Other Comprehensive Income and Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2021

Other Comprehensive Income And Accumulated Other Comprehensive Income Disclosure [Abstract]

Other Comprehensive Income and Accumulated Other Comprehensive Income

OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the changes in the Company’s accumulated other comprehensive income (AOCI) for the three months and nine months ended September 30, 2021.

	Changes in Net Unrealized Gains on Investment Securities
(in millions)	Having No Credit Losses Recognized in the Consolidated Statement of Income		Having Credit  Losses Recognized  in the Consolidated Statement of  Income		Net Benefit Plan Assets and Obligations Recognized in Shareholders’  Equity		Net Unrealized Foreign Currency Translation		Total Accumulated Other Comprehensive Income
Balance, June 30, 2021	$	3,057	$	182	$	(792)	$	(678)	$	1,769
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	(530)		—		—		(84)		(614)
Amounts reclassified from AOCI, net of tax	(10)		—		21		—		11
Net OCI, current period	(540)		—		21		(84)		(603)
Balance, September 30, 2021	$	2,517	$	182	$	(771)	$	(762)	$	1,166

 

	Changes in Net Unrealized Gains on Investment Securities
(in millions)	Having No Credit Losses Recognized in the Consolidated Statement of Income		Having Credit  Losses Recognized  in the Consolidated Statement of  Income		Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity		Net Unrealized Foreign Currency Translation		Total Accumulated Other Comprehensive Income
Balance, December 31, 2020	$	3,892	$	182	$	(832)	$	(740)	$	2,502
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	(1,335)		—		—		(22)		(1,357)
Amounts reclassified from AOCI, net of tax	(40)		—		61		—		21
Net OCI, current period	(1,375)		—		61		(22)		(1,336)
Balance, September 30, 2021	$	2,517	$	182	$	(771)	$	(762)	$	1,166

The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit).

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2021		2020		2021		2020
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	(686)	$	217	$	(1,749)	$	2,001
Income tax expense (benefit)	(146)		46		(374)		428
Net of taxes	(540)		171		(1,375)		1,573
Having credit losses recognized in the consolidated statement of income	—		(7)		—		(10)
Income tax benefit	—		(2)		—		(3)
Net of taxes	—		(5)		—		(7)
Net changes in benefit plan assets and obligations	26		20		77		64
Income tax expense	5		4		16		13
Net of taxes	21		16		61		51
Net changes in unrealized foreign currency translation	(91)		79		(25)		(137)
Income tax expense (benefit)	(7)		5		(3)		(18)
Net of taxes	(84)		74		(22)		(119)
Total other comprehensive income (loss)	(751)		309		(1,697)		1,918
Total income tax expense (benefit)	(148)		53		(361)		420
Total other comprehensive income (loss), net of taxes	$	(603)	$	256	$	(1,336)	$	1,498

The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2021		2020		2021		2020
Reclassification adjustments related to unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income (1)	$	(12)	$	(23)	$	(50)	$	(31)
Income tax expense (2)	(2)		(5)		(10)		(7)
Net of taxes	(10)		(18)		(40)		(24)
Having credit losses recognized in the consolidated statement of income (1)	—		—		—		—
Income tax benefit (2)	—		—		—		—
Net of taxes	—		—		—		—
Reclassification adjustment related to benefit plan assets and obligations:
Claims and claim adjustment expenses (3)	10		8		31		26
General and administrative expenses (3)	16		12		46		37
Total	26		20		77		63
Income tax benefit (2)	5		4		16		13
Net of taxes	21		16		61		50
Reclassification adjustment related to foreign currency translation (1)	—		—		—		—
Income tax benefit (2)	—		—		—		—
Net of taxes	—		—		—		—
Total reclassifications	14		(3)		27		32
Total income tax (expense) benefit	3		(1)		6		6
Total reclassifications, net of taxes	$	11	$	(2)	$	21	$	26

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(1)   (Increases) decreases net realized investment gains (losses) on the consolidated statement of income.

(2)   (Increases) decreases income tax expense on the consolidated statement of income.

(3)    Increases (decreases) expenses on the consolidated statement of income.