Segment Information

9 Months Ended

Sep. 30, 2023

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 the notes to the consolidated financial statements in the Company’s 2022 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 September 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2023
Premiums	$	4,956	$	935	$	3,827	$	9,718
Net investment income	551		86		132		769
Fee income	102		—		10		112
Other revenues	71		6		24		101
Total segment revenues (1)	$	5,680	$	1,027	$	3,993	$	10,700
Segment income (loss) (1)	$	468	$	265	$	(193)	$	540
2022
Premiums	$	4,353	$	877	$	3,385	$	8,615
Net investment income	426		65		102		593
Fee income	96		—		8		104
Other revenues	56		6		22		84
Total segment revenues (1)	$	4,931	$	948	$	3,517	$	9,396
Segment income (loss) (1)	$	471	$	242	$	(111)	$	602

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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 excludes the after-tax impact of net realized investment gains (losses) and income (loss) from “interest expense and other.”

(For the nine months ended September 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2023
Premiums	$	14,077	$	2,721	$	10,990	$	27,788
Net investment income	1,533		237		374		2,144
Fee income	299		—		25		324
Other revenues	185		18		72		275
Total segment revenues (1)	$	16,094	$	2,976	$	11,461	$	30,531
Segment income (loss) (1)	$	1,626	$	702	$	(648)	$	1,680
2022
Premiums	$	12,642	$	2,548	$	9,756	$	24,946
Net investment income	1,415		188		334		1,937
Fee income	285		—		22		307
Other revenues	194		14		61		269
Total segment revenues (1)	$	14,536	$	2,750	$	10,173	$	27,459
Segment income (loss) (1)	$	1,806	$	687	$	(79)	$	2,414

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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 excludes the after-tax impact of net realized investment gains (losses) and income (loss) from “interest expense and other.”

Business Segment Reconciliations

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	876	$	872	$	2,584	$	2,566
Commercial automobile	816		754		2,375		2,202
Commercial property	828		668		2,297		1,914
General liability	804		728		2,312		2,116
Commercial multi-peril	1,211		1,057		3,456		3,034
Other	21		19		55		52
Total Domestic	4,556		4,098		13,079		11,884
International	400		255		998		758
Total Business Insurance	4,956		4,353		14,077		12,642
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	333		307		964		876
General liability	414		396		1,218		1,154
Other	57		57		168		166
Total Domestic	804		760		2,350		2,196
International	131		117		371		352
Total Bond & Specialty Insurance	935		877		2,721		2,548
Personal Insurance:
Domestic:
Automobile	1,772		1,575		5,084		4,544
Homeowners and Other	1,896		1,648		5,434		4,714
Total Domestic	3,668		3,223		10,518		9,258
International	159		162		472		498
Total Personal Insurance	3,827		3,385		10,990		9,756
Total earned premiums	9,718		8,615		27,788		24,946
Net investment income	769		593		2,144		1,937
Fee income	112		104		324		307
Other revenues	101		84		275		269
Total segment revenues	10,700		9,396		30,531		27,459
Net realized investment losses	(65)		(93)		(94)		(211)
Total revenues	$	10,635	$	9,303	$	30,437	$	27,248
Income reconciliation, net of tax
Total segment income	$	540	$	602	$	1,680	$	2,414
Interest Expense and Other (1)	(86)		(76)		(241)		(226)
Core income	454		526		1,439		2,188
Net realized investment losses	(50)		(72)		(74)		(165)
Net income	$	404	$	454	$	1,365	$	2,023

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(1)The primary component of Interest Expense and Other was after-tax interest expense of $78 million and $70 million for the three months ended September 30, 2023 and 2022, respectively, and $220 million and $208 million for the nine months ended September 30, 2023 and 2022, respectively.

(in millions)	September 30, 2023		December 31, 2022
Asset reconciliation
Business Insurance	$	89,980	$	86,522
Bond & Specialty Insurance	11,088		10,119
Personal Insurance	19,454		18,275
Total assets by reportable segment	120,522		114,916
Other assets (1)	862		801
Total consolidated assets	$	121,384	$	115,717

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(1)The primary components of other assets at both September 30, 2023 and December 31, 2022 were the over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets.