10-Q 1 l-20240331.htm 10-Q l-20240331
000006008612/31FALSE2024Q1http://fasb.org/us-gaap/2024#ValuationTechniqueDiscountedCashFlowMemberhttp://fasb.org/us-gaap/2024#MeasurementInputCreditSpreadMemberhttp://fasb.org/us-gaap/2024#ValuationTechniqueDiscountedCashFlowMemberhttp://fasb.org/us-gaap/2024#MeasurementInputCreditSpreadMember91222100000600862024-01-012024-03-3100000600862024-05-03xbrli:shares00000600862024-03-31iso4217:USD00000600862023-12-31iso4217:USDxbrli:shares00000600862023-01-012023-03-310000060086srt:ScenarioPreviouslyReportedMember2022-12-310000060086us-gaap:CommonStockMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086srt:ScenarioPreviouslyReportedMemberus-gaap:AdditionalPaidInCapitalMember2022-12-310000060086srt:ScenarioPreviouslyReportedMemberus-gaap:RetainedEarningsMember2022-12-310000060086us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086srt:ScenarioPreviouslyReportedMemberus-gaap:TreasuryStockCommonMember2022-12-310000060086srt:ScenarioPreviouslyReportedMemberus-gaap:NoncontrollingInterestMember2022-12-310000060086srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:NoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-3100000600862022-12-310000060086us-gaap:CommonStockMember2022-12-310000060086us-gaap:AdditionalPaidInCapitalMember2022-12-310000060086us-gaap:RetainedEarningsMember2022-12-310000060086us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000060086us-gaap:TreasuryStockCommonMember2022-12-310000060086us-gaap:NoncontrollingInterestMember2022-12-310000060086us-gaap:RetainedEarningsMember2023-01-012023-03-310000060086us-gaap:NoncontrollingInterestMember2023-01-012023-03-310000060086us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000060086us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000060086us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-3100000600862023-03-310000060086us-gaap:CommonStockMember2023-03-310000060086us-gaap:AdditionalPaidInCapitalMember2023-03-310000060086us-gaap:RetainedEarningsMember2023-03-310000060086us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000060086us-gaap:TreasuryStockCommonMember2023-03-310000060086us-gaap:NoncontrollingInterestMember2023-03-310000060086us-gaap:CommonStockMember2023-12-310000060086us-gaap:AdditionalPaidInCapitalMember2023-12-310000060086us-gaap:RetainedEarningsMember2023-12-310000060086us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000060086us-gaap:TreasuryStockCommonMember2023-12-310000060086us-gaap:NoncontrollingInterestMember2023-12-310000060086us-gaap:RetainedEarningsMember2024-01-012024-03-310000060086us-gaap:NoncontrollingInterestMember2024-01-012024-03-310000060086us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000060086us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000060086us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000060086us-gaap:CommonStockMember2024-03-310000060086us-gaap:AdditionalPaidInCapitalMember2024-03-310000060086us-gaap:RetainedEarningsMember2024-03-310000060086us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000060086us-gaap:TreasuryStockCommonMember2024-03-310000060086us-gaap:NoncontrollingInterestMember2024-03-310000060086l:CnaFinancialCorporationMember2024-03-31xbrli:pure0000060086us-gaap:StockCompensationPlanMember2024-01-012024-03-310000060086us-gaap:StockCompensationPlanMember2023-01-012023-03-310000060086us-gaap:FixedMaturitiesMember2024-01-012024-03-310000060086us-gaap:FixedMaturitiesMember2023-01-012023-03-310000060086srt:PartnershipInterestMember2024-01-012024-03-310000060086srt:PartnershipInterestMember2023-01-012023-03-310000060086us-gaap:ShortTermInvestmentsMember2024-01-012024-03-310000060086us-gaap:ShortTermInvestmentsMember2023-01-012023-03-310000060086us-gaap:EquitySecuritiesMember2024-01-012024-03-310000060086us-gaap:EquitySecuritiesMember2023-01-012023-03-310000060086l:IncomeLossFromTradingPortfolioMember2024-01-012024-03-310000060086l:IncomeLossFromTradingPortfolioMember2023-01-012023-03-310000060086l:InvestmentsOtherMember2024-01-012024-03-310000060086l:InvestmentsOtherMember2023-01-012023-03-310000060086l:ShortTermInvestmentsAndOtherMember2024-01-012024-03-310000060086l:ShortTermInvestmentsAndOtherMember2023-01-012023-03-310000060086us-gaap:NonredeemablePreferredStockMember2024-01-012024-03-310000060086us-gaap:NonredeemablePreferredStockMember2023-01-012023-03-310000060086us-gaap:CorporateDebtSecuritiesMember2024-01-012024-03-310000060086us-gaap:CorporateDebtSecuritiesMember2023-01-012023-03-310000060086us-gaap:AssetBackedSecuritiesMember2024-01-012024-03-310000060086us-gaap:AssetBackedSecuritiesMember2023-01-012023-03-310000060086us-gaap:MortgageReceivablesMember2023-01-012023-03-310000060086us-gaap:MortgageReceivablesMember2024-01-012024-03-310000060086us-gaap:CorporateDebtSecuritiesMember2024-03-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310000060086us-gaap:ResidentialMortgageBackedSecuritiesMember2024-03-310000060086us-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2024-03-310000060086us-gaap:AssetBackedSecuritiesMember2024-03-310000060086us-gaap:USTreasurySecuritiesMember2024-03-310000060086us-gaap:ForeignGovernmentDebtSecuritiesMember2024-03-310000060086l:FixedMaturitiesAvailableForSaleMember2024-03-310000060086l:FixedMaturitiesTradingMember2024-03-310000060086us-gaap:CorporateDebtSecuritiesMember2023-12-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000060086us-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310000060086us-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310000060086us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2023-12-310000060086us-gaap:AssetBackedSecuritiesMember2023-12-310000060086us-gaap:USTreasurySecuritiesMember2023-12-310000060086us-gaap:ForeignGovernmentDebtSecuritiesMember2023-12-310000060086l:FixedMaturitiesAvailableForSaleMember2023-12-310000060086l:FixedMaturitiesTradingMember2023-12-310000060086us-gaap:FixedMaturitiesMember2024-03-310000060086us-gaap:FixedMaturitiesMember2023-12-310000060086us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-03-310000060086us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310000060086srt:FitchAAARatingMember2024-03-310000060086srt:FitchAAARatingMember2023-12-310000060086srt:FitchAARatingMember2024-03-310000060086srt:FitchAARatingMember2023-12-310000060086srt:FitchARatingMember2024-03-310000060086srt:FitchARatingMember2023-12-310000060086srt:FitchBBBRatingMember2024-03-310000060086srt:FitchBBBRatingMember2023-12-310000060086us-gaap:InternalNoninvestmentGradeMember2024-03-310000060086us-gaap:InternalNoninvestmentGradeMember2023-12-310000060086us-gaap:CorporateDebtSecuritiesMember2022-12-310000060086us-gaap:AssetBackedSecuritiesMember2022-12-310000060086us-gaap:CorporateDebtSecuritiesMember2023-03-310000060086us-gaap:AssetBackedSecuritiesMember2023-03-310000060086l:DebtServiceCoverageRatioOneLoanToValueLessThan55PercentMemberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086l:DebtServiceCoverageRatioOneLoanToValue55To65PercentMemberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086l:DebtServiceCoverageRatioOneLoanToValueGreaterThan65PercentMemberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086l:DebtServiceCoverageRatioTwoLoanToValueLessThan55PercentMemberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086l:DebtServiceCoverageRatioTwoLoanToValue55To65PercentMemberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086us-gaap:CommercialMortgageBackedSecuritiesMemberl:DebtServiceCoverageRatioTwoLoanToValueGreaterThan65PercentMember2024-03-310000060086l:DebtServiceCoverageRatioThreeLoanToValueLessThan55PercentMemberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086l:DebtServiceCoverageRatioThreeLoanToValue55To65PercentMemberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086l:DebtServiceCoverageRatioThreeLoanToValueGreaterThan65PercentMemberus-gaap:CommercialMortgageBackedSecuritiesMember2024-03-310000060086us-gaap:NondesignatedMemberus-gaap:ExchangeTradedOptionsMemberus-gaap:LongMember2024-03-310000060086us-gaap:NondesignatedMemberus-gaap:ExchangeTradedOptionsMemberus-gaap:LongMember2023-12-310000060086us-gaap:NondesignatedMemberus-gaap:ExchangeTradedOptionsMemberus-gaap:ShortMember2024-03-310000060086us-gaap:NondesignatedMemberus-gaap:ExchangeTradedOptionsMemberus-gaap:ShortMember2023-12-310000060086us-gaap:NondesignatedMemberus-gaap:WarrantMember2024-03-310000060086us-gaap:NondesignatedMemberus-gaap:WarrantMember2023-12-310000060086us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2024-03-310000060086us-gaap:NondesignatedMemberus-gaap:InterestRateSwapMember2023-12-310000060086us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2024-03-310000060086us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2023-12-310000060086l:InvestmentsInAssetsRequiringFuturePurchaseSaleOrFundingCommitmentsMember2024-03-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueMeasurementsRecurringMember2024-03-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:FairValueMeasurementsRecurringMember2023-12-310000060086us-gaap:CorporateDebtSecuritiesMember2023-12-310000060086us-gaap:CorporateDebtSecuritiesMember2024-01-012024-03-310000060086us-gaap:CorporateDebtSecuritiesMember2024-03-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMember2024-01-012024-03-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310000060086us-gaap:AssetBackedSecuritiesMember2023-12-310000060086us-gaap:AssetBackedSecuritiesMember2024-01-012024-03-310000060086us-gaap:AssetBackedSecuritiesMember2024-03-310000060086l:FixedMaturitiesAvailableForSaleMember2023-12-310000060086l:FixedMaturitiesAvailableForSaleMember2024-01-012024-03-310000060086l:FixedMaturitiesAvailableForSaleMember2024-03-310000060086us-gaap:EquitySecuritiesMember2023-12-310000060086us-gaap:EquitySecuritiesMember2024-01-012024-03-310000060086us-gaap:EquitySecuritiesMember2024-03-310000060086us-gaap:CorporateDebtSecuritiesMember2022-12-310000060086us-gaap:CorporateDebtSecuritiesMember2023-01-012023-03-310000060086us-gaap:CorporateDebtSecuritiesMember2023-03-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMember2023-01-012023-03-310000060086us-gaap:USStatesAndPoliticalSubdivisionsMember2023-03-310000060086us-gaap:AssetBackedSecuritiesMember2022-12-310000060086us-gaap:AssetBackedSecuritiesMember2023-01-012023-03-310000060086us-gaap:AssetBackedSecuritiesMember2023-03-310000060086l:FixedMaturitiesAvailableForSaleMember2022-12-310000060086l:FixedMaturitiesAvailableForSaleMember2023-01-012023-03-310000060086l:FixedMaturitiesAvailableForSaleMember2023-03-310000060086us-gaap:EquitySecuritiesMember2022-12-310000060086us-gaap:EquitySecuritiesMember2023-01-012023-03-310000060086us-gaap:EquitySecuritiesMember2023-03-310000060086us-gaap:FixedMaturitiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310000060086us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FixedMaturitiesMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-03-310000060086us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FixedMaturitiesMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-03-310000060086srt:WeightedAverageMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:FixedMaturitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-03-310000060086us-gaap:FixedMaturitiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310000060086us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FixedMaturitiesMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310000060086us-gaap:MeasurementInputCreditSpreadMemberus-gaap:FixedMaturitiesMemberus-gaap:FairValueInputsLevel3Membersrt:MaximumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310000060086srt:WeightedAverageMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:FixedMaturitiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310000060086us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310000060086us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2024-03-310000060086us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310000060086us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310000060086us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000060086us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000060086us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2023-12-310000060086us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000060086us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000060086us-gaap:PropertyAndCasualtyCommercialInsuranceProductLineMemberl:CnaFinancialCorporationMember2024-01-012024-03-310000060086us-gaap:PropertyAndCasualtyCommercialInsuranceProductLineMemberl:CnaFinancialCorporationMember2023-01-012023-03-310000060086l:MedicalProfessionalLiabilityInsuranceMember2024-01-012024-03-310000060086l:MedicalProfessionalLiabilityInsuranceMember2023-01-012023-03-310000060086us-gaap:SuretySegmentMember2024-01-012024-03-310000060086us-gaap:SuretySegmentMember2023-01-012023-03-310000060086l:InsuranceWarrantyMember2024-01-012024-03-310000060086l:InsuranceWarrantyMember2023-01-012023-03-310000060086us-gaap:WorkersCompensationInsuranceMember2024-01-012024-03-310000060086us-gaap:WorkersCompensationInsuranceMember2023-01-012023-03-310000060086l:OtherPropertyAndCasualtyOperationsMember2024-01-012024-03-310000060086l:OtherPropertyAndCasualtyOperationsMember2023-01-012023-03-310000060086l:AsbestosAndEnvironmentalPollutionReservesMember2010-12-310000060086l:AsbestosAndEnvironmentalPollutionReservesMember2010-01-012010-12-310000060086l:AsbestosAndEnvironmentalPollutionReservesMember2024-01-012024-03-310000060086l:AsbestosAndEnvironmentalPollutionReservesMember2023-01-012023-03-310000060086l:AsbestosAndEnvironmentalPollutionReservesMember2024-03-310000060086l:AsbestosAndEnvironmentalPollutionReservesMember2023-12-310000060086us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossIncludingNoncontrollingInterestMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086us-gaap:AociLiabilityForFuturePolicyBenefitIncludingNoncontrollingInterestMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMembersrt:ScenarioPreviouslyReportedMember2022-12-310000060086us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossIncludingNoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:AociLiabilityForFuturePolicyBenefitIncludingNoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000060086us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossIncludingNoncontrollingInterestMember2022-12-310000060086us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000060086us-gaap:AociLiabilityForFuturePolicyBenefitIncludingNoncontrollingInterestMember2022-12-310000060086us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2022-12-310000060086us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000060086us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000060086us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000060086us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossIncludingNoncontrollingInterestMember2023-01-012023-03-310000060086us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310000060086us-gaap:AociLiabilityForFuturePolicyBenefitIncludingNoncontrollingInterestMember2023-01-012023-03-310000060086us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2023-01-012023-03-310000060086us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310000060086us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310000060086us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossIncludingNoncontrollingInterestMember2023-03-310000060086us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310000060086us-gaap:AociLiabilityForFuturePolicyBenefitIncludingNoncontrollingInterestMember2023-03-310000060086us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2023-03-310000060086us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310000060086us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310000060086us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310000060086us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossIncludingNoncontrollingInterestMember2023-12-310000060086us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310000060086us-gaap:AociLiabilityForFuturePolicyBenefitIncludingNoncontrollingInterestMember2023-12-310000060086us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2023-12-310000060086us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310000060086us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310000060086us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310000060086us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossIncludingNoncontrollingInterestMember2024-01-012024-03-310000060086us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310000060086us-gaap:AociLiabilityForFuturePolicyBenefitIncludingNoncontrollingInterestMember2024-01-012024-03-310000060086us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2024-01-012024-03-310000060086us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310000060086us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310000060086us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossIncludingNoncontrollingInterestMember2024-03-310000060086us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310000060086us-gaap:AociLiabilityForFuturePolicyBenefitIncludingNoncontrollingInterestMember2024-03-310000060086us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2024-03-310000060086us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310000060086us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310000060086us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310000060086l:A5.1SeniorNotesDueFebruary152034Memberl:CnaFinancialCorporationMemberus-gaap:SeniorNotesMember2024-02-290000060086l:CnaFinancialCorporationMemberus-gaap:SeniorNotesMemberl:A4.0SeniorNotesDueMay2024Member2024-02-290000060086us-gaap:SeniorNotesMemberl:BoardwalkPipelinePartnersLpMemberl:A5.6SeniorNotesDueAugust12034Member2024-02-290000060086l:A5.0NotesDueDecember2024Memberus-gaap:SeniorNotesMemberl:BoardwalkPipelinePartnersLpMember2024-02-290000060086l:NonInsuranceWarrantyMemberl:CnaFinancialCorporationMember2024-01-012024-03-310000060086l:NonInsuranceWarrantyMemberl:CnaFinancialCorporationMember2023-01-012023-03-310000060086l:TransportationAndStorageOfNaturalGasAndNGLsAndEthaneSupplyAndTransportationServicesMemberl:BoardwalkPipelinePartnersLpMember2024-01-012024-03-310000060086l:TransportationAndStorageOfNaturalGasAndNGLsAndEthaneSupplyAndTransportationServicesMemberl:BoardwalkPipelinePartnersLpMember2023-01-012023-03-310000060086l:LodgingAndRelatedServicesMemberl:LoewsHotelsHoldingCorporationMember2024-01-012024-03-310000060086l:LodgingAndRelatedServicesMemberl:LoewsHotelsHoldingCorporationMember2023-01-012023-03-310000060086l:AccountsReceivablesMember2024-03-310000060086l:AccountsReceivablesMember2023-12-310000060086us-gaap:OtherLiabilitiesMember2024-03-310000060086us-gaap:OtherLiabilitiesMember2023-12-3100000600862024-04-012024-03-3100000600862025-01-012024-03-310000060086us-gaap:PensionPlansDefinedBenefitMember2024-01-012024-03-310000060086us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-03-310000060086us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-01-012024-03-310000060086us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-03-3100000600862021-11-120000060086l:CnaFinancialCorporationMember2024-03-31l:Segmentl:subsidiary0000060086l:CnaFinancialCorporationMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000060086l:BoardwalkPipelinePartnersLpMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000060086l:LoewsHotelsHoldingCorporationMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310000060086us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateAndOtherMember2024-01-012024-03-310000060086l:CnaFinancialCorporationMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000060086l:BoardwalkPipelinePartnersLpMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000060086l:LoewsHotelsHoldingCorporationMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000060086us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateAndOtherMember2023-01-012023-03-310000060086l:JonathanM.TischMember2024-01-012024-03-310000060086l:RSUsVestingOnFebruary62025Memberl:JonathanM.TischMember2024-03-310000060086l:RSUsVestingOnFebruary72025Memberl:JonathanM.TischMember2024-03-310000060086l:RSUsVestingOnFebruary62025Memberl:JonathanM.TischMember2024-01-012024-03-310000060086l:RSUsVestingOnFebruary72025Memberl:JonathanM.TischMember2024-01-012024-03-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From ____________ to _____________

Commission File Number 1-06541

LOEWS CORPORATION
(Exact name of registrant as specified in its charter)

Delaware13-2646102
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

9 West 57th Street, New York, NY 10019-2714
(Address of principal executive offices) (Zip Code)

(212) 521-2000
(Registrant’s telephone number, including area code)

NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareLNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YesNo ☐  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes No ☐  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filer Smaller reporting company
 Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YesNo ☒  
As of May 3, 2024, there were 221,406,259 shares of the registrant’s common stock outstanding.

1

INDEX

 Page
No.
  
 
  
 
  
March 31, 2024 and December 31, 2023
 
 
Three months ended March 31, 2024 and 2023
 
 
Three months ended March 31, 2024 and 2023
 
 
Three months ended March 31, 2024 and 2023
 
 
Three months ended March 31, 2024 and 2023
 
 
  
  
  
  
  
  
  
  
2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
March 31,December 31,
 20242023
(Dollar amounts in millions, except per share data)
Assets:
Investments:
Fixed maturities, amortized cost of $43,113 and $42,615, less allowance for credit loss of $20 and $16
$40,840 $40,626 
Equity securities, cost of $1,027 and $1,015
1,104 1,050 
Limited partnership investments2,274 2,174 
Other invested assets, primarily mortgage loans, less allowance for credit loss of $35 and $35
1,117 1,123 
Short-term investments5,388 4,396 
Total investments50,723 49,369 
Cash556 399 
Receivables9,754 9,660 
Property, plant and equipment10,723 10,718 
Goodwill347 347 
Deferred non-insurance warranty acquisition expenses3,621 3,661 
Deferred acquisition costs of insurance subsidiaries927 896 
Other assets4,255 4,147 
Total assets$80,906 $79,197 
 
Liabilities and Equity:
 
Insurance reserves:
Claim and claim adjustment expense$23,588 $23,304 
Future policy benefits13,513 13,959 
Unearned premiums7,046 6,933 
Total insurance reserves44,147 44,196 
Payable to brokers202 79 
Short-term debt1,678 1,084 
Long-term debt8,425 7,919 
Deferred income taxes500 398 
Deferred non-insurance warranty revenue4,645 4,694 
Other liabilities4,311 4,302 
Total liabilities63,908 62,672 
 
Commitments and contingent liabilities
 
Preferred stock, $0.10 par value:
Authorized – 100,000,000 shares
Common stock, $0.01 par value:
Authorized – 1,800,000,000 shares
Issued – 222,421,077 and 222,268,150 shares
2 2 
Additional paid-in capital2,547 2,589 
Retained earnings16,060 15,617 
Accumulated other comprehensive loss(2,401)(2,497)
 16,208 15,711 
Less treasury stock, at cost (335,123 and 100,000 shares)
(24)(7)
Total shareholders’ equity16,184 15,704 
Noncontrolling interests814 821 
Total equity16,998 16,525 
Total liabilities and equity$80,906 $79,197 
See accompanying Notes to Consolidated Condensed Financial Statements.






3


Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended March 3120242023
(In millions, except per share data)  
   
Revenues:  
Insurance premiums$2,441 $2,248 
Net investment income669 569 
Investment losses(22)(35)
Non-insurance warranty revenue407 407 
Operating revenues and other736 594 
Total4,231 3,783 
 
Expenses:
Insurance claims and policyholders’ benefits (re-measurement gain (loss) of $(15) and $1)
1,807 1,653 
Amortization of deferred acquisition costs444 379 
Non-insurance warranty expense394 384 
Operating expenses and other880 781 
Equity method income(26)(28)
Interest103 95 
Total3,602 3,264 
Income before income tax629 519 
Income tax expense(144)(115)
Net income485 404 
Amounts attributable to noncontrolling interests(28)(29)
Net income attributable to Loews Corporation$457 $375 
Basic and diluted net income per share$2.05 $1.61 
Weighted average shares outstanding:
Shares of common stock222.47233.30
Dilutive potential shares of common stock0.310.32
Total weighted average shares outstanding assuming dilution222.78233.62

See accompanying Notes to Consolidated Condensed Financial Statements.
4

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

Three Months Ended March 3120242023
(In millions)  
   
Net income$485 $404 
 
Other comprehensive income (loss), after tax
Changes in:
Net unrealized gains (losses) on investments with an allowance for credit losses2 (8)
Net unrealized gains (losses) on other investments(217)670 
Total unrealized gains (losses) on investments(215)662 
Impact of changes in discount rates used to measure long-duration contract liabilities341 (396)
Unrealized gains (losses) on cash flow hedges2 (2)
Pension and postretirement benefits6 9 
Foreign currency translation(33)16 
 
Other comprehensive income101 289 
Comprehensive income586 693 
 
Amounts attributable to noncontrolling interests(36)(60)
 
Total comprehensive income attributable to Loews Corporation$550 $633 

See accompanying Notes to Consolidated Condensed Financial Statements.
5

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY
(Unaudited)

 Loews Corporation Shareholders  
 Total Common StockAdditional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Common Stock
Held in Treasury
Noncontrolling Interests
(In millions)       
        
Balance, January 1, 2023, as reported
$15,478 $2 $2,748 $15,144 $(3,284)$(12)$880 
Cumulative effect adjustments from changes in
   accounting standards
(277)(213)(36)(28)
Balance, January 1, 2023, as adjusted
15,201 2 2,748 14,931 (3,320)(12)852 
Net income404 375 29 
Other comprehensive income289 258 31 
Dividends paid ($0.0625 per share)
(59)(15)(44)
Purchase of subsidiary stock from noncontrolling interests(24)(24)
Purchases of Loews Corporation treasury stock(486)(486)
Stock-based compensation(4)(26)22 
Other(7)(6)2 (3)
Balance, March 31, 2023
$15,314 $2 $2,716 $15,293 $(3,062)$(498)$863 
Balance, January 1, 2024
$16,525 $2 $2,589 $15,617 $(2,497)$(7)$821 
Net income485 457 28 
Other comprehensive income101 93 8 
Dividends paid ($0.0625 per share)
(70)(14)(56)
Purchases of Loews Corporation treasury stock(17)(17)
Stock-based compensation(14)(33)19 
Other(12) (9) 3  (6)
Balance, March 31, 2024
$16,998 $2 $2,547 $16,060 $(2,401)$(24)$814 

See accompanying Notes to Consolidated Condensed Financial Statements.
6

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

Three Months Ended March 31
20242023
(In millions)
Operating Activities:
Net income$485 $404 
Adjustments to reconcile net income to net cash provided by operating activities, net175 204 
Changes in operating assets and liabilities, net:
Receivables(113)5 
Deferred acquisition costs(34)(45)
Insurance reserves443 432 
Other assets(114)(85)
Other liabilities(37)(238)
Trading securities(607)42 
Net cash flow provided by operating activities198 719 
 
Investing Activities:
 
Purchases of fixed maturities(1,621)(2,258)
Proceeds from sales of fixed maturities736 1,414 
Proceeds from maturities of fixed maturities507 317 
Purchases of equity securities(169)(82)
Proceeds from sales of equity securities186 62 
Purchases of limited partnership investments(77)(116)
Proceeds from sales of limited partnership investments13 75 
Purchases of property, plant and equipment(159)(159)
Dispositions23  
Change in short-term investments(455)647 
Other, net(10)(34)
Net cash flow used by investing activities(1,026)(134)
 
Financing Activities:
 
Dividends paid(14)(15)
Dividends paid to noncontrolling interests(56)(44)
Purchases of Loews Corporation treasury stock(24)(462)
Purchases of subsidiary stock from noncontrolling interests (24)
Principal payments on debt(201)(1)
Issuance of debt1,299 37 
Other, net(17)(15)
Net cash flow provided by (used by) financing activities987 (524)
 
Effect of foreign exchange rate on cash(2)1 
 
Net change in cash157 62 
Cash, beginning of period399 532 
Cash, end of period$556 $594 

See accompanying Notes to Consolidated Condensed Financial Statements.
7

Loews Corporation and Subsidiaries
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)

1. Basis of Presentation

Loews Corporation is a holding company. Its consolidated operating subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), an approximately 92% owned subsidiary); transportation and storage of natural gas and natural gas liquids and other hydrocarbons (Boardwalk Pipeline Partners, LP (“Boardwalk Pipelines”), a wholly owned subsidiary) and the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels & Co”), a wholly owned subsidiary). Unless the context otherwise requires, as used herein, the term “Company” means Loews Corporation including its consolidated subsidiaries, the term “Parent Company” means Loews Corporation excluding its subsidiaries, the term “Net income (loss) attributable to Loews Corporation” means Net income (loss) attributable to Loews Corporation shareholders and the term “subsidiaries” means Loews Corporation’s consolidated subsidiaries.

In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of March 31, 2024 and December 31, 2023 and results of operations, comprehensive income (loss), changes in shareholders’ equity and cash flows for the three months ended March 31, 2024 and 2023, in each case in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Results for the interim periods are not necessarily indicative of results for the entire year. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

The Company presents basic and diluted net income (loss) per share on the Consolidated Condensed Statements of Operations. Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three months ended March 31, 2024 and 2023 there were no shares attributable to employee stock-based compensation awards excluded from the diluted weighted average shares outstanding amounts because the effect would have been antidilutive.

Recently issued Accounting Standards Updates (“ASUs”) - In November of 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The updated accounting guidance requires enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Retrospective application is required and early adoption is permitted. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.

In December of 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The updated accounting guidance requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the effective tax rate reconciliation and income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.



8

2. Investments

Net investment income is as follows:

Three Months Ended March 3120242023
(In millions)  
   
Fixed maturity securities$502 $470 
Limited partnership investments54 27 
Short-term investments29 16 
Equity securities (a)22 12 
Income from trading portfolio (a)58 45 
Other28 20 
Total investment income693 590 
Investment expenses(24)(21)
Net investment income$669 $569 
(a) Net investment income recognized due to the change in fair value of equity and trading portfolio securities held as of March 31, 2024 and 2023
$48 $11 

Investment gains (losses) are as follows:

Three Months Ended March 3120242023
(In millions)  
   
Fixed maturity securities:
Gross gains$14 $35 
Gross losses(46)(57)
Investment losses on fixed maturity securities(32)(22)
Equity securities (a)11 (14)
Short-term investments and other(1)1 
Investment losses$(22)$(35)
(a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of March 31, 2024 and 2023
$11 $(2)

The available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table. The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date:

Three Months Ended March 3120242023
(In millions)  
   
Fixed maturity securities available-for-sale:  
Corporate and other bonds$9 $8 
Asset-backed5 
Impairment losses recognized in earnings$14 $8 

There were no losses recognized on mortgage loans during the three months ended March 31, 2024 or 2023.


9

The following tables present a summary of fixed maturity securities:

March 31, 2024Cost or Amortized CostGross Unrealized
Gains
Gross Unrealized
Losses
Allowance
for Credit Losses
Estimated
Fair Value
(In millions)     
      
Fixed maturity securities:     
Corporate and other bonds$25,221 $485 $1,374 $3 $24,329 
States, municipalities and political
 subdivisions
7,726 318 756 7,288 
Asset-backed:
Residential mortgage-backed3,563 10 483 3,090 
Commercial mortgage-backed1,838 8 193 8 1,645 
Other asset-backed3,586 19 251 9 3,345 
Total asset-backed8,987 37 927 17 8,080 
U.S. Treasury and obligations of
 government sponsored enterprises
181 2 179 
Foreign government763 3 37 729 
Fixed maturities available-for-sale$42,878 $843 $3,096 $20 $40,605 
Fixed maturities trading235 235 
Total fixed maturity securities$43,113 $843 $3,096 $20 $40,840 

December 31, 2023
    
Fixed maturity securities:    
Corporate and other bonds$25,020 $597 $1,345 $4 $24,268 
States, municipalities and political
 subdivisions
7,713 382 703 7,392 
Asset-backed:
Residential mortgage-backed3,411 16 425 3,002 
Commercial mortgage-backed1,862 7 230 8 1,631 
Other asset-backed3,515 13 256 4 3,268 
Total asset-backed8,788 36 911 12 7,901 
U.S. Treasury and obligations of
 government sponsored enterprises
152 1 2 151 
Foreign government741 6 34 713 
Fixed maturities available-for-sale$42,414 $1,022 $2,995 $16 $40,425 
Fixed maturities trading201 201 
Total fixed maturity securities$42,615 $1,022 $2,995 $16 $40,626 


10

The available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows:

 Less than 12 Months12 Months or LongerTotal
March 31, 2024Estimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized Losses
(In millions)
 
Fixed maturity securities:
Corporate and other bonds$2,578 $48 $13,459 $1,326 $16,037 $1,374 
States, municipalities and political
 subdivisions
686 17 3,266 739 3,952 756 
Asset-backed:
Residential mortgage-backed434 8 2,159 475 2,593 483 
Commercial mortgage-backed131 2 1,162 191 1,293 193 
Other asset-backed588 9 1,833 242 2,421 251 
Total asset-backed1,153 19 5,154 908 6,307 927 
U.S. Treasury and obligations of
 government-sponsored enterprises
100 1 28 1 128 2 
Foreign government136 2 452 35 588 37 
Total fixed maturity securities$4,653 $87 $22,359 $3,009 $27,012 $3,096 
December 31, 2023
Fixed maturity securities:
Corporate and other bonds$1,943 $37 $13,406 $1,308 $15,349 $1,345 
States, municipalities and political
 subdivisions
598 18 3,104 685 3,702 703 
Asset-backed:
Residential mortgage-backed233 4 2,212 421 2,445 425 
Commercial mortgage-backed200 5 1,184 225 1,384 230 
Other asset-backed392 8 1,869 248 2,261 256 
Total asset-backed825 17 5,265 894 6,090 911 
U.S. Treasury and obligations of
 government-sponsored enterprises
65 1 23 1 88 2 
Foreign government52 1 450 33 502 34 
Total fixed maturity securities$3,483 $74 $22,248 $2,921 $25,731 $2,995 

11

The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.

March 31, 2024December 31, 2023
Estimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized Losses
(In millions)
U.S. Government, Government agencies and Government-sponsored enterprises$2,426 $361 $2,273 $309 
AAA1,661 280 1,524 261 
AA4,109 690 3,817 658 
A6,324 570 5,652 517 
BBB11,672 1,083 11,523 1,095 
Non-investment grade820 112 942 155 
Total$27,012 $3,096 $25,731 $2,995 

Based on current facts and circumstances, the unrealized losses presented in the March 31, 2024 securities in the gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates. In reaching this determination, the volatility in risk-free rates and credit spreads, as well as the fact that the unrealized losses are concentrated in investment grade issuers, were considered. Additionally, there is no current intent to sell securities with unrealized losses, nor is it more likely than not that sale will be required prior to recovery of amortized cost; accordingly, it was determined that there are no additional impairment losses to be recorded as of March 31, 2024.

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets. Accrued interest receivables on available-for-sale fixed maturity securities totaled $437 million, $435 million and $407 million as of March 31, 2024, December 31, 2023 and March 31, 2023 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.

Three months ended March 31, 2024Corporate and Other BondsAsset-backedTotal
(In millions)   
Allowance for credit losses:   
Balance as of January 1, 2024
$4 $12 $16 
Additions to the allowance for credit losses:
Available-for-sale securities accounted for as PCD assets 
Reductions to the allowance for credit losses:
Securities sold during the period (realized) 
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis1 1 
Additional increases to the allowance for credit
losses on securities that had an allowance recorded in a previous period
5 5 
Total allowance for credit losses$3 $17 $20 

12

Three months ended March 31, 2023Corporate and Other BondsAsset-backedTotal
(In millions)   
Allowance for credit losses:   
Balance as of January 1, 2023
$ $1 $1 
Additions to the allowance for credit losses:
Available-for-sale securities accounted for as PCD assets9 9 
 
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
3 3 
Additional increases to the allowance for credit losses
on securities that had an allowance recorded in a previous period
1 1 
Total allowance for credit losses$1 $1 $2 

Contractual Maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.

March 31, 2024December 31, 2023
Cost or Amortized CostEstimated Fair
Value
Cost or Amortized CostEstimated
Fair
Value
(In millions)
Due in one year or less$1,238 $1,207 $1,121 $1,091 
Due after one year through five years11,680 11,308 11,563 11,180 
Due after five years through ten years13,283 12,461 13,359 12,573 
Due after ten years16,677 15,629 16,371 15,581 
Total$42,878 $40,605 $42,414 $40,425 

Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life.

Mortgage Loans

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (“DSCR”) and loan-to-value (“LTV”) ratios.

13

Mortgage Loans Amortized Cost Basis by Origination Year (a)
As of March 31, 2024
2024
2023
2022
2021
2020
PriorTotal
(In millions)       
        
DSCR ≥1.6x       
LTV less than 55%$33 $9 $2 $97 $283 $424 
LTV 55% to 65%5 5 
LTV greater than 65%30 12 42 
DSCR 1.2x - 1.6x
LTV less than 55%28 5 13 63 109 
LTV 55% to 65%$12 21 36 36 24 31 160 
LTV greater than 65%12 65 77 
DSCR ≤1.2x
LTV less than 55% 
LTV 55% to 65%32 75 43 150 
LTV greater than 65%28 21 48 97 
Total$12 $126 $248 $76 $134 $468 $1,064 

(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.

Derivative Financial Instruments

A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under related agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets.

March 31, 2024December 31, 2023
Contractual/Notional AmountEstimated Fair Value Contractual/Notional AmountEstimated Fair Value
Asset
(Liability)
Asset(Liability)
(In millions)
Without hedge designation:
Equity markets:
Options – purchased$235 $1 $202 $1 
Futures – short127 116 
Warrants84 3 84 3 
Interest rate swaps300 12 300 13 
Currency forwards13 $(1)

Investment Commitments

As part of the overall investment strategy, investments are made in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications and obligations related to private placement securities. As of March 31, 2024, commitments to purchase or fund were approximately $1.6 billion and to sell were approximately $25 million under the terms of these investments.

14


3. Fair Value

Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the United States of America (“U.S.”) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.

March 31, 2024
Level 1
Level 2
Level 3
Total
(In millions)    
     
Fixed maturity securities:    
Corporate bonds and other$189 $23,966 $1,082 $25,237 
States, municipalities and political subdivisions7,245 43 7,288 
Asset-backed7,209 871 8,080 
Fixed maturities available-for-sale189 38,420 1,996 40,605 
Fixed maturities trading235 235 
Total fixed maturities$424 $38,420 $1,996 $40,840 
 
Equity securities$654 $439 $11 $1,104 
Short-term and other5,203 19 5,222 
Receivables12 12 
Payable to brokers(38)(38)
December 31, 2023
Fixed maturity securities:
Corporate bonds and other$161 $23,926 $1,045 $25,132 
States, municipalities and political subdivisions7,348 44 7,392 
Asset-backed7,000 901 7,901 
Fixed maturities available-for-sale161 38,274 1,990 40,425 
Fixed maturities trading201 201 
Total fixed maturities$362 $38,274 $1,990 $40,626 
Equity securities$586 $440 $24 $1,050 
Short-term and other4,215 32 4,247 
Receivables13 13 
Payable to brokers(