||||||||||
Total Domestic | 3,886 | 3,576 | 3,671 | 3,424 | 3,936 | |||||||||||||||
International | 277 | 298 | 218 | 279 | 254 | |||||||||||||||
Total | $ | 4,163 | $ | 3,874 | $ | 3,889 | $ | 3,703 | $ | 4,190 | ||||||||||
Net written premiums by product line | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Workers’ compensation | $ | 1,191 | $ | 893 | $ | 905 | $ | 817 | $ | 1,096 | ||||||||||
Commercial automobile | 719 | 677 | 674 | 666 | 755 | |||||||||||||||
Commercial property | 389 | 583 | 568 | 474 | 433 | |||||||||||||||
General liability | 678 | 548 | 611 | 579 | 683 | |||||||||||||||
Commercial multi-peril | 902 | 871 | 885 | 884 | 956 | |||||||||||||||
Other | 7 | 4 | 28 | 4 | 13 | |||||||||||||||
Total Domestic | 3,886 | 3,576 | 3,671 | 3,424 | 3,936 | |||||||||||||||
International | 277 | 298 | 218 | 279 | 254 | |||||||||||||||
Total | $ | 4,163 | $ | 3,874 | $ | 3,889 | $ | 3,703 | $ | 4,190 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Revenues | ||||||||||||||||||||
Premiums | $ | 606 | $ | 632 | $ | 653 | $ | 674 | $ | 667 | ||||||||||
Net investment income | 56 | 58 | 59 | 60 | 55 | |||||||||||||||
Other revenues | 6 | 6 | 7 | 7 | 5 | |||||||||||||||
Total revenues | 668 | 696 | 719 | 741 | 727 | |||||||||||||||
Claims and expenses | ||||||||||||||||||||
Claims and claim adjustment expenses | 266 | 238 | 303 | 287 | 327 | |||||||||||||||
Amortization of deferred acquisition costs | 112 | 118 | 123 | 125 | 124 | |||||||||||||||
General and administrative expenses | 117 | 120 | 124 | 122 | 125 | |||||||||||||||
Total claims and expenses | 495 | 476 | 550 | 534 | 576 | |||||||||||||||
Segment income before income taxes | 173 | 220 | 169 | 207 | 151 | |||||||||||||||
Income tax expense | 35 | 46 | 30 | 40 | 29 | |||||||||||||||
Segment income | $ | 138 | $ | 174 | $ | 139 | $ | 167 | $ | 122 | ||||||||||
Other statistics | ||||||||||||||||||||
Effective tax rate on net investment income | 14.4 | % | 14.8 | % | 14.9 | % | 13.2 | % | 14.7 | % | ||||||||||
Net investment income (after-tax) | $ | 47 | $ | 50 | $ | 50 | $ | 52 | $ | 47 | ||||||||||
Catastrophes, net of reinsurance: | ||||||||||||||||||||
Pre-tax | $ | 3 | $ | — | $ | 1 | $ | 1 | $ | 1 | ||||||||||
After-tax | $ | 2 | $ | — | $ | 1 | $ | 1 | $ | 1 | ||||||||||
Prior year reserve development - favorable: | ||||||||||||||||||||
Pre-tax | $ | 3 | $ | 39 | $ | 3 | $ | 20 | $ | — | ||||||||||
After-tax | $ | 2 | $ | 31 | $ | 2 | $ | 16 | $ | — | ||||||||||
($ in millions, net of tax) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Underwriting gain | $ | 86 | $ | 120 | $ | 85 | $ | 111 | $ | 72 | ||||||||||
Net investment income | 47 | 50 | 50 | 52 | 47 | |||||||||||||||
Other income | 5 | 4 | 4 | 4 | 3 | |||||||||||||||
Segment income | $ | 138 | $ | 174 | $ | 139 | $ | 167 | $ | 122 | ||||||||||
Combined ratio (1) | ||||||||||||||||||||
Loss and loss adjustment expense ratio | 43.5 | % | 37.4 | % | 45.7 | % | 42.4 | % | 48.8 | % | ||||||||||
Underwriting expense ratio | 37.6 | % | 37.5 | % | 37.6 | % | 36.2 | % | 37.1 | % | ||||||||||
Combined ratio | 81.1 | % | 74.9 | % | 83.3 | % | 78.6 | % | 85.9 | % | ||||||||||
Impact on combined ratio: | ||||||||||||||||||||
Net favorable prior year reserve development | (0.5 | )% | (6.2 | )% | (0.5 | )% | (2.9 | )% | — | % | ||||||||||
Catastrophes, net of reinsurance | 0.5 | % | 0.1 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||||||
Underlying combined ratio | 81.1 | % | 81.0 | % | 83.6 | % | 81.3 | % | 85.7 | % | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Non-insurance general and administrative expenses | $ | 1 | $ | 1 | $ | 1 | $ | 2 | $ | 1 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Statutory underwriting | ||||||||||||||||||||
Gross written premiums | $ | 662 | $ | 747 | $ | 770 | $ | 752 | $ | 750 | ||||||||||
Net written premiums | $ | 587 | $ | 710 | $ | 728 | $ | 714 | $ | 663 | ||||||||||
Net earned premiums | $ | 606 | $ | 632 | $ | 653 | $ | 674 | $ | 667 | ||||||||||
Losses and loss adjustment expenses | 264 | 236 | 298 | 286 | 325 | |||||||||||||||
Underwriting expenses | 233 | 251 | 261 | 242 | 254 | |||||||||||||||
Statutory underwriting gain | 109 | 145 | 94 | 146 | 88 | |||||||||||||||
Policyholder dividends | 2 | 2 | 4 | 3 | 2 | |||||||||||||||
Statutory underwriting gain after policyholder dividends | $ | 107 | $ | 143 | $ | 90 | $ | 143 | $ | 86 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Net written premiums by market | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Management Liability | $ | 367 | $ | 403 | $ | 424 | $ | 411 | $ | 401 | ||||||||||
Surety | 184 | 244 | 232 | 206 | 215 | |||||||||||||||
Total Domestic | 551 | 647 | 656 | 617 | 616 | |||||||||||||||
International | 36 | 63 | 72 | 97 | 47 | |||||||||||||||
Total | $ | 587 | $ | 710 | $ | 728 | $ | 714 | $ | 663 | ||||||||||
Net written premiums by product line | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Fidelity & surety | $ | 239 | $ | 298 | $ | 292 | $ | 260 | $ | 272 | ||||||||||
General liability | 262 | 292 | 293 | 301 | 289 | |||||||||||||||
Other | 50 | 57 | 71 | 56 | 55 | |||||||||||||||
Total Domestic | 551 | 647 | 656 | 617 | 616 | |||||||||||||||
International | 36 | 63 | 72 | 97 | 47 | |||||||||||||||
Total | $ | 587 | $ | 710 | $ | 728 | $ | 714 | $ | 663 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Revenues | ||||||||||||||||||||
Premiums | $ | 2,507 | $ | 2,573 | $ | 2,644 | $ | 2,683 | $ | 2,698 | ||||||||||
Net investment income | 99 | 109 | 106 | 105 | 103 | |||||||||||||||
Fee income | 5 | 5 | 7 | 5 | 6 | |||||||||||||||
Other revenues | 22 | 21 | 22 | 22 | 22 | |||||||||||||||
Total revenues | 2,633 | 2,708 | 2,779 | 2,815 | 2,829 | |||||||||||||||
Claims and expenses | ||||||||||||||||||||
Claims and claim adjustment expenses | 1,596 | 1,897 | 1,899 | 1,684 | 1,671 | |||||||||||||||
Amortization of deferred acquisition costs | 390 | 398 | 412 | 420 | 418 | |||||||||||||||
General and administrative expenses | 300 | 311 | 309 | 300 | 320 | |||||||||||||||
Total claims and expenses | 2,286 | 2,606 | 2,620 | 2,404 | 2,409 | |||||||||||||||
Segment income before income taxes | 347 | 102 | 159 | 411 | 420 | |||||||||||||||
Income tax expense | 69 | 14 | 28 | 84 | 84 | |||||||||||||||
Segment income | $ | 278 | $ | 88 | $ | 131 | $ | 327 | $ | 336 | ||||||||||
Other statistics | ||||||||||||||||||||
Effective tax rate on net investment income | 15.4 | % | 16.1 | % | 15.8 | % | 15.6 | % | 15.8 | % | ||||||||||
Net investment income (after-tax) | $ | 84 | $ | 91 | $ | 89 | $ | 89 | $ | 87 | ||||||||||
Catastrophes, net of reinsurance: | ||||||||||||||||||||
Pre-tax | $ | 95 | $ | 156 | $ | 124 | $ | 36 | $ | 137 | ||||||||||
After-tax | $ | 75 | $ | 123 | $ | 98 | $ | 29 | $ | 108 | ||||||||||
Prior year reserve development - favorable: | ||||||||||||||||||||
Pre-tax | $ | 69 | $ | 13 | $ | 19 | $ | 32 | $ | 22 | ||||||||||
After-tax | $ | 55 | $ | 11 | $ | 15 | $ | 24 | $ | 18 | ||||||||||
($ in millions, net of tax) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Underwriting gain (loss) | $ | 177 | $ | (20 | ) | $ | 24 | $ | 220 | $ | 232 | |||||||||
Net investment income | 84 | 91 | 89 | 89 | 87 | |||||||||||||||
Other income | 17 | 17 | 18 | 18 | 17 | |||||||||||||||
Segment income | $ | 278 | $ | 88 | $ | 131 | $ | 327 | $ | 336 | ||||||||||
Combined ratio (1) | ||||||||||||||||||||
Loss and loss adjustment expense ratio | 63.7 | % | 73.7 | % | 71.8 | % | 62.8 | % | 61.9 | % | ||||||||||
Underwriting expense ratio | 26.4 | % | 26.5 | % | 26.2 | % | 25.7 | % | 26.3 | % | ||||||||||
Combined ratio | 90.1 | % | 100.2 | % | 98.0 | % | 88.5 | % | 88.2 | % | ||||||||||
Domestic Agency combined ratio | 88.9 | % | 98.8 | % | 97.2 | % | 88.2 | % | 86.9 | % | ||||||||||
Impact on combined ratio: | ||||||||||||||||||||
Net favorable prior year reserve development | (2.8 | )% | (0.5 | )% | (0.7 | )% | (1.2 | )% | (0.8 | )% | ||||||||||
Catastrophes, net of reinsurance | 3.8 | % | 6.1 | % | 4.7 | % | 1.3 | % | 5.0 | % | ||||||||||
Underlying combined ratio | 89.1 | % | 94.6 | % | 94.0 | % | 88.4 | % | 84.0 | % | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Billing and policy fees and other | $ | 23 | $ | 23 | $ | 23 | $ | 23 | $ | 24 | ||||||||||
Fee income | $ | 5 | $ | 5 | $ | 7 | $ | 5 | $ | 6 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Statutory underwriting | ||||||||||||||||||||
Gross written premiums | $ | 2,447 | $ | 2,884 | $ | 2,981 | $ | 2,669 | $ | 2,608 | ||||||||||
Net written premiums | $ | 2,307 | $ | 2,866 | $ | 2,952 | $ | 2,658 | $ | 2,493 | ||||||||||
Net earned premiums | $ | 2,507 | $ | 2,573 | $ | 2,644 | $ | 2,683 | $ | 2,698 | ||||||||||
Losses and loss adjustment expenses | 1,596 | 1,897 | 1,899 | 1,684 | 1,671 | |||||||||||||||
Underwriting expenses | 657 | 740 | 754 | 697 | 692 | |||||||||||||||
Statutory underwriting gain (loss) | $ | 254 | $ | (64 | ) | $ | (9 | ) | $ | 302 | $ | 335 | ||||||||
Policies in force (in thousands) | ||||||||||||||||||||
Automobile | 2,981 | 2,980 | 2,979 | 2,973 | 2,970 | |||||||||||||||
Homeowners and Other | 5,163 | 5,263 | 5,361 | 5,444 | 5,534 | |||||||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Net written premiums by market | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Agency | ||||||||||||||||||||
Automobile | $ | 1,224 | $ | 1,300 | $ | 1,347 | $ | 1,253 | $ | 1,260 | ||||||||||
Homeowners and Other | 837 | 1,258 | 1,300 | 1,145 | 990 | |||||||||||||||
Total Agency | 2,061 | 2,558 | 2,647 | 2,398 | 2,250 | |||||||||||||||
Direct-to-Consumer | 95 | 103 | 115 | 99 | 100 | |||||||||||||||
Total Domestic | 2,156 | 2,661 | 2,762 | 2,497 | 2,350 | |||||||||||||||
International | 151 | 205 | 190 | 161 | 143 | |||||||||||||||
Total | $ | 2,307 | $ | 2,866 | $ | 2,952 | $ | 2,658 | $ | 2,493 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Statutory underwriting | ||||||||||||||||||||
Gross written premiums | $ | 1,240 | $ | 1,304 | $ | 1,352 | $ | 1,258 | $ | 1,272 | ||||||||||
Net written premiums | $ | 1,224 | $ | 1,300 | $ | 1,347 | $ | 1,253 | $ | 1,260 | ||||||||||
Net earned premiums | $ | 1,228 | $ | 1,249 | $ | 1,271 | $ | 1,276 | $ | 1,279 | ||||||||||
Losses and loss adjustment expenses | 810 | 876 | 891 | 971 | 842 | |||||||||||||||
Underwriting expenses | 296 | 312 | 310 | 299 | 301 | |||||||||||||||
Statutory underwriting gain | $ | 122 | $ | 61 | $ | 70 | $ | 6 | $ | 136 | ||||||||||
Other statistics | ||||||||||||||||||||
Combined ratio (2): | ||||||||||||||||||||
Loss and loss adjustment expense ratio | 66.0 | % | 70.1 | % | 70.1 | % | 76.1 | % | 65.9 | % | ||||||||||
Underwriting expense ratio | 23.4 | % | 23.9 | % | 22.9 | % | 23.1 | % | 23.5 | % | ||||||||||
Combined ratio | 89.4 | % | 94.0 | % | 93.0 | % | 99.2 | % | 89.4 | % | ||||||||||
Impact on combined ratio: | ||||||||||||||||||||
Net favorable prior year reserve development | (3.4 | )% | (1.1 | )% | (0.5 | )% | (0.5 | )% | (0.4 | )% | ||||||||||
Catastrophes, net of reinsurance | 0.7 | % | 1.3 | % | 0.8 | % | 0.1 | % | 0.6 | % | ||||||||||
Underlying combined ratio | 92.1 | % | 93.8 | % | 92.7 | % | 99.6 | % | 89.2 | % | ||||||||||
Catastrophe losses, net of reinsurance: | ||||||||||||||||||||
Pre-tax | $ | 9 | $ | 16 | $ | 11 | $ | 1 | $ | 7 | ||||||||||
After-tax | $ | 7 | $ | 13 | $ | 8 | $ | 1 | $ | 6 | ||||||||||
Prior year reserve development - favorable: | ||||||||||||||||||||
Pre-tax | $ | 42 | $ | 13 | $ | 5 | $ | 6 | $ | 6 | ||||||||||
After-tax | $ | 33 | $ | 10 | $ | 5 | $ | 4 | $ | 5 | ||||||||||
Policies in force (in thousands) | 2,516 | 2,517 | 2,524 | 2,532 | 2,540 | |||||||||||||||
Change from prior year quarter | (0.1 | )% | — | % | 0.2 | % | 0.6 | % | 1.0 | % | ||||||||||
Change from prior quarter | (0.1 | )% | — | % | 0.3 | % | 0.3 | % | 0.3 | % | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Billing and policy fees and other | $ | 12 | $ | 12 | $ | 12 | $ | 11 | $ | 12 | ||||||||||
Fee income | $ | 3 | $ | 3 | $ | 4 | $ | 3 | $ | 3 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Statutory underwriting | ||||||||||||||||||||
Gross written premiums | $ | 954 | $ | 1,268 | $ | 1,316 | $ | 1,147 | $ | 1,086 | ||||||||||
Net written premiums | $ | 837 | $ | 1,258 | $ | 1,300 | $ | 1,145 | $ | 990 | ||||||||||
Net earned premiums | $ | 1,011 | $ | 1,050 | $ | 1,089 | $ | 1,125 | $ | 1,145 | ||||||||||
Losses and loss adjustment expenses | 604 | 801 | 801 | 542 | 642 | |||||||||||||||
Underwriting expenses | 277 | 335 | 349 | 314 | 310 | |||||||||||||||
Statutory underwriting gain (loss) | $ | 130 | $ | (86 | ) | $ | (61 | ) | $ | 269 | $ | 193 | ||||||||
Other statistics | ||||||||||||||||||||
Combined ratio (2): | ||||||||||||||||||||
Loss and loss adjustment expense ratio | 59.8 | % | 76.3 | % | 73.6 | % | 48.2 | % | 56.1 | % | ||||||||||
Underwriting expense ratio | 28.4 | % | 28.2 | % | 28.4 | % | 27.6 | % | 28.1 | % | ||||||||||
Combined ratio | 88.2 | % | 104.5 | % | 102.0 | % | 75.8 | % | 84.2 | % | ||||||||||
Impact on combined ratio: | ||||||||||||||||||||
Net (favorable) unfavorable prior year reserve development | (2.4 | )% | (1.3 | )% | (1.4 | )% | (0.8 | )% | (1.5 | )% | ||||||||||
Catastrophes, net of reinsurance | 8.0 | % | 12.9 | % | 9.9 | % | 3.0 | % | 10.8 | % | ||||||||||
Underlying combined ratio | 82.6 | % | 92.9 | % | 93.5 | % | 73.6 | % | 74.9 | % | ||||||||||
Catastrophe losses, net of reinsurance: | ||||||||||||||||||||
Pre-tax | $ | 80 | $ | 136 | $ | 107 | $ | 34 | $ | 123 | ||||||||||
After-tax | $ | 63 | $ | 107 | $ | 85 | $ | 27 | $ | 97 | ||||||||||
Prior year reserve development - favorable (unfavorable): | ||||||||||||||||||||
Pre-tax | $ | 25 | $ | 13 | $ | 15 | $ | 9 | $ | 17 | ||||||||||
After-tax | $ | 19 | $ | 11 | $ | 12 | $ | 7 | $ | 14 | ||||||||||
Policies in force (in thousands) | 4,726 | 4,825 | 4,927 | 5,016 | 5,111 | |||||||||||||||
Change from prior year quarter | 6.1 | % | 6.5 | % | 7.1 | % | 7.8 | % | 8.1 | % | ||||||||||
Change from prior quarter | 1.6 | % | 2.1 | % | 2.1 | % | 1.8 | % | 1.9 | % | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Billing and policy fees and other | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | ||||||||||
Fee income | $ | 2 | $ | 2 | $ | 3 | $ | 2 | $ | 2 | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Revenues | ||||||||||||||||||||
Other revenues | $ | 1 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Claims and expenses | ||||||||||||||||||||
Interest expense | 88 | 89 | 84 | 83 | 84 | |||||||||||||||
General and administrative expenses | 8 | 8 | 8 | 11 | 7 | |||||||||||||||
Total claims and expenses | 96 | 97 | 92 | 94 | 91 | |||||||||||||||
Loss before income tax benefit | (95 | ) | (97 | ) | (92 | ) | (94 | ) | (91 | ) | ||||||||||
Income tax benefit | (20 | ) | (21 | ) | (21 | ) | (19 | ) | (20 | ) | ||||||||||
Loss | $ | (75 | ) | $ | (76 | ) | $ | (71 | ) | $ | (75 | ) | $ | (71 | ) | |||||
($ in millions) | March 31, 2020 | December 31, 2019 | ||||||
Assets | ||||||||
Fixed maturities, available for sale, at fair value (amortized cost $65,630 and $65,281; allowance for expected credit losses of $4 at March 31, 2020) | $ | 67,897 | $ | 68,134 | ||||
Equity securities, at fair value (cost $372 and $376) | 342 | 425 | ||||||
Real estate investments | 966 | 963 | ||||||
Short-term securities | 4,033 | 4,943 | ||||||
Other investments | 3,412 | 3,419 | ||||||
Total investments | 76,650 | 77,884 | ||||||
Cash | 544 | 494 | ||||||
Investment income accrued | 567 | 618 | ||||||
Premiums receivable (net of allowance for expected credit losses of $78 at March 31, 2020) | 8,202 | 7,909 | ||||||
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $149 at March 31, 2020) | 8,152 | 8,235 | ||||||
Ceded unearned premiums | 1,030 | 689 | ||||||
Deferred acquisition costs | 2,298 | 2,273 | ||||||
Deferred taxes | 9 | — | ||||||
Contractholder receivables (net of allowance for expected credit losses of $20 at March 31, 2020) | 4,634 | 4,599 | ||||||
Goodwill | 3,915 | 3,961 | ||||||
Other intangible assets | 322 | 330 | ||||||
Other assets | 3,113 | 3,130 | ||||||
Total assets | $ | 109,436 | $ | 110,122 | ||||
Liabilities | ||||||||
Claims and claim adjustment expense reserves | $ | 51,957 | $ | 51,849 | ||||
Unearned premium reserves | 14,941 | 14,604 | ||||||
Contractholder payables | 4,654 | 4,619 | ||||||
Payables for reinsurance premiums | 634 | 363 | ||||||
Deferred taxes | — | 137 | ||||||
Debt | 6,559 | 6,558 | ||||||
Other liabilities | 5,487 | 6,049 | ||||||
Total liabilities | 84,232 | 84,179 | ||||||
Shareholders’ equity | ||||||||
Common stock (1,750.0 shares authorized; 252.9 and 255.5 shares issued, 252.8 and 255.5 shares outstanding) | 23,542 | 23,469 | ||||||
Retained earnings | 37,325 | 36,977 | ||||||
Accumulated other comprehensive income (loss) | (49 | ) | 640 | |||||
Treasury stock, at cost (525.9 and 522.1 shares) | (35,614 | ) | (35,143 | ) | ||||
Total shareholders’ equity | 25,204 | 25,943 | ||||||
Total liabilities and shareholders’ equity | $ | 109,436 | $ | 110,122 | ||||
(at carrying value, $ in millions) | March 31, 2020 | Pre-tax Book Yield (1) | December 31, 2019 | Pre-tax Book Yield (1) | ||||||||||
Investment portfolio | ||||||||||||||
Taxable fixed maturities (including redeemable preferred stock) | $ | 37,357 | 3.16 | % | $ | 38,570 | 3.17 | % | ||||||
Tax-exempt fixed maturities | 30,540 | 3.11 | % | 29,564 | 3.12 | % | ||||||||
Total fixed maturities | 67,897 | 3.14 | % | 68,134 | 3.15 | % | ||||||||
Non-redeemable preferred stocks | 37 | 5.10 | % | 42 | 5.04 | % | ||||||||
Public common stocks | 305 | 383 | ||||||||||||
Total equity securities | 342 | 425 | ||||||||||||
Real estate investments | 966 | 963 | ||||||||||||
Short-term securities | 4,033 | 1.48 | % | 4,943 | 1.82 | % | ||||||||
Private equities | 2,261 | 2,236 | ||||||||||||
Hedge funds | 185 | 186 | ||||||||||||
Real estate partnerships | 682 | 658 | ||||||||||||
Other investments | 284 | 339 | ||||||||||||
Total other investments | 3,412 | 3,419 | ||||||||||||
Total investments | $ | 76,650 | $ | 77,884 | ||||||||||
Net unrealized investment gains, net of tax, included in shareholders’ equity | $ | 1,785 | $ | 2,246 | ||||||||||
(at carrying value, $ in millions) | March 31, 2020 | December 31, 2019 | |||||||
Fixed maturities | |||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 2,055 | $ | 2,095 | |||||
Obligations of states and political subdivisions: | |||||||||
Pre-refunded | 2,255 | 2,056 | |||||||
All other | 28,753 | 27,861 | |||||||
Total | 31,008 | 29,917 | |||||||
Debt securities issued by foreign governments | 1,040 | 1,173 | |||||||
Mortgage-backed securities - principally obligations of U.S. Government agencies | 3,307 | 3,280 | |||||||
Corporates (including redeemable preferreds) | 30,487 | 31,669 | |||||||
Total fixed maturities | $ | 67,897 | $ | 68,134 | |||||
March 31, 2020 | December 31, 2019 | |||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||
Quality Ratings | ||||||||||||||
Aaa | $ | 29,537 | 43.5 | % | $ | 29,164 | 42.9 | % | ||||||
Aa | 15,812 | 23.3 | 15,819 | 23.2 | ||||||||||
A | 12,135 | 17.9 | 12,148 | 17.8 | ||||||||||
Baa | 8,964 | 13.2 | 9,541 | 14.0 | ||||||||||
Total investment grade | 66,448 | 97.9 | 66,672 | 97.9 | ||||||||||
Ba | 882 | 1.3 | 846 | 1.2 | ||||||||||
B | 445 | 0.6 | 511 | 0.7 | ||||||||||
Caa and lower | 122 | 0.2 | 105 | 0.2 | ||||||||||
Total below investment grade | 1,449 | 2.1 | 1,462 | 2.1 | ||||||||||
Total fixed maturities | $ | 67,897 | 100.0 | % | $ | 68,134 | 100.0 | % | ||||||
Average weighted quality | Aa2, AA | Aa2, AA | ||||||||||||
Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases | 3.9 | 4.0 | ||||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Gross investment income | ||||||||||||||||||||
Fixed maturities | $ | 511 | $ | 514 | $ | 520 | $ | 525 | $ | 511 | ||||||||||
Short-term securities | 28 | 27 | 26 | 24 | 22 | |||||||||||||||
Other | 53 | 118 | 85 | 77 | 88 | |||||||||||||||
592 | 659 | 631 | 626 | 621 | ||||||||||||||||
Investment expenses | 10 | 11 | 9 | 10 | 10 | |||||||||||||||
Net investment income, pre-tax | 582 | 648 | 622 | 616 | 611 | |||||||||||||||
Income taxes | 86 | 100 | 94 | 91 | 92 | |||||||||||||||
Net investment income, after-tax | $ | 496 | $ | 548 | $ | 528 | $ | 525 | $ | 519 | ||||||||||
Effective tax rate | 14.7 | % | 15.4 | % | 15.2 | % | 14.8 | % | 15.1 | % | ||||||||||
Average invested assets (1) | $74,040 | $74,370 | $74,910 | $75,996 | $76,191 | |||||||||||||||
Average yield pre-tax (1) | 3.1 | % | 3.5 | % | 3.3 | % | 3.2 | % | 3.2 | % | ||||||||||
Average yield after-tax | 2.7 | % | 2.9 | % | 2.8 | % | 2.8 | % | 2.7 | % | ||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Net realized investment gains (losses) | ||||||||||||||||||||
Fixed maturities | $ | 16 | $ | 13 | $ | 14 | $ | 12 | $ | (2 | ) | |||||||||
Equity securities | 41 | 10 | 8 | 14 | (88 | ) | ||||||||||||||
Other (1) | (4 | ) | 2 | 1 | (14 | ) | (8 | ) | ||||||||||||
Realized investment gains (losses) before tax | 53 | 25 | 23 | 12 | (98 | ) | ||||||||||||||
Related taxes | 12 | 5 | 5 | 6 | (22 | ) | ||||||||||||||
Net realized investment gains (losses) | $ | 41 | $ | 20 | $ | 18 | $ | 6 | $ | (76 | ) | |||||||||
Gross investment gains (1) | $ | 65 | $ | 31 | $ | 30 | $ | 32 | $ | 31 | ||||||||||
Gross investment losses before impairments (1) | (11 | ) | (5 | ) | (7 | ) | (18 | ) | (113 | ) | ||||||||||
Net investment gains (losses) before impairments | 54 | 26 | 23 | 14 | (82 | ) | ||||||||||||||
Credit losses | (1 | ) | (1 | ) | — | (2 | ) | (16 | ) | |||||||||||
Net realized investment gains (losses) before tax | 53 | 25 | 23 | 12 | (98 | ) | ||||||||||||||
Related taxes | 12 | 5 | 5 | 6 | (22 | ) | ||||||||||||||
Net realized investment gains (losses) | $ | 41 | $ | 20 | $ | 18 | $ | 6 | $ | (76 | ) | |||||||||
($ in millions) | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | |||||||||||||||
Net unrealized investment gains, net of tax, included in shareholders’ equity, by asset type | ||||||||||||||||||||
Fixed maturities | $ | 1,284 | $ | 2,388 | $ | 2,990 | $ | 2,853 | $ | 2,271 | ||||||||||
Equity securities & other | — | 1 | 1 | — | 2 | |||||||||||||||
Unrealized investment gains before tax | 1,284 | 2,389 | 2,991 | 2,853 | 2,273 | |||||||||||||||
Related taxes | 277 | 511 | 637 | 607 | 488 | |||||||||||||||
Balance, end of period | $ | 1,007 | $ | 1,878 | $ | 2,354 | $ | 2,246 | $ | 1,785 | ||||||||||
(1) Includes the following gross investment gains and gross investment losses related to U.S. Treasury futures, which are settled daily: | ||||||||||||||||||||
Gross investment Treasury future gains | $ | 1 | $ | — | $ | — | $ | — | $ | 5 | ||||||||||
Gross investment Treasury future losses | $ | 1 | $ | — | $ | — | $ | — | $ | 12 |
($ in millions) | March 31, 2020 | December 31, 2019 | ||||||
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1) | $ | 3,456 | $ | 3,476 | ||||
Gross structured settlements (2) | 2,928 | 2,965 | ||||||
Mandatory pools and associations (3) | 1,917 | 1,886 | ||||||
Gross reinsurance recoverables (4) | 8,301 | 8,327 | ||||||
Allowance for estimated uncollectible reinsurance (5) | (149 | ) | (92 | ) | ||||
Net reinsurance recoverables | $ | 8,152 | $ | 8,235 | ||||
Reinsurer | A.M. Best Rating of Group's Predominant Reinsurer | March 31, 2020 | ||||
Swiss Re Group | A+ second highest of 16 ratings | $ | 492 | |||
Berkshire Hathaway | A++ highest of 16 ratings | 365 | ||||
Munich Re Group | A+ second highest of 16 ratings | 298 | ||||
Axa Group | A+ second highest of 16 ratings | 174 | ||||
Alleghany Group | A+ second highest of 16 ratings | 148 | ||||
Group | A.M. Best Rating of Group's Predominant Insurer | March 31, 2020 | ||||
Fidelity & Guaranty Life Group (a) | A- fourth highest of 16 ratings | $ | 774 | |||
Genworth Financial Group (b) | B seventh highest of 16 ratings | 338 | ||||
John Hancock Group | A+ second highest of 16 ratings | 263 | ||||
Brighthouse Financial, Inc. | A third highest of 16 ratings | 245 | ||||
Symetra Financial Corporation | A third highest of 16 ratings | 239 | ||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Statutory Reserves for Losses and Loss Adjustment Expenses | ||||||||||||||||||||
Business Insurance | ||||||||||||||||||||
Beginning of period | $ | 33,857 | $ | 34,086 | $ | 34,377 | $ | 34,963 | $ | 35,142 | ||||||||||
Incurred | 2,529 | 2,631 | 2,969 | 2,608 | 2,737 | |||||||||||||||
Paid | (2,320 | ) | (2,345 | ) | (2,354 | ) | (2,482 | ) | (2,364 | ) | ||||||||||
Foreign exchange and other | 20 | 5 | (29 | ) | 53 | (100 | ) | |||||||||||||
End of period | $ | 34,086 | $ | 34,377 | $ | 34,963 | $ | 35,142 | $ | 35,415 | ||||||||||
Bond & Specialty Insurance | ||||||||||||||||||||
Beginning of period | $ | 2,987 | $ | 3,068 | $ | 3,042 | $ | 3,074 | $ | 3,094 | ||||||||||
Incurred | 264 | 236 | 298 | 286 | 325 | |||||||||||||||
Paid | (189 | ) | (260 | ) | (256 | ) | (290 | ) | (300 | ) | ||||||||||
Foreign exchange and other | 6 | (2 | ) | (10 | ) | 24 | (34 | ) | ||||||||||||
End of period | $ | 3,068 | $ | 3,042 | $ | 3,074 | $ | 3,094 | $ | 3,085 | ||||||||||
Personal Insurance | ||||||||||||||||||||
Beginning of period | $ | 5,565 | $ | 5,427 | $ | 5,560 | $ | 5,587 | $ | 5,507 | ||||||||||
Incurred | 1,596 | 1,897 | 1,899 | 1,684 | 1,671 | |||||||||||||||
Paid | (1,751 | ) | (1,781 | ) | (1,862 | ) | (1,782 | ) | (1,693 | ) | ||||||||||
Foreign exchange and other | 17 | 17 | (10 | ) | 18 | (72 | ) | |||||||||||||
End of period | $ | 5,427 | $ | 5,560 | $ | 5,587 | $ | 5,507 | $ | 5,413 | ||||||||||
Total | ||||||||||||||||||||
Beginning of period | $ | 42,409 | $ | 42,581 | $ | 42,979 | $ | 43,624 | $ | 43,743 | ||||||||||
Incurred | 4,389 | 4,764 | 5,166 | 4,578 | 4,733 | |||||||||||||||
Paid | (4,260 | ) | (4,386 | ) | (4,472 | ) | (4,554 | ) | (4,357 | ) | ||||||||||
Foreign exchange and other | 43 | 20 | (49 | ) | 95 | (206 | ) | |||||||||||||
End of period | $ | 42,581 | $ | 42,979 | $ | 43,624 | $ | 43,743 | $ | 43,913 | ||||||||||
Prior Year Reserve Development: Unfavorable (Favorable) | ||||||||||||||||||||
Business Insurance | ||||||||||||||||||||
Asbestos | $ | — | $ | — | $ | 220 | $ | — | $ | — | ||||||||||
Environmental | — | 60 | 8 | 8 | 17 | |||||||||||||||
All other | 21 | (131 | ) | 88 | (16 | ) | (22 | ) | ||||||||||||
Total Business Insurance (1) | 21 | (71 | ) | 316 | (8 | ) | (5 | ) | ||||||||||||
Bond & Specialty Insurance | (3 | ) | (39 | ) | (3 | ) | (20 | ) | — | |||||||||||
Personal Insurance | (69 | ) | (13 | ) | (19 | ) | (32 | ) | (22 | ) | ||||||||||
Total | $ | (51 | ) | $ | (123 | ) | $ | 294 | $ | (60 | ) | $ | (27 | ) | ||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Asbestos reserves | ||||||||||||||||||||
Beginning reserves: | ||||||||||||||||||||
Gross | $ | 1,608 | $ | 1,564 | $ | 1,474 | $ | 1,685 | $ | 1,601 | ||||||||||
Ceded | (327 | ) | (321 | ) | (295 | ) | (334 | ) | (322 | ) | ||||||||||
Net | 1,281 | 1,243 | 1,179 | 1,351 | 1,279 | |||||||||||||||
Incurred losses and loss expenses: | ||||||||||||||||||||
Gross | — | — | 268 | — | — | |||||||||||||||
Ceded | — | — | (48 | ) | — | — | ||||||||||||||
Paid loss and loss expenses: | ||||||||||||||||||||
Gross | 44 | 90 | 57 | 86 | 69 | |||||||||||||||
Ceded | (6 | ) | (26 | ) | (9 | ) | (12 | ) | (6 | ) | ||||||||||
Foreign exchange and other: | ||||||||||||||||||||
Gross | — | — | — | 2 | (2 | ) | ||||||||||||||
Ceded | — | — | — | — | — | |||||||||||||||
Ending reserves: | ||||||||||||||||||||
Gross | 1,564 | 1,474 | 1,685 | 1,601 | 1,530 | |||||||||||||||
Ceded | (321 | ) | (295 | ) | (334 | ) | (322 | ) | (316 | ) | ||||||||||
Net | $ | 1,243 | $ | 1,179 | $ | 1,351 | $ | 1,279 | $ | 1,214 | ||||||||||
Environmental reserves | ||||||||||||||||||||
Beginning reserves: | ||||||||||||||||||||
Gross | $ | 358 | $ | 338 | $ | 388 | $ | 374 | $ | 350 | ||||||||||
Ceded | (24 | ) | (24 | ) | (29 | ) | (29 | ) | (29 | ) | ||||||||||
Net | 334 | 314 | 359 | 345 | 321 | |||||||||||||||
Incurred losses and loss expenses: | ||||||||||||||||||||
Gross | — | 67 | 8 | 9 | 19 | |||||||||||||||
Ceded | — | (7 | ) | — | (1 | ) | (2 | ) | ||||||||||||
Paid loss and loss expenses: | ||||||||||||||||||||
Gross | 20 | 16 | 22 | 34 | 18 | |||||||||||||||
Ceded | — | (1 | ) | — | (1 | ) | (4 | ) | ||||||||||||
Foreign exchange and other: | ||||||||||||||||||||
Gross | — | (1 | ) | — | 1 | (1 | ) | |||||||||||||
Ceded | — | 1 | — | — | — | |||||||||||||||
Ending reserves: | ||||||||||||||||||||
Gross | 338 | 388 | 374 | 350 | 350 | |||||||||||||||
Ceded | (24 | ) | (29 | ) | (29 | ) | (29 | ) | (27 | ) | ||||||||||
Net | $ | 314 | $ | 359 | $ | 345 | $ | 321 | $ | 323 | ||||||||||
($ in millions) | March 31, 2020 | December 31, 2019 | ||||||
Debt | ||||||||
Short-term debt | ||||||||
Commercial paper | $ | 100 | $ | 100 | ||||
3.90% Senior notes due November 1, 2020 (1) | 500 | 500 | ||||||
Total short-term debt | 600 | 600 | ||||||
Long-term debt | ||||||||
7.75% Senior notes due April 15, 2026 | 200 | 200 | ||||||
7.625% Junior subordinated debentures due December 15, 2027 | 125 | 125 | ||||||
6.375% Senior notes due March 15, 2033 (1) | 500 | 500 | ||||||
6.75% Senior notes due June 20, 2036 (1) | 400 | 400 | ||||||
6.25% Senior notes due June 15, 2037 (1) | 800 | 800 | ||||||
5.35% Senior notes due November 1, 2040 (1) | 750 | 750 | ||||||
4.60% Senior notes due August 1, 2043 (1) | 500 | 500 | ||||||
4.30% Senior notes due August 25, 2045 (1) | 400 | 400 | ||||||
8.50% Junior subordinated debentures due December 15, 2045 | 56 | 56 | ||||||
3.75% Senior notes due May 15, 2046 (1) | 500 | 500 | ||||||
8.312% Junior subordinated debentures due July 1, 2046 | 73 | 73 | ||||||
4.00% Senior notes due May 30, 2047 (1) | 700 | 700 | ||||||
4.05% Senior notes due March 7, 2048 (1) | 500 | 500 | ||||||
4.10% Senior notes due March 4, 2049 (1) | 500 | 500 | ||||||
Total long-term debt | 6,004 | 6,004 | ||||||
Unamortized fair value adjustment | 43 | 43 | ||||||
Unamortized debt issuance costs | (88 | ) | (89 | ) | ||||
5,959 | 5,958 | |||||||
Total debt | 6,559 | 6,558 | ||||||
Common equity (excluding net unrealized investment gains, net of tax, included in shareholders’ equity) | 23,419 | 23,697 | ||||||
Total capital (excluding net unrealized investment gains, net of tax, included in shareholders’ equity) | $ | 29,978 | $ | 30,255 | ||||
Total debt to capital (excluding net unrealized investment gains, net of tax, included in shareholders’ equity) | 21.9 | % | 21.7 | % | ||||
($ in millions) | March 31, 2020 (1) | December 31, 2019 | ||||||
Statutory capital and surplus | $ | 20,808 | $ | 21,330 | ||||
GAAP adjustments | ||||||||
Goodwill and intangible assets | 3,574 | 3,589 | ||||||
Investments | 2,553 | 3,130 | ||||||
Noninsurance companies | (3,944 | ) | (4,111 | ) | ||||
Deferred acquisition costs | 2,298 | 2,273 | ||||||
Deferred federal income tax | (974 | ) | (1,144 | ) | ||||
Current federal income tax | (33 | ) | (29 | ) | ||||
Reinsurance recoverables | 47 | 47 | ||||||
Furniture, equipment & software | 688 | 676 | ||||||
Agents balances | 182 | 212 | ||||||
Other | 5 | (30 | ) | |||||
Total GAAP adjustments | 4,396 | 4,613 | ||||||
GAAP shareholders’ equity | $ | 25,204 | $ | 25,943 | ||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 796 | $ | 557 | $ | 396 | $ | 873 | $ | 600 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Net realized investment (gains) losses | (53 | ) | (25 | ) | (23 | ) | (12 | ) | 98 | |||||||||||
Depreciation and amortization | 211 | 190 | 180 | 182 | 203 | |||||||||||||||
Deferred federal income tax expense (benefit) | 32 | (22 | ) | (20 | ) | (23 | ) | 6 | ||||||||||||
Amortization of deferred acquisition costs | 1,117 | 1,134 | 1,169 | 1,181 | 1,178 | |||||||||||||||
Equity in income from other investments | (34 | ) | (98 | ) | (64 | ) | (55 | ) | (67 | ) | ||||||||||
Premiums receivable | (434 | ) | (345 | ) | 168 | 227 | (326 | ) | ||||||||||||
Reinsurance recoverables | 98 | 53 | 61 | (55 | ) | (15 | ) | |||||||||||||
Deferred acquisition costs | (1,185 | ) | (1,223 | ) | (1,211 | ) | (1,128 | ) | (1,215 | ) | ||||||||||
Claims and claim adjustment expense reserves | (2 | ) | 331 | 598 | 120 | 388 | ||||||||||||||
Unearned premium reserves | 551 | 407 | 392 | (342 | ) | 414 | ||||||||||||||
Other | (458 | ) | 194 | 355 | 444 | (636 | ) | |||||||||||||
Net cash provided by operating activities | 639 | 1,153 | 2,001 | 1,412 | 628 | |||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Proceeds from maturities of fixed maturities | 1,556 | 1,482 | 1,857 | 1,950 | 1,461 | |||||||||||||||
Proceeds from sales of investments: | ||||||||||||||||||||
Fixed maturities | 769 | 726 | 306 | 386 | 388 | |||||||||||||||
Equity securities | 39 | 32 | 28 | 41 | 33 | |||||||||||||||
Other investments | 105 | 135 | 106 | 113 | 64 | |||||||||||||||
Purchases of investments: | ||||||||||||||||||||
Fixed maturities | (2,914 | ) | (2,794 | ) | (2,526 | ) | (2,477 | ) | (2,630 | ) | ||||||||||
Equity securities | (22 | ) | (19 | ) | (21 | ) | (32 | ) | (35 | ) | ||||||||||
Real estate investments | (77 | ) | (8 | ) | (10 | ) | (12 | ) | (16 | ) | ||||||||||
Other investments | (146 | ) | (116 | ) | (107 | ) | (128 | ) | (103 | ) | ||||||||||
Net sales (purchases) of short-term securities | (109 | ) | 606 | (1,114 | ) | (340 | ) | 906 | ||||||||||||
Securities transactions in course of settlement | 295 | (72 | ) | 209 | (274 | ) | 85 | |||||||||||||
Other | (82 | ) | (87 | ) | (74 | ) | (82 | ) | (69 | ) | ||||||||||
Net cash provided by (used in) investing activities | (586 | ) | (115 | ) | (1,346 | ) | (855 | ) | 84 | |||||||||||
($ in millions) | 1Q2019 | 2Q2019 | 3Q2019 | 4Q2019 | 1Q2020 | |||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Treasury stock acquired - share repurchase authorization | (375 | ) | (375 | ) | (375 | ) | (375 | ) | (425 | ) | ||||||||||
Treasury stock acquired - net employee share-based compensation | (46 | ) | (1 | ) | — | (1 | ) | (46 | ) | |||||||||||
Dividends paid to shareholders | (205 | ) | (214 | ) | (214 | ) | (211 | ) | (210 | ) | ||||||||||
Payment of debt | — | (500 | ) | — | — | — | ||||||||||||||
Issuance of debt | 492 | — | — | — | — | |||||||||||||||
Issuance of common stock - employee share options | 63 | 111 | 32 | 7 | 31 | |||||||||||||||
Net cash used in financing activities | (71 | ) | (979 | ) | (557 | ) | (580 | ) | (650 | ) | ||||||||||
Effect of exchange rate changes on cash | 2 | — | (6 | ) | 9 | (12 | ) | |||||||||||||
Net increase (decrease) in cash | (16 | ) | 59 | 92 | (14 | ) | 50 | |||||||||||||
Cash at beginning of period | 373 | 357 | 416 | 508 | 494 | |||||||||||||||
Cash at end of period | $ | 357 | $ | 416 | $ | 508 | $ | 494 | $ | 544 | ||||||||||
Income taxes paid | $ | 5 | $ | 320 | $ | 42 | $ | 61 | $ | 15 | ||||||||||
Interest paid | $ | 50 | $ | 121 | $ | 60 | $ | 107 | $ | 60 | ||||||||||