Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Nature of Operations

The Company’s results are reported in the following three business segments — Business Insurance, Bond & Specialty Insurance and Personal Insurance. These segments reflect the manner in which the Company’s businesses are currently managed and represent an aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. For more information regarding the Company’s nature of operations, see the “Nature of Operations” section of note 1 of notes to the consolidated financial statements in the Company’s 2019 Annual Report.

The following tables summarize the components of the Company’s revenues, income (loss) and total assets by reportable business segments:

(For the three months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2020
Premiums	$	3,735	$	693	$	2,527	$	6,955
Net investment income	180		42		46		268
Fee income	108		—		6		114
Other revenues	36		5		10		51
Total segment revenues (1)	$	4,059	$	740	$	2,589	$	7,388
Segment income (loss) (1)	$	(58)	$	72	$	10	$	24
2019
Premiums	$	3,783	$	632	$	2,573	$	6,988
Net investment income	481		58		109		648
Fee income	111		—		5		116
Other revenues	30		6		21		57
Total segment revenues (1)	$	4,405	$	696	$	2,708	$	7,809
Segment income (1)	$	351	$	174	$	88	$	613

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(1)Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in "interest expense and other." Segment income (loss) for reportable business segments equals net income (loss) excluding the after-tax impact of net realized investment gains (losses) and income (loss) from "interest expense and other."

(For the six months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2020
Premiums	$	7,599	$	1,360	$	5,225	$	14,184
Net investment income	633		97		149		879
Fee income	210		—		12		222
Other revenues	67		10		32		109
Total segment revenues (1)	$	8,509	$	1,467	$	5,418	$	15,394
Segment income (1)	$	231	$	194	$	346	$	771
2019
Premiums	$	7,525	$	1,238	$	5,080	$	13,843
Net investment income	908		114		208		1,230
Fee income	215		—		10		225
Other revenues	73		12		43		128
Total segment revenues (1)	$	8,721	$	1,364	$	5,341	$	15,426
Segment income (1)	$	765	$	312	$	366	$	1,443

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(1)Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in "interest expense and other." Segment income (loss) for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses) and income (loss) from "interest expense and other."

Business Segment Reconciliations

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2020		2019		2020		2019
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	818	$	950	$	1,717	$	1,922
Commercial automobile	676		647		1,360		1,275
Commercial property	514		473		1,022		933
General liability	580		585		1,181		1,152
Commercial multi-peril	883		856		1,769		1,696
Other	11		9		23		17
Total Domestic	3,482		3,520		7,072		6,995
International	253		263		527		530
Total Business Insurance	3,735		3,783		7,599		7,525
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	271		258		528		504
General liability	296		266		583		523
Other	60		53		118		105
Total Domestic	627		577		1,229		1,132
International	66		55		131		106
Total Bond & Specialty Insurance	693		632		1,360		1,238
Personal Insurance:
Domestic:
Automobile	1,154		1,321		2,505		2,618
Homeowners and Other	1,221		1,078		2,397		2,117
Total Domestic	2,375		2,399		4,902		4,735
International	152		174		323		345
Total Personal Insurance	2,527		2,573		5,225		5,080
Total earned premiums	6,955		6,988		14,184		13,843
Net investment income	268		648		879		1,230
Fee income	114		116		222		225
Other revenues	51		57		109		128
Total segment revenues	7,388		7,809		15,394		15,426
Other revenues	—		—		—		1
Net realized investment gains (losses)	13		25		(85)		78
Total revenues	$	7,401	$	7,834	$	15,309	$	15,505
Income reconciliation, net of tax
Total segment income	$	24	$	613	$	771	$	1,443
Interest Expense and Other (1)	(74)		(76)		(145)		(151)
Core income (loss)	(50)		537		626		1,292
Net realized investment gains (losses)	10		20		(66)		61
Net income (loss)	$	(40)	$	557	$	560	$	1,353

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(1) The primary component of Interest Expense and Other was after-tax interest expense of $67 million and $70 million for the three months ended June 30, 2020 and 2019, respectively, and $133 million and $140 million for the six months ended June 30, 2020 and 2019, respectively.

(in millions)	June 30, 2020		December 31, 2019
Asset reconciliation
Business Insurance	$	86,136	$	83,896
Bond & Specialty Insurance	9,155		8,599
Personal Insurance	17,427		17,015
Total assets by reportable segment	112,718		109,510
Other assets (1)	619		612
Total consolidated assets	$	113,337	$	110,122

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(1)The primary components of other assets at both June 30, 2020 and December 31, 2019 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets