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(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
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☒ | No ☐ |
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☒ | No ☐ |
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☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company |
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Emerging growth company |
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Yes |
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No ☒ |
1
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Page | |||||
No. | |||||
September 30, 2022 and December 31, 2021
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Three and nine months ended September 30, 2022 and 2021
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Three and nine months ended September 30, 2022 and 2021
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Three and nine months ended September 30, 2022 and 2021
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Nine months ended September 30, 2022 and 2021
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2
|
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(Dollar amounts in millions, except per share data) | |||||||||||
Assets: | |||||||||||
Investments: | |||||||||||
Fixed maturities, amortized cost of $
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$ |
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$ |
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|||||||
Equity securities, cost of $
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Limited partnership investments |
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Other invested assets, primarily mortgage loans, less allowance for credit loss of $
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Short term investments |
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Total investments |
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Cash |
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Receivables |
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Property, plant and equipment |
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Goodwill |
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Deferred non-insurance warranty acquisition expenses |
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Deferred acquisition costs of insurance subsidiaries |
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Other assets |
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Total assets | $ |
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$ |
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|||||||
Liabilities and Equity: | |||||||||||
Insurance reserves: | |||||||||||
Claim and claim adjustment expense | $ |
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$ |
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Future policy benefits |
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Unearned premiums |
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Total insurance reserves |
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Payable to brokers |
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Short term debt |
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Long term debt |
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Deferred income taxes |
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Deferred non-insurance warranty revenue |
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Other liabilities |
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Total liabilities |
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Commitments and contingent liabilities |
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Preferred stock, $
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|||||||||||
Authorized –
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|||||||||||
Common stock, $
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|||||||||||
Authorized –
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|||||||||||
Issued –
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|||||||||
Additional paid-in capital |
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|||||||||
Retained earnings |
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|||||||||
Accumulated other comprehensive income (loss) |
(
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|||||||||
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||||||||||
Less treasury stock, at cost (
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(
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(
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|||||||||
Total shareholders’ equity |
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|||||||||
Noncontrolling interests |
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|||||||||
Total equity |
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|||||||||
Total liabilities and equity | $ |
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$ |
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3
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Insurance premiums | $ |
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$ |
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$ |
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$ |
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||||||||||||||||||
Net investment income |
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||||||||||||||||||||||
Investment gains (losses) |
(
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(
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||||||||||||||||||||||
Non-insurance warranty revenue |
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||||||||||||||||||||||
Operating revenues and other |
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||||||||||||||||||||||
Total |
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||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||
Insurance claims and policyholders’ benefits |
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||||||||||||||||||||||
Amortization of deferred acquisition costs |
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||||||||||||||||||||||
Non-insurance warranty expense |
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||||||||||||||||||||||
Operating expenses and other |
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||||||||||||||||||||||
Interest |
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||||||||||||||||||||||
Total |
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||||||||||||||||||||||
Income before income tax |
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|
|
|
||||||||||||||||||||||
Income tax expense |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Net income |
|
|
|
|
||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Net income attributable to Loews Corporation | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Basic net income per share | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Diluted net income per share | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||
Shares of common stock |
|
|
|
|
||||||||||||||||||||||
Dilutive potential shares of common stock |
|
|
|
|
||||||||||||||||||||||
Total weighted average shares outstanding assuming dilution |
|
|
|
|
4
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net income | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Other comprehensive income (loss), after tax | ||||||||||||||||||||||||||
Changes in: | ||||||||||||||||||||||||||
Net unrealized losses on investments with an allowance for credit losses |
(
|
|
(
|
|
||||||||||||||||||||||
Net unrealized losses on other investments |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Total unrealized losses on investments |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Unrealized gains on cash flow hedges |
|
|
|
|
||||||||||||||||||||||
Pension and postretirement benefits |
|
|
|
|
||||||||||||||||||||||
Foreign currency translation |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Other comprehensive loss |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Comprehensive income (loss) |
(
|
|
(
|
|
||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
|
(
|
|
(
|
||||||||||||||||||||||
Total comprehensive income (loss) attributable to Loews Corporation | $ |
(
|
$ |
|
$ |
(
|
$ |
|
5
|
Loews Corporation Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Common Stock
Held in Treasury |
Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||||||||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid ($
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
(
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Other |
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||||||||||||||||||
Balance, July 1, 2022
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
||||||||||||||||||||||||||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid ($
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Purchase of subsidiary stock from noncontrolling interests |
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Other |
|
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
6
|
Loews Corporation Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Common Stock
Held in Treasury |
Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||||||||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid ($
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Purchase of subsidiary stock from noncontrolling interests |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Other |
(
|
(
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||||||||||||||||||
Net income |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid ($
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Purchase of subsidiary stock from noncontrolling interests |
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock |
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Other |
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
7
|
Nine Months Ended September 30
|
2022 | 2021 | |||||||||
(In millions) | |||||||||||
Operating Activities: | |||||||||||
Net income | $ |
|
$ |
|
|||||||
Adjustments to reconcile net income to net cash provided by operating activities, net |
|
(
|
|||||||||
Changes in operating assets and liabilities, net: | |||||||||||
Receivables |
(
|
(
|
|||||||||
Deferred acquisition costs |
(
|
(
|
|||||||||
Insurance reserves |
|
|
|||||||||
Other assets |
(
|
(
|
|||||||||
Other liabilities |
|
|
|||||||||
Trading securities |
|
(
|
|||||||||
Net cash flow provided by operating activities |
|
|
|||||||||
Investing Activities: | |||||||||||
Purchases of fixed maturities |
(
|
(
|
|||||||||
Proceeds from sales of fixed maturities |
|
|
|||||||||
Proceeds from maturities of fixed maturities |
|
|
|||||||||
Purchases of equity securities |
(
|
(
|
|||||||||
Proceeds from sales of equity securities |
|
|
|||||||||
Purchases of limited partnership investments |
(
|
(
|
|||||||||
Proceeds from sales of limited partnership investments |
|
|
|||||||||
Purchases of property, plant and equipment |
(
|
(
|
|||||||||
Dispositions |
|
|
|||||||||
(Investment in) sale of interest in Altium Packaging |
(
|
|
|||||||||
Change in short term investments |
|
|
|||||||||
Other, net |
|
|
|||||||||
Net cash flow used by investing activities |
(
|
(
|
|||||||||
Financing Activities: | |||||||||||
Dividends paid |
(
|
(
|
|||||||||
Dividends paid to noncontrolling interests |
(
|
(
|
|||||||||
Purchases of Loews Corporation treasury stock |
(
|
(
|
|||||||||
Purchases of subsidiary stock from noncontrolling interests |
(
|
(
|
|||||||||
Principal payments on debt |
(
|
(
|
|||||||||
Issuance of debt |
|
|
|||||||||
Other, net |
(
|
(
|
|||||||||
Net cash flow used by financing activities |
(
|
(
|
|||||||||
Effect of foreign exchange rate on cash |
(
|
(
|
|||||||||
Net change in cash |
|
|
|||||||||
Cash, beginning of period |
|
|
|||||||||
Cash, end of period | $ |
|
$ |
|
8
|
9
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Fixed maturity securities | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Limited partnership investments |
(
|
|
(
|
|
||||||||||||||||||||||
Equity securities (a) |
|
|
(
|
|
||||||||||||||||||||||
Income (loss) from trading portfolio (a) |
(
|
(
|
(
|
|
||||||||||||||||||||||
Other |
|
|
|
|
||||||||||||||||||||||
Total investment income |
|
|
|
|
||||||||||||||||||||||
Investment expenses |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Net investment income | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
(a) Net investment income (loss) recognized due to the change in fair value of equity and trading portfolio securities held as of September 30, 2022 and 2021 | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
10
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||
Gross gains | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Gross losses |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Investment gains (losses) on fixed maturity securities |
(
|
|
(
|
|
||||||||||||||||||||||
Equity securities (a) |
(
|
(
|
(
|
|
||||||||||||||||||||||
Derivative instruments |
|
|
|
|
||||||||||||||||||||||
Short term investments and other |
(
|
|
(
|
(
|
||||||||||||||||||||||
Altium Packaging (see Note 1) |
|
|
|
|
||||||||||||||||||||||
Investment gains (losses) | $ |
(
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||
(a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of September 30, 2022 and 2021 | $ |
(
|
$ |
(
|
$ |
(
|
$ |
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||||
Corporate and other bonds | $ |
|
|
$ |
|
$ |
|
|||||||||||||||||||
Asset-backed |
|
$ |
|
|
|
|||||||||||||||||||||
Impairment losses (gains) recognized in earnings | $ |
|
$ |
|
$ |
|
$ |
|
11
|
September 30, 2022 | Cost or Amortized Cost |
Gross Unrealized
Gains |
Gross Unrealized
Losses |
Allowance
for Credit Losses |
Estimated
Fair Value |
||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||
Corporate and other bonds | $ |
|
$ |
|
$ |
|
|
$ |
|
||||||||||||||||||||
States, municipalities and political
subdivisions |
|
|
|
|
|
||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||
Residential mortgage-backed |
|
|
|
|
|
||||||||||||||||||||||||
Commercial mortgage-backed |
|
|
|
|
|
||||||||||||||||||||||||
Other asset-backed |
|
|
|
$ |
|
|
|||||||||||||||||||||||
Total asset-backed |
|
|
|
|
|
||||||||||||||||||||||||
U.S. Treasury and obligations of
government sponsored enterprises |
|
|
|
|
|
||||||||||||||||||||||||
Foreign government |
|
|
|
|
|
||||||||||||||||||||||||
Redeemable preferred stock |
|
|
|
|
|
||||||||||||||||||||||||
Fixed maturities available-for-sale |
|
|
|
|
|
||||||||||||||||||||||||
Fixed maturities trading |
|
|
|
|
|
||||||||||||||||||||||||
Total fixed maturity securities | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
December 31, 2021 | Cost or Amortized Cost |
Gross Unrealized
Gains |
Gross Unrealized
Losses |
Allowance
for Credit Losses |
Estimated
Fair Value |
||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||
Corporate and other bonds | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
States, municipalities and political
subdivisions |
|
|
|
|
|
||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||
Residential mortgage-backed |
|
|
|
|
|
||||||||||||||||||||||||
Commercial mortgage-backed |
|
|
|
|
|
||||||||||||||||||||||||
Other asset-backed |
|
|
|
|
|
||||||||||||||||||||||||
Total asset-backed |
|
|
|
|
|
||||||||||||||||||||||||
U.S. Treasury and obligations of
government sponsored enterprises |
|
|
|
|
|
||||||||||||||||||||||||
Foreign government |
|
|
|
|
|
||||||||||||||||||||||||
Fixed maturities available-for-sale |
|
|
|
|
|
||||||||||||||||||||||||
Fixed maturities trading |
|
|
|
|
|||||||||||||||||||||||||
Total fixed maturity securities | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
12
|
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
September 30, 2022 | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
States, municipalities and political
subdivisions |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Commercial mortgage-backed |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Other asset-backed |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total asset-backed |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
U.S. Treasury and obligations of
government-sponsored enterprises |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Foreign government |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total fixed maturity securities | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
States, municipalities and political
subdivisions |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Commercial mortgage-backed |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Other asset-backed |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total asset-backed |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
U.S. Treasury and obligations of
government-sponsored enterprises |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Foreign government |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total fixed maturity securities | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
13
|
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
AAA |
|
|
|
|
|||||||||||||||||||
AA |
|
|
|
|
|||||||||||||||||||
A |
|
|
|
|
|||||||||||||||||||
BBB |
|
|
|
|
|||||||||||||||||||
Non-investment grade |
|
|
|
|
|||||||||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
Three months ended September 30, 2022 |
Corporate and Other Bonds
|
Asset-backed |
Total
|
||||||||||||||
(In millions) | |||||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of July 1, 2022
|
$ |
|
$ |
|
$ |
|
|||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Available-for-sale securities accounted for as PCD assets |
|
|
|
||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Write-offs charged against the allowance |
|
|
|
||||||||||||||
Additional decreases to the allowance for credit losses
on securities that had an allowance recorded in a previous period
|
|
(
|
(
|
||||||||||||||
Total allowance for credit losses | $ |
|
$ |
|
$ |
|
14
|
Three months ended September 30, 2021 | Corporate and Other Bonds | Asset-backed | Total | ||||||||||||||
(In millions) | |||||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of July 1, 2021
|
$ |
|
$ |
|
$ |
|
|||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Available-for-sale securities accounted for as PCD assets |
|
|
|
||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Write-offs charged against the allowance |
|
|
|
||||||||||||||
Total allowance for credit losses | $ |
|
$ |
|
$ |
|
Nine months ended September 30, 2022 | |||||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of January 1, 2022
|
$ |
|
$ |
|
$ |
|
|||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Available-for-sale securities accounted for as PCD assets |
|
|
|
||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Write-offs charged against the allowance |
|
|
|
||||||||||||||
Additional increases or (decreases) to the allowance for credit
losses on securities that had an allowance recorded in a previous period
|
|
(
|
(
|
||||||||||||||
Total allowance for credit losses | $ |
|
$ |
|
$ |
|
Nine months ended September 30, 2021 | |||||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of January 1, 2021
|
$ |
|
$ |
|
$ |
|
|||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Securities for which credit losses were not previously recorded |
|
|
|
||||||||||||||
Available-for-sale securities accounted for as PCD assets |
|
|
|
||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Securities sold during the period (realized) |
|
|
|
||||||||||||||
Write-offs charged against the allowance |
|
|
|
||||||||||||||
Additional decreases to the allowance for credit losses
on securities that had an allowance recorded in a previous period
|
(
|
|
(
|
||||||||||||||
Total allowance for credit losses | $ |
|
$ |
|
$ |
|
15
|
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Cost or Amortized Cost |
Estimated Fair
Value |
Cost or Amortized Cost |
Estimated
Fair Value |
||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Due in one year or less | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Due after one year through five years |
|
|
|
|
|||||||||||||||||||
Due after five years through ten years |
|
|
|
|
|||||||||||||||||||
Due after ten years |
|
|
|
|
|||||||||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
Mortgage Loans Amortized Cost Basis by Origination Year (a) | |||||||||||||||||||||||||||||||||||||||||
As of September 30, 2022
|
2022
|
2021
|
2020
|
2019
|
2018
|
Prior | Total | ||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
DSCR ≥1.6x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
LTV 55% to 65% |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
LTV greater than 65% |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
DSCR 1.2x - 1.6x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
LTV 55% to 65% |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
LTV greater than 65% |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
DSCR ≤1.2x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
LTV 55% to 65% |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
LTV greater than 65% |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
(a) | The values in the table above reflect DSCR on a standardized amortization period and LTV ratios based on the most recent appraised values trended forward using changes in a commercial real estate price index. |
16
|
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Contractual/Notional Amount | Estimated Fair Value | Contractual/Notional Amount | Estimated Fair Value | ||||||||||||||||||||||||||||||||
Asset |
(Liability)
|
Asset | (Liability) | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Without hedge designation: | |||||||||||||||||||||||||||||||||||
Interest rate swaps | $ |
|
$ |
|
|
$ |
|
|
|
||||||||||||||||||||||||||
Embedded derivative on funds withheld liability |
|
|
|
|
|
$ |
(
|
||||||||||||||||||||||||||||
Other |
|
|
|
|
|
|
September 30, 2022 |
Level 1
|
Level 2
|
Level 3 |
Total
|
|||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate bonds and other | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
States, municipalities and political subdivisions |
|
|
|
|
|||||||||||||||||||
Asset-backed |
|
|
|
|
|||||||||||||||||||
Fixed maturities available-for-sale |
|
|
|
|
|||||||||||||||||||
Fixed maturities trading |
|
|
|
|
|||||||||||||||||||
Total fixed maturities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Equity securities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Short term and other |
|
|
|
|
|||||||||||||||||||
Receivables |
|
|
|
|
|||||||||||||||||||
Payable to brokers |
(
|
|
|
(
|
|||||||||||||||||||
17
|
December 31, 2021 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate bonds and other | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
States, municipalities and political subdivisions |
|
|
|
|
|||||||||||||||||||
Asset-backed |
|
|
|
|
|||||||||||||||||||
Fixed maturities available-for-sale |
|
|
|
|
|||||||||||||||||||
Fixed maturities trading |
|
|
|
|
|||||||||||||||||||
Total fixed maturities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Equity securities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Short term and other |
|
|
|
|
|||||||||||||||||||
Payable to brokers |
(
|
|
|
(
|
18
|
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
|
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | Balance, July 1 |
Included in
Net Income
|
Included in OCI | Purchases |
Sales
|
Settlements
|
Transfers into
Level 3 |
Transfers
out of
Level 3
|
Balance, September 30
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ |
|
$ |
|
$ |
(
|
$ |
|
|
$ |
(
|
|
|
$ |
|
|
$ |
(
|
|||||||||||||||||||||||||||||||||||||||||||||||
States, municipalities and political | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
subdivisions |
|
|
(
|
|
|
|
|
|
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed |
|
|
(
|
|
|
(
|
$ |
|
$ |
(
|
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale |
|
|
(
|
|
$ |
|
(
|
|
(
|
|
$ |
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities trading |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ |
|
$ |
(
|
|
|
|
|
|
$ |
(
|
$ |
|
$ |
(
|
|
19
|
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
|
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | Balance, July 1 | Included in Net Income | Included in OCI | Purchases | Sales | Settlements |
Transfers into
Level 3 |
Transfers out of Level 3 |
Balance, September 30
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ |
|
$ |
|
$ |
|
$ |
|
|
$ |
(
|
|
$ |
(
|
$ |
|
|
$ |
|
||||||||||||||||||||||||||||||||||||||||||||||
States, municipalities and political | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
subdivisions |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed |
|
|
|
|
$ |
(
|
(
|
$ |
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale |
|
|
|
|
(
|
(
|
|
(
|
|
$ |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities trading |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ |
|
$ |
(
|
|
$ |
|
$ |
(
|
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|
20
|
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
|
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | Balance, January 1 |
Included in
Net Income
|
Included in OCI | Purchases |
Sales
|
Settlements
|
Transfers into
Level 3 |
Transfers
out of
Level 3
|
Balance, September 30
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
|
$ |
|
|
$ |
(
|
|||||||||||||||||||||||||||||||||||||||||||||
States, municipalities and political | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
subdivisions |
|
|
(
|
|
|
|
|
|
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed |
|
|
(
|
|
(
|
(
|
|
$ |
(
|
|
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale |
|
|
(
|
|
(
|
(
|
|
$ |
(
|
|
$ |
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities trading |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ |
|
$ |
(
|
|
$ |
|
$ |
(
|
$ |
|
|
$ |
(
|
$ |
|
$ |
(
|
|
21
|
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
|
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | Balance, January 1 | Included in Net Income | Included in OCI | Purchases | Sales | Settlements |
Transfers into
Level 3 |
Transfers out of Level 3 |
Balance, September 30
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|
$ |
(
|
||||||||||||||||||||||||||||||||||||||||||||
States, municipalities and political | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
subdivisions |
|
|
|
|
|
(
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed |
|
|
(
|
|
(
|
(
|
|
(
|
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale |
|
(
|
(
|
|
(
|
(
|
|
(
|
|
$ |
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities trading |
|
(
|
|
|
|
(
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ |
|
$ |
(
|
|
$ |
|
$ |
(
|
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|
Major Category of Assets and Liabilities | Consolidated Condensed Statements of Operations Line Items | ||||
Fixed maturity securities available-for-sale | Investment gains (losses) | ||||
Fixed maturity securities trading | Net investment income | ||||
Equity securities | Investment gains (losses) and Net investment income | ||||
Other invested assets | Investment gains (losses) and Net investment income | ||||
Derivative financial instruments held in a trading portfolio | Net investment income | ||||
Derivative financial instruments, other | Investment gains (losses) and Operating revenues and other |
22
|
September 30, 2022 |
Estimated
Fair Value |
Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Fixed maturity securities | $ |
|
Discounted cash flow | Credit spread |
|
— |
|
(
|
||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Fixed maturity securities | $ |
|
Discounted cash flow | Credit spread |
|
— |
|
(
|
Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||
September 30, 2022 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Other invested assets, primarily mortgage loans | $ |
|
|
|
$ |
|
$ |
|
|||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Short term debt |
|
|
$ |
|
|
|
|||||||||||||||||||||||
Long term debt |
|
|
|
|
|
||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Other invested assets, primarily mortgage loans | $ |
|
|
|
$ |
|
$ |
|
|||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Short term debt |
|
|
|
|
|
||||||||||||||||||||||||
Long term debt |
|
|
$ |
|
|
|
23
|
24
|
Nine Months Ended September 30
|
2022 | 2021 | |||||||||||||||
(In millions) | |||||||||||||||||
Reserves, beginning of year: | |||||||||||||||||
Gross | $ |
|
$ |
|
|||||||||||||
Ceded |
|
|
|||||||||||||||
Net reserves, beginning of year |
|
|
|||||||||||||||
Reduction of net reserves due to the excess workers’ compensation loss portfolio transfer |
|
(
|
|||||||||||||||
Net incurred claim and claim adjustment expenses: | |||||||||||||||||
Provision for insured events of current year |
|
|
|||||||||||||||
Decrease in provision for insured events of prior years |
(
|
(
|
|||||||||||||||
Amortization of discount |
|
|
|||||||||||||||
Total net incurred
(a)
|
|
|
|||||||||||||||
Net payments attributable to: | |||||||||||||||||
Current year events |
(
|
(
|
|||||||||||||||
Prior year events |
(
|
(
|
|||||||||||||||
Total net payments |
(
|
(
|
|||||||||||||||
Foreign currency translation adjustment and other |
(
|
(
|
|||||||||||||||
Net reserves, end of period |
|
|
|||||||||||||||
Ceded reserves, end of period |
|
|
|||||||||||||||
Gross reserves, end of period | $ |
|
$ |
|
(a) | Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, the loss on the excess workers’ compensation loss portfolio transfer, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above. |
25
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Medical professional liability | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Other professional liability and management liability |
|
|
|
|
||||||||||||||||||||||
Surety |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
Commercial auto |
|
|
|
|
||||||||||||||||||||||
General liability |
|
|
|
|
||||||||||||||||||||||
Workers’ compensation |
(
|
|
(
|
(
|
||||||||||||||||||||||
Property and other |
(
|
(
|
(
|
|
||||||||||||||||||||||
Other insurance operations |
|
|
|
|
||||||||||||||||||||||
Total pretax (favorable) unfavorable development | $ |
(
|
$ |
(
|
$ |
(
|
$ |
|
26
|
27
|
28
|
29
|
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Unrealized Gains (Losses) on Other Investments | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Balance, July 1, 2021
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $
|
|
(
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $
|
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Other comprehensive income (loss) |
|
(
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Balance, September 30, 2021
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||||||
Balance, July 1, 2022
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $
|
|
(
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $
|
(
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||
Other comprehensive income (loss) |
(
|
(
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
(
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Balance, September 30, 2022
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
30
|
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Unrealized Gains (Losses) on Other Investments | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Balance, January 1, 2021
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $
|
(
|
(
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $(
|
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Other comprehensive income (loss) |
|
(
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Balance, September 30, 2021
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||||||
Balance, January 1, 2022
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $
|
(
|
(
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Other comprehensive income (loss) |
(
|
(
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Balance, September 30, 2022
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
Major Category of AOCI | Affected Line Item | ||||
Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments | Investment gains (losses) | ||||
Unrealized gains (losses) on cash flow hedges | Operating revenues and other, Interest expense and Operating expenses and other | ||||
Pension and postretirement benefits | Operating expenses and other |
31
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Non-insurance warranty – CNA Financial | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
Lodging and related services – Loews Hotels & Co |
|
|
|
|
||||||||||||||||||||||
Rigid plastic packaging and recycled resin – Corporate (a) |
|
|
|
|
||||||||||||||||||||||
Total revenues from contracts with customers |
|
|
|
|
||||||||||||||||||||||
Other revenues |
|
|
|
|
||||||||||||||||||||||
Operating revenues and other | $ |
|
$ |
|
$ |
|
$ |
|
32
|
Pension Benefits | |||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Service cost | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
Interest cost |
|
|
|
|
|||||||||||||||||||||||||||||||
Expected return on plan assets |
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||
Amortization of unrecognized net loss |
|
|
|
|
|||||||||||||||||||||||||||||||
Settlements |
|
|
|
|
|||||||||||||||||||||||||||||||
Regulatory asset (increase) decrease |
(
|
|
|
|
|||||||||||||||||||||||||||||||
Net periodic benefit | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Interest cost |
|
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||
Expected return on plan assets |
|
$ |
(
|
(
|
(
|
||||||||||||||||||||||||||||||
Net periodic benefit | $ |
|
$ |
(
|
$ |
|
$ |
(
|
33
|
34
|
Three Months Ended September 30, 2022 |
CNA Financial
|
Boardwalk Pipelines
|
Loews
Hotels & Co
|
Corporate |
Total
|
||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Insurance premiums | $ |
|
|
|
|
$ |
|
||||||||||||||||||||||||||||
Net investment income (loss) |
|
$ |
|
|
$ |
(
|
|
||||||||||||||||||||||||||||
Investment losses |
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||
Non-insurance warranty revenue |
|
|
|
|
|
||||||||||||||||||||||||||||||
Operating revenues and other |
|
|
$ |
|
|
|
|||||||||||||||||||||||||||||
Total |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Insurance claims and policyholders’ benefits |
|
|
|
|
|
||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
||||||||||||||||||||||||||||||
Non-insurance warranty expense |
|
|
|
|
|
||||||||||||||||||||||||||||||
Operating expenses and other |
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest |
|
|
(
|
|
|
||||||||||||||||||||||||||||||
Total |
|
|
|
|
|
||||||||||||||||||||||||||||||
Income (loss) before income tax |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Income tax (expense) benefit |
(
|
(
|
(
|
|
(
|
||||||||||||||||||||||||||||||
Net income (loss) |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
35
|
Three Months Ended September 30, 2021 | CNA Financial | Boardwalk Pipelines |
Loews
Hotels & Co |
Corporate | Total | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Insurance premiums | $ |
|
|
|
|
$ |
|
||||||||||||||||||||||||||||
Net investment income (loss) |
|
|
|
$ |
(
|
|
|||||||||||||||||||||||||||||
Investment gains |
|
|
|
|
|
||||||||||||||||||||||||||||||
Non-insurance warranty revenue |
|
|
|
|
|
||||||||||||||||||||||||||||||
Operating revenues and other |
|
$ |
|
$ |
|
|
|
||||||||||||||||||||||||||||
Total |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Insurance claims and policyholders’ benefits |
|
|
|
|
|
||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
||||||||||||||||||||||||||||||
Non-insurance warranty expense |
|
|
|
|
|
||||||||||||||||||||||||||||||
Operating expenses and other |
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest |
|
|
|
|
|
||||||||||||||||||||||||||||||
Total |
|
|
|
|
|
||||||||||||||||||||||||||||||
Income (loss) before income tax |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Income tax (expense) benefit |
(
|
(
|
(
|
|
(
|
||||||||||||||||||||||||||||||
Net income (loss) |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
36
|
Nine Months Ended September 30, 2022 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Insurance premiums | $ |
|
|
|
|
$ |
|
||||||||||||||||||||||||||||
Net investment income (loss) |
|
$ |
|
$ |
(
|
$ |
(
|
|
|||||||||||||||||||||||||||
Investment losses |
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||
Non-insurance warranty revenue |
|
|
|
|
|
||||||||||||||||||||||||||||||
Operating revenues and other |
|
|
|
|
|
||||||||||||||||||||||||||||||
Total |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Insurance claims and policyholders’ benefits |
|
|
|
|
|
||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs |
|
|
|
|
|
||||||||||||||||||||||||||||||
Non-insurance warranty expense |
|
|
|
|
|
||||||||||||||||||||||||||||||
Operating expenses and other |
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest |
|
|
|
|
|
||||||||||||||||||||||||||||||
Total |
|
|
|
|
|
||||||||||||||||||||||||||||||
Income (loss) before income tax |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Income tax (expense) benefit |
(
|
(
|
(
|
|
(
|
||||||||||||||||||||||||||||||
Net income (loss) |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
37
|
Nine Months Ended September 30, 2021 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate (a) | Total | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Insurance premiums | $ |
|
$ |
|
|||||||||||||||||||||||||||||||
Net investment income |
|
$ |
|
$ |
|
|
|||||||||||||||||||||||||||||
Investment gains |
|
|
|
||||||||||||||||||||||||||||||||
Non-insurance warranty revenue |
|
|
|||||||||||||||||||||||||||||||||
Operating revenues and other |
|
$ |
|
|
|
|
|||||||||||||||||||||||||||||
Total |
|
|
|
|
|
||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Insurance claims and policyholders’ benefits |
|
|
|||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs |
|
|
|||||||||||||||||||||||||||||||||
Non-insurance warranty expense |
|
|
|||||||||||||||||||||||||||||||||
Operating expenses and other |
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest |
|
|
|
|
|
||||||||||||||||||||||||||||||
Total |
|
|
|
|
|
||||||||||||||||||||||||||||||
Income (loss) before income tax |
|
|
(
|
|
|
||||||||||||||||||||||||||||||
Income tax (expense) benefit |
(
|
(
|
|
(
|
(
|
||||||||||||||||||||||||||||||
Net income (loss) |
|
|
(
|
|
|
||||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests |
(
|
(
|
|||||||||||||||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
(a) | Amounts include the consolidated results of Altium Packaging through March 31, 2021. Beginning April 1, 2021, Altium Packaging is recorded as an equity method investment. |
38
|
Page
No.
|
|||||
39
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||
CNA Financial | $ | 115 | $ | 229 | $ | 579 | $ | 838 | ||||||||||||
Boardwalk Pipelines | 34 | 38 | 164 | 170 | ||||||||||||||||
Loews Hotels & Co | 25 | 13 | 84 | (51) | ||||||||||||||||
Corporate | (44) | (60) | (179) | 278 | ||||||||||||||||
Net income attributable to Loews Corporation | $ | 130 | $ | 220 | $ | 648 | $ | 1,235 | ||||||||||||
Basic net income per share | $ | 0.54 | $ | 0.86 | $ | 2.65 | $ | 4.71 | ||||||||||||
Diluted net income per share | $ | 0.54 | $ | 0.85 | $ | 2.64 | $ | 4.70 |
40
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Insurance premiums | $ | 2,221 | $ | 2,059 | $ | 6,435 | $ | 6,056 | ||||||||||||
Net investment income | 422 | 513 | 1,302 | 1,608 | ||||||||||||||||
Investment gains (losses) | (96) | 22 | (166) | 117 | ||||||||||||||||
Non-insurance warranty revenue | 399 | 357 | 1,173 | 1,054 | ||||||||||||||||
Other revenues | 11 | 8 | 24 | 19 | ||||||||||||||||
Total | 2,957 | 2,959 | 8,768 | 8,854 | ||||||||||||||||
Expenses: | ||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,665 | 1,632 | 4,703 | 4,684 | ||||||||||||||||
Amortization of deferred acquisition costs | 383 | 368 | 1,101 | 1,084 | ||||||||||||||||
Non-insurance warranty expense | 371 | 330 | 1,092 | 973 | ||||||||||||||||
Other operating expenses | 346 | 287 | 1,001 | 874 | ||||||||||||||||
Interest | 28 | 28 | 84 | 85 | ||||||||||||||||
Total | 2,793 | 2,645 | 7,981 | 7,700 | ||||||||||||||||
Income before income tax | 164 | 314 | 787 | 1,154 | ||||||||||||||||
Income tax expense | (36) | (59) | (141) | (219) | ||||||||||||||||
Net income | 128 | 255 | 646 | 935 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (13) | (26) | (67) | (97) | ||||||||||||||||
Net income attributable to Loews Corporation | $ | 115 | $ | 229 | $ | 579 | $ | 838 |
41
|
42
|
Three Months Ended September 30, 2022 |
Specialty
|
Commercial
|
International
|
Total
|
|||||||||||||||||||
(In millions, except %) | |||||||||||||||||||||||
Gross written premiums | $ | 1,890 | $ | 1,187 | $ | 288 | $ | 3,365 | |||||||||||||||
Gross written premiums excluding third-party captives | 958 | 1,184 | 288 | 2,430 | |||||||||||||||||||
Net written premiums | 840 | 962 | 258 | 2,060 | |||||||||||||||||||
Net earned premiums | 810 | 1,023 | 270 | 2,103 | |||||||||||||||||||
Net investment income | 102 | 112 | 16 | 230 | |||||||||||||||||||
Core income | 161 | 80 | 19 | 260 | |||||||||||||||||||
Other performance metrics: | |||||||||||||||||||||||
Loss ratio excluding catastrophes and development | 58.4 | % | 61.5 | % | 58.6 | % | 59.9 | % | |||||||||||||||
Effect of catastrophe impacts | 0.2 | 10.0 | 4.1 | 5.5 | |||||||||||||||||||
Effect of development-related items | (1.9) | (0.8) | |||||||||||||||||||||
Loss ratio | 56.7 | % | 71.5 | % | 62.7 | % | 64.6 | % | |||||||||||||||
Expense ratio | 31.7 | 29.9 | 31.7 | 30.8 | |||||||||||||||||||
Dividend ratio | 0.3 | 0.5 | 0.4 | ||||||||||||||||||||
Combined ratio | 88.7 | % | 101.9 | % | 94.4 | % | 95.8 | % | |||||||||||||||
Combined ratio excluding catastrophes and development | 90.4 | % | 91.9 | % | 90.3 | % | 91.1 | % | |||||||||||||||
Rate | 5 | % | 4 | % | 6 | % | 5 | % | |||||||||||||||
Renewal premium change | 6 | 8 | 12 | 8 | |||||||||||||||||||
Retention | 87 | 84 | 82 | 85 | |||||||||||||||||||
New business | $ | 130 | $ | 246 | $ | 79 | $ | 455 |
Three Months Ended September 30, 2021 | |||||||||||||||||||||||
Gross written premiums | $ | 1,953 | $ | 1,010 | $ | 276 | $ | 3,239 | |||||||||||||||
Gross written premiums excluding third-party captives | 943 | 1,005 | 276 | 2,224 | |||||||||||||||||||
Net written premiums | 822 | 831 | 256 | 1,909 | |||||||||||||||||||
Net earned premiums | 773 | 893 | 271 | 1,937 | |||||||||||||||||||
Net investment income | 116 | 141 | 14 | 271 | |||||||||||||||||||
Core income | 173 | 27 | 17 | 217 | |||||||||||||||||||
Other performance metrics: | |||||||||||||||||||||||
Loss ratio excluding catastrophes and development | 59.1 | % | 61.5 | % | 58.9 | % | 60.2 | % | |||||||||||||||
Effect of catastrophe impacts | 0.4 | 18.6 | 3.4 | 9.2 | |||||||||||||||||||
Effect of development-related items | (1.8) | 0.5 | 1.1 | (0.3) | |||||||||||||||||||
Loss ratio | 57.7 | % | 80.6 | % | 63.4 | % | 69.1 | % | |||||||||||||||
Expense ratio | 30.6 | 30.4 | 32.1 | 30.7 | |||||||||||||||||||
Dividend ratio | (0.1) | 0.6 | 0.2 | ||||||||||||||||||||
Combined ratio | 88.2 | % | 111.6 | % | 95.5 | % | 100.0 | % | |||||||||||||||
Combined ratio excluding catastrophes and development | 89.6 | % | 92.5 | % | 91.0 | % | 91.1 | % | |||||||||||||||
Rate | 10 | % | 6 | % | 13 | % | 8 | % | |||||||||||||||
Renewal premium change | 11 | 9 | 13 | 10 | |||||||||||||||||||
Retention | 80 | 83 | 79 | 81 | |||||||||||||||||||
New business | $ | 147 | $ | 204 | $ | 54 | $ | 405 |
43
|
Nine Months Ended September 30, 2022 |
Specialty
|
Commercial
|
International
|
Total
|
|||||||||||||||||||
(In millions, except %) | |||||||||||||||||||||||
Gross written premiums | $ | 5,640 | $ | 3,824 | $ | 1,033 | $ | 10,497 | |||||||||||||||
Gross written premiums excluding third-party captives | 2,816 | 3,711 | 1,033 | 7,560 | |||||||||||||||||||
Net written premiums | 2,443 | 3,097 | 839 | 6,379 | |||||||||||||||||||
Net earned premiums | 2,376 | 2,901 | 803 | 6,080 | |||||||||||||||||||
Net investment income | 305 | 343 | 44 | 692 | |||||||||||||||||||
Core income | 485 | 350 | 63 | 898 | |||||||||||||||||||
Other performance metrics: | |||||||||||||||||||||||
Loss ratio excluding catastrophes and development | 58.6 | % | 61.5 | % | 58.6 | % | 60.0 | % | |||||||||||||||
Effect of catastrophe impacts | 0.1 | 5.0 | 2.7 | 2.8 | |||||||||||||||||||
Effect of development-related items | (1.4) | (0.5) | (0.6) | (0.9) | |||||||||||||||||||
Loss ratio | 57.3 | % | 66.0 | % | 60.7 | % | 61.9 | % | |||||||||||||||
Expense ratio | 31.0 | 30.1 | 32.1 | 30.8 | |||||||||||||||||||
Dividend ratio | 0.2 | 0.5 | 0.3 | ||||||||||||||||||||
Combined ratio | 88.5 | % | 96.6 | % | 92.8 | % | 93.0 | % | |||||||||||||||
Combined ratio excluding catastrophes and development | 89.8 | % | 92.1 | % | 90.7 | % | 91.1 | % | |||||||||||||||
Rate | 7 | % | 5 | % | 7 | % | 6 | % | |||||||||||||||
Renewal premium change | 8 | 8 | 11 | 8 | |||||||||||||||||||
Retention | 86 | 86 | 79 | 85 | |||||||||||||||||||
New business | $ | 407 | $ | 754 | $ | 245 | $ | 1,406 |
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||
Gross written premiums | $ | 5,650 | $ | 3,284 | $ | 958 | $ | 9,892 | |||||||||||||||
Gross written premiums excluding third-party captives | 2,656 | 3,176 | 958 | 6,790 | |||||||||||||||||||
Net written premiums | 2,350 | 2,622 | 783 | 5,755 | |||||||||||||||||||
Net earned premiums | 2,270 | 2,629 | 789 | 5,688 | |||||||||||||||||||
Net investment income | 367 | 463 | 42 | 872 | |||||||||||||||||||
Core income | 531 | 233 | 67 | 831 | |||||||||||||||||||
Other performance metrics: | |||||||||||||||||||||||
Loss ratio excluding catastrophes and development | 59.1 | % | 60.8 | % | 59.2 | % | 59.9 | % | |||||||||||||||
Effect of catastrophe impacts | 0.4 | 12.6 | 2.0 | 6.3 | |||||||||||||||||||
Effect of development-related items | (1.7) | 0.6 | 0.3 | (0.4) | |||||||||||||||||||
Loss ratio | 57.8 | % | 74.0 | % | 61.5 | % | 65.8 | % | |||||||||||||||
Expense ratio | 30.4 | 31.4 | 33.3 | 31.3 | |||||||||||||||||||
Dividend ratio | 0.1 | 0.6 | 0.3 | ||||||||||||||||||||
Combined ratio | 88.3 | % | 106.0 | % | 94.8 | % | 97.4 | % | |||||||||||||||
Combined ratio excluding catastrophes and development | 89.6 | % | 92.8 | % | 92.5 | % | 91.5 | % | |||||||||||||||
Rate | 11 | % | 8 | % | 14 | % | 10 | % | |||||||||||||||
Renewal premium change | 12 | 11 | 13 | 11 | |||||||||||||||||||
Retention | 84 | 82 | 77 | 82 | |||||||||||||||||||
New business | $ | 370 | $ | 615 | $ | 204 | $ | 1,189 |
44
|
45
|
46
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions) | ||||||||||||||||||||
Net earned premiums | $ | 118 | $ | 123 | $ | 356 | $ | 369 | ||||||||||||
Net investment income | 192 | 242 | 610 | 736 | ||||||||||||||||
Core income (loss) | (47) | 20 | (124) | 10 |
47
|
(In millions) | |||||
Long term care active life reserve - change in estimated reserve margin | |||||
September 30, 2021 estimated margin | $ | 72 | |||
Changes in underlying economic assumptions
(a)
|
(130) | ||||
Changes in underlying morbidity assumptions | (30) | ||||
Changes in underlying persistency assumptions | 40 | ||||
Changes in underlying premium rate action assumptions | 190 | ||||
Changes in underlying expense and other assumptions | (17) | ||||
September 30, 2022 Estimated Margin | $ | 125 |
(a) | Economic assumptions include the impact of interest rates and cost of care inflation. |
48
|
September 30, 2022
|
Estimated Reduction to Pretax Income | ||||
(In millions) | |||||
Hypothetical revisions | |||||
Morbidity:
(a)
|
|||||
2.5% increase in morbidity | $ | 200 | |||
5% increase in morbidity | 500 | ||||
Persistency: | |||||
5% decrease in active life mortality and lapse | $ | 100 | |||
10% decrease in active life mortality and lapse | 300 | ||||
Discount rates: | |||||
25 basis point decline in new money interest rates | $ | — | |||
50 basis point decline in new money interest rates | 100 | ||||
(a) | Represents a sensitivity in future paid claims. |
49
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions) | ||||||||||||||||||||
Core income (loss): | ||||||||||||||||||||
Property & Casualty Operations | $ | 260 | $ | 217 | $ | 898 | $ | 831 | ||||||||||||
Other Insurance Operations | (47) | 20 | (124) | 10 | ||||||||||||||||
Total core income | 213 | 237 | 774 | 841 | ||||||||||||||||
Investment gains (losses) | (84) | 18 | (127) | 94 | ||||||||||||||||
Consolidating adjustments including noncontrolling interests | (14) | (26) | (68) | (97) | ||||||||||||||||
Net income attributable to Loews Corporation | $ | 115 | $ | 229 | $ | 579 | $ | 838 |
50
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Operating revenues and other | $ | 339 | $ | 307 | $ | 1,045 | $ | 991 | ||||||||||||
Total | 339 | 307 | 1,045 | 991 | ||||||||||||||||
Expenses: | ||||||||||||||||||||
Operating and other: | ||||||||||||||||||||
Operating costs and expenses | 147 | 123 | 401 | 364 | ||||||||||||||||
Depreciation and amortization | 103 | 92 | 297 | 277 | ||||||||||||||||
Interest | 42 | 40 | 126 | 121 | ||||||||||||||||
Total | 292 | 255 | 824 | 762 | ||||||||||||||||
Income before income tax | 47 | 52 | 221 | 229 | ||||||||||||||||
Income tax expense | (13) | (14) | (57) | (59) | ||||||||||||||||
Net income attributable to Loews Corporation | $ | 34 | $ | 38 | $ | 164 | $ | 170 | ||||||||||||
EBITDA | $ | 192 | $ | 184 | $ | 644 | $ | 627 |
51
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||||||
(In millions)
|
||||||||||||||||||||
Net income attributable to Loews Corporation
|
$ | 34 | $ | 38 | $ | 164 | $ | 170 | ||||||||||||
Income tax expense
|
13 | 14 | 57 | 59 | ||||||||||||||||
Depreciation and amortization
|
103 | 92 | 297 | 277 | ||||||||||||||||
Interest
|
42 | 40 | 126 | 121 | ||||||||||||||||
EBITDA
|
$ | 192 | $ | 184 | $ | 644 | $ | 627 |
52
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Operating revenue | $ | 149 | $ | 107 | $ | 440 | $ | 222 | ||||||||||||
Revenues related to reimbursable expenses | 31 | 27 | 92 | 67 | ||||||||||||||||
Total | 180 | 134 | 532 | 289 | ||||||||||||||||
Expenses: | ||||||||||||||||||||
Operating and other: | ||||||||||||||||||||
Operating | 128 | 93 | 359 | 231 | ||||||||||||||||
Asset impairment | 8 | 22 | ||||||||||||||||||
Reimbursable expenses | 31 | 27 | 92 | 67 | ||||||||||||||||
Depreciation and amortization expense | 16 | 15 | 47 | 47 | ||||||||||||||||
Equity income from joint ventures | (36) | (26) | (115) | (17) | ||||||||||||||||
Interest | (1) | 8 | 7 | 25 | ||||||||||||||||
Total | 146 | 117 | 412 | 353 | ||||||||||||||||
Income (loss) before income tax | 34 | 17 | 120 | (64) | ||||||||||||||||
Income tax (expense) benefit | (9) | (4) | (36) | 13 | ||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 25 | $ | 13 | $ | 84 | $ | (51) |
53
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Net investment income (loss) | $ | (19) | $ | (30) | $ | (100) | $ | 40 | ||||||||||||
Investment gains | 540 | |||||||||||||||||||
Operating revenues and other | 4 | 1 | 6 | 282 | ||||||||||||||||
Total | (15) | (29) | (94) | 862 | ||||||||||||||||
Expenses: | ||||||||||||||||||||
Operating and other | 17 | 27 | 62 | 365 | ||||||||||||||||
Interest | 23 | 23 | 67 | 93 | ||||||||||||||||
Total | 40 | 50 | 129 | 458 | ||||||||||||||||
Income (loss) before income tax | (55) | (79) | (223) | 404 | ||||||||||||||||
Income tax (expense) benefit | 11 | 19 | 44 | (126) | ||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | (44) | $ | (60) | $ | (179) | $ | 278 |
54
|
55
|
56
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions) | ||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||
Taxable fixed income securities | $ | 410 | $ | 360 | $ | 1,163 | $ | 1,075 | ||||||||||||
Tax-exempt fixed income securities | 55 | 77 | 194 | 236 | ||||||||||||||||
Total fixed income securities | 465 | 437 | 1,357 | 1,311 | ||||||||||||||||
Limited partnership and common stock investments | (44) | 77 | (51) | 294 | ||||||||||||||||
Other, net of investment expense | 1 | (1) | (4) | 3 | ||||||||||||||||
Net investment income | $ | 422 | $ | 513 | $ | 1,302 | $ | 1,608 |
Effective income yield for the fixed income securities portfolio | 4.4 | % | 4.3 | % | 4.3 | % | 4.3 | % | ||||||||||||
Limited partnership and common stock return | (2.1)% | 3.8 | % | (2.4)% | 16.4 | % |
57
|
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2022 | 2021 |
2022
|
2021
|
|||||||||||||||||
(In millions) | ||||||||||||||||||||
Investment gains (losses): | ||||||||||||||||||||
Fixed maturity securities:
(a)
|
||||||||||||||||||||
Corporate and other bonds | $ | (41) | $ | 36 | $ | (68) | $ | 115 | ||||||||||||
States, municipalities and political subdivisions | 6 | 1 | 28 | |||||||||||||||||
Asset-backed | (17) | (15) | (29) | (24) | ||||||||||||||||
Total fixed maturity securities | (52) | 22 | (69) | 91 | ||||||||||||||||
Non-redeemable preferred stock | (2) | (2) | (111) | 17 | ||||||||||||||||
Derivatives, short term and other | (42) | 2 | 14 | 9 | ||||||||||||||||
Total investment gains (losses) | (96) | 22 | (166) | 117 | ||||||||||||||||
Income tax (expense) benefit | 12 | (4) | 39 | (23) | ||||||||||||||||
Amounts attributable to noncontrolling interests | 8 | (2) | 12 | (10) | ||||||||||||||||
Investment gains (losses) attributable to Loews Corporation | $ | (76) | $ | 16 | $ | (115) | $ | 84 |
(a) | Excludes the loss in the third quarter of 2022 on the assets supporting the funds withheld liability, which is reflected in the Derivatives, short term and other line. |
58
|
September 30, 2022
|
December 31, 2021
|
||||||||||||||||||||||
Estimated
Fair Value
|
Net
Unrealized Gains (Losses)
|
Estimated
Fair Value
|
Net
Unrealized Gains
(Losses)
|
||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 2,452 | $ | (357) | $ | 2,600 | $ | 42 | |||||||||||||||
AAA | 2,374 | (250) | 3,784 | 360 | |||||||||||||||||||
AA | 6,387 | (792) | 7,665 | 823 | |||||||||||||||||||
A | 8,739 | (667) | 9,511 | 1,087 | |||||||||||||||||||
BBB | 15,267 | (1,776) | 18,458 | 2,043 | |||||||||||||||||||
Non-investment grade | 2,032 | (234) | 2,362 | 91 | |||||||||||||||||||
Total | $ | 37,251 | $ | (4,076) | $ | 44,380 | $ | 4,446 |
September 30, 2022
|
Estimated
Fair Value
|
Gross Unrealized Losses | |||||||||
(In millions) | |||||||||||
U.S. Government, Government agencies and
Government-sponsored enterprises |
$ | 2,360 | $ | 360 | |||||||
AAA | 1,566 | 318 | |||||||||
AA | 4,430 | 917 | |||||||||
A | 6,548 | 838 | |||||||||
BBB | 13,394 | 1,902 | |||||||||
Non-investment grade | 1,646 | 248 | |||||||||
Total | $ | 29,944 | $ | 4,583 |
September 30, 2022
|
Estimated
Fair Value
|
Gross Unrealized Losses | |||||||||
(In millions) | |||||||||||
Due in one year or less | $ | 699 | $ | 11 | |||||||
Due after one year through five years | 7,492 | 541 | |||||||||
Due after five years through ten years | 10,701 | 1,705 | |||||||||
Due after ten years | 11,052 | 2,326 | |||||||||
Total | $ | 29,944 | $ | 4,583 |
59
|
September 30, 2022
|
December 31, 2021
|
||||||||||||||||||||||
Estimated
Fair Value |
Effective Duration (Years) |
Estimated
Fair Value |
Effective Duration (Years) | ||||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||||||
Investments supporting Other Insurance Operations | $ | 14,253 | 9.8 | $ | 18,458 | 9.2 | |||||||||||||||||
Other investments | 24,739 | 4.8 | 28,915 | 4.9 | |||||||||||||||||||
Total | $ | 38,992 | 6.7 | $ | 47,373 | 6.6 |
60
|
61
|
Period |
(a) Total number
of shares
purchased
|
(b) Average
price paid per
share
|
(c) Total number of shares purchased as
part of publicly announced plans or programs
|
(d) Maximum number of shares (or approximate dollar value)
of shares that may yet be purchased under the plans or programs (in millions)
|
|||||||||||||||||||
July 1, 2022 - July 31, 2022
|
1,311,355 | $ | 57.19 | N/A | N/A | ||||||||||||||||||
August 1, 2022 - August 31, 2022
|
1,705,853 | 56.10 | N/A | N/A | |||||||||||||||||||
September 1, 2022 - September 30, 2022
|
1,100,000 | 53.99 | N/A | N/A |
62
|
Description of Exhibit |
Exhibit
Number |
||||
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | 101.INS * | ||||
Inline XBRL Taxonomy Extension Schema | 101.SCH * | ||||
Inline XBRL Taxonomy Extension Calculation Linkbase | 101.CAL * | ||||
Inline XBRL Taxonomy Extension Definition Linkbase | 101.DEF * | ||||
Inline XBRL Taxonomy Label Linkbase | 101.LAB * | ||||
Inline XBRL Taxonomy Extension Presentation Linkbase | 101.PRE * | ||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | 104* |
63
|
LOEWS CORPORATION | |||||||||||
(Registrant) | |||||||||||
Dated: October 31, 2022
|
By: | /s/ Jane J. Wang | |||||||||
JANE J. WANG | |||||||||||
Senior Vice President and
Chief Financial Officer (Duly authorized officer and principal financial officer) |
64
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Fidelity National Financial, Inc. | FNF |
Suppliers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|