08/02/2021 | Press release | Distributed by Public on 08/02/2021 09:55
Delaware
|
13-2646102
|
|
(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
|
Common stock, par value $0.01 per share
|
L
|
New York Stock Exchange
|
Yes ☒
|
No ☐
|
Yes ☒
|
No ☐
|
Large accelerated filer☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
Yes ☐
|
No ☒
|
Page
No.
|
|
Part I. Financial Information
|
|
Item 1. Financial Statements (unaudited)
|
|
Consolidated Condensed Balance Sheets
|
3
|
June 30, 2021 and December 31, 2020
|
|
Consolidated Condensed Statements of Operations
|
4
|
Three and six months ended June 30, 2021 and 2020
|
|
Consolidated Condensed Statements of Comprehensive Income (Loss)
|
5
|
Three and six months ended June 30, 2021 and 2020
|
|
Consolidated Condensed Statements of Equity
|
6
|
Three and six months ended June 30, 2021 and 2020
|
|
Consolidated Condensed Statements of Cash Flows
|
8
|
Six months ended June 30, 2021 and 2020
|
|
Notes to Consolidated Condensed Financial Statements
|
9
|
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
36
|
Item 3. Quantitative and Qualitative Disclosures about Market Risk
|
55
|
Item 4. Controls and Procedures
|
55
|
Part II. Other Information
|
55
|
Item 1. Legal Proceedings
|
55
|
Item 1A. Risk Factors
|
55
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
58
|
Item 6. Exhibits
|
59
|
June 30,
2021
|
December 31,
2020
|
|||||||
(Dollar amounts in millions, except per share data)
|
||||||||
Assets:
|
||||||||
Investments:
|
||||||||
Fixed maturities, amortized cost of $39,826and $38,963, less allowance for credit loss of $45and $40
|
$
|
44,910
|
$
|
44,646
|
||||
Equity securities, cost of $1,496and $1,456
|
1,663
|
1,561
|
||||||
Limited partnership investments
|
1,898
|
1,798
|
||||||
Other invested assets, primarily mortgage loans, less allowance for credit loss of $26and $26
|
1,101
|
1,165
|
||||||
Short term investments
|
4,802
|
4,674
|
||||||
Total investments
|
54,374
|
53,844
|
||||||
Cash
|
578
|
478
|
||||||
Receivables
|
9,162
|
7,833
|
||||||
Property, plant and equipment
|
9,847
|
10,451
|
||||||
Goodwill
|
350
|
785
|
||||||
Deferred non-insurance warranty acquisition expenses
|
3,305
|
3,068
|
||||||
Deferred acquisition costs of insurance subsidiaries
|
721
|
708
|
||||||
Other assets
|
3,271
|
3,069
|
||||||
Total assets
|
$
|
81,608
|
$
|
80,236
|
||||
Liabilities and Equity:
|
||||||||
Insurance reserves:
|
||||||||
Claim and claim adjustment expense
|
$
|
23,480
|
$
|
22,706
|
||||
Future policy benefits
|
13,285
|
13,318
|
||||||
Unearned premiums
|
5,592
|
5,119
|
||||||
Total insurance reserves
|
42,357
|
41,143
|
||||||
Payable to brokers
|
654
|
92
|
||||||
Short term debt
|
122
|
37
|
||||||
Long term debt
|
8,988
|
10,072
|
||||||
Deferred income taxes
|
1,083
|
1,065
|
||||||
Deferred non-insurance warranty revenue
|
4,309
|
4,023
|
||||||
Other liabilities
|
4,697
|
4,623
|
||||||
Total liabilities
|
62,210
|
61,055
|
||||||
Commitments and contingent liabilities
|
||||||||
Preferred stock, $0.10par value:
|
||||||||
Authorized - 100,000,000shares
|
||||||||
Common stock, $0.01par value:
|
||||||||
Authorized - 1,800,000,000shares
|
||||||||
Issued - 269,514,991and 269,360,973shares
|
3
|
3
|
||||||
Additional paid-in capital
|
3,121
|
3,133
|
||||||
Retained earnings
|
15,132
|
14,150
|
||||||
Accumulated other comprehensive income
|
327
|
581
|
||||||
18,583
|
17,867
|
|||||||
Less treasury stock, at cost (9,652,672and 150,000shares)
|
(500
|
)
|
(7
|
)
|
||||
Total shareholders' equity
|
18,083
|
17,860
|
||||||
Noncontrolling interests
|
1,315
|
1,321
|
||||||
Total equity
|
19,398
|
19,181
|
||||||
Total liabilities and equity
|
$
|
81,608
|
$
|
80,236
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions, except per share data)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Insurance premiums
|
$
|
2,035
|
$
|
1,850
|
$
|
3,997
|
$
|
3,719
|
||||||||
Net investment income
|
616
|
644
|
1,166
|
807
|
||||||||||||
Investment gains (losses) (Note 2)
|
578
|
(1,142
|
)
|
635
|
(1,358
|
)
|
||||||||||
Non-insurance warranty revenue
|
359
|
308
|
697
|
609
|
||||||||||||
Operating revenues and other
|
415
|
650
|
1,130
|
1,632
|
||||||||||||
Total
|
4,003
|
2,310
|
7,625
|
5,409
|
||||||||||||
Expenses:
|
||||||||||||||||
Insurance claims and policyholders' benefits
|
1,546
|
1,642
|
3,052
|
3,067
|
||||||||||||
Amortization of deferred acquisition costs
|
357
|
342
|
716
|
686
|
||||||||||||
Non-insurance warranty expense
|
332
|
285
|
643
|
566
|
||||||||||||
Operating expenses and other
|
656
|
992
|
1,570
|
3,018
|
||||||||||||
Interest
|
100
|
123
|
225
|
267
|
||||||||||||
Total
|
2,991
|
3,384
|
6,206
|
7,604
|
||||||||||||
Income (loss) before income tax
|
1,012
|
(1,074
|
)
|
1,419
|
(2,195
|
)
|
||||||||||
Income tax (expense) benefit
|
(219
|
)
|
228
|
(333
|
)
|
305
|
||||||||||
Net income (loss)
|
793
|
(846
|
)
|
1,086
|
(1,890
|
)
|
||||||||||
Amounts attributable to noncontrolling interests
|
(39
|
)
|
11
|
(71
|
)
|
423
|
||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
754
|
$
|
(835
|
)
|
$
|
1,015
|
$
|
(1,467
|
)
|
||||||
Basic net income (loss) per share
|
$
|
2.87
|
$
|
(2.96
|
)
|
$
|
3.83
|
$
|
(5.16
|
)
|
||||||
Diluted net income (loss) per share
|
$
|
2.86
|
$
|
(2.96
|
)
|
$
|
3.82
|
$
|
(5.16
|
)
|
||||||
Weighted average shares outstanding:
|
||||||||||||||||
Shares of common stock
|
262.76
|
281.48
|
265.06
|
284.26
|
||||||||||||
Dilutive potential shares of common stock
|
0.58
|
0.49
|
||||||||||||||
Total weighted average shares outstanding assuming dilution
|
263.34
|
281.48
|
265.55
|
284.26
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Net income (loss)
|
$
|
793
|
$
|
(846
|
)
|
$
|
1,086
|
$
|
(1,890
|
)
|
||||||
Other comprehensive income (loss), after tax
|
||||||||||||||||
Changes in:
|
||||||||||||||||
Net unrealized gains (losses) on investments with an allowance for credit losses
|
2
|
(9
|
)
|
|||||||||||||
Net unrealized gains (losses) on other investments
|
300
|
1,191
|
(327
|
)
|
147
|
|||||||||||
Total unrealized gains (losses) on investments
|
300
|
1,193
|
(327
|
)
|
138
|
|||||||||||
Unrealized gains (losses) on cash flow hedges
|
8
|
12
|
(19
|
)
|
||||||||||||
Pension and postretirement benefits
|
7
|
6
|
16
|
20
|
||||||||||||
Foreign currency translation
|
11
|
29
|
14
|
(55
|
)
|
|||||||||||
Other comprehensive income (loss)
|
326
|
1,228
|
(285
|
)
|
84
|
|||||||||||
Comprehensive income (loss)
|
1,119
|
382
|
801
|
(1,806
|
)
|
|||||||||||
Amounts attributable to noncontrolling interests
|
(72
|
)
|
(119
|
)
|
(40
|
)
|
412
|
|||||||||
Total comprehensive income (loss) attributable to Loews Corporation
|
$
|
1,047
|
$
|
263
|
$
|
761
|
$
|
(1,394
|
)
|
Loews Corporation Shareholders
|
||||||||||||||||||||||||||||
Accumulated
|
Common
|
|||||||||||||||||||||||||||
Additional
|
Other
|
Stock
|
||||||||||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Held in
|
Noncontrolling
|
|||||||||||||||||||||||
Total
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Treasury
|
Interests
|
||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||
Balance, April 1, 2020
|
$
|
19,178
|
$
|
3
|
$
|
3,347
|
$
|
15,167
|
$
|
(1,093
|
)
|
$
|
(458
|
)
|
$
|
2,212
|
||||||||||||
Net loss
|
(846
|
)
|
(835
|
)
|
(11
|
)
|
||||||||||||||||||||||
Other comprehensive income
|
1,228
|
1,098
|
130
|
|||||||||||||||||||||||||
Dividends paid ($0.0625per share)
|
(27
|
)
|
(18
|
)
|
(9
|
)
|
||||||||||||||||||||||
Deconsolidation of Diamond Offshore
|
(1,087
|
)
|
(1,087
|
)
|
||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock
|
(33
|
)
|
(33
|
)
|
||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests
|
(19
|
)
|
5
|
(24
|
)
|
|||||||||||||||||||||||
Stock-based compensation
|
13
|
13
|
||||||||||||||||||||||||||
Other
|
6
|
6
|
2
|
(2
|
)
|
|||||||||||||||||||||||
Balance, June 30, 2020
|
$
|
18,413
|
$
|
3
|
$
|
3,371
|
$
|
14,316
|
$
|
5
|
$
|
(491
|
)
|
$
|
1,209
|
|||||||||||||
Balance, April 1, 2021
|
$
|
18,537
|
$
|
3
|
$
|
3,119
|
$
|
14,394
|
$
|
34
|
$
|
(280
|
)
|
$
|
1,267
|
|||||||||||||
Net income
|
793
|
754
|
39
|
|||||||||||||||||||||||||
Other comprehensive income
|
326
|
293
|
33
|
|||||||||||||||||||||||||
Dividends paid ($0.0625per share)
|
(27
|
)
|
(16
|
)
|
(11
|
)
|
||||||||||||||||||||||
Purchases of Loews Corporation treasury stock
|
(219
|
)
|
(219
|
)
|
||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests
|
(15
|
)
|
(15
|
)
|
||||||||||||||||||||||||
Stock-based compensation
|
3
|
2
|
1
|
|||||||||||||||||||||||||
Other
|
-
|
(1
|
)
|
1
|
||||||||||||||||||||||||
Balance, June 30, 2021
|
$
|
19,398
|
$
|
3
|
$
|
3,121
|
$
|
15,132
|
$
|
327
|
$
|
(500
|
)
|
$
|
1,315
|
Loews Corporation Shareholders
|
||||||||||||||||||||||||||||
Accumulated
|
Common
|
|||||||||||||||||||||||||||
Additional
|
Other
|
Stock
|
||||||||||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Held in
|
Noncontrolling
|
|||||||||||||||||||||||
Total
|
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Treasury
|
Interests
|
||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||
Balance, January 1, 2020, as reported
|
$
|
21,930
|
$
|
3
|
$
|
3,374
|
$
|
15,823
|
$
|
(68
|
)
|
$
|
(13
|
)
|
$
|
2,811
|
||||||||||||
Cumulative effect adjustment from change in accounting standards
|
(5
|
)
|
(5
|
)
|
||||||||||||||||||||||||
Balance, January 1, 2020, as adjusted
|
21,925
|
3
|
3,374
|
15,818
|
(68
|
)
|
(13
|
)
|
2,811
|
|||||||||||||||||||
Net loss
|
(1,890
|
)
|
(1,467
|
)
|
(423
|
)
|
||||||||||||||||||||||
Other comprehensive income
|
84
|
73
|
11
|
|||||||||||||||||||||||||
Dividends paid ($0.125per share)
|
(114
|
)
|
(36
|
)
|
(78
|
)
|
||||||||||||||||||||||
Deconsolidation of Diamond Offshore
|
(1,087
|
)
|
(1,087
|
)
|
||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock
|
(478
|
)
|
(478
|
)
|
||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests
|
(37
|
)
|
5
|
(42
|
)
|
|||||||||||||||||||||||
Stock-based compensation
|
9
|
(9
|
)
|
18
|
||||||||||||||||||||||||
Other
|
1
|
1
|
1
|
(1
|
)
|
|||||||||||||||||||||||
Balance, June 30, 2020
|
$
|
18,413
|
$
|
3
|
$
|
3,371
|
$
|
14,316
|
$
|
5
|
$
|
(491
|
)
|
$
|
1,209
|
|||||||||||||
Balance, January 1, 2021
|
$
|
19,181
|
$
|
3
|
$
|
3,133
|
$
|
14,150
|
$
|
581
|
$
|
(7
|
)
|
$
|
1,321
|
|||||||||||||
Net income
|
1,086
|
1,015
|
71
|
|||||||||||||||||||||||||
Other comprehensive loss
|
(285
|
)
|
(254
|
)
|
(31
|
)
|
||||||||||||||||||||||
Dividends paid ($0.125per share)
|
(76
|
)
|
(33
|
)
|
(43
|
)
|
||||||||||||||||||||||
Purchases of Loews Corporation treasury stock
|
(493
|
)
|
(493
|
)
|
||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests
|
(18
|
)
|
(18
|
)
|
||||||||||||||||||||||||
Stock-based compensation
|
7
|
(9
|
)
|
16
|
||||||||||||||||||||||||
Other
|
(4
|
)
|
(3
|
)
|
(1
|
)
|
||||||||||||||||||||||
Balance, June 30, 2021
|
$
|
19,398
|
$
|
3
|
$
|
3,121
|
$
|
15,132
|
$
|
327
|
$
|
(500
|
)
|
$
|
1,315
|
Six Months EndedJune 30
|
2021
|
2020
|
||||||
(In millions)
|
||||||||
Operating Activities:
|
||||||||
Net income (loss)
|
$
|
1,086
|
$
|
(1,890
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities, net
|
(187
|
)
|
2,430
|
|||||
Changes in operating assets and liabilities, net:
|
||||||||
Receivables
|
(1,087
|
)
|
(574
|
)
|
||||
Deferred acquisition costs
|
(12
|
)
|
(41
|
)
|
||||
Insurance reserves
|
1,373
|
1,181
|
||||||
Other assets
|
(720
|
)
|
(280
|
)
|
||||
Other liabilities
|
598
|
(46
|
)
|
|||||
Trading securities
|
(508
|
)
|
(340
|
)
|
||||
Net cash flow provided by operating activities
|
543
|
440
|
||||||
Investing Activities:
|
||||||||
Purchases of fixed maturities
|
(4,615
|
)
|
(5,356
|
)
|
||||
Proceeds from sales of fixed maturities
|
1,846
|
3,773
|
||||||
Proceeds from maturities of fixed maturities
|
2,104
|
1,622
|
||||||
Purchases of equity securities
|
(181
|
)
|
(312
|
)
|
||||
Proceeds from sales of equity securities
|
193
|
230
|
||||||
Purchases of limited partnership investments
|
(169
|
)
|
(90
|
)
|
||||
Proceeds from sales of limited partnership investments
|
185
|
259
|
||||||
Purchases of property, plant and equipment
|
(183
|
)
|
(440
|
)
|
||||
Dispositions
|
52
|
11
|
||||||
Sale of interest in Altium Packaging
|
417
|
|||||||
Deconsolidation of Diamond Offshore
|
(483
|
)
|
||||||
Change in short term investments
|
405
|
526
|
||||||
Other, net
|
39
|
(65
|
)
|
|||||
Net cash flow provided (used) by investing activities
|
93
|
(325
|
)
|
|||||
Financing Activities:
|
||||||||
Dividends paid
|
(33
|
)
|
(36
|
)
|
||||
Dividends paid to noncontrolling interests
|
(43
|
)
|
(78
|
)
|
||||
Purchases of Loews Corporation treasury stock
|
(484
|
)
|
(491
|
)
|
||||
Purchases of subsidiary stock from noncontrolling interests
|
(18
|
)
|
(37
|
)
|
||||
Principal payments on debt
|
(1,146
|
)
|
(465
|
)
|
||||
Issuance of debt
|
1,199
|
1,342
|
||||||
Other, net
|
(12
|
)
|
(13
|
)
|
||||
Net cash flow (used) provided by financing activities
|
(537
|
)
|
222
|
|||||
Effect of foreign exchange rate on cash
|
1
|
(5
|
)
|
|||||
Net change in cash
|
100
|
332
|
||||||
Cash, beginning of period
|
478
|
336
|
||||||
Cash, end of period
|
$
|
578
|
$
|
668
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities
|
$
|
425
|
$
|
430
|
$
|
853
|
$
|
868
|
||||||||
Limited partnership investments
|
149
|
57
|
196
|
(45
|
)
|
|||||||||||
Short term investments
|
2
|
9
|
||||||||||||||
Equity securities
|
20
|
50
|
49
|
6
|
||||||||||||
Income (loss) from trading portfolio (a)
|
26
|
107
|
76
|
(22
|
)
|
|||||||||||
Other
|
14
|
16
|
30
|
30
|
||||||||||||
Total investment income
|
634
|
662
|
1,204
|
846
|
||||||||||||
Investment expenses
|
(18
|
)
|
(18
|
)
|
(38
|
)
|
(39
|
)
|
||||||||
Net investment income
|
$
|
616
|
$
|
644
|
$
|
1,166
|
$
|
807
|
(a) |
Net unrealized gains (losses) related to changes in fair value on securities still held were $28and $80for the three months ended June 30, 2021 and 2020and $58 and $7 for the six months ended June 30, 2021 and 2020.
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities
|
$
|
31
|
$
|
17
|
$
|
69
|
$
|
(58
|
)
|
|||||||
Equity securities
|
17
|
63
|
19
|
(70
|
)
|
|||||||||||
Derivative instruments
|
(12
|
)
|
(10
|
)
|
5
|
(5
|
)
|
|||||||||
Short term investments and other
|
2
|
(1
|
)
|
2
|
(14
|
)
|
||||||||||
Sale of 47% interest in Altium Packaging (see Note 2)
|
555
|
555
|
||||||||||||||
Deconsolidation of Diamond Offshore
|
(15
|
)
|
(1,211
|
)
|
(15
|
)
|
(1,211
|
)
|
||||||||
Investment gains (losses) (a)
|
$
|
578
|
$
|
(1,142
|
)
|
$
|
635
|
$
|
(1,358
|
)
|
(a) |
Gross investment gains on available-for-sale securities were $51and $102 for the three months ended June 30, 2021 and 2020 and $109 and $131 for the six months ended June 30, 2021 and 2020. Gross investment losses on available-for-sale securities were $20and $85 for the three months ended June 30, 2021 and 2020 and $40 and $189 for the six months ended June 30, 2021 and 2020. During the three and six months ended June 30, 2021, $15 of investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2021. During the three and six months ended June 30, 2020, $63 of investment gains and $70 of investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2020.
|
Three months ended June 30, 2021
|
Corporate and
Other Bonds
|
Asset-
backed
|
Total
|
|||||||||
(In millions)
|
||||||||||||
Allowance for credit losses:
|
||||||||||||
Balance as of April 1, 2021
|
$
|
27
|
$
|
16
|
$
|
43
|
||||||
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
|
4
|
4
|
||||||||||
Reductions to the allowance for credit losses:
|
||||||||||||
Securities sold during the period (realized)
|
||||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period
|
(3
|
)
|
1
|
(2
|
)
|
|||||||
Total allowance for credit losses
|
$
|
24
|
$
|
21
|
$
|
45
|
Three months ended June 30, 2020
|
||||||||||||
Allowance for credit losses:
|
||||||||||||
Balance as of April 1, 2020
|
$
|
49
|
$
|
-
|
$
|
49
|
||||||
Additions to the allowance for credit losses:
|
||||||||||||
Securities for which credit losses were not previously recorded
|
10
|
12
|
22
|
|||||||||
Available-for-sale securities accounted for as PCD assets
|
1
|
1
|
||||||||||
Reductions to the allowance for credit losses:
|
||||||||||||
Securities sold during the period (realized)
|
1
|
1
|
||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period
|
(20
|
)
|
(20
|
)
|
||||||||
Total allowance for credit losses
|
$
|
39
|
$
|
12
|
$
|
51
|
Six months ended June 30, 2021
|
Corporate and
Other Bonds
|
Asset-
backed
|
Total
|
|||||||||
(In millions)
|
||||||||||||
Allowance for credit losses:
|
||||||||||||
Balance as of January 1, 2021
|
$
|
23
|
$
|
17
|
$
|
40
|
||||||
Additions to the allowance for credit losses:
|
||||||||||||
Securities for which credit losses were not previously recorded
|
14
|
14
|
||||||||||
Available-for-sale securities accounted for as PCD assets
|
2
|
4
|
6
|
|||||||||
Reductions to the allowance for credit losses:
|
||||||||||||
Securities sold during the period (realized)
|
6
|
6
|
||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis
|
||||||||||||
Additional increases or (decrease) to the allowance for credit losses on securities that had an allowance recorded in a previous period
|
(9
|
)
|
(9
|
)
|
||||||||
Total allowance for credit losses
|
$
|
24
|
$
|
21
|
$
|
45
|
Six months ended June 30, 2020
|
||||||||||||
Allowance for credit losses:
|
||||||||||||
Balance as of January 1, 2020
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Additions to the allowance for credit losses:
|
||||||||||||
Impact of adopting ASC 326
|
6
|
6
|
||||||||||
Securities for which credit losses were not previously recorded
|
58
|
12
|
70
|
|||||||||
Available-for-sale securities accounted for as PCD assets
|
2
|
2
|
||||||||||
Reductions to the allowance for credit losses:
|
||||||||||||
Securities sold during the period (realized)
|
6
|
6
|
||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis
|
1
|
1
|
||||||||||
Additional increases or (decrease) to the allowance for credit losses on securities that had an allowance recorded in a previous period
|
(20
|
)
|
(20
|
)
|
||||||||
Total allowance for credit losses
|
$
|
39
|
$
|
12
|
$
|
51
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities available-for-sale:
|
||||||||||||||||
Corporate and other bonds
|
$
|
(2
|
)
|
$
|
(1
|
)
|
$
|
5
|
$
|
90
|
||||||
Asset-backed
|
1
|
12
|
13
|
|||||||||||||
Impairment losses (gains) recognized in earnings
|
$
|
(1
|
)
|
$
|
11
|
$
|
5
|
$
|
103
|
June 30, 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
|
$
|
21,291
|
$
|
3,153
|
$
|
35
|
$
|
24
|
$
|
24,385
|
||||||||||
States, municipalities and political subdivisions
|
10,125
|
1,743
|
2
|
11,866
|
||||||||||||||||
Asset-backed:
|
||||||||||||||||||||
Residential mortgage-backed
|
3,337
|
99
|
10
|
3,426
|
||||||||||||||||
Commercial mortgage-backed
|
2,068
|
98
|
14
|
17
|
2,135
|
|||||||||||||||
Other asset-backed
|
2,338
|
84
|
3
|
4
|
2,415
|
|||||||||||||||
Total asset-backed
|
7,743
|
281
|
27
|
21
|
7,976
|
|||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
142
|
5
|
137
|
|||||||||||||||||
Foreign government
|
515
|
22
|
1
|
536
|
||||||||||||||||
Fixed maturities available-for-sale
|
39,816
|
5,199
|
70
|
45
|
44,900
|
|||||||||||||||
Fixed maturities trading
|
10
|
10
|
||||||||||||||||||
Total fixed maturity securities
|
$
|
39,826
|
$
|
5,199
|
$
|
70
|
$
|
45
|
$
|
44,910
|
December 31, 2020
|
||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||
Corporate and other bonds
|
$
|
20,792
|
$
|
3,578
|
$
|
22
|
$
|
23
|
$
|
24,325
|
||||||||||
States, municipalities and political subdivisions
|
9,729
|
1,863
|
11,592
|
|||||||||||||||||
Asset-backed:
|
||||||||||||||||||||
Residential mortgage-backed
|
3,442
|
146
|
1
|
3,587
|
||||||||||||||||
Commercial mortgage-backed
|
1,933
|
93
|
42
|
17
|
1,967
|
|||||||||||||||
Other asset-backed
|
2,179
|
81
|
9
|
2,251
|
||||||||||||||||
Total asset-backed
|
7,554
|
320
|
52
|
17
|
7,805
|
|||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
339
|
2
|
3
|
338
|
||||||||||||||||
Foreign government
|
512
|
32
|
544
|
|||||||||||||||||
Fixed maturities available-for-sale
|
38,926
|
5,795
|
77
|
40
|
44,604
|
|||||||||||||||
Fixed maturities trading
|
37
|
5
|
42
|
|||||||||||||||||
Total fixed maturity securities
|
$
|
38,963
|
$
|
5,800
|
$
|
77
|
$
|
40
|
$
|
44,646
|
Less than
12 Months
|
12 Months
or Longer
|
Total
|
||||||||||||||||||||||
June 30, 2021
|
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
|
$
|
1,190
|
$
|
33
|
$
|
61
|
$
|
2
|
$
|
1,251
|
$
|
35
|
||||||||||||
States, municipalities and political subdivisions
|
128
|
2
|
128
|
2
|
||||||||||||||||||||
Asset-backed:
|
||||||||||||||||||||||||
Residential mortgage-backed
|
932
|
10
|
10
|
942
|
10
|
|||||||||||||||||||
Commercial mortgage-backed
|
153
|
2
|
206
|
12
|
359
|
14
|
||||||||||||||||||
Other asset-backed
|
255
|
2
|
74
|
1
|
329
|
3
|
||||||||||||||||||
Total asset-backed
|
1,340
|
14
|
290
|
13
|
1,630
|
27
|
||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
80
|
5
|
80
|
5
|
||||||||||||||||||||
Foreign government
|
48
|
1
|
48
|
1
|
||||||||||||||||||||
Total fixed maturity securities
|
$
|
2,786
|
$
|
55
|
$
|
351
|
$
|
15
|
$
|
3,137
|
$
|
70
|
||||||||||||
December 31, 2020
|
||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||
Corporate and other bonds
|
$
|
609
|
$
|
21
|
$
|
12
|
$
|
1
|
$
|
621
|
$
|
22
|
||||||||||||
States, municipalities and political subdivisions
|
33
|
33
|
||||||||||||||||||||||
Asset-backed:
|
||||||||||||||||||||||||
Residential mortgage-backed
|
71
|
1
|
11
|
82
|
1
|
|||||||||||||||||||
Commercial mortgage-backed
|
533
|
40
|
28
|
2
|
561
|
42
|
||||||||||||||||||
Other asset-backed
|
344
|
9
|
13
|
357
|
9
|
|||||||||||||||||||
Total asset-backed
|
948
|
50
|
52
|
2
|
1,000
|
52
|
||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises
|
63
|
3
|
63
|
3
|
||||||||||||||||||||
Foreign government
|
13
|
13
|
||||||||||||||||||||||
Total fixed maturity securities
|
$
|
1,666
|
$
|
74
|
$
|
64
|
$
|
3
|
$
|
1,730
|
$
|
77
|
June 30, 2021
|
December 31, 2020
|
|||||||||||||||
Cost or
Amortized
Cost
|
Estimated
Fair
Value
|
Cost or
Amortized
Cost
|
Estimated
Fair
Value
|
|||||||||||||
(In millions)
|
||||||||||||||||
Due in one year or less
|
$
|
1,685
|
$
|
1,702
|
$
|
1,456
|
$
|
1,458
|
||||||||
Due after one year through five years
|
10,723
|
11,479
|
12,304
|
13,098
|
||||||||||||
Due after five years through ten years
|
13,775
|
15,012
|
12,319
|
13,878
|
||||||||||||
Due after ten years
|
13,633
|
16,707
|
12,847
|
16,170
|
||||||||||||
Total
|
$
|
39,816
|
$
|
44,900
|
$
|
38,926
|
$
|
44,604
|
Mortgage Loans Amortized Cost Basis by Origination Year (a)
|
||||||||||||||||||||||||||||
As of June 30, 2021
|
2021
|
2020
|
2019
|
2018
|
2017
|
Prior
|
Total
|
|||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||
DSCR ≥1.6x
|
||||||||||||||||||||||||||||
LTV less than 55%
|
$
|
89
|
$
|
33
|
$
|
50
|
$
|
113
|
$
|
183
|
$
|
468
|
||||||||||||||||
LTV 55% to 65%
|
19
|
9
|
4
|
32
|
||||||||||||||||||||||||
LTV greater than 65%
|
$
|
5
|
6
|
24
|
35
|
|||||||||||||||||||||||
DSCR 1.2x - 1.6x
|
||||||||||||||||||||||||||||
LTV less than 55%
|
16
|
5
|
71
|
92
|
||||||||||||||||||||||||
LTV 55% to 65%
|
10
|
38
|
39
|
42
|
27
|
156
|
||||||||||||||||||||||
LTV greater than 65%
|
34
|
44
|
8
|
12
|
98
|
|||||||||||||||||||||||
DSCR ≤1.2x
|
||||||||||||||||||||||||||||
LTV less than 55%
|
50
|
8
|
10
|
68
|
||||||||||||||||||||||||
LTV 55% to 65%
|
47
|
47
|
||||||||||||||||||||||||||
LTV greater than 65%
|
29
|
7
|
36
|
|||||||||||||||||||||||||
Total
|
$
|
15
|
$
|
161
|
$
|
283
|
$
|
92
|
$
|
170
|
$
|
311
|
$
|
1,032
|
(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.
|
June 30, 2021
|
December 31, 2020
|
||||||||||||||||
Contractual/
Notional
|
Estimated Fair Value
|
Contractual/
Notional
|
Estimated Fair Value
|
||||||||||||||
Amount
|
Asset
|
(Liability)
|
Amount
|
Asset
|
(Liability)
|
||||||||||||
(In millions)
|
|||||||||||||||||
With hedge designation:
|
|||||||||||||||||
Interest rate swaps
|
$
|
675
|
$
|
(26)
|
|||||||||||||
Without hedge designation:
|
|||||||||||||||||
Equity markets:
|
|||||||||||||||||
Options - purchased
|
$
|
6
|
135
|
$
|
3
|
||||||||||||
Interest rate swaps
|
100
|
$
|
(2)
|
100
|
(3)
|
||||||||||||
Embedded derivative on funds withheld liability
|
274
|
(13)
|
190
|
(19)
|
● |
Level 1 - Quoted prices for identical instruments in active markets.
|
● |
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.
|
● |
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are not observable.
|
June 30, 2021
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
(In millions)
|
||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||
Corporate bonds and other
|
$
|
158
|
$
|
24,017
|
$
|
883
|
$
|
25,058
|
||||||||
States, municipalities and political subdivisions
|
11,809
|
57
|
11,866
|
|||||||||||||
Asset-backed
|
7,566
|
410
|
7,976
|
|||||||||||||
Fixed maturities available-for-sale
|
158
|
43,392
|
1,350
|
44,900
|
||||||||||||
Fixed maturities trading
|
10
|
10
|
||||||||||||||
Total fixed maturities
|
$
|
158
|
$
|
43,402
|
$
|
1,350
|
$
|
44,910
|
||||||||
Equity securities
|
$
|
884
|
$
|
743
|
$
|
36
|
$
|
1,663
|
||||||||
Short term and other
|
4,661
|
37
|
4,698
|
|||||||||||||
Payable to brokers
|
(94
|
)
|
(2
|
)
|
(96
|
)
|
December 31, 2020
|
||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||
Corporate bonds and other
|
$
|
355
|
$
|
24,082
|
$
|
770
|
$
|
25,207
|
||||||||
States, municipalities and political subdivisions
|
11,546
|
46
|
11,592
|
|||||||||||||
Asset-backed
|
7,497
|
308
|
7,805
|
|||||||||||||
Fixed maturities available-for-sale
|
355
|
43,125
|
1,124
|
44,604
|
||||||||||||
Fixed maturities trading
|
34
|
8
|
42
|
|||||||||||||
Total fixed maturities
|
$
|
355
|
$
|
43,159
|
$
|
1,132
|
$
|
44,646
|
||||||||
Equity securities
|
$
|
796
|
$
|
722
|
$
|
43
|
$
|
1,561
|
||||||||
Short term and other
|
4,538
|
39
|
4,577
|
|||||||||||||
Payable to brokers
|
(14
|
)
|
(29
|
)
|
(43
|
)
|
Unrealized
|
||||||||||||||||||||||||||||||||||||||||||||
Gains
|
||||||||||||||||||||||||||||||||||||||||||||
Unrealized
|
(Losses)
|
|||||||||||||||||||||||||||||||||||||||||||
Gains
|
Recognized in
|
|||||||||||||||||||||||||||||||||||||||||||
Net Realized
|
(Losses)
|
Other
|
||||||||||||||||||||||||||||||||||||||||||
Investment Gains
|
Recognized in
|
Comprehensive
|
||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change
|
Net Income
|
Income (Loss)
|
||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment
|
(Loss) on Level
|
on Level 3
|
||||||||||||||||||||||||||||||||||||||||||
Gains (Losses)
|
3 Assets and
|
Assets and
|
||||||||||||||||||||||||||||||||||||||||||
Included in
|
Transfers
|
Transfers
|
Liabilities
|
Liabilities
|
||||||||||||||||||||||||||||||||||||||||
Balance,
|
Net Income
|
Included in
|
into
|
out of
|
Balance,
|
Held at
|
Held at
|
|||||||||||||||||||||||||||||||||||||
2021
|
April 1
|
(Loss)
|
OCI
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
Level 3
|
June 30
|
June 30
|
June 30
|
|||||||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other
|
$
|
767
|
$
|
3
|
$
|
16
|
$
|
122
|
$
|
(3
|
)
|
$
|
(22
|
)
|
$
|
883
|
$
|
16
|
||||||||||||||||||||||||||
States, municipalities and political subdivisions
|
44
|
2
|
12
|
(1
|
)
|
57
|
2
|
|||||||||||||||||||||||||||||||||||||
Asset-backed
|
315
|
1
|
4
|
84
|
(10
|
)
|
$
|
21
|
$
|
(5
|
)
|
410
|
4
|
|||||||||||||||||||||||||||||||
Fixed maturities available-for-sale
|
1,126
|
4
|
22
|
218
|
(3
|
)
|
(33
|
)
|
21
|
(5
|
)
|
1,350
|
$
|
-
|
22
|
|||||||||||||||||||||||||||||
Fixed maturities trading
|
5
|
(3
|
)
|
(2
|
)
|
|||||||||||||||||||||||||||||||||||||||
Total fixed maturities
|
$
|
1,131
|
$
|
1
|
$
|
22
|
$
|
218
|
$
|
(3
|
)
|
$
|
(35
|
)
|
$
|
21
|
$
|
(5
|
)
|
$
|
1,350
|
$
|
-
|
$
|
22
|
|||||||||||||||||||
Equity securities
|
$
|
45
|
$
|
(15
|
)
|
$
|
10
|
$
|
(4
|
)
|
$
|
36
|
Unrealized
|
||||||||||||||||||||||||||||||||||||||||||||
Gains
|
||||||||||||||||||||||||||||||||||||||||||||
Unrealized
|
(Losses)
|
|||||||||||||||||||||||||||||||||||||||||||
Gains
|
Recognized in
|
|||||||||||||||||||||||||||||||||||||||||||
Net Realized
|
(Losses)
|
Other
|
||||||||||||||||||||||||||||||||||||||||||
Investment Gains
|
Recognized in
|
Comprehensive
|
||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change
|
Net Income
|
Income (Loss)
|
||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment
|
(Loss) on Level
|
on Level 3
|
||||||||||||||||||||||||||||||||||||||||||
Gains (Losses)
|
3 Assets and
|
Assets and
|
||||||||||||||||||||||||||||||||||||||||||
Included in
|
Transfers
|
Transfers
|
Liabilities
|
Liabilities
|
||||||||||||||||||||||||||||||||||||||||
Balance,
|
Net Income
|
Included in
|
into
|
out of
|
Balance,
|
Held at
|
Held at
|
|||||||||||||||||||||||||||||||||||||
2020
|
April 1
|
(Loss)
|
OCI
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
Level 3
|
June 30
|
June 30
|
June 30
|
|||||||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other
|
$
|
496
|
$
|
59
|
$
|
4
|
$
|
(4
|
)
|
$
|
555
|
$
|
58
|
|||||||||||||||||||||||||||||||
Asset-backed
|
197
|
18
|
35
|
$
|
(9
|
)
|
(5
|
)
|
$
|
(14
|
)
|
222
|
18
|
|||||||||||||||||||||||||||||||
Fixed maturities available-for-sale
|
693
|
$
|
-
|
77
|
39
|
(9
|
)
|
(9
|
)
|
$
|
-
|
(14
|
)
|
777
|
$
|
-
|
76
|
|||||||||||||||||||||||||||
Fixed maturities trading
|
3
|
1
|
4
|
1
|
||||||||||||||||||||||||||||||||||||||||
Total fixed maturities
|
$
|
696
|
$
|
1
|
$
|
77
|
$
|
39
|
$
|
(9
|
)
|
$
|
(9
|
)
|
$
|
-
|
$
|
(14
|
)
|
$
|
781
|
$
|
1
|
$
|
76
|
|||||||||||||||||||
Equity securities
|
$
|
16
|
$
|
(4
|
)
|
$
|
15
|
$
|
27
|
$
|
(4
|
)
|
Unrealized
|
||||||||||||||||||||||||||||||||||||||||||||
Gains
|
||||||||||||||||||||||||||||||||||||||||||||
Unrealized
|
(Losses)
|
|||||||||||||||||||||||||||||||||||||||||||
Gains
|
Recognized in
|
|||||||||||||||||||||||||||||||||||||||||||
Net Realized
|
(Losses)
|
Other
|
||||||||||||||||||||||||||||||||||||||||||
Investment Gains
|
Recognized in
|
Comprehensive
|
||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change
|
Net Income
|
Income (Loss)
|
||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment
|
(Loss) on Level
|
on Level 3
|
||||||||||||||||||||||||||||||||||||||||||
Gains (Losses)
|
3 Assets and
|
Assets and
|
||||||||||||||||||||||||||||||||||||||||||
Included in
|
Transfers
|
Transfers
|
Liabilities
|
Liabilities
|
||||||||||||||||||||||||||||||||||||||||
Balance,
|
Net Income
|
Included in
|
into
|
out of
|
Balance,
|
Held at
|
Held at
|
|||||||||||||||||||||||||||||||||||||
2021
|
January 1
|
(Loss)
|
OCI
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
Level 3
|
June 30
|
June 30
|
June 30
|
|||||||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other
|
$
|
770
|
$
|
(10
|
)
|
$
|
(24
|
)
|
$
|
164
|
$
|
(3
|
)
|
$
|
(24
|
)
|
$
|
10
|
$
|
883
|
$
|
(24
|
)
|
|||||||||||||||||||||
States, municipalities and political subdivisions
|
46
|
12
|
(1
|
)
|
57
|
|||||||||||||||||||||||||||||||||||||||
Asset-backed
|
308
|
3
|
(5
|
)
|
114
|
(27
|
)
|
30
|
$
|
(13
|
)
|
410
|
(5
|
)
|
||||||||||||||||||||||||||||||
Fixed maturities available-for-sale
|
1,124
|
(7
|
)
|
(29
|
)
|
290
|
(3
|
)
|
(52
|
)
|
40
|
(13
|
)
|
1,350
|
$
|
-
|
(29
|
)
|
||||||||||||||||||||||||||
Fixed maturities trading
|
8
|
(6
|
)
|
(2
|
)
|
|||||||||||||||||||||||||||||||||||||||
Total fixed maturities
|
$
|
1,132
|
$
|
(13
|
)
|
$
|
(29
|
)
|
$
|
290
|
$
|
(3
|
)
|
$
|
(54
|
)
|
$
|
40
|
$
|
(13
|
)
|
$
|
1,350
|
$
|
-
|
$
|
(29
|
)
|
||||||||||||||||
Equity securities
|
$
|
43
|
$
|
(13
|
)
|
$
|
10
|
$
|
(4
|
)
|
$
|
36
|
$
|
2
|
Unrealized
|
||||||||||||||||||||||||||||||||||||||||||||
Gains
|
||||||||||||||||||||||||||||||||||||||||||||
Unrealized
|
(Losses)
|
|||||||||||||||||||||||||||||||||||||||||||
Gains
|
Recognized in
|
|||||||||||||||||||||||||||||||||||||||||||
Net Realized
|
(Losses)
|
Other
|
||||||||||||||||||||||||||||||||||||||||||
Investment Gains
|
Recognized in
|
Comprehensive
|
||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change
|
Net Income
|
Income (Loss)
|
||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment
|
(Loss) on Level
|
on Level 3
|
||||||||||||||||||||||||||||||||||||||||||
Gains (Losses)
|
3 Assets and
|
Assets and
|
||||||||||||||||||||||||||||||||||||||||||
Included in
|
Transfers
|
Transfers
|
Liabilities
|
Liabilities
|
||||||||||||||||||||||||||||||||||||||||
Balance,
|
Net Income
|
Included in
|
into
|
out of
|
Balance,
|
Held at
|
Held at
|
|||||||||||||||||||||||||||||||||||||
2020
|
January 1
|
(Loss)
|
OCI
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
Level 3
|
June 30
|
June 30
|
June 30
|
|||||||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other
|
$
|
468
|
$
|
22
|
$
|
71
|
$
|
(6
|
)
|
$
|
555
|
$
|
24
|
|||||||||||||||||||||||||||||||
Asset-backed
|
165
|
10
|
80
|
$
|
(9
|
)
|
(9
|
)
|
$
|
(15
|
)
|
222
|
10
|
|||||||||||||||||||||||||||||||
Fixed maturities available-for-sale
|
633
|
$
|
-
|
32
|
151
|
(9
|
)
|
(15
|
)
|
$
|
-
|
(15
|
)
|
777
|
$
|
-
|
34
|
|||||||||||||||||||||||||||
Fixed maturities trading
|
4
|
4
|
||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities
|
$
|
637
|
$
|
-
|
$
|
32
|
$
|
151
|
$
|
(9
|
)
|
$
|
(15
|
)
|
$
|
-
|
$
|
(15
|
)
|
$
|
781
|
$
|
-
|
$
|
34
|
|||||||||||||||||||
Equity securities
|
$
|
19
|
$
|
(7
|
)
|
$
|
15
|
$
|
27
|
$
|
(7
|
)
|
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
|
June 30, 2021
|
Estimated
Fair Value
|
Valuation
Techniques
|
Unobservable
Inputs
|
Range
(Weighted
Average)
|
||||||
(In millions)
|
||||||||||
Fixed maturity securities
|
$
|
1,067
|
Discounted cash flow
|
Credit spread
|
1% - 8% (2
|
%)
|
||||
December 31, 2020
|
||||||||||
Fixed maturity securities
|
$
|
966
|
Discounted cash flow
|
Credit spread
|
1% - 8% (3
|
%)
|
Carrying
|
Estimated Fair Value
|
||||||||||||||||
June 30, 2021
|
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
(In millions)
|
|||||||||||||||||
Assets:
|
|||||||||||||||||
Other invested assets, primarily mortgage loans
|
$
|
1,006
|
$
|
1,079
|
$
|
1,079
|
|||||||||||
Liabilities:
|
|||||||||||||||||
Short term debt
|
121
|
125
|
125
|
||||||||||||||
Long term debt
|
8,982
|
$
|
9,397
|
621
|
10,018
|
||||||||||||
December 31, 2020
|
|||||||||||||||||
Assets:
|
|||||||||||||||||
Other invested assets, primarily mortgage loans
|
$
|
1,068
|
$
|
1,151
|
$
|
1,151
|
|||||||||||
Liabilities:
|
|||||||||||||||||
Short term debt
|
35
|
$
|
19
|
17
|
36
|
||||||||||||
Long term debt
|
10,042
|
10,482
|
765
|
11,247
|
Six Months Ended June 30
|
2021
|
2020
|
||||||
(In millions)
|
||||||||
Reserves, beginning of year:
|
||||||||
Gross
|
$
|
22,706
|
$
|
21,720
|
||||
Ceded
|
4,005
|
3,835
|
||||||
Net reserves, beginning of year
|
18,701
|
17,885
|
||||||
Reduction of net reserves due to the excess workers' compensation loss portfolio transfer
|
(632
|
)
|
||||||
Net incurred claim and claim adjustment expenses:
|
||||||||
Provision for insured events of current year
|
2,930
|
2,899
|
||||||
Increase (decrease) in provision for insured events of prior years
|
(78
|
)
|
19
|
|||||
Amortization of discount
|
95
|
98
|
||||||
Total net incurred (a)
|
2,947
|
3,016
|
||||||
Net payments attributable to:
|
||||||||
Current year events
|
(317
|
)
|
(256
|
)
|
||||
Prior year events
|
(1,949
|
)
|
(2,342
|
)
|
||||
Total net payments
|
(2,266
|
)
|
(2,598
|
)
|
||||
Foreign currency translation adjustment and other
|
(5
|
)
|
(35
|
)
|
||||
Net reserves, end of period
|
18,745
|
18,268
|
||||||
Ceded reserves, end of period
|
4,735
|
4,002
|
||||||
Gross reserves, end of period
|
$
|
23,480
|
$
|
22,270
|
(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.
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Medical professional liability
|
$
|
8
|
$
|
10
|
||||||||||||
Other professional liability and management liability
|
$
|
10
|
$
|
(9
|
)
|
10
|
(6
|
)
|
||||||||
Surety
|
(23
|
)
|
(38
|
)
|
(30
|
)
|
||||||||||
Commercial auto
|
30
|
15
|
30
|
24
|
||||||||||||
Workers' compensation
|
(42
|
)
|
(61
|
)
|
(42
|
)
|
(74
|
)
|
||||||||
Property and other
|
14
|
27
|
6
|
33
|
||||||||||||
Other insurance operations
|
40
|
50
|
40
|
50
|
||||||||||||
Total pretax (favorable) unfavorable development
|
$
|
29
|
$
|
22
|
$
|
14
|
$
|
7
|
Net Unrealized
|
||||||||||||||||||||||||
Gains (Losses)
|
Total
|
|||||||||||||||||||||||
on Investments
|
Net Unrealized
|
Unrealized
|
Accumulated
|
|||||||||||||||||||||
with an
|
Gains (Losses)
|
Gains (Losses)
|
Pension and
|
Foreign
|
Other
|
|||||||||||||||||||
Allowance for
|
on Other
|
on Cash Flow
|
Postretirement
|
Currency
|
Comprehensive
|
|||||||||||||||||||
Credit Losses
|
Investments
|
Hedges
|
Benefits
|
Translation
|
Income (Loss)
|
|||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Balance, April 1, 2020
|
$
|
(10
|
)
|
$
|
(15
|
)
|
$
|
(25
|
)
|
$
|
(842
|
)
|
$
|
(201
|
)
|
$
|
(1,093
|
)
|
||||||
Other comprehensive income (loss) before reclassifications, after tax of $0, $(321), $2, $0and $0
|
(2
|
)
|
1,209
|
(1
|
)
|
(2
|
)
|
29
|
1,233
|
|||||||||||||||
Reclassification of (income) losses from accumulated other comprehensive income, after tax of $(1), $4, $(1), $(2) and $0
|
4
|
(18
|
)
|
1
|
8
|
(5
|
)
|
|||||||||||||||||
Other comprehensive income
|
2
|
1,191
|
-
|
6
|
29
|
1,228
|
||||||||||||||||||
Amounts attributable to noncontrolling interests
|
(126
|
)
|
(1
|
)
|
(3
|
)
|
(130
|
)
|
||||||||||||||||
Balance, June 30, 2020
|
$
|
(8
|
)
|
$
|
1,050
|
$
|
(25
|
)
|
$
|
(837
|
)
|
$
|
(175
|
)
|
$
|
5
|
Balance, April 1, 2021
|
$
|
-
|
$
|
1,002
|
$
|
(19
|
)
|
$
|
(869
|
)
|
$
|
(80
|
)
|
$
|
34
|
|||||||||
Other comprehensive income (loss) before reclassifications, after tax of $0, $(82), $(1), $0and $0
|
1
|
323
|
8
|
(2
|
)
|
11
|
341
|
|||||||||||||||||
Reclassification of (income) losses from accumulated othercomprehensive income, after tax of $0, $7, $(1), $(3)and $0
|
(1
|
)
|
(23
|
)
|
9
|
(15
|
)
|
|||||||||||||||||
Other comprehensive income
|
-
|
300
|
8
|
7
|
11
|
326
|
||||||||||||||||||
Amounts attributable to noncontrolling interests
|
(31
|
)
|
(1
|
)
|
(1
|
)
|
(33
|
)
|
||||||||||||||||
Balance, June 30, 2021
|
$
|
-
|
$
|
1,271
|
$
|
(11
|
)
|
$
|
(863
|
)
|
$
|
(70
|
)
|
$
|
327
|
Net Unrealized
|
||||||||||||||||||||||||
Gains (Losses)
|
Total
|
|||||||||||||||||||||||
on Investments
|
Net Unrealized
|
Unrealized
|
Accumulated
|
|||||||||||||||||||||
with an
|
Gains (Losses)
|
Gains (Losses)
|
Pension and
|
Foreign
|
Other
|
|||||||||||||||||||
Allowance for
|
on Other
|
on Cash Flow
|
Postretirement
|
Currency
|
Comprehensive
|
|||||||||||||||||||
Credit Losses
|
Investments
|
Hedges
|
Benefits
|
Translation
|
Income (Loss)
|
|||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Balance, January 1, 2020
|
$
|
-
|
$
|
918
|
$
|
(6
|
)
|
$
|
(855
|
)
|
$
|
(125
|
)
|
$
|
(68
|
)
|
||||||||
Other comprehensive income (loss) before reclassifications, after tax of $13, $(34), $8, $0and $0
|
(50
|
)
|
143
|
(20
|
)
|
(1
|
)
|
(55
|
)
|
17
|
||||||||||||||
Reclassification of losses from accumulated other comprehensive income, after tax of $(11), $(2), $(1), $(5)and $0
|
41
|
4
|
1
|
21
|
67
|
|||||||||||||||||||
Other comprehensive income (loss)
|
(9
|
)
|
147
|
(19
|
)
|
20
|
(55
|
)
|
84
|
|||||||||||||||
Amounts attributable to noncontrolling interests
|
1
|
(15
|
)
|
(2
|
)
|
5
|
(11
|
)
|
||||||||||||||||
Balance, June 30, 2020
|
$
|
(8
|
)
|
$
|
1,050
|
$
|
(25
|
)
|
$
|
(837
|
)
|
$
|
(175
|
)
|
$
|
5
|
Balance, January 1, 2021
|
$
|
-
|
$
|
1,563
|
$
|
(23
|
)
|
$
|
(877
|
)
|
$
|
(82
|
)
|
$
|
581
|
|||||||||
Other comprehensive income (loss) before reclassifications, after tax of $1, $72, $(3), $0and $0
|
(2
|
)
|
(270
|
)
|
11
|
(2
|
)
|
14
|
(249
|
)
|
||||||||||||||
Reclassification of (income) losses from accumulated other comprehensive income, after tax of $(1), $15, $(2), $(5) and $0
|
2
|
(57
|
)
|
1
|
18
|
(36
|
)
|
|||||||||||||||||
Other comprehensive income (loss)
|
-
|
(327
|
)
|
12
|
16
|
14
|
(285
|
)
|
||||||||||||||||
Amounts attributable to noncontrolling interests
|
35
|
(2
|
)
|
(2
|
)
|
31
|
||||||||||||||||||
Balance, June 30, 2021
|
$
|
-
|
$
|
1,271
|
$
|
(11
|
)
|
$
|
(863
|
)
|
$
|
(70
|
)
|
$
|
327
|
Major Category of AOCI
|
Affected Line Item
|
Net unrealized gains (losses) on investments with an allowance for credit losses, Net unrealized gains (losses) on investments with OTTI 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
|
Three Months Ended
June 30,
|
Six Months Ended
June 30
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Non-insurance warranty - CNA Financial
|
$
|
359
|
$
|
308
|
$
|
697
|
$
|
609
|
||||||||
Transportation and storage of natural gas and NGLs and other services - Boardwalk Pipelines
|
302
|
286
|
663
|
618
|
||||||||||||
Lodging and related services - Loews Hotels & Co
|
94
|
16
|
150
|
158
|
||||||||||||
Rigid plastic packaging and recycled resin - Corporate (a)
|
244
|
280
|
500
|
|||||||||||||
Contract drilling- Diamond Offshore (b)
|
71
|
300
|
||||||||||||||
Total revenues from contracts with customers
|
396
|
617
|
1,093
|
1,576
|
||||||||||||
Other revenues
|
19
|
33
|
37
|
56
|
||||||||||||
Operating revenues and other
|
$
|
415
|
$
|
650
|
$
|
1,130
|
$
|
1,632
|
(a) |
Revenues presented for Corporate reflect the periods prior to the deconsolidation of Altium Packaging in the second quarter of 2021. See Note 2 for further discussion.
|
(b) |
Revenues presented for Diamond Offshore reflect the periods prior to its deconsolidation. in the second quarter of 2020. See Note 2 for further discussion.
|
Pension Benefits
|
||||||||||||||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Service cost
|
$
|
1
|
$
|
1
|
$
|
2
|
||||||||||
Interest cost
|
$
|
18
|
23
|
36
|
46
|
|||||||||||
Expected return on plan assets
|
(43
|
)
|
(44
|
)
|
(86
|
)
|
(87
|
)
|
||||||||
Amortization of unrecognized net loss
|
13
|
12
|
25
|
23
|
||||||||||||
Amortization of unrecognized prior service cost
|
1
|
1
|
||||||||||||||
Settlement charge
|
2
|
3
|
2
|
7
|
||||||||||||
Net periodic benefit
|
$
|
(10
|
)
|
$
|
(4
|
)
|
$
|
(22
|
)
|
$
|
(8
|
)
|
Other Postretirement Benefits
|
||||||||||||||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Interest cost
|
$
|
1
|
$
|
1
|
$
|
1
|
$
|
1
|
||||||||
Expected return on plan assets
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
||||||||||
Net periodic (benefit) cost
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
(1
|
)
|
Three Months Ended June 30, 2021
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate
|
Total
|
|||||||||||||||
(In millions)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Insurance premiums
|
$
|
2,035
|
$
|
2,035
|
||||||||||||||||
Net investment income
|
591
|
$
|
1
|
$
|
24
|
616
|
||||||||||||||
Investment gains
|
38
|
540
|
578
|
|||||||||||||||||
Non-insurance warranty revenue
|
359
|
359
|
||||||||||||||||||
Operating revenues and other
|
6
|
$
|
312
|
97
|
415
|
|||||||||||||||
Total
|
3,029
|
312
|
98
|
564
|
4,003
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Insurance claims and policyholders' benefits
|
1,546
|
1,546
|
||||||||||||||||||
Amortization of deferred acquisition costs
|
357
|
357
|
||||||||||||||||||
Non-insurance warranty expense
|
332
|
332
|
||||||||||||||||||
Operating expenses and other
|
302
|
209
|
115
|
30
|
656
|
|||||||||||||||
Interest
|
29
|
40
|
9
|
22
|
100
|
|||||||||||||||
Total
|
2,566
|
249
|
124
|
52
|
2,991
|
|||||||||||||||
Income (loss) before income tax
|
463
|
63
|
(26
|
)
|
512
|
1,012
|
||||||||||||||
Income tax (expense) benefit
|
(94
|
)
|
(16
|
)
|
5
|
(114
|
)
|
(219
|
)
|
|||||||||||
Net income (loss)
|
369
|
47
|
(21
|
)
|
398
|
793
|
||||||||||||||
Amounts attributable to noncontrolling interests
|
(39
|
)
|
(39
|
)
|
||||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
330
|
$
|
47
|
$
|
(21
|
)
|
$
|
398
|
$
|
754
|
Three Months Ended June 30, 2020
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate (a)
|
Diamond
Offshore (b)
|
Total
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Insurance premiums
|
$
|
1,850
|
$
|
1,850
|
||||||||||||||||||||
Net investment income
|
534
|
$
|
110
|
644
|
||||||||||||||||||||
Investment gains (losses)
|
69
|
(1,211
|
)
|
(1,142
|
)
|
|||||||||||||||||||
Non-insurance warranty revenue
|
308
|
308
|
||||||||||||||||||||||
Operating revenues and other
|
5
|
$
|
296
|
$
|
34
|
244
|
$
|
71
|
650
|
|||||||||||||||
Total
|
2,766
|
296
|
34
|
(857
|
)
|
71
|
2,310
|
|||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Insurance claims and policyholders' benefits
|
1,642
|
1,642
|
||||||||||||||||||||||
Amortization of deferred acquisition costs
|
342
|
342
|
||||||||||||||||||||||
Non-insurance warranty expense
|
285
|
285
|
||||||||||||||||||||||
Operating expenses and other
|
283
|
210
|
123
|
260
|
116
|
992
|
||||||||||||||||||
Interest
|
31
|
41
|
8
|
32
|
11
|
123
|
||||||||||||||||||
Total
|
2,583
|
251
|
131
|
292
|
127
|
3,384
|
||||||||||||||||||
Income (loss) before income tax
|
183
|
45
|
(97
|
)
|
(1,149
|
)
|
(56
|
)
|
(1,074
|
)
|
||||||||||||||
Income tax (expense) benefit
|
(32
|
)
|
(11
|
)
|
25
|
241
|
5
|
228
|
||||||||||||||||
Net income (loss)
|
151
|
34
|
(72
|
)
|
(908
|
)
|
(51
|
)
|
(846
|
)
|
||||||||||||||
Amounts attributable to noncontrolling interests
|
(16
|
)
|
27
|
11
|
||||||||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
135
|
$
|
34
|
$
|
(72
|
)
|
$
|
(908
|
)
|
$
|
(24
|
)
|
$
|
(835
|
)
|
(a) |
Amounts presented for Corporate include the operating results of Altium Packaging prior to the deconsolidation.
|
(b) |
Amounts presented for Diamond Offshore reflect the periods prior to the deconsolidation.
|
Six Months Ended June 30, 2021
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate (c)
|
Total
|
|||||||||||||||
(In millions)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Insurance premiums
|
$
|
3,997
|
$
|
3,997
|
||||||||||||||||
Net investment income
|
1,095
|
$
|
1
|
$
|
70
|
1,166
|
||||||||||||||
Investment gains
|
95
|
540
|
635
|
|||||||||||||||||
Non-insurance warranty revenue
|
697
|
697
|
||||||||||||||||||
Operating revenues and other
|
11
|
$
|
684
|
154
|
281
|
1,130
|
||||||||||||||
Total
|
5,895
|
684
|
155
|
891
|
7,625
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Insurance claims and policyholders' benefits
|
3,052
|
3,052
|
||||||||||||||||||
Amortization of deferred acquisition costs
|
716
|
716
|
||||||||||||||||||
Non-insurance warranty expense
|
643
|
643
|
||||||||||||||||||
Operating expenses and other
|
587
|
426
|
219
|
338
|
1,570
|
|||||||||||||||
Interest
|
57
|
81
|
17
|
70
|
225
|
|||||||||||||||
Total
|
5,055
|
507
|
236
|
408
|
6,206
|
|||||||||||||||
Income (loss) before income tax
|
840
|
177
|
(81
|
)
|
483
|
1,419
|
||||||||||||||
Income tax (expense) benefit
|
(160
|
)
|
(45
|
)
|
17
|
(145
|
)
|
(333
|
)
|
|||||||||||
Net income (loss)
|
680
|
132
|
(64
|
)
|
338
|
1,086
|
||||||||||||||
Amounts attributable to noncontrolling interests
|
(71
|
)
|
(71
|
)
|
||||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
609
|
$
|
132
|
$
|
(64
|
)
|
$
|
338
|
$
|
1,015
|
(c) |
Amounts presented for Corporate include the operating results of Altium Packaging through March 31, 2021. Beginning April 1, 2021, Altium Packaging is recorded as an equity method investment.
|
SixMonths Ended June 30, 2020
|
CNA
Financial
|
Boardwalk
Pipelines
|
Loews
Hotels & Co
|
Corporate (a)
|
Diamond
Offshore (b)
|
Total
|
||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Insurance premiums
|
$
|
3,719
|
$
|
3,719
|
||||||||||||||||||||
Net investment income (loss)
|
863
|
$
|
(56
|
)
|
807
|
|||||||||||||||||||
Investment losses
|
(147
|
)
|
(1,211
|
)
|
(1,358
|
)
|
||||||||||||||||||
Non-insurance warranty revenue
|
609
|
609
|
||||||||||||||||||||||
Operating revenues and other
|
13
|
$
|
637
|
$
|
176
|
501
|
$
|
305
|
1,632
|
|||||||||||||||
Total
|
5,057
|
637
|
176
|
(766
|
)
|
305
|
5,409
|
|||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Insurance claims and policyholders' benefits
|
3,067
|
3,067
|
||||||||||||||||||||||
Amortization of deferred acquisition costs
|
686
|
686
|
||||||||||||||||||||||
Non-insurance warranty expense
|
566
|
566
|
||||||||||||||||||||||
Operating expenses and other
|
583
|
421
|
290
|
528
|
1,196
|
3,018
|
||||||||||||||||||
Interest
|
62
|
83
|
16
|
63
|
43
|
267
|
||||||||||||||||||
Total
|
4,964
|
504
|
306
|
591
|
1,239
|
7,604
|
||||||||||||||||||
Income (loss) before income tax
|
93
|
133
|
(130
|
)
|
(1,357
|
)
|
(934
|
)
|
(2,195
|
)
|
||||||||||||||
Income tax (expense) benefit
|
(4
|
)
|
(34
|
)
|
33
|
284
|
26
|
305
|
||||||||||||||||
Net income (loss)
|
89
|
99
|
(97
|
)
|
(1,073
|
)
|
(908
|
)
|
(1,890
|
)
|
||||||||||||||
Amounts attributable to noncontrolling interests
|
(9
|
)
|
432
|
423
|
||||||||||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
80
|
$
|
99
|
$
|
(97
|
)
|
$
|
(1,073
|
)
|
$
|
(476
|
)
|
$
|
(1,467
|
)
|
Page
No.
|
|
Overview
|
36
|
Results of Operations
|
37
|
Consolidated Financial Results
|
37
|
CNA Financial
|
38
|
Boardwalk Pipelines
|
46
|
Loews Hotels & Co
|
47
|
Corporate
|
48
|
Diamond Offshore
|
49
|
Liquidity and Capital Resources
|
49
|
Parent Company
|
49
|
Subsidiaries
|
50
|
Investments
|
51
|
Critical Accounting Estimates
|
54
|
Accounting Standards Update
|
54
|
Forward-Looking Statements
|
54
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions, except per share data)
|
||||||||||||||||
CNA Financial
|
$
|
330
|
$
|
135
|
$
|
609
|
$
|
80
|
||||||||
Boardwalk Pipelines
|
47
|
34
|
132
|
99
|
||||||||||||
Loews Hotels & Co
|
(21
|
)
|
(72
|
)
|
(64
|
)
|
(97
|
)
|
||||||||
Corporate
|
398
|
(908
|
)
|
338
|
(1,073
|
)
|
||||||||||
Diamond Offshore
|
(24
|
)
|
(476
|
)
|
||||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
754
|
$
|
(835
|
)
|
$
|
1,015
|
$
|
(1,467
|
)
|
||||||
Basic net income (loss) per share
|
$
|
2.87
|
$
|
(2.96
|
)
|
$
|
3.83
|
$
|
(5.16
|
)
|
||||||
Diluted net income (loss) per share
|
$
|
2.86
|
$
|
(2.96
|
)
|
$
|
3.82
|
$
|
(5.16
|
)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Insurance premiums
|
$
|
2,035
|
$
|
1,850
|
$
|
3,997
|
$
|
3,719
|
||||||||
Net investment income
|
591
|
534
|
1,095
|
863
|
||||||||||||
Investment gains (losses)
|
38
|
69
|
95
|
(147
|
)
|
|||||||||||
Non-insurance warranty revenue
|
359
|
308
|
697
|
609
|
||||||||||||
Other revenues
|
6
|
5
|
11
|
13
|
||||||||||||
Total
|
3,029
|
2,766
|
5,895
|
5,057
|
||||||||||||
Expenses:
|
||||||||||||||||
Insurance claims and policyholders' benefits
|
1,546
|
1,642
|
3,052
|
3,067
|
||||||||||||
Amortization of deferred acquisition costs
|
357
|
342
|
716
|
686
|
||||||||||||
Non-insurance warranty expense
|
332
|
285
|
643
|
566
|
||||||||||||
Other operating expenses
|
302
|
283
|
587
|
583
|
||||||||||||
Interest
|
29
|
31
|
57
|
62
|
||||||||||||
Total
|
2,566
|
2,583
|
5,055
|
4,964
|
||||||||||||
Income before income tax
|
463
|
183
|
840
|
93
|
||||||||||||
Income tax expense
|
(94
|
)
|
(32
|
)
|
(160
|
)
|
(4
|
)
|
||||||||
Net income
|
369
|
151
|
680
|
89
|
||||||||||||
Amounts attributable to noncontrolling interests
|
(39
|
)
|
(16
|
)
|
(71
|
)
|
(9
|
)
|
||||||||
Net income attributable to Loews Corporation
|
$
|
330
|
$
|
135
|
$
|
609
|
$
|
80
|
Three Months Ended June 30, 2021
|
Specialty
|
Commercial
|
International
|
Total
|
||||||||||||
(In millions, except %)
|
||||||||||||||||
Gross written premiums
|
$
|
1,903
|
$
|
1,161
|
$
|
339
|
$
|
3,403
|
||||||||
Gross written premiums excluding third party captives
|
897
|
1,060
|
339
|
2,296
|
||||||||||||
Net written premiums
|
786
|
831
|
292
|
1,909
|
||||||||||||
Net earned premiums
|
762
|
881
|
266
|
1,909
|
||||||||||||
Net investment income
|
134
|
174
|
14
|
322
|
||||||||||||
Core income
|
188
|
137
|
26
|
351
|
||||||||||||
Other performance metrics:
|
||||||||||||||||
Loss ratio excluding catastrophes and development
|
59.0
|
%
|
60.1
|
%
|
59.0
|
%
|
59.5
|
%
|
||||||||
Effect of catastrophe impacts
|
5.8
|
0.8
|
2.8
|
|||||||||||||
Effect of development-related items
|
(1.3
|
)
|
0.8
|
(0.3
|
)
|
(0.2
|
)
|
|||||||||
Loss ratio
|
57.7
|
%
|
66.7
|
%
|
59.5
|
%
|
62.1
|
%
|
||||||||
Expense ratio
|
30.0
|
32.3
|
33.5
|
31.6
|
||||||||||||
Dividend ratio
|
0.2
|
0.6
|
0.3
|
|||||||||||||
Combined ratio
|
87.9
|
%
|
99.6
|
%
|
93.0
|
%
|
94.0
|
%
|
||||||||
Combined ratio excluding catastrophes and development
|
89.2
|
%
|
93.0
|
%
|
92.5
|
%
|
91.4
|
%
|
||||||||
Rate
|
11
|
%
|
8
|
%
|
13
|
%
|
10
|
%
|
||||||||
Renewal premium change
|
10
|
10
|
14
|
10
|
||||||||||||
Retention
|
85
|
81
|
77
|
81
|
||||||||||||
New business
|
$
|
121
|
$
|
201
|
$
|
71
|
$
|
393
|
Three Months Ended June 30, 2020
|
||||||||||||||||
Gross written premiums
|
$
|
1,762
|
$
|
1,126
|
$
|
277
|
$
|
3,165
|
||||||||
Gross written premiums excluding third party captives
|
811
|
1,044
|
277
|
2,132
|
||||||||||||
Net written premiums
|
742
|
949
|
239
|
1,930
|
||||||||||||
Net earned premiums
|
705
|
795
|
224
|
1,724
|
||||||||||||
Net investment income
|
133
|
161
|
14
|
308
|
||||||||||||
Core income (loss)
|
90
|
49
|
(14
|
)
|
125
|
|||||||||||
Other performance metrics:
|
||||||||||||||||
Loss ratio excluding catastrophes and development
|
59.9
|
%
|
58.7
|
%
|
59.9
|
%
|
59.3
|
%
|
||||||||
Effect of catastrophe impacts
|
15.0
|
19.0
|
19.9
|
17.5
|
||||||||||||
Effect of development-related items
|
(2.9
|
)
|
(0.3
|
)
|
(1.2
|
)
|
(1.5
|
)
|
||||||||
Loss ratio
|
72.0
|
%
|
77.4
|
%
|
78.6
|
%
|
75.3
|
%
|
||||||||
Expense ratio
|
32.0
|
33.9
|
36.7
|
33.6
|
||||||||||||
Dividend ratio
|
0.2
|
0.6
|
0.3
|
|||||||||||||
Combined ratio
|
104.2
|
%
|
111.9
|
%
|
115.3
|
%
|
109.2
|
%
|
||||||||
Combined ratio excluding catastrophes and development
|
92.1
|
%
|
93.2
|
%
|
96.6
|
%
|
93.2
|
%
|
||||||||
Rate
|
12
|
%
|
10
|
%
|
15
|
%
|
11
|
%
|
||||||||
Renewal premium change
|
13
|
9
|
10
|
11
|
||||||||||||
Retention
|
86
|
84
|
74
|
83
|
||||||||||||
New business
|
$
|
96
|
$
|
198
|
$
|
62
|
$
|
356
|
Six Months Ended June 30, 2021
|
Specialty
|
Commercial
|
International
|
Total
|
||||||||||||
(In millions, except %)
|
||||||||||||||||
Gross written premiums
|
$
|
3,697
|
$
|
2,274
|
$
|
682
|
$
|
6,653
|
||||||||
Gross written premiums excluding third party captives
|
1,713
|
2,171
|
682
|
4,566
|
||||||||||||
Net written premiums
|
1,528
|
1,791
|
527
|
3,846
|
||||||||||||
Net earned premiums
|
1,497
|
1,736
|
518
|
3,751
|
||||||||||||
Net investment income
|
251
|
322
|
28
|
601
|
||||||||||||
Core income
|
358
|
206
|
50
|
614
|
||||||||||||
Other performance metrics:
|
||||||||||||||||
Loss ratio excluding catastrophes and development
|
59.2
|
%
|
60.4
|
%
|
59.3
|
%
|
59.8
|
%
|
||||||||
Effect of catastrophe impacts
|
0.3
|
9.6
|
1.4
|
4.7
|
||||||||||||
Effect of development-related items
|
(1.6
|
)
|
0.7
|
(0.2
|
)
|
(0.3
|
)
|
|||||||||
Loss ratio
|
57.9
|
%
|
70.7
|
%
|
60.5
|
%
|
64.2
|
%
|
||||||||
Expense ratio
|
30.2
|
31.8
|
33.9
|
31.5
|
||||||||||||
Dividend ratio
|
0.2
|
0.6
|
0.3
|
|||||||||||||
Combined ratio
|
88.3
|
%
|
103.1
|
%
|
94.4
|
%
|
96.0
|
%
|
||||||||
Combined ratio excluding catastrophes and development
|
89.6
|
%
|
92.8
|
%
|
93.2
|
%
|
91.6
|
%
|
||||||||
Rate
|
11
|
%
|
9
|
%
|
13
|
%
|
10
|
%
|
||||||||
Renewal premium change
|
10
|
9
|
13
|
10
|
||||||||||||
Retention
|
86
|
82
|
75
|
82
|
||||||||||||
New business
|
$
|
224
|
$
|
412
|
$
|
150
|
$
|
786
|
Six Months Ended June 30, 2020
|
||||||||||||||||
Gross written premiums
|
$
|
3,476
|
$
|
2,188
|
$
|
584
|
$
|
6,248
|
||||||||
Gross written premiums excluding third party captives
|
1,552
|
2,103
|
584
|
4,239
|
||||||||||||
Net written premiums
|
1,436
|
1,899
|
458
|
3,793
|
||||||||||||
Net earned premiums
|
1,390
|
1,613
|
463
|
3,466
|
||||||||||||
Net investment income
|
189
|
203
|
29
|
421
|
||||||||||||
Core income (loss)
|
186
|
72
|
(12
|
)
|
246
|
|||||||||||
Other performance metrics:
|
||||||||||||||||
Loss ratio excluding catastrophes and development
|
59.7
|
%
|
59.7
|
%
|
60.1
|
%
|
59.8
|
%
|
||||||||
Effect of catastrophe impacts
|
8.2
|
12.8
|
11.9
|
10.9
|
||||||||||||
Effect of development-related items
|
(2.3
|
)
|
(0.1
|
)
|
(0.7
|
)
|
(1.1
|
)
|
||||||||
Loss ratio
|
65.6
|
%
|
72.4
|
%
|
71.3
|
%
|
69.6
|
%
|
||||||||
Expense ratio
|
32.1
|
33.6
|
36.1
|
33.2
|
||||||||||||
Dividend ratio
|
0.2
|
0.6
|
0.4
|
|||||||||||||
Combined ratio
|
97.9
|
%
|
106.6
|
%
|
107.4
|
%
|
103.2
|
%
|
||||||||
Combined ratio excluding catastrophes and development
|
92.0
|
%
|
93.9
|
%
|
96.2
|
%
|
93.4
|
%
|
||||||||
Rate
|
11
|
%
|
9
|
%
|
12
|
%
|
10
|
%
|
||||||||
Renewal premium change
|
12
|
9
|
9
|
10
|
||||||||||||
Retention
|
85
|
85
|
72
|
82
|
||||||||||||
New business
|
$
|
170
|
$
|
396
|
$
|
130
|
$
|
696
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Net earned premiums
|
$
|
126
|
$
|
126
|
$
|
246
|
$
|
253
|
||||||||
Net investment income
|
269
|
226
|
494
|
442
|
||||||||||||
Core loss
|
(10
|
)
|
(26
|
)
|
(10
|
)
|
(39
|
)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Core income (loss):
|
||||||||||||||||
Property & Casualty Operations
|
$
|
351
|
$
|
125
|
$
|
614
|
$
|
246
|
||||||||
Other Insurance Operations
|
(10
|
)
|
(26
|
)
|
(10
|
)
|
(39
|
)
|
||||||||
Total core income
|
341
|
99
|
604
|
207
|
||||||||||||
Investment gains (losses)
|
27
|
53
|
76
|
(117
|
)
|
|||||||||||
Consolidating adjustments including noncontrolling interests
|
(38
|
)
|
(17
|
)
|
(71
|
)
|
(10
|
)
|
||||||||
Net income attributable to Loews Corporation
|
$
|
330
|
$
|
135
|
$
|
609
|
$
|
80
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Operating revenues and other
|
$
|
312
|
$
|
296
|
$
|
684
|
$
|
637
|
||||||||
Total
|
312
|
296
|
684
|
637
|
||||||||||||
Expenses:
|
||||||||||||||||
Operating and other
|
209
|
210
|
426
|
421
|
||||||||||||
Interest
|
40
|
41
|
81
|
83
|
||||||||||||
Total
|
249
|
251
|
507
|
504
|
||||||||||||
Income before income tax
|
63
|
45
|
177
|
133
|
||||||||||||
Income tax expense
|
(16
|
)
|
(11
|
)
|
(45
|
)
|
(34
|
)
|
||||||||
Net income attributable to Loews Corporation
|
$
|
47
|
$
|
34
|
$
|
132
|
$
|
99
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Operating revenue
|
$
|
76
|
$
|
9
|
$
|
115
|
$
|
118
|
||||||||
Gain on sale of hotel
|
13
|
13
|
||||||||||||||
Revenues related to reimbursable expenses
|
22
|
12
|
40
|
45
|
||||||||||||
Total
|
98
|
34
|
155
|
176
|
||||||||||||
Expenses:
|
||||||||||||||||
Operating and other:
|
||||||||||||||||
Operating
|
80
|
50
|
138
|
166
|
||||||||||||
Asset impairments
|
20
|
20
|
||||||||||||||
Reimbursable expenses
|
22
|
12
|
40
|
45
|
||||||||||||
Depreciation
|
16
|
16
|
32
|
30
|
||||||||||||
Equity (income) loss from joint ventures
|
(3
|
)
|
25
|
9
|
29
|
|||||||||||
Interest
|
9
|
8
|
17
|
16
|
||||||||||||
Total
|
124
|
131
|
236
|
306
|
||||||||||||
Loss before income tax
|
(26
|
)
|
(97
|
)
|
(81
|
)
|
(130
|
)
|
||||||||
Income tax benefit
|
5
|
25
|
17
|
33
|
||||||||||||
Net loss attributable to Loews Corporation
|
$
|
(21
|
)
|
$
|
(72
|
)
|
$
|
(64
|
)
|
$
|
(97
|
)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Net investment income (loss)
|
$
|
24
|
$
|
110
|
$
|
70
|
$
|
(56
|
)
|
|||||||
Investment gains (losses)
|
540
|
(1,211
|
)
|
540
|
(1,211
|
)
|
||||||||||
Operating revenues and other
|
244
|
281
|
501
|
|||||||||||||
Total
|
564
|
(857
|
)
|
891
|
(766
|
)
|
||||||||||
Expenses:
|
||||||||||||||||
Operating and other
|
30
|
260
|
338
|
528
|
||||||||||||
Interest
|
22
|
32
|
70
|
63
|
||||||||||||
Total
|
52
|
292
|
408
|
591
|
||||||||||||
Income (loss) before income tax
|
512
|
(1,149
|
)
|
483
|
(1,357
|
)
|
||||||||||
Income tax (expense) benefit
|
(114
|
)
|
241
|
(145
|
)
|
284
|
||||||||||
Net income (loss) attributable to Loews Corporation
|
$
|
398
|
$
|
(908
|
)
|
$
|
338
|
$
|
(1,073
|
)
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Fixed income securities:
|
||||||||||||||||
Taxable fixed income securities
|
$
|
356
|
$
|
360
|
$
|
715
|
$
|
731
|
||||||||
Tax-exempt fixed income securities
|
79
|
80
|
159
|
158
|
||||||||||||
Total fixed income securities
|
435
|
440
|
874
|
889
|
||||||||||||
Limited partnership and common stock investments
|
156
|
84
|
217
|
(41
|
)
|
|||||||||||
Other, net of investment expense
|
10
|
4
|
15
|
|||||||||||||
Net investment income
|
$
|
591
|
$
|
534
|
$
|
1,095
|
$
|
863
|
||||||||
Effective income yield for the fixed income securities portfolio
|
4.3
|
%
|
4.6
|
%
|
4.4
|
%
|
4.6
|
%
|
||||||||
Limited partnership and common stock return
|
8.3
|
%
|
5.0
|
%
|
12.1
|
%
|
(2.3
|
)%
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In millions)
|
||||||||||||||||
Investment gains (losses):
|
||||||||||||||||
Fixed maturity securities:
|
||||||||||||||||
Corporate and other bonds
|
$
|
43
|
$
|
(40
|
)
|
$
|
79
|
$
|
(119
|
)
|
||||||
States, municipalities and political subdivisions
|
33
|
(1
|
)
|
33
|
||||||||||||
Asset-backed
|
(12
|
)
|
24
|
(9
|
)
|
28
|
||||||||||
Total fixed maturity securities
|
31
|
17
|
69
|
(58
|
)
|
|||||||||||
Non-redeemable preferred stock
|
17
|
63
|
19
|
(70
|
)
|
|||||||||||
Short term and other
|
(10
|
)
|
(11
|
)
|
7
|
(19
|
)
|
|||||||||
Total investment gains (losses)
|
38
|
69
|
95
|
(147
|
)
|
|||||||||||
Income tax (expense) benefit
|
(11
|
)
|
(16
|
)
|
(19
|
)
|
30
|
|||||||||
Amounts attributable to noncontrolling interests
|
(3
|
)
|
(6
|
)
|
(8
|
)
|
12
|
|||||||||
Investment gains (losses) attributable to Loews Corporation
|
$
|
24
|
$
|
47
|
$
|
68
|
$
|
(105
|
)
|
June 30, 2021
|
December 31, 2020
|
|||||||||||||||
Net
|
Net
|
|||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||
Estimated
|
Gains
|
Estimated
|
Gains
|
|||||||||||||
Fair Value
|
(Losses)
|
Fair Value
|
(Losses)
|
|||||||||||||
(In millions)
|
||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises
|
$
|
3,162
|
$
|
59
|
$
|
3,672
|
$
|
117
|
||||||||
AAA
|
3,866
|
408
|
3,627
|
454
|
||||||||||||
AA
|
7,458
|
920
|
7,159
|
1,012
|
||||||||||||
A
|
9,440
|
1,219
|
9,543
|
1,390
|
||||||||||||
BBB
|
18,558
|
2,376
|
18,007
|
2,596
|
||||||||||||
Non-investment grade
|
2,426
|
147
|
2,623
|
149
|
||||||||||||
Total
|
$
|
44,910
|
$
|
5,129
|
$
|
44,631
|
$
|
5,718
|
Gross
|
||||||||
Estimated
|
Unrealized
|
|||||||
June 30, 2021
|
Fair Value
|
Losses
|
||||||
(In millions)
|
||||||||
U.S. Government, Government agencies and Government-sponsored enterprises
|
$
|
937
|
$
|
15
|
||||
AAA
|
171
|
1
|
||||||
AA
|
291
|
6
|
||||||
A
|
726
|
14
|
||||||
BBB
|
685
|
22
|
||||||
Non-investment grade
|
327
|
12
|
||||||
Total
|
$
|
3,137
|
$
|
70
|
Gross
|
||||||||
Estimated
|
Unrealized
|
|||||||
June 30, 2021
|
Fair Value
|
Losses
|
||||||
(In millions)
|
||||||||
Due in one year or less
|
$
|
151
|
$
|
5
|
||||
Due after one year through five years
|
515
|
17
|
||||||
Due after five years through ten years
|
1,800
|
30
|
||||||
Due after ten years
|
671
|
18
|
||||||
Total
|
$
|
3,137
|
$
|
70
|
June 30, 2021
|
December 31, 2020
|
||||||
Estimated
Fair Value
|
Effective
Duration
(Years)
|
Estimated
Fair Value
|
Effective
Duration
(Years)
|
||||
(In millions of dollars)
|
|||||||
Investments supporting Other Insurance Operations
|
$
|
18,551
|
9.3
|
$
|
18,518
|
9.2
|
|
Other investments
|
28,540
|
4.9
|
28,839
|
4.5
|
|||
Total
|
$
|
47,091
|
6.6
|
$
|
47,357
|
6.3
|
June 30,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
(In millions)
|
||||||||
Short term investments:
|
||||||||
U.S. Treasury securities
|
$
|
1,228
|
$
|
1,702
|
||||
Other
|
237
|
205
|
||||||
Total short term investments
|
$
|
1,465
|
$
|
1,907
|
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)
|
||||||||||||
April 1, 2021 -
|
||||||||||||||||
April 30, 2021
|
599,068
|
$
|
52.99
|
N/A
|
N/A
|
|||||||||||
May 1, 2021 -
|
||||||||||||||||
May 31, 2021
|
949,200
|
58.00
|
N/A
|
N/A
|
||||||||||||
June 1, 2021 -
|
||||||||||||||||
June 30, 2021
|
2,396,240
|
55.36
|
N/A
|
N/A
|
Exhibit
|
|
Description of Exhibit
|
Number
|
Certification by the Chief Executive Officer of the Company pursuant to Rule 13a-14(a) and Rule 15d-14(a)
|
31.1*
|
Certification by the Chief Financial Officer of the Company pursuant to Rule 13a-14(a) and Rule 15d-14(a)
|
31.2*
|
Certification by the Chief Executive Officer of the Company pursuant to 18 U.S.C. Section 1350 (as adopted by Section 906 of the Sarbanes-Oxley Act of 2002)
|
32.1*
|
Certification by the Chief Financial Officer of the Company pursuant to 18 U.S.C. Section 1350 (as adopted by Section 906 of the Sarbanes-Oxley Act of 2002)
|
32.2*
|
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*
|
LOEWS CORPORATION
|
||
(Registrant)
|
||
Dated: August 2, 2021
|
By:
|
/s/ David B. Edelson
|
DAVID B. EDELSON
|
||
Senior Vice President and
|
||
Chief Financial Officer
|
||
(Duly authorized officer
|
||
and principal financial
|
||
officer)
|