filings.toolsItem 8. Financial Statements and Supplementary Data.
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Item 8. Financial Statements and Supplementary Data.
Financial Statements and Supplementary Data are comprised of the following sections:
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MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for us. Our internal control system was designed to provide reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation of published financial statements.
There are inherent limitations to the effectiveness of any control system, however well designed, including the possibility of human error and the possible circumvention or overriding of controls. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Management must make judgments with respect to the relative cost and expected benefits of any specific control measure. The design of a control system also is based in part upon assumptions and judgments made by management about the likelihood of future events, and there can be no assurance that a control will be effective under all potential future conditions. As a result, even an effective system of internal control over financial reporting can provide no more than reasonable assurance with respect to the fair presentation of financial statements and the processes under which they were prepared.
Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework (2013). Based on this assessment, our management believes that, as of December 31, 2025, our internal control over financial reporting was effective.
Our independent registered public accounting firm, Deloitte & Touche LLP, has issued an audit report on the Company’s internal control over financial reporting. The report of Deloitte & Touche LLP follows this Report.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Loews Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Loews Corporation and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15 (a) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 10, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Claim and claim adjustment expense reserves – Property & Casualty — Refer to Notes 1 and 7 to the financial statements.
Critical Audit Matter Description
The estimation of property and casualty claim and claim adjustment expense reserves (“P&C claim and claim adjustment expense reserves”), including those claims that are incurred but not reported, requires significant judgment. Estimating P&C claim and claim adjustment expense reserves is subject to a high degree of variability as it involves complex estimates that are generally derived using a variety of actuarial estimation techniques and numerous assumptions and expectations about future events, many of which are highly uncertain. Modest changes in judgments and assumptions can materially impact the valuation of these liabilities, particularly for claims with longer-tailed exposures such as workers’ compensation, general liability and professional liability claims and certain shorter-tailed exposures.
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Given the significant judgments made by management in estimating P&C claim and claim adjustment expense reserves, auditing P&C claim and claim adjustment expense reserves required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to P&C claim and claim adjustment expense reserves included the following, among others:
-
We tested the effectiveness of controls related to the determination of P&C claim and claim adjustment expense reserves, including those controls related to the estimation of and management’s review of P&C claim and claim adjustment expense reserves.
-
We tested the underlying data, including historical claims, that served as the basis for the actuarial analyses, to test that the inputs to the actuarial estimates were accurate and complete.
-
With the assistance of our actuarial specialists:
◦We developed a range of independent estimates of P&C claim and claim adjustment expense reserves and compared the recorded reserves to our range of estimates.
◦We performed a retrospective review which involved comparing our prior year estimates of expected incurred losses to actual experience during the most recent year to identify potential bias in the Company’s determination of P&C claim and claim adjustment expense reserves.
Future policy benefit reserves – Long Term Care — Refer to Notes 1 and 8 to the financial statements
Critical Audit Matter Description
The estimation of long-term care future policy benefit reserves (“LTC future policy benefit reserves”) requires significant judgment in the selection of key assumptions, including the morbidity, specifically incidence, assumption. Estimating future experience for long term care policies is subject to significant estimation risk as the required projection period spans several decades. Morbidity and persistency experience can be volatile and modest changes in this assumption can materially impact the valuation of these liabilities.
Given the significant judgments made by management in estimating LTC future policy benefit reserves, auditing LTC future policy benefit reserves required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists.
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How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to LTC future policy benefit reserves included the following, among others:
-
We tested the effectiveness of controls related to the determination of LTC future policy benefit reserves, including those controls related to the estimation of and management’s review of LTC future policy benefit reserves and determination of key assumptions.
-
We tested the underlying data that served as the basis for the actuarial analyses, to test that the inputs to the actuarial estimates were accurate and complete.
-
With the assistance of our actuarial specialists:
◦We independently recalculated cohort level LTC future policy benefit reserves and compared our estimates to the recorded reserves.
◦We evaluated the judgments made by management in setting assumptions, including comparing those assumptions to the Company’s historical experience used as the basis for setting those assumptions.
◦For a sample of policies, we evaluated management’s estimate of future cash flows. This included evaluating that assumptions were applied as intended.
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 10, 2026
We have served as the Company's auditor since 1969.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Loews Corporation
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Loews Corporation and subsidiaries (the “Company”) as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the Company and our report dated February 10, 2026, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 10, 2026
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Loews Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
| Assets: | |||||||||||
| December 31 | 2025 | 2024 | |||||||||
| (Dollar amounts in millions, except per share data) | |||||||||||
| Investments: | |||||||||||
| Fixed maturities, amortized cost of $45,250 and $44,196, less allowance for credit loss of $69 and $45 | $ | 43,984 | $ | 41,827 | |||||||
| Equity securities, cost of $1,201 and $969 | 1,292 | 1,064 | |||||||||
| Limited partnership investments | 2,861 | 2,520 | |||||||||
| Other invested assets, primarily mortgage loans, less allowance for credit loss of $15 and $35 | 1,195 | 1,113 | |||||||||
| Short-term investments | 6,044 | 4,606 | |||||||||
| Total investments | 55,376 | 51,130 | |||||||||
| Cash | 495 | 541 | |||||||||
| Receivables | 10,983 | 10,522 | |||||||||
| Property, plant and equipment | 10,695 | 10,738 | |||||||||
| Goodwill | 349 | 347 | |||||||||
| Deferred non-insurance warranty acquisition expenses | 3,220 | 3,525 | |||||||||
| Deferred acquisition costs of insurance subsidiaries | 986 | 959 | |||||||||
| Other assets | 4,244 | 4,181 | |||||||||
| Total assets | $ | 86,348 | $ | 81,943 |
See Notes to Consolidated Financial Statements.
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Loews Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
| Liabilities and Equity: | |||||||||||
| December 31 | 2025 | 2024 | |||||||||
| (Dollar amounts in millions, except per share data) | |||||||||||
| Insurance reserves: | |||||||||||
| Claim and claim adjustment expense | $ | 26,599 | $ | 24,976 | |||||||
| Future policy benefits | 13,448 | 13,158 | |||||||||
| Unearned premiums | 7,635 | 7,346 | |||||||||
| Total insurance reserves | 47,682 | 45,480 | |||||||||
| Payable to brokers | 53 | 110 | |||||||||
| Short-term debt | 1,052 | 5 | |||||||||
| Long-term debt | 8,437 | 8,939 | |||||||||
| Deferred income taxes | 839 | 550 | |||||||||
| Deferred non-insurance warranty revenue | 4,138 | 4,530 | |||||||||
| Other liabilities | 4,506 | 4,392 | |||||||||
| Total liabilities | 66,707 | 64,006 | |||||||||
| Commitments and contingent liabilities | |||||||||||
| Shareholders’ equity: | |||||||||||
| Preferred stock, $0.10 par value: | |||||||||||
| Authorized – 100,000,000 shares | |||||||||||
| Common stock, $0.01 par value: | |||||||||||
| Authorized – 1,800,000,000 shares | |||||||||||
| Issued – 206,003,999 and 214,912,595 shares | 2 | 2 | |||||||||
| Additional paid-in capital | 2,374 | 2,490 | |||||||||
| Retained earnings | 17,377 | 16,459 | |||||||||
| Accumulated other comprehensive loss | (1,067) | (1,867) | |||||||||
| 18,686 | 17,084 | ||||||||||
| Less treasury stock, at cost (0 and 212,251 shares) | — | (18) | |||||||||
| Total shareholders’ equity | 18,686 | 17,066 | |||||||||
| Noncontrolling interests | 955 | 871 | |||||||||
| Total equity | 19,641 | 17,937 | |||||||||
| Total liabilities and equity | $ | 86,348 | $ | 81,943 |
See Notes to Consolidated Financial Statements.
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Loews Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions, except per share data) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Insurance premiums | $ | 10,900 | $ | 10,211 | $ | 9,480 | |||||||||||
| Net investment income | 2,779 | 2,780 | 2,395 | ||||||||||||||
| Investment losses | (81) | (81) | (53) | ||||||||||||||
| Non-insurance warranty revenue | 1,577 | 1,609 | 1,624 | ||||||||||||||
| Operating revenues and other | 3,279 | 2,991 | 2,455 | ||||||||||||||
| Total | 18,454 | 17,510 | 15,901 | ||||||||||||||
| Expenses: | |||||||||||||||||
| Insurance claims and policyholders’ benefits (re-measurement loss of $104, $125, and $88) | 8,294 | 7,738 | 7,068 | ||||||||||||||
| Amortization of deferred acquisition costs | 1,898 | 1,798 | 1,644 | ||||||||||||||
| Non-insurance warranty expense | 1,526 | 1,547 | 1,544 | ||||||||||||||
| Operating expenses and other | 4,090 | 4,170 | 3,393 | ||||||||||||||
| Equity method income | (74) | (58) | (120) | ||||||||||||||
| Interest | 437 | 441 | 376 | ||||||||||||||
| Total | 16,171 | 15,636 | 13,905 | ||||||||||||||
| Income before income tax | 2,283 | 1,874 | 1,996 | ||||||||||||||
| Income tax expense | (511) | (380) | (451) | ||||||||||||||
| Net income | 1,772 | 1,494 | 1,545 | ||||||||||||||
| Amounts attributable to noncontrolling interests | (105) | (80) | (111) | ||||||||||||||
| Net income attributable to Loews Corporation | $ | 1,667 | $ | 1,414 | $ | 1,434 | |||||||||||
| Basic net income per share | $ | 7.98 | $ | 6.42 | $ | 6.30 | |||||||||||
| Diluted net income per share | $ | 7.97 | $ | 6.41 | $ | 6.29 | |||||||||||
| Basic weighted average number of shares outstanding | 208.96 | 220.26 | 227.48 | ||||||||||||||
| Diluted weighted average number of shares outstanding | 209.10 | 220.53 | 227.81 |
See Notes to Consolidated Financial Statements.
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Loews Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Net income | $ | 1,772 | $ | 1,494 | $ | 1,545 | |||||||||||
| Other comprehensive income (loss), after tax | |||||||||||||||||
| Changes in: | |||||||||||||||||
| Net unrealized losses on investments with an allowance for credit losses | (2) | (1) | (5) | ||||||||||||||
| Net unrealized gains (losses) on other investments | 887 | (262) | 1,125 | ||||||||||||||
| Total unrealized gains (losses) on investments | 885 | (263) | 1,120 | ||||||||||||||
| Impact of changes in discount rates used to measure long-duration contract liabilities | (161) | 712 | (318) | ||||||||||||||
| Unrealized losses on cash flow hedges | (7) | (5) | |||||||||||||||
| Pension and postretirement benefits | 14 | 340 | 104 | ||||||||||||||
| Foreign currency translation | 144 | (102) | 60 | ||||||||||||||
| Other comprehensive income | 875 | 687 | 961 | ||||||||||||||
| Comprehensive income | 2,647 | 2,181 | 2,506 | ||||||||||||||
| Amounts attributable to noncontrolling interests | (179) | (137) | (188) | ||||||||||||||
| Total comprehensive income attributable to Loews Corporation | $ | 2,468 | $ | 2,044 | $ | 2,318 |
See Notes to Consolidated Financial Statements.
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Loews Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF EQUITY
| Loews Corporation Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury | Noncontrolling Interests | |||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2023 | $ | 15,201 | $ | 2 | $ | 2,748 | $ | 14,931 | $ | (3,320) | $ | (12) | $ | 852 | |||||||||||||||||||||||||||
| Net income | 1,545 | 1,434 | 111 | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | 961 | 884 | 77 | ||||||||||||||||||||||||||||||||||||||
| Dividends paid ($0.25 per share) | (131) | (57) | (74) | ||||||||||||||||||||||||||||||||||||||
| Purchase of subsidiary stock from noncontrolling interests | (202) | 27 | (61) | (168) | |||||||||||||||||||||||||||||||||||||
| Purchases of Loews Corporation treasury stock | (852) | (852) | |||||||||||||||||||||||||||||||||||||||
| Retirement of treasury stock | — | (164) | (693) | 857 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 26 | 3 | 23 | ||||||||||||||||||||||||||||||||||||||
| Other | (23) | (25) | 2 | ||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | $ | 16,525 | $ | 2 | $ | 2,589 | $ | 15,617 | $ | (2,497) | $ | (7) | $ | 821 | |||||||||||||||||||||||||||
| Net income | 1,494 | 1,414 | 80 | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | 687 | 630 | 57 | ||||||||||||||||||||||||||||||||||||||
| Dividends paid ($0.25 per share) | (140) | (55) | (85) | ||||||||||||||||||||||||||||||||||||||
| Purchase of subsidiary stock from noncontrolling interests | (20) | (20) | |||||||||||||||||||||||||||||||||||||||
| Purchases of Loews Corporation treasury stock | (617) | (617) | |||||||||||||||||||||||||||||||||||||||
| Retirement of treasury stock | — | (89) | (517) | 606 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 19 | (1) | 20 | ||||||||||||||||||||||||||||||||||||||
| Other | (11) | (9) | (2) | ||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | 17,937 | $ | 2 | $ | 2,490 | $ | 16,459 | $ | (1,867) | $ | (18) | $ | 871 |
See Notes to Consolidated Financial Statements.
Loews Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF EQUITY
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| Loews Corporation Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury | Noncontrolling Interests | |||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024, as reported | $ | 17,937 | $ | 2 | $ | 2,490 | $ | 16,459 | $ | (1,867) | $ | (18) | $ | 871 | |||||||||||||||||||||||||||
| Cumulative effect adjustments from changes in accounting standards (Note 1) | 5 | 5 | |||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2025, as adjusted | 17,942 | 2 | 2,490 | 16,464 | (1,867) | (18) | 871 | ||||||||||||||||||||||||||||||||||
| Net income | 1,772 | 1,667 | 105 | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | 875 | 801 | 74 | ||||||||||||||||||||||||||||||||||||||
| Dividends paid ($0.25 per share) | (138) | (52) | (86) | ||||||||||||||||||||||||||||||||||||||
| Purchase of subsidiary stock from noncontrolling interests | (34) | (3) | (1) | (30) | |||||||||||||||||||||||||||||||||||||
| Purchases of Loews Corporation treasury stock | (789) | (789) | |||||||||||||||||||||||||||||||||||||||
| Retirement of treasury stock | — | (106) | (701) | 807 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 8 | (12) | 20 | ||||||||||||||||||||||||||||||||||||||
| Other | 5 | 5 | (1) | 1 | |||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | $ | 19,641 | $ | 2 | $ | 2,374 | $ | 17,377 | $ | (1,067) | $ | — | $ | 955 |
See Notes to Consolidated Financial Statements.
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Loews Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Operating Activities: | |||||||||||||||||
| Net income | $ | 1,772 | $ | 1,494 | $ | 1,545 | |||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Investment losses | 81 | 81 | 53 | ||||||||||||||
| Equity method investees | 9 | (66) | 18 | ||||||||||||||
| Amortization of investments | (208) | (200) | (191) | ||||||||||||||
| Depreciation and amortization | 610 | 583 | 538 | ||||||||||||||
| Provision for deferred income taxes | 112 | (45) | 127 | ||||||||||||||
| Other non-cash items | 122 | 98 | 109 | ||||||||||||||
| Changes in operating assets and liabilities, net: | |||||||||||||||||
| Receivables | (408) | (929) | (268) | ||||||||||||||
| Deferred acquisition costs | (17) | (69) | (85) | ||||||||||||||
| Insurance reserves | 1,670 | 2,365 | 1,667 | ||||||||||||||
| Other assets | 223 | 417 | (88) | ||||||||||||||
| Other liabilities | (274) | (9) | (95) | ||||||||||||||
| Trading securities | (413) | (695) | 577 | ||||||||||||||
| Net cash flow provided by operating activities | 3,279 | 3,025 | 3,907 | ||||||||||||||
| Investing Activities: | |||||||||||||||||
| Purchases of fixed maturities | (7,118) | (6,353) | (6,616) | ||||||||||||||
| Proceeds from sales of fixed maturities | 2,946 | 2,793 | 4,029 | ||||||||||||||
| Proceeds from maturities of fixed maturities | 3,357 | 2,396 | 1,334 | ||||||||||||||
| Purchases of equity securities | (593) | (444) | (293) | ||||||||||||||
| Proceeds from sales of equity securities | 505 | 523 | 317 | ||||||||||||||
| Purchases of limited partnership investments | (447) | (335) | (402) | ||||||||||||||
| Proceeds from sales of limited partnership investments | 103 | 98 | 231 | ||||||||||||||
| Purchases of property, plant and equipment | (579) | (632) | (686) | ||||||||||||||
| Acquisitions | (401) | ||||||||||||||||
| Change in short-term investments | (920) | (30) | (80) | ||||||||||||||
| Other, net | (82) | 9 | (178) | ||||||||||||||
| Net cash flow used by investing activities | $ | (2,828) | $ | (1,975) | $ | (2,745) |
| 92 |
Loews Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Financing Activities: | |||||||||||||||||
| Dividends paid | $ | (52) | $ | (55) | $ | (57) | |||||||||||
| Dividends paid to noncontrolling interests | (86) | (85) | (74) | ||||||||||||||
| Purchases of Loews Corporation treasury stock | (806) | (608) | (849) | ||||||||||||||
| Purchases of subsidiary stock from noncontrolling interests | (34) | (20) | (202) | ||||||||||||||
| Principal payments on debt | (869) | (1,366) | (878) | ||||||||||||||
| Issuance of debt | 1,401 | 1,294 | 778 | ||||||||||||||
| Other, net | (67) | (58) | (18) | ||||||||||||||
| Net cash flow used by financing activities | (513) | (898) | (1,300) | ||||||||||||||
| Effect of foreign exchange rate on cash | 16 | (10) | 5 | ||||||||||||||
| Net change in cash | (46) | 142 | (133) | ||||||||||||||
| Cash, beginning of year | 541 | 399 | 532 | ||||||||||||||
| Cash, end of year | $ | 495 | $ | 541 | $ | 399 |
See Notes to Consolidated Financial Statements.
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Loews Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies
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, olefins 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 subsidiaries, the term “Parent Company” means Loews Corporation excluding its subsidiaries and the term “Net income (loss) attributable to Loews Corporation” means Net income (loss) attributable to Loews Corporation shareholders.
Accounting estimates and principles of consolidation – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported on the consolidated financial statements and the related notes. Actual results could differ from those estimates. The Consolidated Financial Statements include all subsidiaries and intercompany accounts and transactions have been eliminated.
Investments – Fixed maturity securities are classified as either available-for-sale or trading, and in both cases, they are carried at fair value. Short-term investments are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value of available-for-sale securities are reported as a component of Other comprehensive income.
The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts, which are included in Net investment income on the Consolidated Statements of Operations. The amortization of premium and accretion of discount for fixed maturity securities takes into consideration call and maturity dates that produce the lowest yield.
For asset-backed securities included in fixed maturity securities, income is recognized using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments predominantly using the retrospective method.
Equity securities are carried at fair value. Non-redeemable preferred stock investments contain characteristics of debt securities, are priced similarly to bonds and are held primarily for income generation through periodic dividends. While recognition of gains and losses on these securities is not discretionary, the changes in fair value of non-redeemable preferred stock are not considered to be reflective of its primary operations. As such, the changes in the fair value of these securities are recorded through Investment gains (losses) on the Consolidated Statements of Operations. Common stock is owned with the intention of holding the securities primarily for market appreciation and as such, the changes in the fair value of these securities are recorded through Net investment income (loss).
Carrying value of investments in limited partnerships is the owner’s share of the net asset value of each partnership, as determined by the general partner. The majority of the Company’s limited partnerships are reported on a lag, primarily three months or less, as results are not available on a timely basis. These investments are accounted for under the equity method and changes in net asset values are recorded within Net investment income on the Consolidated Statements of Operations.
Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and an allowance for expected credit losses, and are recorded once funded. The allowance for expected credit losses on mortgage loans is developed by assessing the credit quality of pools of mortgage loans in good standing using debt service coverage ratios (“DSCR”) and loan-to-value (“LTV”) ratios. The DSCR compares a property’s net operating income to its debt service payments, including principal and interest. The LTV ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. The pools developed to measure the credit loss allowance use increments of DSCR and LTV to draw distinctions between risk levels. Expected credit loss rates are applied by pool to the outstanding receivable balances. Changes in the allowance for mortgage loans are presented as a component of Investment gains (losses) on the Consolidated Statements of Operations. Mortgage loans are included in Other invested assets on the Consolidated Balance Sheets. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method.
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Investments in derivative securities are carried at fair value with changes in fair value reported as a component of Investment gains (losses), Net investment income or Other comprehensive income (loss), depending on their hedge designation. A derivative is typically defined as an instrument whose value is “derived” from an underlying instrument, index or rate, has a notional amount, requires little or no initial investment and can be net settled. Derivatives include the following types of investments: interest rate swaps, interest rate caps and floors, put and call options, warrants, futures, forwards, commitments to purchase securities, credit default swaps and combinations of the foregoing. Derivatives embedded within non-derivative instruments (such as call options embedded in convertible bonds) must be split from the host instrument when the embedded derivative is not clearly and closely related to the host instrument.
An available-for-sale security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and allowance for credit losses. When a security is impaired, it is evaluated to determine whether there is an intent to sell the security before recovery of amortized cost or whether a credit loss exists. Losses on securities that are intended to be sold are recognized as impairment losses within Investment gains (losses) on the Consolidated Statements of Operations. If a credit loss exists, an allowance is established and the corresponding amount is recognized as an impairment loss within Investment gains (losses) on the Consolidated Statements of Operations. The allowance for credit losses related to available-for-sale fixed maturity securities is the difference between the present value of cash flows expected to be collected and the amortized cost basis. In subsequent periods, the allowance is reviewed, with any changes in the allowance presented as a component of Investment gains (losses) on the Consolidated Statements of Operations. Changes in the difference between the amortized cost basis, net of the allowance, and the fair value, are recognized in Other comprehensive income.
Significant judgment is required in the determination of whether an impairment loss has occurred for a security. A consistent and systematic process is followed for determining and recording an impairment loss, including the evaluation of securities in an unrealized loss position and securities with an allowance for credit losses on at least a quarterly basis.
The assessment of whether an impairment loss has occurred incorporates both quantitative and qualitative information. A credit loss exists if the present value of cash flows expected to be collected is less than the amortized cost basis. Significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers and credit support from lower level tranches. All available evidence is considered when determining whether an investment requires a credit loss write-down or allowance to be recorded. Examples of such evidence may include the financial condition and near-term and long-term prospects of the issuer, whether the issuer is current with interest and principal payments, credit ratings on the security or changes in ratings over time, general market conditions and industry, sector or other specific factors and whether it is likely that the amortized cost will be recovered through the collection of cash flows.
Credit losses – The allowances for credit losses on fixed maturity securities, mortgage loans, reinsurance receivables, insurance receivables and trade receivables are valuation accounts that are reported as a reduction of a financial asset’s cost basis and are measured on a pool basis when similar risk characteristics exist. The allowance is estimated using relevant available information from both internal and external sources. Historical credit loss experience provides the basis for the estimation of expected credit losses and adjustments may be made to reflect current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made for additional factors that come to the Company’s attention. This could include significant shifts in counterparty financial strength ratings, aging of past due receivables, amounts sent to collection agencies, or other underlying portfolio changes. Current and forecast economic conditions are considered, using a variety of economic metrics and forecast indices. The sensitivity of expected credit losses relative to changes to the forecast of economic conditions can vary by financial asset class. A reasonable and supportable forecast period is up to 24 months from the balance sheet date. After the forecast period, the Company reverts to historical credit experience. Collateral arrangements such as letters of credit and amounts held in beneficiary trusts to mitigate credit risk are considered in the estimate of the net amount expected to be collected. Amounts are written off against the allowance when determined to be uncollectible.
A policy election has been made to present accrued interest balances separately from the amortized cost basis of assets, and a practical expedient has been elected to exclude the accrued interest from the tabular disclosures for mortgage loans and available-for-sale securities. An election has been made not to estimate an allowance for credit losses on accrued interest receivables. The accrual of interest income is discontinued and the asset is placed on nonaccrual status within 90 days of the interest becoming delinquent. Interest accrued but not received for assets on nonaccrual status is reversed through Net investment income. Interest received for assets that are on nonaccrual status is recognized as payment is received. The asset is returned to accrual status when the principal and interest amounts contractually due are brought current, and future payments are expected. Interest receivables are presented in Receivables on the Consolidated Balance Sheet.
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Equity method investments – Loews Hotels & Co has interests in operating joint ventures related to hotel properties over which it exercises significant influence but does not have control over them. Loews Hotels & Co uses the equity method of accounting for these investments, when applicable. The Company also has interests in Altium Packaging LLC (“Altium Packaging”), which is engaged in the manufacture of rigid packaging solutions. Loews Corporation shares certain participating rights related to capital allocation and other decisions with the joint venture partner, therefore, the investment in Altium Packaging is accounted for under the equity method of accounting. The Company’s total investment in entities accounted for under the equity method of accounting, excluding limited partnership investments, was $878 million and $937 million as of December 31, 2025 and 2024 and is reported in Other assets on the Consolidated Balance Sheets. Equity method income for investments accounted for under the equity method of accounting, excluding limited partnerships, was $74 million, $58 million and $120 million for the years ended December 31, 2025, 2024 and 2023 and is reported separately in expenses on the Consolidated Statements of Operations. Equity method investments are reviewed for impairment when changes in circumstances indicate that the carrying value of the asset may not be recoverable. See Note 3 for a discussion of limited partnership investments.
Hedging – The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedging transactions. The Company also formally assesses (both at the hedge’s inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in fair value or cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative for which hedge accounting has been designated is not (or ceases to be) highly effective, the Company discontinues hedge accounting prospectively. See Note 3 for additional information on the Company’s use of derivatives.
Securities lending activities – The Company lends securities for the purpose of enhancing income or to finance positions to unrelated parties who have been designated as primary dealers by the Federal Reserve Bank of New York. Borrowers of these securities must deposit and maintain collateral with the Company of no less than 100% of the fair value of the securities loaned. United States of America (“U.S.”) Government securities and cash are accepted as collateral. The Company maintains effective control over loaned securities and, therefore, continues to report such securities as investments on the Consolidated Balance Sheets.
Securities lending is typically done on a matched-book basis where the collateral is invested to substantially match the term of the loan. This matching of terms tends to limit risk. In accordance with the Company’s lending agreements, securities on loan are returned immediately to the Company upon notice. Collateral is not reflected as an asset of the Company. There was no collateral held at December 31, 2025 and 2024.
Revenue recognition – Premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured and are primarily earned ratably over the term of the policies. Premiums on long-term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage.
Property and casualty contracts that are retrospectively rated or subject to audit premiums contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions. These provisions stipulate the adjustment due to loss experience of the insured during the coverage period, or changes in the level of exposure to insurance risk. For such contracts, CNA estimates the amount of ultimate premiums that it may earn upon completion of the coverage period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. CNA either adjusts such estimated ultimate premium amounts during the course of the coverage period based on actual results to date or by conducting premium audits after the policy has expired to determine the final exposure to insured risks. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period.
Insurance receivables include balances due currently or in the future, including amounts due from insureds related to paid losses under high deductible policies, and are presented at unpaid balances, net of an allowance for doubtful accounts. As of December 31, 2025 and 2024, an allowance for doubtful accounts of $25 million and $26 million for insurance receivables has been established using a loss rate methodology to determine expected credit losses for premium receivables. This methodology uses CNA’s historical annual credit losses relative to gross premium written to develop a range of credit loss rates for each dollar of gross written premium underwritten. Additionally, an expected credit loss for amounts due from insureds under high deductible and retrospectively rated policies is calculated on a pool basis, informed by historical default rate data obtained from major rating agencies. Changes in the allowance are presented as a component of Other operating expenses on the Consolidated Statements of Operations. Amounts are considered past due based on policy payment terms. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached.
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CNA’s non-insurance warranty revenues are primarily generated from separately-priced service contracts that provide mechanical breakdown and other coverages to vehicle or consumer goods owners, which generally provide coverage from one month to ten years. For warranty products where CNA acts as the principal in the transaction, Non-insurance warranty revenue is reported on a gross basis, with amounts paid by customers reported as Non-insurance warranty revenue and commissions paid to agents and dealers reported as Non-insurance warranty expense on the Consolidated Statements of Operations. Additionally, CNA provides warranty administration services for dealer and manufacturer warranty products. Non-insurance revenues are recognized when obligations under the terms of the contract with CNA’s customers are satisfied, which is generally over time as obligations are fulfilled. CNA recognizes non-insurance warranty revenue over the service period in proportion to the actuarially determined expected claims emergence pattern. Customers predominantly pay in full at the inception of the warranty contract. The liability for unearned warranty revenue, reported as Deferred non-insurance warranty revenue on the Consolidated Balance Sheets, represents the unearned portion of revenue in advance of CNA’s performance, including amounts which are refundable upon cancellation.
Contract costs to obtain or fulfill non-insurance warranty contracts with customers are deferred and recorded as Deferred non-insurance warranty acquisition expenses on the Consolidated Balance Sheets. These costs are expected to be recoverable over the term of the contract and are amortized in the same manner the related revenue is recognized. CNA evaluates deferred costs for recoverability including consideration of anticipated investment income. Adjustments to deferred costs, if necessary, are recorded in the current period results of operations.
Boardwalk Pipelines primarily earns revenues by providing transportation and storage services for natural gas and natural gas liquids, olefins and other hydrocarbons (referred to together as “NGLs”) on a firm and interruptible basis and providing ethane supply and transportation services for petrochemical customers in Louisiana and Texas. Boardwalk Pipelines also provides interruptible natural gas parking and lending services. The majority of Boardwalk Pipelines’ operating subsidiaries are subject to Federal Energy Regulatory Commission (“FERC”) regulations and certain revenues collected, under certain circumstances, may be subject to possible refunds to its customers. An estimated refund liability is recorded considering regulatory proceedings, advice of counsel and estimated total exposure. The majority of Boardwalk Pipelines’ revenues are from firm service contracts which are accounted for as a single promise to stand ready each month of the contract term to provide the committed capacity for either transportation or storage services. The transaction price is comprised of a fixed fee based on the capacity reserved plus a usage fee paid on the volume of commodity transported or injected and withdrawn from storage. Both the fixed and the usage fees are allocated to the single performance obligation of providing transportation or storage service and recognized over time as control is passed to the customer. These service contracts can range in term from one to 20 years and are invoiced monthly. For the ethane supply contracts, the purchases and sales are with different counterparties and control transfers at different receipt and delivery points, resulting in the purchases and sales being presented on a gross basis in the Consolidated Statements of Operations.
Loews Hotels & Co provides lodging and related goods and services as well as management and marketing services. Lodging and related revenues are recognized as the guest takes possession of the goods or receives the services. Management and marketing services revenues are recognized as the services are provided and billed on a monthly basis. In addition, Loews Hotels & Co recognizes revenue for the reimbursement of payroll and other expenses as they are incurred on behalf of the owners of joint venture and managed hotel properties.
Claim and claim adjustment expense reserves – Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (“A&EP”) and workers’ compensation lifetime claims, are not discounted and are based on (i) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; (ii) estimates of incurred but not reported losses; (iii) estimates of losses on assumed reinsurance; (iv) estimates of future expenses to be incurred in the settlement of claims; (v) estimates of salvage and subrogation recoveries and (vi) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past CNA and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Receivables on the Consolidated Balance Sheets.
Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $1.6 billion and $1.3 billion as of December 31, 2025 and 2024. A significant portion of these amounts are supported by collateral. CNA also has an allowance for uncollectible deductible amounts, which is presented as a component of the allowance for doubtful accounts included in Receivables on the Consolidated Balance Sheets.
Structured settlements have been negotiated for certain property and casualty insurance claims. Structured settlements are agreements to provide fixed periodic payments to claimants. CNA’s obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and are discounted at a weighted average interest
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rate of 6.5% and 6.6% as of December 31, 2025 and 2024. This interest rate is based on the expected yield of the assets that support the reserves and reinvestment assumptions. As of December 31, 2025 and 2024, the discounted reserves for unfunded structured settlements were $432 million and $444 million, net of discount of $505 million and $535 million. For the years ended December 31, 2025, 2024 and 2023, the amount of interest recognized on the discounted reserves of unfunded structured settlements was $32 million, $33 million and $34 million. This interest accretion is presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations but is excluded from the disclosure of prior year loss reserve development.
Workers’ compensation lifetime claim reserves are calculated using mortality assumptions determined through statutory regulation and economic factors. As of December 31, 2025 and 2024, workers’ compensation lifetime claim reserves are discounted at a 3.5% interest rate. As of December 31, 2025 and 2024, the discounted reserves for workers’ compensation lifetime claim reserves were $167 million and $179 million, net of discount of $78 million and $80 million. For the years ended December 31, 2025, 2024 and 2023, the amount of interest accretion recognized on the discounted reserves of workers’ compensation lifetime claim reserves was $6 million, $6 million and $9 million. This interest accretion is presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations, but is excluded from the disclosure of prior year loss reserve development.
Future policy benefit reserves – Future policy benefit reserves are associated with CNA’s run-off long-term care business and relate to policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported, as well as policyholders that are not yet receiving benefits.
The liability for future policyholder benefits (“LFPB”) is computed using the net level premium method, which incorporates cash flow and discount rate assumptions. Under the net level premium method, the LFPB is equal to the present value of future benefits and claim settlement expenses less the present value of future net premiums. Net premiums are equal to gross premiums multiplied by the Net Premium Ratio (“NPR”). The NPR is generally the ratio of the present value of benefits and expense payments to the present value of gross premiums, expected over the lifetime of the policy. As a result of the modified retrospective adoption of ASU 2018-12, CNA’s NPR calculation incorporates the original locked in discount rate and the reserve balance as of the transition date of January 1, 2021.
The key cash flow assumptions used to estimate the LFPB are morbidity, persistency, premium rate actions and expenses. Morbidity is the frequency and severity of injury, illness, sickness and diseases contracted. Persistency is the percentage of policies remaining in force and can be affected by policy lapses, benefit reductions and death. Premium rate actions are generally subject to regulatory approval, and therefore the exact timing and size of the approved rate increases are unknown. Expense assumptions relate to claim adjudication. The practical expedient was not elected that allows locking in the expense assumption. The carried LFPB discount rate is determined using the upper-medium grade fixed income instrument yield curve.
CNA has elected to update the NPR and the LFPB for actual experience on a quarterly basis. A quarterly assessment is also made as to whether evidence suggests that cash flow assumptions should be updated. Annually, in the third quarter, actuarial analysis is performed on policyholder morbidity, persistency, premium rate actions and expense experience. This analysis, combined with judgment, informs the setting of updated cash flow assumptions used to estimate the LFPB. Actuarial analysis includes predictive modeling, actual to expected experience comparisons and trend analysis. Applicable industry research and current macroeconomic conditions are also considered. The effect of changes in cash flow assumptions and actual variances from expected experience are recorded in the results of operations within Insurance claims and policyholders’ benefits.
Quarterly, to derive the upper-medium grade fixed income instrument yield discount rate assumption, a published spot rate curve constructed from single-A rated U.S. dollar denominated corporate bonds is used. Linear interpolation to determine yield assumptions for tenors that fall between points for which observable rates are available is used. For cash flows that are projected to occur beyond the tenor for which market-observable rates are available, CNA applies judgment to estimate a normative rate which it grades to over 10 years. The effect of changes in discount rate assumptions are recorded in Other comprehensive income (loss).
Quarterly, the updated NPR is used to derive an updated LFPB as of the beginning of the current quarter measured at the original locked in discount rate. The updated LFPB is then compared to the existing carrying amount of the liability as of the same date (measured at the original locked in discount rate) to determine the re-measurement gain (loss), which is presented parenthetically within the Insurance claims and policyholders’ benefits line on the Consolidated Statements of Operations.
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Insurance contracts are grouped into cohorts according to issue year. Contracts assumed through reinsurance are generally included within the same cohorts as contracts issued directly, according to issue year. The issue year for assumed contracts is defined according to the date that assumption of insurance risk incepted. For assumed contracts that were reinsured concurrently with the issuance of the underlying direct contract, issue year is defined as the year that the underlying policy was issued. For contracts that were already in-force when assumed, issue year is defined as the year in which the reinsurance agreement incepted. For group long-term care business, issue year is defined as the year the individual insurance certificate was issued. Long-term care is CNA’s only long-duration product line, therefore, cohorts are not further disaggregated by product.
Insurance-related assessments – Liabilities for insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated and when the event obligating the entity to pay an imposed or probable assessment has occurred. Liabilities for insurance-related assessments are not discounted and are included as part of Other liabilities on the Consolidated Balance Sheets. As of December 31, 2025 and 2024, the liability balances were $89 million and $86 million.
Reinsurance – Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity.
Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefit reserves. Reinsurance receivables are reported net of an allowance for doubtful accounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of CNA.
As of December 31, 2025 and 2024, an allowance for doubtful accounts of $27 million and $21 million have been established for each year for reinsurance receivables, which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. For assessing expected credit losses, CNA separates reinsurance receivables into two pools: voluntary reinsurance receivables and involuntary receivables related to mandatory pools. CNA has not recorded an allowance for involuntary pools as there is no perceived credit risk. The principal credit quality indicator used in the valuation of the allowance on voluntary reinsurance receivables is the financial strength rating of the reinsurer sourced from major rating agencies. If the reinsurer is unrated, an internal financial strength rating is assigned based on CNA’s historical loss experience and the assessment of the reinsurance counterparty’s risk profile, which generally corresponds with a B rating. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if CNA becomes aware of significant changes related to a reinsurer. The allowance for doubtful accounts on reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer financial strength rating and solvency, industry experience and current and forecast economic conditions. Because billed receivables generally approximate 8% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for doubtful accounts on reinsurance receivables are presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations.
Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables from insolvent insurers related to paid losses are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations.
A loss portfolio transfer is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under a loss portfolio transfer exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods in proportion to actual recoveries under the loss portfolio transfer. In any period in which there is a revised estimate of claim and allocated claim adjustment expenses and the loss portfolio transfer is in a gain position, the deferred gain is recalculated as if the revised estimate was available at the inception date of the loss portfolio transfer and the change in the deferred gain is recognized in earnings.
Deferred acquisition costs – Deferrable acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Acquisition costs related to
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property and casualty business are deferred and amortized ratably over the period the related premiums are earned. Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs.
CNA evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current period results of operations.
Policyholder dividends – Policyholder dividends are paid to participating policyholders within the workers’ compensation and surety lines of business. Net written premiums for participating dividend policies were approximately 2% of total net written premiums for each of the years ended December 31, 2025, 2024 and 2023. Dividends to policyholders are accrued according to CNA’s best estimate of the amount to be paid in accordance with contractual provisions and applicable state laws. Dividends to policyholders are presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations and Other liabilities on the Consolidated Balance Sheets.
Goodwill and other intangible assets – Goodwill represents the excess of purchase price over fair value of net assets of acquired entities. Goodwill is tested for impairment annually or when certain triggering events require additional tests. Subsequent reversal of a goodwill impairment charge is not permitted. Finite-lived intangible assets are amortized over their estimated useful lives. Indefinite-lived other intangible assets are tested for impairment annually or when certain triggering events require such tests.
Property, plant and equipment – Property, plant and equipment is carried at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the various classes of properties. Leaseholds and leasehold improvements are depreciated or amortized over the terms of the related leases (including optional renewal periods, where appropriate) or the estimated lives of improvements, if less than the lease term.
The principal service lives used in computing provisions for depreciation are as follows:
| Years | |||||||||||
| Pipeline equipment | 30 | to | 50 | ||||||||
| Hotel properties and other | 3 | to | 40 |
Impairment of long-lived assets – Long-lived and finite-lived intangible assets are reviewed for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets and intangibles with finite lives, under certain circumstances, are reported at the lower of carrying amount or fair value. Assets to be disposed of and assets not expected to provide any future service potential are recorded at the lower of carrying amount or fair value less cost to sell.
Income taxes − The Company and its eligible subsidiaries file a consolidated tax return. Deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes may not be realized.
The Company recognizes uncertain tax positions that it has taken or expects to take on a tax return. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information.
The Company recognizes penalties and accrued interest related to unrecognized tax benefits and tax refund claims in Income tax expense on the Consolidated Statements of Operations. See Note 10 for additional information on the provision for income taxes.
Pension and postretirement benefits – The overfunded or underfunded status of defined benefit plans is recognized in Other assets or Other liabilities on the Consolidated Balance Sheets. Changes in funded status related to prior service costs and credits and actuarial gains and losses are recognized in the year in which the changes occur through Accumulated Other Comprehensive Income (“AOCI”). Benefit plan assets and obligations are measured at December 31. Annual service cost, interest cost, expected return on plan assets, amortization of prior service costs and credits and amortization of actuarial gains and losses are recognized in the Consolidated Statements of Operations.
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Stock-based compensation – Compensation expense is recorded upon issuance, modification or cancellation of all share-based payment awards granted, primarily on a straight-line basis over the requisite service period, generally three years. Restricted Stock Units are valued using the grant-date fair value of Loews Corporation’s stock.
Net income per share – Basic net income per share excludes dilution and is computed by dividing net income attributable to common stock by the weighted average number of Loews Corporation 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 Loews Corporation common stock were exercised or converted into common stock.
For the years ended December 31, 2025, 2024 and 2023, approximately 0.1 million, 0.3 million and 0.3 million potential shares attributable to issuances and exercises under incentive compensation plans were included in the calculation of diluted net income per share. For the year ended December 31, 2025 there were 1.2 million shares and for the years ended December 31, 2024 and 2023, there were no shares attributable to employee stock-based compensation awards excluded from the calculation of diluted net income per share because the effect would have been antidilutive.
Foreign currency – Foreign currency translation gains and losses are reflected in Shareholders’ equity as a component of AOCI. Foreign subsidiaries’ balance sheet accounts are translated at the exchange rates in effect at each reporting date and income statement accounts are translated at the average exchange rates during the reporting period. There were foreign currency transaction gains (losses) of $10 million, $(7) million and $8 million for the years ended December 31, 2025, 2024 and 2023 included in the Consolidated Statements of Operations.
Regulatory accounting – The majority of Boardwalk Pipelines’ revenues are earned from operating subsidiaries that are regulated by the FERC. Texas Gas Transmission, LLC (“Texas Gas”), a wholly owned subsidiary of Boardwalk Pipelines, applies regulatory accounting to certain assets for GAAP purposes, which records certain assets and liabilities consistent with the economic effect of the manner in which independent third party regulators establish rates. Gulf South Pipeline Company, LLC (“Gulf South”), a wholly owned subsidiary of Boardwalk Pipelines, has implemented fuel trackers, for which regulatory accounting is applied. Accordingly, the value of fuel received from customers paying the maximum tariff rate and the related value of fuel used in transportation are recorded to a regulatory asset or liability depending on whether Gulf South uses more fuel than it collects from customers or collects more fuel than it uses. Other than as described for Texas Gas and the fuel trackers for Gulf South, regulatory accounting is not applicable to Boardwalk Pipelines’ other FERC regulated entities or operations.
Supplementary cash flow information – Cash payments made for interest on long-term debt, net of capitalized interest, amounted to $421 million, $422 million and $385 million for the years ended December 31, 2025, 2024 and 2023. Investing activities exclude $25 million and $9 million of accrued capital expenditures for the years ended December 31, 2025 and 2023 and include $37 million of previously accrued capital expenditures for the year ended December 31, 2024. Cash payments for federal, state and local, and foreign income taxes are as follows:
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Federal | $ | 298 | $ | 287 | $ | 263 | |||||||||||
| State and local | 35 | 33 | 37 | ||||||||||||||
| Foreign | |||||||||||||||||
| Canada | 18 | 57 | (5) | ||||||||||||||
| Other | 30 | 26 | 9 | ||||||||||||||
| Total | $ | 381 | $ | 403 | $ | 304 |
Accounting changes – In December of 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-08, “Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets.” The updated accounting guidance requires that an entity measure crypto assets at fair value in the statement of financial position each reporting period and recognize changes from remeasurement in net income. The guidance was effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The update required a cumulative-effect adjustment to the opening balance at the date of adoption. The Company adopted the guidance on January 1, 2025 and recorded an increase to Retained earnings of $5 million.
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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 disaggregation of the effective tax rate reconciliation and income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024. The guidance was adopted retrospectively, with comparative period income tax disclosures adjusted to reflect the change in accounting guidance. See Note 10 for additional information.
Recently issued ASUs – In November of 2024, the FASB issued ASU 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The updated accounting guidance requires disaggregated disclosure of specified expense categories. The guidance also requires disclosure of total selling expenses and how the Company defines selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. 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.
In September of 2025, the FASB issued ASU 2025-06, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” The updated guidance changes the accounting for internal-use software by eliminating references to sequential project stages. Eligible software development cost capitalization will begin when: (1) management has authorized and committed to funding the software project and (2) it is probable that the software will be completed and used as intended. The guidance is effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods, with early adoption permitted. The guidance may be applied using a prospective transition method, a retrospective transition method or a modified prospective transition method. The Company is currently evaluating the effect the updated guidance will have on its financial statements.
Note 2. Acquisitions
Loews Hotels & Co
During 2023, Loews Hotels & Co paid $46 million to acquire an additional equity interest in a previously unconsolidated joint venture property. The acquisition resulted in Loews Hotels & Co consolidating the joint venture property and recording a gain of $46 million ($36 million after tax). Upon acquisition, $232 million in assets and $120 million in liabilities were consolidated at fair value.
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Note 3. Investments
Net investment income is as follows:
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Fixed maturity securities | $ | 2,140 | $ | 2,050 | $ | 1,941 | |||||||||||
| Limited partnership investments | 278 | 271 | 177 | ||||||||||||||
| Short-term investments | 76 | 90 | 78 | ||||||||||||||
| Equity securities (a) | 60 | 82 | 63 | ||||||||||||||
| Income from trading portfolio (a) | 209 | 255 | 125 | ||||||||||||||
| Other | 118 | 129 | 105 | ||||||||||||||
| Total investment income | 2,881 | 2,877 | 2,489 | ||||||||||||||
| Investment expenses | (102) | (97) | (94) | ||||||||||||||
| Net investment income | $ | 2,779 | $ | 2,780 | $ | 2,395 | |||||||||||
| (a) Net investment income recognized due to the change in fair value of equity and trading portfolio securities held as of December 31, 2025, 2024 and 2023 | $ | 63 | $ | 93 | $ | 38 |
As of December 31, 2025 and 2024, no investments in a single issuer exceeded 10% of shareholders’ equity, other than investments in securities issued by the U.S. Treasury and obligations of government-sponsored enterprises.
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Investment gains (losses) are as follows:
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||
| Gross gains | $ | 42 | $ | 48 | $ | 75 | |||||||||||
| Gross losses | (125) | (150) | (166) | ||||||||||||||
| Investment losses on fixed maturity securities | (83) | (102) | (91) | ||||||||||||||
| Equity securities (a) | 7 | 21 | 4 | ||||||||||||||
| Derivative instruments | (1) | ||||||||||||||||
| Short-term investments and other | (5) | (11) | |||||||||||||||
| Gain on acquisition of a joint venture (see Note 2) | 46 | ||||||||||||||||
| Investment losses | $ | (81) | $ | (81) | $ | (53) | |||||||||||
| (a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of December 31, 2025, 2024 and 2023 | $ | 7 | $ | 19 | $ | 14 |
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:
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Fixed maturity securities available-for-sale: | |||||||||||||||||
| Corporate and other bonds | $ | 25 | $ | 34 | $ | 33 | |||||||||||
| Asset-backed | 8 | 29 | 11 | ||||||||||||||
| Impairment losses recognized in earnings | $ | 33 | $ | 63 | $ | 44 |
For the years ended December 31, 2025 and 2023, there were $5 million and $11 million of impairment losses related to mortgage loans due to changes in expected credit losses. No impairment losses were recognized on mortgage loans during the year ended December 31, 2024.
The net change in unrealized gains (losses) on fixed maturity securities, was $1.1 billion, $(352) million and $1.4 billion for the years ended December 31, 2025, 2024 and 2023.
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The amortized cost and fair values of fixed maturity securities are as follows:
| December 31, 2025 | 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 | $ | 25,484 | $ | 682 | $ | 881 | $ | 28 | $ | 25,257 | |||||||||||||||||||
| States, municipalities and political subdivisions | 8,870 | 303 | 742 | 8,431 | |||||||||||||||||||||||||
| Asset-backed: | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 4,011 | 50 | 366 | 3,695 | |||||||||||||||||||||||||
| Commercial mortgage-backed | 1,515 | 18 | 80 | 21 | 1,432 | ||||||||||||||||||||||||
| Other asset-backed | 3,729 | 28 | 194 | 20 | 3,543 | ||||||||||||||||||||||||
| Total asset-backed | 9,255 | 96 | 640 | 41 | 8,670 | ||||||||||||||||||||||||
| U.S. Treasury and obligations of government sponsored enterprises | 236 | 1 | 3 | 234 | |||||||||||||||||||||||||
| Foreign government | 764 | 7 | 20 | 751 | |||||||||||||||||||||||||
| Redeemable preferred stock | 8 | 8 | |||||||||||||||||||||||||||
| Fixed maturities available-for-sale | $ | 44,617 | $ | 1,089 | $ | 2,286 | $ | 69 | $ | 43,351 | |||||||||||||||||||
| Fixed maturities trading | 633 | 633 | |||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 45,250 | $ | 1,089 | $ | 2,286 | $ | 69 | $ | 43,984 |
| December 31, 2024 | |||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||
| Corporate and other bonds | $ | 25,839 | $ | 423 | $ | 1,305 | $ | 13 | $ | 24,944 | |||||||||||||||||||
| States, municipalities and political subdivisions | 7,396 | 243 | 835 | 6,804 | |||||||||||||||||||||||||
| Asset-backed: | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 3,725 | 7 | 488 | 3,244 | |||||||||||||||||||||||||
| Commercial mortgage-backed | 1,779 | 11 | 141 | 18 | 1,631 | ||||||||||||||||||||||||
| Other asset-backed | 3,770 | 24 | 239 | 14 | 3,541 | ||||||||||||||||||||||||
| Total asset-backed | 9,274 | 42 | 868 | 32 | 8,416 | ||||||||||||||||||||||||
| U.S. Treasury and obligations of government sponsored enterprises | 220 | 1 | 1 | 220 | |||||||||||||||||||||||||
| Foreign government | 701 | 6 | 30 | 677 | |||||||||||||||||||||||||
| Fixed maturities available-for-sale | $ | 43,430 | $ | 715 | $ | 3,039 | $ | 45 | $ | 41,061 | |||||||||||||||||||
| Fixed maturities trading | 766 | 766 | |||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 44,196 | $ | 715 | $ | 3,039 | $ | 45 | $ | 41,827 |
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The available-for-sale fixed maturities securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows:
| Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
| December 31, 2025 | 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 | $ | 2,776 | $ | 56 | $ | 8,576 | $ | 825 | $ | 11,352 | $ | 881 | |||||||||||||||||||||||
| States, municipalities and political subdivisions | 403 | 8 | 3,471 | 734 | 3,874 | 742 | |||||||||||||||||||||||||||||
| Asset-backed: | |||||||||||||||||||||||||||||||||||
| Residential mortgage-backed | 154 | 1 | 2,002 | 365 | 2,156 | 366 | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 36 | 2 | 887 | 78 | 923 | 80 | |||||||||||||||||||||||||||||
| Other asset-backed | 420 | 9 | 1,432 | 185 | 1,852 | 194 | |||||||||||||||||||||||||||||
| Total asset-backed | 610 | 12 | 4,321 | 628 | 4,931 | 640 | |||||||||||||||||||||||||||||
| U.S. Treasury and obligations of government-sponsored enterprises | 78 | 2 | 18 | 1 | 96 | 3 | |||||||||||||||||||||||||||||
| Foreign government | 131 | 1 | 260 | 19 | 391 | 20 | |||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 3,998 | $ | 79 | $ | 16,646 | $ | 2,207 | $ | 20,644 | $ | 2,286 | |||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
| Corporate and other bonds | $ | 5,846 | $ | 165 | $ | 10,388 | $ | 1,140 | $ | 16,234 | $ | 1,305 | |||||||||||||||||||||||
| States, municipalities and political subdivisions | 1,247 | 52 | 2,967 | 783 | 4,214 | 835 | |||||||||||||||||||||||||||||
| Asset-backed: | |||||||||||||||||||||||||||||||||||
| Residential mortgage-backed | 849 | 22 | 2,010 | 466 | 2,859 | 488 | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 180 | 2 | 988 | 139 | 1,168 | 141 | |||||||||||||||||||||||||||||
| Other asset-backed | 680 | 21 | 1,557 | 218 | 2,237 | 239 | |||||||||||||||||||||||||||||
| Total asset-backed | 1,709 | 45 | 4,555 | 823 | 6,264 | 868 | |||||||||||||||||||||||||||||
| U.S. Treasury and obligations of government-sponsored enterprises | 49 | 1 | 41 | 90 | 1 | ||||||||||||||||||||||||||||||
| Foreign government | 118 | 3 | 368 | 27 | 486 | 30 | |||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 8,969 | $ | 266 | $ | 18,319 | $ | 2,773 | $ | 27,288 | $ | 3,039 |
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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.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| U.S. Government, Government agencies and Government-sponsored enterprises | $ | 1,980 | $ | 267 | $ | 2,567 | $ | 373 | |||||||||||||||
| AAA | 1,376 | 243 | 1,800 | 282 | |||||||||||||||||||
| AA | 3,827 | 623 | 4,247 | 730 | |||||||||||||||||||
| A | 5,025 | 440 | 6,330 | 582 | |||||||||||||||||||
| BBB | 7,758 | 639 | 11,548 | 980 | |||||||||||||||||||
| Non-investment grade | 678 | 74 | 796 | 92 | |||||||||||||||||||
| Total | $ | 20,644 | $ | 2,286 | $ | 27,288 | $ | 3,039 |
Based on current facts and circumstances, the unrealized losses presented in the December 31, 2025 securities in the gross unrealized loss position table above are not indicative of the ultimate collectability 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 at December 31, 2025.
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 $470 million and $442 million as of December 31, 2025 and 2024 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.
| Year Ended December 31, 2025 | Corporate and Other Bonds | Asset-backed | Total | ||||||||||||||
| (In millions) | |||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||
| Balance as of January 1, 2025 | $ | 13 | $ | 32 | $ | 45 | |||||||||||
| Additions to the allowance for credit losses: | |||||||||||||||||
| Securities for which credit losses were not previously recorded | 3 | 3 | 6 | ||||||||||||||
| Available-for-sale securities accounted for as PCD assets | 4 | 4 | |||||||||||||||
| Reductions to the allowance for credit losses: | |||||||||||||||||
| Securities disposed during the period (realized) | 6 | 6 | |||||||||||||||
| Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period | 14 | 6 | 20 | ||||||||||||||
| Total allowance for credit losses | $ | 28 | $ | 41 | $ | 69 |
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| Year Ended December 31, 2024 | Corporate and Other Bonds | Asset-backed | Total | ||||||||||||||
| (In millions) | |||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||
| Balance as of January 1, 2024 | $ | 4 | $ | 12 | $ | 16 | |||||||||||
| Additions to the allowance for credit losses: | |||||||||||||||||
| Securities for which credit losses were not previously recorded | 9 | 18 | 27 | ||||||||||||||
| Available-for-sale securities accounted for as PCD assets | 4 | 4 | |||||||||||||||
| Reductions to the allowance for credit losses: | |||||||||||||||||
| Securities disposed during the period (realized) | 3 | 1 | 4 | ||||||||||||||
| Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 1 | 1 | |||||||||||||||
| Write-offs charged against the allowance | 9 | 9 | |||||||||||||||
| Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period | 12 | 12 | |||||||||||||||
| Total allowance for credit losses | $ | 13 | $ | 32 | $ | 45 |
Contractual Maturity
The following table presents available-for-sale fixed maturity securities by contractual maturity.
| December 31 | 2025 | 2024 | |||||||||||||||||||||
| Cost or Amortized Cost | Estimated Fair Value | Cost or Amortized Cost | Estimated Fair Value | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Due in one year or less | $ | 1,392 | $ | 1,389 | $ | 1,761 | $ | 1,753 | |||||||||||||||
| Due after one year through five years | 11,318 | 11,214 | 11,678 | 11,403 | |||||||||||||||||||
| Due after five years through ten years | 13,440 | 13,187 | 13,083 | 12,365 | |||||||||||||||||||
| Due after ten years | 18,467 | 17,561 | 16,908 | 15,540 | |||||||||||||||||||
| Total | $ | 44,617 | $ | 43,351 | $ | 43,430 | $ | 41,061 |
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.
Limited Partnerships
The carrying value of limited partnership investments as of December 31, 2025 and 2024 was approximately $2.9 billion and $2.5 billion, which includes net undistributed earnings of $381 million and $334 million. Limited partnerships comprising 11% of the total carrying value are reported on a current basis through December 31, 2025 with no reporting lag, 2% of the total carrying value are reported on a one month lag and the remainder are reported on more than a one month lag. The number of limited partnerships held and the strategies employed provide diversification to the limited partnership portfolio and the overall invested asset portfolio.
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Limited partnerships comprising 88% and 86% of the carrying value at December 31, 2025 and 2024 were invested in private debt and equity. Limited partnerships comprising 12% and 14% of the carrying value as of December 31, 2025 and 2024 employ hedge fund strategies. Private debt and equity funds cover a broad range of investment strategies including buyout, co-investment, private credit, growth capital, distressed investing and real estate. Hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments.
The ten largest limited partnership positions held totaled $698 million and $648 million as of December 31, 2025 and 2024. Based on the most recent information available regarding percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 1% of the aggregate partnership equity at December 31, 2025 and 2024, and the related income reflected on the Consolidated Statements of Operations represents approximately 1% of the changes in aggregate partnership equity for each of the years ended December 31, 2025, 2024 and 2023.
There are risks inherent in limited partnership investments which may result in losses due to short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies.
Private debt, private equity and other non-hedge fund limited partnership investments generally do not permit voluntary withdrawals. Hedge fund limited partnership investments contain withdrawal provisions that generally limit liquidity for a period of thirty days up to one year or longer. Typically, hedge fund withdrawals require advance written notice of up to 90 days.
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.
| Mortgage Loans Amortized Cost Basis by Origination Year (a) | |||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2025 | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | ||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
| DSCR ≥1.6x | |||||||||||||||||||||||||||||||||||||||||
| LTV less than 55% | $ | 38 | $ | 33 | $ | 5 | $ | 215 | $ | 291 | |||||||||||||||||||||||||||||||
| LTV 55% to 65% | 37 | 12 | $ | 14 | 6 | 12 | 81 | ||||||||||||||||||||||||||||||||||
| LTV greater than 65% | 12 | 13 | 25 | ||||||||||||||||||||||||||||||||||||||
| DSCR 1.2x - 1.6x | |||||||||||||||||||||||||||||||||||||||||
| LTV less than 55% | $ | 68 | 28 | 5 | 2 | 75 | 178 | ||||||||||||||||||||||||||||||||||
| LTV 55% to 65% | 107 | 33 | 38 | 21 | 19 | 28 | 246 | ||||||||||||||||||||||||||||||||||
| LTV greater than 65% | 7 | 46 | 53 | ||||||||||||||||||||||||||||||||||||||
| DSCR ≤1.2x | |||||||||||||||||||||||||||||||||||||||||
| LTV less than 55% | 6 | 21 | 27 | ||||||||||||||||||||||||||||||||||||||
| LTV 55% to 65% | 37 | 17 | 38 | 15 | 107 | ||||||||||||||||||||||||||||||||||||
| LTV greater than 65% | 40 | 21 | 25 | 86 | |||||||||||||||||||||||||||||||||||||
| Total | $ | 226 | $ | 101 | $ | 134 | $ | 176 | $ | 66 | $ | 391 | $ | 1,094 | |||||||||||||||||||||||||||
| Write-offs for the year ended December 31, 2025 | (2) | (23) | (25) |
| (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. |
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Derivative Financial Instruments
Derivatives may be used in the normal course of business, primarily in an attempt to reduce exposure to market risk (principally interest rate risk, credit risk, equity price risk, commodity price risk and foreign currency risk) stemming from various assets and liabilities. The principal objective under such strategies is to achieve the desired reduction in economic risk, even if the position does not receive hedge accounting treatment.
Interest rate swaps, futures and forward commitments to purchase securities may be entered into to manage interest rate risk. Credit derivatives such as credit default swaps may be entered into to modify the credit risk inherent in certain investments. Forward contracts, futures, swaps and options may be used to manage foreign currency and commodity price risk.
In addition to the derivatives used for risk management purposes described above, derivatives may also be used for purposes of income enhancement. Income enhancement transactions include interest rate swaps, call options, put options, credit default swaps, index futures and foreign currency forwards. See Note 4 for information regarding the fair value of derivative instruments.
The following tables present the aggregate contractual or notional amount and estimated fair value related to derivative financial instruments.
| December 31 | 2025 | 2024 | |||||||||||||||||||||||||||||||||
| Contractual/Notional Amount | Estimated Fair Value | Contractual/Notional Amount | Estimated Fair Value | ||||||||||||||||||||||||||||||||
| Asset | (Liability) | Asset | (Liability) | ||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Without hedge designation: | |||||||||||||||||||||||||||||||||||
| Equity markets: | |||||||||||||||||||||||||||||||||||
| Options - purchased | $ | 98 | $ | 1 | $ | 268 | $ | 2 | |||||||||||||||||||||||||||
| Futures - short | 249 | 2 | 167 | 1 | |||||||||||||||||||||||||||||||
| Warrants | 1 | 2 | 1 | 1 | |||||||||||||||||||||||||||||||
| Interest rate swaps | 473 | 300 | 4 | ||||||||||||||||||||||||||||||||
| Credit default swap index - purchased | 2,000 |
In the fourth quarter of 2024, the Company entered into credit default swap index transactions that would potentially benefit from widening investment grade credit spreads associated with the underlying securities that comprised the index. The position was closed during the second quarter of 2025. As of December 31, 2024, the notional value of the credit default swap index was $2 billion and the fair value was less than $1 million, which was recognized in Payable to brokers in the Consolidated Balance Sheets. The fair value of the position was measured using observable market inputs, including credit spreads. For the years ended December 31, 2025 and 2024, Net investment income related to the position was $19 million and less than $1 million.
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 December 31, 2025, commitments to purchase or fund were approximately $1.8 billion and to sell were approximately $45 million under the terms of these investments.
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Investments on Deposit
Cash and securities with carrying values of approximately $3.4 billion and $3.1 billion were deposited by CNA’s insurance subsidiaries under requirements of regulatory authorities and others as of December 31, 2025 and 2024.
Cash and securities with carrying values of approximately $0.6 billion and $0.7 billion were deposited with financial institutions in trust accounts or as collateral for letters of credit to secure obligations with various third parties as of December 31, 2025 and 2024.
Note 4. Fair Value
Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable:
-
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.
Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, securities are priced using third party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs that market participants presumably would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted.
Control procedures are performed over information obtained from pricing services and brokers to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. Procedures may include: (i) the review of pricing service methodologies or broker pricing qualifications, (ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, (iii) exception reporting, where period-over-period changes in price are reviewed and challenged with the pricing service or broker based on exception criteria and (iv) detailed analysis, where an independent analysis of the inputs and assumptions used to price individual securities is performed.
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 U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.
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| December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| Corporate bonds and other | $ | 238 | $ | 24,529 | $ | 1,483 | $ | 26,250 | |||||||||||||||
| States, municipalities and political subdivisions | 8,386 | 45 | 8,431 | ||||||||||||||||||||
| Asset-backed | 7,672 | 998 | 8,670 | ||||||||||||||||||||
| Fixed maturities available-for-sale | 238 | 40,587 | 2,526 | 43,351 | |||||||||||||||||||
| Fixed maturities trading | 603 | 30 | 633 | ||||||||||||||||||||
| Total fixed maturities | $ | 841 | $ | 40,617 | $ | 2,526 | $ | 43,984 | |||||||||||||||
| Equity securities | $ | 762 | $ | 497 | $ | 33 | $ | 1,292 | |||||||||||||||
| Short-term and other | 5,820 | 51 | 5,871 | ||||||||||||||||||||
| Payable to brokers | (43) | (43) | |||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| Corporate bonds and other | $ | 223 | $ | 24,340 | $ | 1,278 | $ | 25,841 | |||||||||||||||
| States, municipalities and political subdivisions | 6,762 | 42 | 6,804 | ||||||||||||||||||||
| Asset-backed | 7,540 | 876 | 8,416 | ||||||||||||||||||||
| Fixed maturities available-for-sale | 223 | 38,642 | 2,196 | 41,061 | |||||||||||||||||||
| Fixed maturities trading | 766 | 766 | |||||||||||||||||||||
| Total fixed maturities | $ | 989 | $ | 38,642 | $ | 2,196 | $ | 41,827 | |||||||||||||||
| Equity securities | $ | 603 | $ | 441 | $ | 20 | $ | 1,064 | |||||||||||||||
| Short-term and other | 4,383 | 70 | 4,453 | ||||||||||||||||||||
| Receivables | 5 | 5 | |||||||||||||||||||||
| Payable to brokers | (88) | (88) |
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The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2025 and 2024:
| Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at December 31 | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at December 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | Balance, January 1 | Included in Net Income | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate bonds and other | $ | 1,278 | $ | (6) | $ | 57 | $ | 197 | $ | (101) | $ | 58 | $ | 1,483 | $ | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||
| States, municipalities and political subdivisions | 42 | 3 | 45 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | 876 | 17 | (3) | 213 | (105) | 998 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturities available-for-sale | $ | 2,196 | $ | 11 | $ | 57 | $ | 410 | $ | — | $ | (206) | $ | 58 | $ | — | $ | 2,526 | $ | — | $ | 59 | |||||||||||||||||||||||||||||||||||||||||||
| Equity securities | $ | 20 | $ | 4 | $ | 20 | $ | (7) | $ | (4) | $ | 33 | $ | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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| Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at December 31 | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at December 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | Balance, January 1 | Included in Net Income | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, December 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate bonds and other | $ | 1,045 | $ | (1) | $ | (15) | $ | 352 | $ | (10) | $ | (104) | $ | 11 | $ | 1,278 | $ | (1) | $ | (21) | |||||||||||||||||||||||||||||||||||||||||||||
| States, municipalities and political subdivisions | 44 | (2) | 42 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | 901 | 9 | (12) | 125 | (14) | (83) | $ | (50) | 876 | (12) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturities available-for-sale | $ | 1,990 | $ | 8 | $ | (29) | $ | 477 | $ | (24) | $ | (187) | $ | 11 | $ | (50) | $ | 2,196 | $ | (1) | $ | (35) | |||||||||||||||||||||||||||||||||||||||||||
| Equity securities | $ | 24 | $ | 12 | $ | 3 | $ | (19) | $ | 20 | $ | 8 |
Net investment gains and losses are reported in Net income as follows:
| Major Category of Assets and Liabilities | Consolidated 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 |
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Securities may be transferred in or out of levels within the fair value hierarchy based on the availability of observable market information and quoted prices used to determine the fair value of the security. The availability of observable market information and quoted prices varies based on market conditions and trading volume.
Valuation Methodologies and Inputs
The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified.
Fixed Maturity Securities
Level 1 securities include highly liquid government securities and exchange traded bonds valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. All classes of Level 2 fixed maturity securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology or a combination of both when necessary. Common inputs for all classes of fixed maturity securities include prices from recently executed transactions of similar securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. Specifically for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Fixed maturity securities are primarily assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation, and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with some inputs that are not market observable.
Equity Securities
Level 1 securities include publicly traded securities valued using quoted market prices. Level 2 securities are primarily valued using pricing for similar securities, recently executed transactions and other pricing models utilizing market observable inputs. Level 3 securities are primarily priced using broker/dealer quotes and internal models with some inputs that are not market observable.
Derivative Financial Instruments
Equity options are valued using quoted market prices and are classified within Level 1 of the fair value hierarchy. Over-the-counter derivatives, principally interest rate swaps, currency forwards, total return swaps, commodity swaps, credit default swaps, equity warrants and options, are valued using inputs including broker/dealer quotes and are classified within Level 2 or Level 3 of the valuation hierarchy, depending on the amount of transparency as to whether these quotes are based on information that is observable in the marketplace.
Short-Term and Other Invested Assets
Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds, treasury bills and exchange traded open-end funds valued using quoted market prices. Level 2 primarily includes non-U.S. government securities for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are classified consistent with fixed maturity securities discussed above. Short-term investments as presented in the tables above differ from the amounts presented on the Consolidated Balance Sheets because certain short-term investments, such as time deposits, are not measured at fair value.
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Significant Unobservable Inputs
The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value.
| December 31, 2025 | Estimated Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||
| Fixed maturity securities | $ | 1,927 | Discounted cash flow | Credit spread | 1% | — | 11% | (2%) | ||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| Fixed maturity securities | $ | 1,724 | Discounted cash flow | Credit spread | 1% | — | 6% | (2%) |
For fixed maturity securities, an increase to the credit spread assumptions would result in a lower fair value measurement.
Financial Assets and Liabilities Not Measured at Fair Value
The carrying amount, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short-term debt and long-term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Balance Sheets for cash and short-term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short-term nature of these items.
| Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||
| December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Other invested assets, primarily mortgage loans | $ | 1,079 | $ | 1,072 | $ | 1,072 | |||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Short-term debt | 1,051 | $ | 1,051 | 2 | 1,053 | ||||||||||||||||||||||||
| Long-term debt | 8,435 | 7,431 | 995 | 8,426 | |||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Other invested assets, primarily mortgage loans | $ | 1,019 | $ | 987 | $ | 987 | |||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Short-term debt | 4 | 5 | 5 | ||||||||||||||||||||||||||
| Long-term debt | 8,936 | $ | 7,702 | 966 | 8,668 |
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The fair values of debt were based on observable market prices when available. When observable market prices were not available, the fair values of debt were based on observable market prices of comparable instruments adjusted for differences between the observed instruments and the instruments being valued or is estimated using discounted cash flow analyses, based on current incremental borrowing rates for similar types of borrowing arrangements.
Note 5. Receivables
| December 31 | 2025 | 2024 | |||||||||
| (In millions) | |||||||||||
| Reinsurance (Note 16) | $ | 6,408 | $ | 6,072 | |||||||
| Insurance | 3,764 | 3,697 | |||||||||
| Receivable from brokers | 58 | 50 | |||||||||
| Accrued investment income | 485 | 458 | |||||||||
| Income taxes | 3 | 9 | |||||||||
| Other, primarily customer accounts | 318 | 284 | |||||||||
| Total | 11,036 | 10,570 | |||||||||
| Less: allowance for doubtful accounts on reinsurance receivables | 27 | 21 | |||||||||
| allowance for other doubtful accounts | 26 | 27 | |||||||||
| Receivables | $ | 10,983 | $ | 10,522 |
Note 6. Property, Plant and Equipment
| December 31 | 2025 | 2024 | |||||||||
| (In millions) | |||||||||||
| Pipeline equipment (net of accumulated depreciation of $5,184 and $4,819) | $ | 8,330 | $ | 8,478 | |||||||
| Hotel properties (net of accumulated depreciation of $709 and $646) | 1,522 | 1,517 | |||||||||
| Other (net of accumulated depreciation of $556 and $578) | 486 | 496 | |||||||||
| Construction in process | 357 | 247 | |||||||||
| Property, plant and equipment | $ | 10,695 | $ | 10,738 |
Depreciation expense and capital expenditures are as follows:
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| Depre-ciation | Capital Expend. | Depre-ciation | Capital Expend. | Depre-ciation | Capital Expend. | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| CNA Financial | $ | 65 | $ | 73 | $ | 59 | $ | 105 | $ | 54 | $ | 97 | |||||||||||||||||||||||
| Boardwalk Pipelines | 440 | 386 | 426 | 365 | 410 | 383 | |||||||||||||||||||||||||||||
| Loews Hotels & Co | 100 | 143 | 93 | 115 | 69 | 201 | |||||||||||||||||||||||||||||
| Corporate | 2 | 2 | 1 | 12 | |||||||||||||||||||||||||||||||
| Total | $ | 607 | $ | 602 | $ | 580 | $ | 585 | $ | 534 | $ | 693 |
Capitalized interest related to the construction and upgrade of qualifying assets amounted to approximately $11 million, $27 million and $32 million for the years ended December 31, 2025, 2024 and 2023.
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Note 7. Claim and Claim Adjustment Expense Reserves
Claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (“IBNR”) claims as of the reporting date. Reserve projections are based primarily on detailed analysis of the facts in each case, experience with similar cases and various historical development patterns. Consideration is given to historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, economic, medical and social inflation, and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves.
Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers’ compensation, general liability and professional liability claims. Claim and claim adjustment expense reserves are also maintained for structured settlement obligations. In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, actuaries review mortality experience on an annual basis. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that the ultimate cost for insurance losses will not exceed current estimates.
CNA’s commercial property and casualty insurance operations (“Property & Casualty Operations”) include its Specialty, Commercial and International lines of business. CNA’s Other Insurance Operations outside of Property & Casualty Operations include its long-term care business that is in run-off, certain corporate expenses, including interest on CNA’s corporate debt, and certain property and casualty businesses in run-off, including A&EP, a legacy portfolio of excess workers’ compensation policies and certain legacy mass tort reserves.
Liability for Unpaid Claim and Claim Adjustment Expenses
The table below reconciles the net liability for unpaid claim and claim adjustment expenses to the amount presented on the Consolidated Balance Sheets.
| December 31 | 2025 | ||||
| (In millions) | |||||
| Net liability for unpaid claim and claim adjustment expenses: | |||||
| Property & Casualty Operations | $ | 19,725 | |||
| Other Insurance Operations (a) | 892 | ||||
| Total net claim and claim adjustment expenses | 20,617 | ||||
| Reinsurance receivables: (b) | |||||
| Property & Casualty Operations | 3,684 | ||||
| Other Insurance Operations (c) | 2,298 | ||||
| Total reinsurance receivables | 5,982 | ||||
| Total gross liability for unpaid claims and claims adjustment expenses | $ | 26,599 |
| (a) | Other Insurance Operations amounts are related to unfunded structured settlements arising from short duration contracts. |
| (b) | Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses. |
| (c) | The Other Insurance Operations reinsurance receivables are primarily related to A&EP claims covered under the A&EP loss portfolio transfer (“LPT”). |
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The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Reserves, beginning of year: | |||||||||||||||||
| Gross | $ | 24,976 | $ | 23,304 | $ | 22,120 | |||||||||||
| Ceded | 5,713 | 5,141 | 5,191 | ||||||||||||||
| Net reserves, beginning of year | 19,263 | 18,163 | 16,929 | ||||||||||||||
| Net incurred claim and claim adjustment expenses: | |||||||||||||||||
| Provision for insured events of current year | 6,724 | 6,330 | 5,667 | ||||||||||||||
| Increase (decrease) in provision for insured events of prior years | 189 | 42 | 48 | ||||||||||||||
| Amortization of discount | 39 | 39 | 44 | ||||||||||||||
| Total net incurred (a) | 6,952 | 6,411 | 5,759 | ||||||||||||||
| Net payments attributable to: | |||||||||||||||||
| Current year events | (1,089) | (1,093) | (922) | ||||||||||||||
| Prior year events | (4,685) | (4,096) | (3,679) | ||||||||||||||
| Total net payments | (5,774) | (5,189) | (4,601) | ||||||||||||||
| Foreign currency translation adjustment and other | 176 | (122) | 76 | ||||||||||||||
| Net reserves, end of year | 20,617 | 19,263 | 18,163 | ||||||||||||||
| Ceded reserves, end of year | 5,982 | 5,713 | 5,141 | ||||||||||||||
| Gross reserves, end of year | $ | 26,599 | $ | 24,976 | $ | 23,304 |
| (a) | Total net incurred does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits and policyholders’ dividends, which are not reflected in the table above. |
Reserving Methodology
In developing claim and claim adjustment expense reserve estimates, CNA’s actuaries perform detailed reserve analyses that are staggered throughout the year. The data is organized at a reserve group level. Every reserve group is reviewed at least once during the year, but most are reviewed more frequently. The analyses generally review losses gross of ceded reinsurance and apply the ceded reinsurance terms to the gross estimates to establish estimates net of reinsurance. Factors considered include, but are not limited to, the historical pattern and volatility of the actuarial indications, the sensitivity of the actuarial indications to changes in paid and incurred loss patterns, the consistency of claims handling processes, the consistency of case reserving practices, changes in CNA’s pricing and underwriting, pricing and underwriting trends in the insurance market and legal, judicial, geopolitical, social and economic trends. In addition to the detailed analyses, CNA reviews actual loss emergence for all products each quarter.
In developing the loss reserve estimates for property and casualty contracts, CNA generally projects ultimate losses using several common actuarial methods as listed below. CNA reviews the indications from the various methods and applies judgment to select an actuarial point estimate. The carried reserve may differ from the actuarial point estimate as a result of CNA’s consideration of the factors noted above as well as the potential volatility of the projections associated with the specific product being analyzed and other factors affecting claims costs that may not be quantifiable through traditional actuarial analysis. The indicated required reserve is the difference between the selected ultimate loss and the inception-to-date paid losses. The difference between the selected ultimate loss and the case incurred or reported loss is IBNR. IBNR includes a provision for development on known cases as well as a provision for late reported incurred claims.
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The most frequently utilized methods to project ultimate losses include the following:
-
Paid development**: The paid development method estimates ultimate losses by reviewing paid loss patterns and applying them to accident years with further expected changes in paid losses.
-
Incurred development**: The incurred development method is similar to the paid development method, but it uses case incurred losses instead of paid losses.
-
Loss ratio**: The loss ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year.
-
Bornhuetter-Ferguson paid loss**: The Bornhuetter-Ferguson paid loss method is a combination of the paid development approach and the loss ratio approach. This method normally determines expected loss ratios similar to the approach used to estimate the expected loss ratio for the loss ratio method.
-
Bornhuetter-Ferguson incurred loss**: The Bornhuetter-Ferguson incurred loss method is similar to the Bornhuetter-Ferguson using premiums and paid loss method except that it uses case incurred losses.
-
Frequency times severity**: The frequency times severity method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident year to produce ultimate loss estimates.
-
Stochastic modeling**: The stochastic modeling method produces a range of possible outcomes based on varying assumptions related to the particular product being modeled.
For many exposures, especially those that can be considered long-tail, a particular accident or policy year may not have a sufficient volume of paid losses to produce a statistically reliable estimate of ultimate losses. In such a case, CNA’s actuaries typically assign more weight to the incurred development method than to the paid development method. As claims continue to settle and the volume of paid loss increases, the actuaries may assign additional weight to the paid development method. For most of CNA’s products, even the incurred losses for accident or policy years that are early in the claim settlement process will not be of sufficient volume to produce a reliable estimate of ultimate losses. In these cases, CNA may not assign much, if any weight to the paid and incurred development methods. CNA may use the loss ratio, Bornhuetter-Ferguson and/or frequency times severity methods. For short-tail exposures, the paid and incurred development methods can often be relied on sooner, primarily because CNA’s history includes a sufficient number of years to cover the entire period over which paid and incurred losses are expected to change. However, CNA may also use the loss ratio, Bornhuetter-Ferguson and/or frequency times severity methods for short-tail exposures. For other more complex reserve groups where the above methods may not produce reliable indications, CNA uses additional methods tailored to the characteristics of the specific situation.
CNA’s reserving methodologies for mass tort and A&EP are similar as both are based on detailed reviews of large accounts with estimates of ultimate payments based on the facts in each case and CNA’s view of applicable law and coverage litigation.
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Gross and Net Carried Reserves
The following tables present the gross and net carried reserves:
| December 31, 2025 | Property and Casualty Operations | Other Insurance Operations | Total | ||||||||||||||
| (In millions) | |||||||||||||||||
| Gross Case Reserves | $ | 7,311 | $ | 1,752 | $ | 9,063 | |||||||||||
| Gross IBNR Reserves | 16,098 | 1,438 | 17,536 | ||||||||||||||
| Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 23,409 | $ | 3,190 | $ | 26,599 | |||||||||||
| Net Case Reserves | $ | 6,189 | $ | 625 | $ | 6,814 | |||||||||||
| Net IBNR Reserves | 13,536 | 267 | 13,803 | ||||||||||||||
| Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 19,725 | $ | 892 | $ | 20,617 | |||||||||||
| December 31, 2024 | |||||||||||||||||
| Gross Case Reserves | $ | 6,589 | $ | 1,813 | $ | 8,402 | |||||||||||
| Gross IBNR Reserves | 15,093 | 1,481 | 16,574 | ||||||||||||||
| Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 21,682 | $ | 3,294 | $ | 24,976 | |||||||||||
| Net Case Reserves | $ | 5,573 | $ | 634 | $ | 6,207 | |||||||||||
| Net IBNR Reserves | 12,761 | 295 | 13,056 | ||||||||||||||
| Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 18,334 | $ | 929 | $ | 19,263 |
Net Prior Year Development
Changes in estimates of claim and claim adjustment expense reserves, net of reinsurance, for prior years are defined as net prior year loss reserve development. These changes can be favorable or unfavorable.
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The following table and discussion present details of the net prior year loss reserve development in Property & Casualty Operations and Other Insurance Operations:
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Medical professional liability | $ | (8) | $ | 5 | |||||||||||||
| Other professional liability and management liability | $ | 69 | 49 | 37 | |||||||||||||
| Surety | (50) | (68) | (43) | ||||||||||||||
| Warranty | 10 | 20 | (11) | ||||||||||||||
| Commercial auto | 74 | 107 | 33 | ||||||||||||||
| General liability | 114 | 75 | 149 | ||||||||||||||
| Workers’ compensation | (135) | (202) | (203) | ||||||||||||||
| Other property and casualty operations | (31) | (4) | 10 | ||||||||||||||
| Total property & casualty operations | 51 | (31) | (23) | ||||||||||||||
| Other insurance operations | 134 | 79 | 71 | ||||||||||||||
| Total pretax unfavorable development | $ | 185 | $ | 48 | $ | 48 |
Development Tables
For CNA’s Property & Casualty Operations, the following tables present further detail and commentary on the development reflected in the financial statements for each of the periods presented. Also presented are loss reserve development tables that illustrate the change over time of reserves established for claim and allocated claim adjustment expenses arising from short-duration insurance contracts for certain lines of business within CNA’s Property & Casualty Operations. Not all lines of business are presented based on their context to CNA’s overall loss reserves, calendar year reserve development, or calendar year net earned premiums. Insurance contracts are considered to be short-duration contracts when the contracts are not expected to remain in force for an extended period of time.
The Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative net incurred claim and allocated claim adjustment expenses relating to each accident year at the end of the stated calendar year. Changes in the cumulative amount across time are the result of CNA’s expanded awareness of additional facts and circumstances that pertain to the unsettled claims. The Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative amount paid for claims for each accident year as of the end of the stated calendar year. The Net Strengthening or (Releases) of Prior Accident Year Reserves tables, reading across, show the net increase or decrease in the cumulative net incurred accident year claim and allocated claim adjustment expenses during each stated calendar year and indicates whether the reserves for that accident year were strengthened or released.
The information in the tables is reported on a net basis after reinsurance and does not include the effects of discounting. The information contained in calendar years 2024 and prior is unaudited. To the extent CNA enters into a commutation, the transaction is reported on a prospective basis. To the extent that CNA enters into a disposition, the effects of the disposition are reported on a retrospective basis by removing the balances associated with it.
The amounts reported for the cumulative number of reported claims include direct and assumed open and closed claims by accident year at the claimant level. The number excludes claim counts for claims within a policy deductible where the insured is responsible for payment of losses in the deductible layer. Claim count data for certain assumed reinsurance contracts is unavailable.
In the loss reserve development tables, IBNR includes reserves for incurred but not reported losses and expected development on case reserves. CNA does not establish case reserves for allocated loss adjusted expenses (“ALAE”), therefore ALAE reserves are also included in the estimate of IBNR.
2025
Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in CNA’s professional errors and omissions (“E&O”) business.
| 122 |
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.
Unfavorable development in warranty was primarily due to higher than expected frequency and severity in the most recent accident year for auto warranty.
Unfavorable development in commercial auto was due to higher than expected claim severity in recent accident years.
Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2016.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
Favorable development in other property and casualty operations was due to lower than expected loss emergence across multiple accident years in CNA’s marine and property businesses and favorable emergence in multiple accident years for property and other.
Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claim activity, the on-going effects of social inflation and an agreement with the Diocese of Rochester.
2024
Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in CNA’s professional E&O and cyber businesses.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.
Unfavorable development in warranty was primarily due to higher than expected frequency and severity in a recent accident year.
Unfavorable development in commercial auto was due to higher than expected claim severity in recent accident years.
Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2015.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse reserves.
2023
Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in CNA’s professional E&O businesses in multiple accident years.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.
Favorable development in warranty was due to lower than expected loss emergence in a recent accident year.
Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s construction business in a recent accident year.
Unfavorable development in general liability was due to higher than expected claim severity in CNA’s construction and middle market businesses across multiple accident years.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse reserves.
| 123 |
Property & Casualty Operations – Line of Business Composition
The table below presents the net liability for unpaid claim and claim adjustment expenses, by line of business for Property & Casualty Operations:
| December 31 | 2025 | ||||
| (In millions) | |||||
| Medical professional liability | $ | 1,468 | |||
| Other professional liability and management liability | 4,073 | ||||
| Surety | 521 | ||||
| Warranty | 58 | ||||
| Commercial auto | 1,573 | ||||
| General liability | 4,837 | ||||
| Workers’ compensation | 3,482 | ||||
| Other property and casualty operations | 3,713 | ||||
| Total net liability for unpaid claim and claim adjustment expenses | $ | 19,725 |
| 124 |
Medical Professional Liability
| Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31 | 2016 (a) | 2017 (a) | 2018 (a) | 2019 (a) | 2020 (a) | 2021 (a) | 2022 (a) | 2023 (a) | 2024 (a) | 2025 | IBNR | Cumulative Number of Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except reported claims data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 427 | $ | 487 | $ | 485 | $ | 499 | $ | 508 | $ | 510 | $ | 508 | $ | 514 | $ | 513 | $ | 509 | $ | 12 | 16,205 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 412 | 449 | 458 | 460 | 455 | 460 | 456 | 463 | 458 | 11 | 15,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 404 | 429 | 431 | 448 | 470 | 495 | 499 | 507 | 34 | 15,358 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 430 | 445 | 458 | 471 | 469 | 481 | 478 | 17 | 14,572 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 477 | 476 | 455 | 447 | 419 | 400 | 57 | 11,381 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 377 | 376 | 374 | 349 | 318 | 57 | 10,085 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 329 | 329 | 333 | 323 | 87 | 10,353 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 340 | 350 | 382 | 129 | 11,129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 343 | 376 | 199 | 11,002 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 390 | 317 | 9,107 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 4,141 | $ | 920 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 18 | $ | 121 | $ | 246 | $ | 339 | $ | 401 | $ | 436 | $ | 460 | $ | 483 | $ | 489 | $ | 491 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 19 | 107 | 235 | 308 | 355 | 388 | 417 | 427 | 438 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 21 | 115 | 211 | 290 | 349 | 418 | 453 | 463 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 17 | 91 | 183 | 280 | 349 | 395 | 425 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 11 | 61 | 139 | 201 | 258 | 303 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 11 | 49 | 118 | 170 | 223 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 10 | 57 | 122 | 171 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 14 | 86 | 160 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 13 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 2,771 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ | 1,370 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2016 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability for unallocated claim adjustment expenses for accident years presented | 51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net liability for unpaid claim and claim adjustment expenses | $ | 1,468 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Strengthening (Releases) of Prior Accident Year Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Years Ended December 31 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 60 | $ | (2) | $ | 14 | $ | 9 | $ | 2 | $ | (2) | $ | 6 | $ | (1) | $ | (4) | $ | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 37 | 9 | 2 | (5) | 5 | (4) | 7 | (5) | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 25 | 2 | 17 | 22 | 25 | 4 | 8 | 103 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 15 | 13 | 13 | (2) | 12 | (3) | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | (1) | (21) | (8) | (28) | (19) | (77) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | (1) | (2) | (25) | (31) | (59) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | — | 4 | (10) | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 10 | 32 | 42 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for the accident years presented above | 15 | (17) | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for accident years prior to 2016 | (10) | 9 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total unallocated claim adjustment expense development | — | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 5 | $ | (8) | $ | — |
| (a) | Data presented for these calendar years is required supplemental information, which is unaudited. |
| 125 |
Other Professional Liability and Management Liability
| Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31 | 2016 (a) | 2017 (a) | 2018 (a) | 2019 (a) | 2020 (a) | 2021 (a) | 2022 (a) | 2023 (a) | 2024 (a) | 2025 | IBNR | Cumulative Number of Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except reported claims data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 901 | $ | 900 | $ | 900 | $ | 904 | $ | 907 | $ | 891 | $ | 888 | $ | 906 | $ | 912 | $ | 910 | $ | 28 | 17,993 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 847 | 845 | 813 | 791 | 775 | 758 | 746 | 752 | 744 | 25 | 18,223 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 850 | 864 | 869 | 906 | 923 | 941 | 987 | 1,003 | 44 | 20,083 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 837 | 845 | 856 | 876 | 939 | 970 | 984 | 79 | 19,577 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 930 | 944 | 951 | 945 | 945 | 936 | 106 | 19,558 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 1,037 | 1,038 | 1,009 | 965 | 956 | 190 | 18,444 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 1,120 | 1,112 | 1,084 | 1,049 | 265 | 18,534 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 1,149 | 1,166 | 1,239 | 365 | 19,902 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 1,150 | 1,200 | 609 | 20,579 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 1,208 | 978 | 19,311 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 10,229 | $ | 2,689 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 64 | $ | 248 | $ | 466 | $ | 625 | $ | 701 | $ | 736 | $ | 784 | $ | 826 | $ | 856 | $ | 862 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 57 | 222 | 394 | 498 | 557 | 596 | 630 | 672 | 699 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 54 | 282 | 473 | 599 | 706 | 779 | 847 | 886 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 64 | 263 | 422 | 567 | 699 | 801 | 864 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 67 | 248 | 400 | 523 | 660 | 751 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 58 | 217 | 356 | 502 | 634 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 64 | 225 | 453 | 638 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 64 | 302 | 594 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 77 | 315 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 6,324 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ | 3,905 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2016 | 101 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability for unallocated claim adjustment expenses for accident years presented | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net liability for unpaid claim and claim adjustment expenses | $ | 4,073 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Strengthening (Releases) of Prior Accident Year Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Years Ended December 31 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | (1) | $ | — | $ | 4 | $ | 3 | $ | (16) | $ | (3) | $ | 18 | $ | 6 | $ | (2) | $ | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | (2) | (32) | (22) | (16) | (17) | (12) | 6 | (8) | (103) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 14 | 5 | 37 | 17 | 18 | 46 | 16 | 153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 8 | 11 | 20 | 63 | 31 | 14 | 147 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 14 | 7 | (6) | — | (9) | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 1 | (29) | (44) | (9) | (81) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | (8) | (28) | (35) | (71) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 17 | 73 | 90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 50 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for the accident years presented above | 44 | 34 | 90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for accident years prior to 2016 | (7) | 10 | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total unallocated claim adjustment expense development | — | 5 | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 37 | $ | 49 | $ | 69 |
| (a) | Data presented for these calendar years is required supplemental information, which is unaudited. |
| 126 |
Surety
| Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31 | 2016 (a) | 2017 (a) | 2018 (a) | 2019 (a) | 2020 (a) | 2021 (a) | 2022 (a) | 2023 (a) | 2024 (a) | 2025 | IBNR | Cumulative Number of Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except reported claims data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 124 | $ | 124 | $ | 109 | $ | 84 | $ | 67 | $ | 64 | $ | 58 | $ | 43 | $ | 43 | $ | 43 | $ | 3 | 5,590 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 120 | 115 | 103 | 84 | 71 | 66 | 67 | 67 | 66 | 3 | 5,928 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 114 | 108 | 91 | 62 | 56 | 51 | 49 | 58 | 2 | 6,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 119 | 112 | 98 | 87 | 82 | 82 | 81 | 6 | 6,286 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 128 | 119 | 81 | 67 | 57 | 67 | 6 | 4,918 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 137 | 129 | 110 | 91 | 74 | 12 | 5,003 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 155 | 158 | 132 | 118 | 53 | 5,131 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 175 | 169 | 147 | 92 | 4,889 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 171 | 167 | 124 | 4,397 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 163 | 155 | 3,143 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 984 | $ | 456 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 5 | $ | 37 | $ | 45 | $ | 45 | $ | 43 | $ | 43 | $ | 41 | $ | 40 | $ | 40 | $ | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 23 | 37 | 41 | 46 | 49 | 62 | 62 | 63 | 63 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 5 | 25 | 34 | 39 | 40 | 41 | 41 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 12 | 34 | 44 | 59 | 70 | 74 | 75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 4 | 20 | 28 | 33 | 44 | 57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 5 | 20 | 35 | 42 | 59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 12 | 35 | 52 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 8 | 27 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 20 | 37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 492 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ | 492 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2016 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability for unallocated claim adjustment expenses for accident years presented | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net liability for unpaid claim and claim adjustment expenses | $ | 521 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Strengthening (Releases) of Prior Accident Year Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Years Ended December 31 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | — | $ | (15) | $ | (25) | $ | (17) | $ | (3) | $ | (6) | $ | (15) | $ | — | $ | — | $ | (81) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | (5) | (12) | (19) | (13) | (5) | 1 | — | (1) | (54) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | (6) | (17) | (29) | (6) | (5) | (2) | 9 | (56) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | (7) | (14) | (11) | (5) | — | (1) | (38) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | (9) | (38) | (14) | (10) | 10 | (61) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | (8) | (19) | (19) | (17) | (63) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 3 | (26) | (14) | (37) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | (6) | (22) | (28) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | (4) | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for the accident years presented above | (54) | (63) | (40) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for accident years prior to 2016 | 11 | (5) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total unallocated claim adjustment expense development | — | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | (43) | $ | (68) | $ | (50) |
| (a) | Data presented for these calendar years is required supplemental information, which is unaudited. |
| 127 |
Commercial Auto
| Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31 | 2016 (a) | 2017 (a) | 2018 (a) | 2019 (a) | 2020 (a) | 2021 (a) | 2022 (a) | 2023 (a) | 2024 (a) | 2025 | IBNR | Cumulative Number of Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except reported claims data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 198 | $ | 186 | $ | 186 | $ | 186 | $ | 190 | $ | 195 | $ | 200 | $ | 197 | $ | 195 | $ | 194 | $ | — | 30,459 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 199 | 198 | 200 | 221 | 232 | 239 | 241 | 241 | 237 | — | 30,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 229 | 227 | 227 | 245 | 254 | 255 | 260 | 259 | 1 | 34,333 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 257 | 266 | 289 | 323 | 325 | 327 | 323 | — | 37,281 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 310 | 303 | 304 | 298 | 303 | 299 | 7 | 29,192 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 397 | 388 | 390 | 393 | 377 | 16 | 33,063 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 437 | 465 | 496 | 506 | 55 | 37,327 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 554 | 620 | 635 | 120 | 42,921 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 726 | 799 | 270 | 49,670 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 886 | 616 | 41,075 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 4,515 | $ | 1,085 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 52 | $ | 93 | $ | 126 | $ | 154 | $ | 175 | $ | 185 | $ | 190 | $ | 192 | $ | 193 | $ | 193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 58 | 107 | 150 | 178 | 203 | 225 | 232 | 235 | 237 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 66 | 128 | 175 | 212 | 238 | 249 | 256 | 257 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 77 | 147 | 203 | 257 | 295 | 312 | 319 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 71 | 134 | 197 | 246 | 276 | 287 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 83 | 168 | 240 | 305 | 347 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 112 | 236 | 334 | 411 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 127 | 270 | 414 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 153 | 345 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 163 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 2,973 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ | 1,542 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2016 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability for unallocated claim adjustment expenses for accident years presented | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net liability for unpaid claim and claim adjustment expenses | $ | 1,573 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Strengthening (Releases) of Prior Accident Year Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Years Ended December 31 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | (12) | $ | — | $ | — | $ | 4 | $ | 5 | $ | 5 | $ | (3) | $ | (2) | $ | (1) | $ | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | (1) | 2 | 21 | 11 | 7 | 2 | — | (4) | 38 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | (2) | — | 18 | 9 | 1 | 5 | (1) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 9 | 23 | 34 | 2 | 2 | (4) | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | (7) | 1 | (6) | 5 | (4) | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | (9) | 2 | 3 | (16) | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 28 | 31 | 10 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 66 | 15 | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 73 | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for the accident years presented above | 26 | 110 | 68 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for accident years prior to 2016 | 4 | (3) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total unallocated claim adjustment expense development | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 33 | $ | 107 | $ | 74 |
| (a) | Data presented for these calendar years is required supplemental information, which is unaudited. |
| 128 |
General Liability
| Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31 | 2016 (a) | 2017 (a) | 2018 (a) | 2019 (a) | 2020 (a) | 2021 (a) | 2022 (a) | 2023 (a) | 2024 (a) | 2025 | IBNR | Cumulative Number of Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except reported claims data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 623 | $ | 659 | $ | 667 | $ | 671 | $ | 673 | $ | 683 | $ | 684 | $ | 704 | $ | 712 | $ | 723 | $ | 23 | 24,982 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 632 | 632 | 632 | 634 | 630 | 652 | 690 | 713 | 749 | 15 | 22,611 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 653 | 644 | 646 | 639 | 650 | 679 | 665 | 663 | 63 | 20,631 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 680 | 682 | 682 | 691 | 720 | 727 | 747 | 98 | 20,091 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 723 | 722 | 726 | 736 | 702 | 662 | 139 | 15,152 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 782 | 784 | 793 | 814 | 833 | 189 | 16,349 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 929 | 928 | 930 | 952 | 316 | 18,494 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 1,071 | 1,106 | 1,146 | 516 | 18,905 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 1,271 | 1,295 | 833 | 20,250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 1,381 | 1,218 | 15,771 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 9,151 | $ | 3,410 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 32 | $ | 163 | $ | 279 | $ | 407 | $ | 481 | $ | 524 | $ | 582 | $ | 620 | $ | 652 | $ | 681 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 23 | 118 | 250 | 399 | 471 | 553 | 606 | 657 | 705 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 33 | 107 | 228 | 307 | 428 | 491 | 546 | 573 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 25 | 98 | 181 | 322 | 455 | 532 | 607 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 23 | 99 | 192 | 280 | 367 | 450 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 26 | 140 | 262 | 391 | 542 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 29 | 123 | 260 | 439 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 33 | 153 | 356 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 34 | 180 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 4,576 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ | 4,575 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2016 | 179 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability for unallocated claim adjustment expenses for accident years presented | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net liability for unpaid claim and claim adjustment expenses | $ | 4,837 |
Net Strengthening (Releases) of Prior Accident Year Reserves
| Years Ended December 31 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 36 | $ | 8 | $ | 4 | $ | 2 | $ | 10 | $ | 1 | $ | 20 | $ | 8 | $ | 11 | $ | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | — | — | 2 | (4) | 22 | 38 | 23 | 36 | 117 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | (9) | 2 | (7) | 11 | 29 | (14) | (2) | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 2 | — | 9 | 29 | 7 | 20 | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | (1) | 4 | 10 | (34) | (40) | (61) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2 | 9 | 21 | 19 | 51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | (1) | 2 | 22 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 35 | 40 | 75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 24 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for the accident years presented above | 134 | 48 | 130 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for accident years prior to 2016 | 15 | 27 | (30) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total unallocated claim adjustment expense development | — | — | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 149 | $ | 75 | $ | 114 |
| (a) | Data presented for these calendar years is required supplemental information, which is unaudited. |
| 129 |
Workers’ Compensation
| Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31 | 2016 (a) | 2017 (a) | 2018 (a) | 2019 (a) | 2020 (a) | 2021 (a) | 2022 (a) | 2023 (a) | 2024 (a) | 2025 | IBNR | Cumulative Number of Claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except reported claims data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 426 | $ | 405 | $ | 396 | $ | 382 | $ | 366 | $ | 355 | $ | 331 | $ | 308 | $ | 293 | $ | 287 | $ | 40 | 32,007 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 440 | 432 | 421 | 400 | 402 | 399 | 398 | 383 | 364 | 44 | 33,164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 450 | 440 | 428 | 415 | 415 | 404 | 399 | 393 | 57 | 34,930 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 452 | 449 | 437 | 436 | 419 | 416 | 410 | 57 | 34,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 477 | 466 | 446 | 414 | 393 | 363 | 74 | 29,506 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 468 | 454 | 432 | 421 | 412 | 97 | 30,150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 497 | 489 | 478 | 467 | 108 | 33,488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 555 | 551 | 541 | 161 | 37,037 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 574 | 586 | 196 | 38,866 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 646 | 348 | 36,112 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 4,469 | $ | 1,182 |
| Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | 53 | $ | 129 | $ | 169 | $ | 198 | $ | 219 | $ | 227 | $ | 234 | $ | 235 | $ | 238 | $ | 238 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 63 | 151 | 207 | 243 | 265 | 279 | 287 | 293 | 295 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | 68 | 163 | 229 | 259 | 280 | 298 | 307 | 313 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | 71 | 169 | 223 | 262 | 291 | 310 | 320 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 65 | 147 | 200 | 228 | 246 | 257 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 67 | 164 | 222 | 256 | 273 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 79 | 192 | 258 | 299 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 87 | 209 | 286 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 111 | 264 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 2,672 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ | 1,797 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2016 | 1,648 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (b) | (23) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liability for unallocated claim adjustment expenses for accident years presented | 60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net liability for unpaid claim and claim adjustment expenses | $ | 3,482 |
Net Strengthening (Releases) of Prior Accident Year Reserves
| Years Ended December 31 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accident Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | $ | (21) | $ | (9) | $ | (14) | $ | (16) | $ | (11) | $ | (24) | $ | (23) | $ | (15) | $ | (6) | $ | (139) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | (8) | (11) | (21) | 2 | (3) | (1) | (15) | (19) | (76) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | (10) | (12) | (13) | — | (11) | (5) | (6) | (57) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | (3) | (12) | (1) | (17) | (3) | (6) | (42) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | (11) | (20) | (32) | (21) | (30) | (114) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | (14) | (22) | (11) | (9) | (56) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | (8) | (11) | (11) | (30) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | (4) | (10) | (14) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 12 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for the accident years presented above | (114) | (85) | (85) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment for development on a discounted basis | (2) | (2) | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net development for accident years prior to 2016 | (93) | (115) | (52) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total unallocated claim adjustment expense development | 6 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | (203) | $ | (202) | $ | (135) |
| (a) | Data presented for these calendar years is required supplemental information, which is unaudited. | ||||
| (b) | Other includes the effect of discounting lifetime claim reserves. |
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The table below presents information about average historical claims duration as of December 31, 2025 and is presented as required supplementary information, which is unaudited.
| Average Annual Percentage Payout of Ultimate Net Incurred Claim and Allocated Claim Adjustment Expenses in Year: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Medical professional liability | 3.6 | % | 16.6 | % | 21.4 | % | 16.7 | % | 13.2 | % | 9.7 | % | 6.1 | % | 2.9 | % | 1.8 | % | 0.4 | % | |||||||||||||||||||||||||||||||||||||||
| Other professional liability and management liability | 6.4 | 19.5 | 19.8 | 15.0 | 11.5 | 7.3 | 5.8 | 4.7 | 3.5 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Surety (a) | 15.2 | 36.2 | 12.9 | 8.4 | 6.3 | 9.2 | (0.9) | 2.6 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial auto | 22.6 | 22.5 | 19.1 | 15.2 | 10.7 | 5.5 | 2.6 | 0.9 | 0.7 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| General liability | 3.4 | 12.1 | 15.5 | 16.6 | 14.5 | 9.8 | 8.4 | 5.4 | 5.4 | 4.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Workers’ compensation | 17.6 | 24.2 | 14.5 | 8.8 | 5.8 | 3.8 | 2.3 | 1.2 | 0.8 | — |
(a)Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables.
A&EP Reserves
In 2010, Continental Casualty Company (“CCC”) together with several insurance subsidiaries completed a transaction with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc., under which substantially all of their legacy A&EP liabilities were ceded to NICO through a loss portfolio transfer (“LPT”). At the effective date of the transaction, approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves were ceded to NICO under a retroactive reinsurance agreement with an aggregate limit of $4.0 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third party reinsurance related to these liabilities. NICO was paid a reinsurance premium of $2.0 billion and billed third party reinsurance receivables related to A&EP claims with a net book value of $215 million were transferred to NICO, resulting in total consideration of $2.2 billion.
In years subsequent to the effective date of the LPT, adverse prior year development on A&EP reserves was recognized resulting in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT have exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which a change in the estimate of A&EP reserves is recognized that increases or decreases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is affected and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations.
The following table presents the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations.
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Additional amounts ceded under LPT | $ | 185 | $ | 103 | $ | 86 | |||||||||||
| Retroactive reinsurance benefit recognized | (140) | (95) | (94) | ||||||||||||||
| Pretax impact of deferred retroactive reinsurance | $ | 45 | $ | 8 | $ | (8) |
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Additional amounts ceded under the LPT of $185 million, $103 million and $86 million for the years ended December 31, 2025, 2024 and 2023 were primarily driven by unfavorable development in each year as a result of higher than anticipated defense and indemnity costs on known direct asbestos and environmental accounts.
As of December 31, 2025 and 2024, the cumulative amounts ceded under the LPT were $3.9 billion and $3.7 billion. The unrecognized deferred retroactive reinsurance benefit was $470 million and $425 million as of December 31, 2025 and 2024 and is included within Other liabilities on the Consolidated Balance Sheets.
NICO established a collateral trust account as security for its obligations under the LPT. The fair value of the collateral trust account was $2.4 billion as of December 31, 2025. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to A&EP claims.
Excess Workers’ Compensation LPT
On February 5, 2021, CNA completed a transaction with Cavello Bay Reinsurance Limited (“Cavello”), a subsidiary of Enstar Group Limited, under which certain legacy excess workers’ compensation (“EWC”) liabilities were ceded to Cavello. Under the terms of the transaction, based on reserves in place as of January 1, 2020, approximately $690 million of net EWC claim and allocated claim adjustment expense reserves were ceded to Cavello under a loss portfolio transfer (“EWC LPT”) with an aggregate limit of $1.0 billion. Cavello was paid a reinsurance premium of $697 million.
Net favorable prior year development of $75 million was recognized before consideration of cessions to the EWC LPT for the year ended December 31, 2025 primarily driven by lower than expected severity in older accident years. This favorable development was entirely offset by ceded retroactive reserve development under the EWC LPT.
As of December 31, 2025, the cumulative amount ceded under the EWC LPT was $615 million.
Cavello established a collateral trust as security for its obligations. The fair value of the collateral trust was $247 million as of December 31, 2025.
Note 8. Future Policy Benefits Reserves
Future policy benefits reserves are associated with CNA’s run-off long-term care business, included in Other Insurance Operations, and relate to policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported, as well as policyholders that are not yet receiving benefits. Future policy benefits reserves are comprised of the LFPB which is reflected as Insurance reserves: Future policy benefits on the Consolidated Balance Sheets.
The determination of Future policy benefits reserves requires management to make estimates and assumptions about expected policyholder experience over the remaining life of the policy. Since policies may be in force for several decades, these assumptions are subject to significant estimation risk. As a result of this variability, CNA’s future policy benefits reserves may be subject to material increases if actual experience develops adversely to its expectations.
Annually in the third quarter, actuarial analysis is performed on policyholder morbidity, persistency, premium rate actions and expense experience. This analysis, combined with judgment, informs the setting of updated cash flow assumptions used to estimate the LFPB. Actuarial analysis includes predictive modeling, actual to expected experience comparisons and trend analysis. Applicable industry research is also considered.
The cash flow assumption updates completed in the third quarter of 2025 resulted in a $7 million pretax increase in the LFPB. Included in the assumption updates were unfavorable incidence, claim closure and cost of care inflation impacts offset by favorable premium rate actions.
The cash flow assumption updates completed in the third quarter of 2024 resulted in a $15 million pretax increase in the LFPB. Included in the assumption updates was a favorable impact from outperformance on premium rate assumptions and an unfavorable impact from higher cost of care inflation.
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The following table summarizes balances and changes in the LFPB.
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Present value of future net premiums | |||||||||||||||||
| Balance, January 1 | $ | 3,425 | $ | 3,710 | $ | 3,991 | |||||||||||
| Effect of changes in discount rate | (7) | (125) | (74) | ||||||||||||||
| Balance, January 1, at original locked in discount rate | 3,418 | 3,585 | 3,917 | ||||||||||||||
| Effect of changes in cash flow assumptions (a) | 114 | 111 | 28 | ||||||||||||||
| Effect of actual variances from expected experience (a) | (10) | (41) | (126) | ||||||||||||||
| Adjusted balance, January 1 | 3,522 | 3,655 | 3,819 | ||||||||||||||
| Interest accrual | 176 | 183 | 202 | ||||||||||||||
| Net premiums: earned during period | (406) | (420) | (436) | ||||||||||||||
| Balance, end of period at original locked in discount rate | 3,292 | 3,418 | 3,585 | ||||||||||||||
| Effect of changes in discount rate | 71 | 7 | 125 | ||||||||||||||
| Balance, December 31 | $ | 3,363 | $ | 3,425 | $ | 3,710 | |||||||||||
| Present value of future benefits & expenses | |||||||||||||||||
| Balance, January 1 | $ | 16,583 | $ | 17,669 | $ | 17,471 | |||||||||||
| Effect of changes in discount rate | 440 | (578) | (125) | ||||||||||||||
| Balance, January 1, at original locked in discount rate | 17,023 | 17,091 | 17,346 | ||||||||||||||
| Effect of changes in cash flow assumptions (a) | 121 | 126 | 36 | ||||||||||||||
| Effect of actual variances from expected experience (a) | 87 | 69 | (46) | ||||||||||||||
| Adjusted balance, January 1 | 17,231 | 17,286 | 17,336 | ||||||||||||||
| Interest accrual | 918 | 924 | 962 | ||||||||||||||
| Benefit & expense payments | (1,165) | (1,187) | (1,207) | ||||||||||||||
| Balance, end of period at original locked in discount rate | 16,984 | 17,023 | 17,091 | ||||||||||||||
| Effect of changes in discount rate | (173) | (440) | 578 | ||||||||||||||
| Balance, December 31 | $ | 16,811 | $ | 16,583 | $ | 17,669 | |||||||||||
| Net LFPB, December 31 | $ | 13,448 | $ | 13,158 | $ | 13,959 |
| (a) | As of December 31, 2025, 2024 and 2023, the re-measurement loss of $(104), $(125) and $(88) presented parenthetically on the Consolidated Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience. |
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The following table presents earned premiums and interest accretion associated with the long-term care business recognized on the Consolidated Statement of Operations.
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Earned premiums | $ | 423 | $ | 437 | $ | 451 | |||||||||||
| Interest accretion | 742 | 741 | 760 |
The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In millions) | |||||||||||
| Expected future benefit and expense payments | $ | 31,323 | $ | 31,712 | |||||||
| Expected future gross premiums | 4,930 | 5,183 |
Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $3.5 billion and $3.6 billion as of December 31, 2025 and 2024.
The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 11 years as of December 31, 2025 and 2024.
The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Original locked in discount rate | 5.16 | % | 5.20 | % | |||||||
| Upper-medium grade fixed income instrument discount rate | 5.32 | 5.51 |
For the years ended December 31, 2025 and 2024, immediate charges to net income resulting from adverse development in certain cohorts where the NPR exceeded 100% were $135 million and $159 million. For the years ended December 31, 2025 and 2024, the portion of losses recognized in a prior period due to NPR exceeding 100% for certain cohorts which, due to favorable development, was reversed through net income were $58 million and $29 million.
Note 9. Leases
Lease agreements primarily cover office facilities and machinery and equipment and expire at various dates. Leases, predominantly operating leases, are included in Other assets and Other liabilities on the Consolidated Balance Sheets. The lease agreements do not contain significant residual value guarantees, restrictions or covenants.
Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payments is typically the applicable secured borrowing rate, as most of the leases do not provide an implicit rate. The operating lease right of use asset was $301 million and $320 million and the operating lease liability was $375 million and $406 million at December 31, 2025 and 2024.
Total lease expense was $77 million, $79 million and $87 million for the years ended December 31, 2025, 2024 and 2023 which includes operating lease expense of $53 million, $51 million and $58 million, variable lease expense of $20 million, $23 million and $24 million and short-term lease expense of $4 million, $5 million and $5 million. Cash paid for amounts included in operating lease liabilities was $59 million, $80 million and $60 million for years ended December 31,
| 134 |
2025, 2024 and 2023. Operating lease right of use assets obtained in exchange for lease obligations was $27 million, $73 million and $39 million for the years ended December 31, 2025, 2024 and 2023.
The table below presents the maturities of lease liabilities:
| Operating | |||||
| As of December 31, 2025 | Leases | ||||
| (In millions) | |||||
| 2026 | $ | 55 | |||
| 2027 | 55 | ||||
| 2028 | 50 | ||||
| 2029 | 51 | ||||
| 2030 | 47 | ||||
| Thereafter | 255 | ||||
| Total | 513 | ||||
| Less: discount | 138 | ||||
| Total lease liabilities | $ | 375 |
The table below presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating the operating lease asset and liability.
| As of December 31, 2025 | |||||
| Weighted average remaining lease term | 10.1 years | ||||
| Weighted average discount rate | 4.2 | % |
Note 10. Income Taxes
Loews Corporation and its eligible subsidiaries file a consolidated federal income tax return. Loews Corporation has entered into a separate tax allocation agreement with CNA. The agreement provides that Loews Corporation will: (i) pay to CNA the amount, if any, by which Loews Corporation’s consolidated federal income tax is reduced by virtue of inclusion of CNA in Loews Corporation’s return or (ii) be paid by CNA an amount, if any, equal to the federal income tax that would have been payable by CNA if it had filed a separate consolidated return. The agreement may be canceled by either of the parties upon thirty days written notice.
For 2023 through 2025, the Company participates in the Internal Revenue Service (“IRS”) Compliance Assurance Process (“CAP”), which is a voluntary program for large corporations. Under CAP, the IRS conducts a real-time audit and works contemporaneously with the Company to resolve any issues prior to the filing of the tax return. For 2023, the Company was selected to participate in the phase of CAP reserved for taxpayers whose risk of noncompliance did not support use of IRS resources. The Company believes that participation in CAP should reduce tax-related uncertainties, if any. Although the outcome of tax audits is always uncertain, the Company believes that any adjustments resulting from audits will not have a material impact on its results of operations, financial position or cash flows. The Company and/or its subsidiaries also file income tax returns in various state, local and foreign jurisdictions. These returns, with few exceptions, are no longer subject to examination by the various taxing authorities before 2021.
| 135 |
The components of U.S. and foreign income before income tax expense and the current and deferred components of income tax expense (benefit) are as follows:
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Income before income tax expense: | |||||||||||||||||
| U.S. | $ | 1,999 | $ | 1,672 | $ | 1,798 | |||||||||||
| Foreign | 284 | 202 | 198 | ||||||||||||||
| Total | $ | 2,283 | $ | 1,874 | $ | 1,996 | |||||||||||
| Current tax expense | |||||||||||||||||
| Federal | $ | 314 | $ | 320 | $ | 267 | |||||||||||
| State and local | 37 | 47 | 20 | ||||||||||||||
| Foreign | 48 | 58 | 37 | ||||||||||||||
| Total current tax expense | 399 | 425 | 324 | ||||||||||||||
| Deferred tax expense (benefit) | |||||||||||||||||
| Federal | 81 | (10) | 81 | ||||||||||||||
| State and local | 10 | (40) | 31 | ||||||||||||||
| Foreign | 21 | 5 | 15 | ||||||||||||||
| Total deferred tax expense (benefit) | 112 | (45) | 127 | ||||||||||||||
| Total income tax expense | |||||||||||||||||
| Federal | 395 | 310 | 348 | ||||||||||||||
| State and local | 47 | 7 | 51 | ||||||||||||||
| Foreign | 69 | 63 | 52 | ||||||||||||||
| Total income tax expense | $ | 511 | $ | 380 | $ | 451 |
| 136 |
A reconciliation of income tax expense at the federal statutory tax rate to income tax expense at the effective tax rate is as follows:
| Year Ended December 31 | 2025 | 2024 | 2023 | |||||||||||||||||
| (In millions, except %) | ||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
| Income tax expense at federal statutory tax rate | $ | 479 | 21.0 | % | $ | 393 | 21.0 | % | $ | 419 | 21.0 | % | ||||||||
| State and local income taxes, net of federal income tax effect (a) | 38 | 1.7 | % | 7 | 0.4 | % | 42 | 2.1 | % | |||||||||||
| Foreign tax effects | ||||||||||||||||||||
| Canada | 22 | 1.0 | % | 32 | 1.7 | % | 23 | 1.1 | % | |||||||||||
| Other | 9 | 0.4 | % | 7 | 0.4 | % | 7 | 0.4 | % | |||||||||||
| Tax credits | ||||||||||||||||||||
| Foreign tax credits | (25) | (1.1) | % | (36) | (1.9) | % | (26) | (1.3) | % | |||||||||||
| Other | (6) | (0.3) | % | (7) | (0.4) | % | (2) | (0.1) | % | |||||||||||
| Nontaxable or nondeductible items | ||||||||||||||||||||
| Nontaxable investment income | (30) | (1.3) | % | (26) | (1.4) | % | (31) | (1.6) | % | |||||||||||
| Other | 14 | 0.6 | % | 13 | 0.7 | % | 12 | 0.6 | % | |||||||||||
| Other adjustments | 10 | 0.4 | % | (3) | (0.2) | % | 7 | 0.4 | % | |||||||||||
| Income tax expense | $ | 511 | 22.4 | % | $ | 380 | 20.3 | % | $ | 451 | 22.6 | % |
| (a) | In 2025, state taxes in Florida, Illinois and Louisiana made up the majority of the tax effect in this category. In 2024, state taxes in Florida made up the majority of the tax effect in this category. In 2023, state taxes in Florida, Illinois, Louisiana and New York made up the majority of the tax effect in this category. |
For the year ended December 31, 2024, state and local income taxes include a $36 million income tax benefit from an adjustment to deferred state income taxes for a rate reduction effective in 2025 resulting from legislation enacted during the fourth quarter of 2024.
As of December 31, 2025, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax.
As of December 31, 2025, 2024 and 2023, there were no unrecognized tax benefits.
For the years ended December 31, 2025, 2024 and 2023, no interest expense or penalties were recorded in Income tax expense.
| 137 |
The following table summarizes deferred tax assets and liabilities:
| December 31 | 2025 | 2024 | |||||||||
| (In millions) | |||||||||||
| Deferred tax assets: | |||||||||||
| Insurance reserves: | |||||||||||
| Property and casualty claim and claim adjustment expense reserves | $ | 276 | $ | 234 | |||||||
| Unearned premium reserves | 227 | 225 | |||||||||
| Deferred revenue | 84 | 85 | |||||||||
| Employee benefits | 81 | 79 | |||||||||
| Deferred retroactive reinsurance benefit | 99 | 89 | |||||||||
| Net unrealized losses | 258 | 485 | |||||||||
| Other assets | 179 | 188 | |||||||||
| Total deferred tax assets | 1,204 | 1,385 | |||||||||
| Valuation allowance | (25) | (19) | |||||||||
| Net deferred tax assets | 1,179 | 1,366 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Deferred acquisition costs | (143) | (140) | |||||||||
| Policyholder reserves | (25) | (48) | |||||||||
| Property, plant and equipment | (1,056) | (963) | |||||||||
| Basis differential in investment in subsidiary | (473) | (481) | |||||||||
| Investment valuation differences | (218) | (176) | |||||||||
| Other liabilities | (87) | (69) | |||||||||
| Total deferred tax liabilities | (2,002) | (1,877) | |||||||||
| Net deferred tax liabilities (a) | $ | (823) | $ | (511) | |||||||
| (a) Includes deferred tax assets reflected in Other assets on the Consolidated Balance Sheets at December 31, 2025 and 2024 | $ | 16 | $ | 39 |
As of December 31, 2025, the Company has a U.S. foreign tax credit carryforward of $6 million that expires in 2034. In addition, as of December 31, 2025, the Company has net operating loss carryforwards in foreign tax jurisdictions of $83 million and tax credit carryforwards in such jurisdictions of $13 million that do not expire.
Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized deferred tax assets, net of valuation allowance, will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies. As of December 31, 2025, a valuation allowance of $25 million has been recorded related to state net operating losses and disallowed business interest expense from joint ventures.
| 138 |
Note 11. Debt
| December 31 | 2025 | 2024 | |||||||||
| (In millions) | |||||||||||
| Loews Corporation (Parent Company): | |||||||||||
| Senior: | |||||||||||
| 3.8% notes due 2026 (effective interest rate of 3.9%) (authorized, $500) | $ | 500 | $ | 500 | |||||||
| 3.2% notes due 2030 (effective interest rate of 3.3%) (authorized, $500) | 500 | 500 | |||||||||
| 6.0% notes due 2035 (effective interest rate of 6.2%) (authorized, $300) | 300 | 300 | |||||||||
| 4.1% notes due 2043 (effective interest rate of 4.3%) (authorized, $500) | 500 | 500 | |||||||||
| CNA Financial: | |||||||||||
| Senior: | |||||||||||
| 4.5% notes due 2026 (effective interest rate of 4.5%) (authorized, $500) | 500 | ||||||||||
| 3.5% notes due 2027 (effective interest rate of 3.5%) (authorized, $500) | 500 | 500 | |||||||||
| 3.9% notes due 2029 (effective interest rate of 3.9%) (authorized, $500) | 500 | 500 | |||||||||
| 2.1% notes due 2030 (effective interest rate of 2.1%) (authorized, $500) | 500 | 500 | |||||||||
| 5.5% notes due 2033 (effective interest rate of 5.7%) (authorized, $500) | 500 | 500 | |||||||||
| 5.1% notes due 2034 (effective interest rate of 5.3%) (authorized, $500) | 500 | 500 | |||||||||
| 5.2% notes due 2035 (effective interest rate of 5.2%) (authorized, $500) | 500 | ||||||||||
| Boardwalk Pipelines: | |||||||||||
| Senior: | |||||||||||
| 6.0% notes due 2026 (effective interest rate of 6.2%) (authorized, $550) | 550 | 550 | |||||||||
| 4.5% notes due 2027 (effective interest rate of 4.6%) (authorized, $500) | 500 | 500 | |||||||||
| 7.3% debentures due 2027 (effective interest rate of 8.1%) (authorized, $100) | 100 | 100 | |||||||||
| 4.8% notes due 2029 (effective interest rate of 4.9%) (authorized, $500) | 500 | 500 | |||||||||
| 3.4% notes due 2031 (effective interest rate of 3.5%) (authorized, $500) | 500 | 500 | |||||||||
| 3.6% notes due 2032 (effective interest rate of 3.7%) (authorized, $500) | 500 | 500 | |||||||||
| 5.6% notes due 2034 (effective interest rate of 5.8%) (authorized, $600) | 600 | 600 | |||||||||
| 5.4% notes due 2036 (effective interest rate of 5.5%) (authorized, $550) | 550 | ||||||||||
| Finance lease obligation | 3 | 4 | |||||||||
| Loews Hotels & Co: | |||||||||||
| Senior debt, principally mortgages (effective interest rates approximate 5.9% and 6.7%) | 1,009 | 1,011 | |||||||||
| 9,612 | 9,065 | ||||||||||
| Less unamortized discount and issuance costs | 72 | 70 | |||||||||
| Less intercompany eliminations | 51 | 51 | |||||||||
| Debt | $ | 9,489 | $ | 8,944 |
| 139 |
| December 31, 2025 | Principal | Unamortized Discount and Issuance Costs | Net | Short Term Debt | Long Term Debt | ||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Loews Corporation | $ | 1,800 | $ | 14 | $ | 1,786 | $ | 500 | $ | 1,286 | |||||||||||||||||||
| CNA Financial | 3,000 | 29 | 2,971 | 2,971 | |||||||||||||||||||||||||
| Boardwalk Pipelines | 3,803 | 21 | 3,782 | 550 | 3,232 | ||||||||||||||||||||||||
| Loews Hotels & Co | 1,009 | 8 | 1,001 | 2 | 999 | ||||||||||||||||||||||||
| Less intercompany eliminations | 51 | 51 | 51 | ||||||||||||||||||||||||||
| Total | $ | 9,561 | $ | 72 | $ | 9,489 | $ | 1,052 | $ | 8,437 |
At December 31, 2025, the aggregate long-term debt maturing in each of the next five years is approximately as follows: $1.1 billion in 2026, $1.1 billion in 2027, $56 million in 2028, $1.2 billion in 2029, $1.1 billion in 2030 and $5.1 billion thereafter. Long-term debt is generally redeemable in whole or in part at the greater of the principal amount or the net present value of remaining scheduled payments discounted at the specified treasury rate plus a margin.
CNA is a member of the Federal Home Loan Bank of Chicago (“FHLBC”). FHLBC membership provides participants with access to additional sources of liquidity through various programs and services. As a requirement of membership in the FHLBC, CNA held $5 million of FHLBC stock as of December 31, 2025, giving it access to approximately $108 million of additional liquidity. As of December 31, 2025 and 2024, CNA had no outstanding borrowings from the FHLBC.
In 2023, CNA amended and restated its existing credit agreement with a syndicate of banks. The agreement provides a five-year $250 million senior unsecured revolving credit facility which is intended to be used for general corporate purposes. At CNA’s election, the commitments under the amended and restated credit agreement may be increased from time to time up to an additional aggregate amount of $100 million, and two one-year extensions are available prior to any anniversary of the closing date, each subject to applicable consents. As of December 31, 2025, CNA had no outstanding borrowings under the credit agreement and was in compliance with all covenants.
In 2025, CNA completed a public offering of $500 million aggregate principal amount of its 5.2% senior notes due August 15, 2035 and redeemed the $500 million outstanding aggregate principal amount of its 4.5% senior notes in advance of the March 1, 2026 maturity date.
In 2025, Boardwalk Pipelines amended and restated its existing revolving credit agreement with Wells Fargo Bank, N.A., providing for available borrowing capacity of $1 billion through November 10, 2030. As of December 31, 2025, Boardwalk Pipelines had no outstanding borrowings under its revolving credit facility. As of December 31, 2025, Boardwalk Pipelines was in compliance with its covenants under the amended and restated credit agreement.
In 2025, Boardwalk Pipelines completed a public offering of $550 million aggregate principal amount of its 5.4% senior notes due February 15, 2036, the proceeds of which will be used to redeem on March 1, 2026 the outstanding $550 million aggregate principal amount of its 6.0% senior notes due June 1, 2026 at a redemption price equal to par plus accrued and unpaid interest.
In 2025, Loews Hotels & Co refinanced $363 million in loans. Loews Hotels & Co, through its subsidiaries, has debt with various lenders which is generally secured by specific hotel properties. These loans include a range of financial and operational covenants.
| 140 |
Note 12. Shareholders’ Equity
Accumulated other comprehensive income (loss)
The tables below present the changes in AOCI by component for the years ended December 31, 2023, 2024 and 2025:
| Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Unrealized Gains (Losses) on Other Investments | Cumulative impact of changes in discount rates used to measure long duration contracts | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2023 | $ | (7) | $ | (2,469) | $ | (36) | $ | 14 | $ | (622) | $ | (200) | $ | (3,320) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications, after tax of $6, $(290), $85, $2, $(10) and $0 | (24) | 1,072 | (318) | (5) | 41 | 60 | 826 | ||||||||||||||||||||||||||||||||||
| Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $(5), $(14), $0, $0, $(18) and $0 | 19 | 53 | 63 | 135 | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (5) | 1,125 | (318) | (5) | 104 | 60 | 961 | ||||||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (93) | 26 | (5) | (5) | (77) | ||||||||||||||||||||||||||||||||||||
| Purchase of CNA shares | (46) | (1) | (10) | (4) | (61) | ||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | $ | (12) | $ | (1,483) | $ | (329) | $ | 9 | $ | (533) | $ | (149) | $ | (2,497) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications, after tax of $9, $81, $(189), $(1), $(6) and $1 | (34) | (309) | 712 | 22 | (102) | 289 | |||||||||||||||||||||||||||||||||||
| Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $(9), $(13), $0, $0, $(86) and $0 | 33 | 47 | 318 | 398 | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (1) | (262) | 712 | — | 340 | (102) | 687 | ||||||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | 22 | (59) | (28) | 8 | (57) | ||||||||||||||||||||||||||||||||||||
| Other | 3 | (3) | — | ||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | (13) | $ | (1,720) | $ | 324 | $ | 9 | $ | (224) | $ | (243) | $ | (1,867) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications, after tax of $5, $(226), $43, $5, $(4) and $0 | (22) | 841 | (161) | (7) | 13 | 144 | 808 | ||||||||||||||||||||||||||||||||||
| Reclassification of losses from accumulated other comprehensive loss, after tax of $(5), $(12), $0, $0, $1 and $0 | 20 | 46 | 1 | 67 | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (2) | 887 | (161) | (7) | 14 | 144 | 875 | ||||||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (73) | 13 | (2) | (12) | (74) | ||||||||||||||||||||||||||||||||||||
| Other | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | $ | (15) | $ | (907) | $ | 176 | $ | 2 | $ | (212) | $ | (111) | $ | (1,067) |
| 141 |
Amounts reclassified from AOCI shown above are reported in Net income (loss) as follows:
| Major Category of AOCI | Affected Line Item | ||||
| Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments | Investment gains (losses) | ||||
| Unrealized gains (losses) on cash flow hedges | Operating revenues and other, Interest expense and Operating expenses and other | ||||
| Pension and postretirement benefits | Operating expenses and other |
Common Stock Dividends
Loews Corporation declared and paid dividends of $0.25 per share in the aggregate on its common stock in each of 2025, 2024 and 2023.
There are no restrictions on Loews Corporation’s retained earnings or net income with regard to payment of dividends. However, as a holding company, Loews Corporation relies upon invested cash balances and distributions from its subsidiaries to generate the funds necessary to declare and pay any dividends to holders of its common stock. The ability of Loews Corporation’s subsidiaries to pay dividends is subject to, among other things, the availability of sufficient earnings and funds in such subsidiaries, compliance with covenants in their respective credit agreements and applicable state laws, including in the case of the insurance subsidiaries of CNA, laws and rules governing the payment of dividends by regulated insurance companies. See Note 14 for a discussion of the regulatory restrictions on CNA’s availability to pay dividends.
Stock Purchases
Loews Corporation repurchased 8.9 million, 7.7 million and 14.0 million shares of its common stock at aggregate costs of $0.8 billion, $0.6 billion and $0.9 billion during the years ended December 31, 2025, 2024 and 2023. On December 31, 2025, 9.1 million shares of Loews Corporation common stock were retired. Upon retirement, treasury stock was eliminated through a reduction to common stock, APIC and retained earnings. Loews Corporation purchased 4.5 million shares of CNA’s common stock at an aggregate cost of $178 million in 2023.
Stock Issuances
Loews Corporation issued 0.2 million, 0.3 million and 0.2 million shares of its common stock to settle stock-based compensation awards during the years ended December 31, 2025, 2024 and 2023.
Note 13. Revenue from Contracts with Customers
Disaggregation of revenues – Revenue from contracts with customers, other than insurance premiums, is reported as Non-insurance warranty revenue and within Operating revenues and other on the Consolidated Statements of Operations. The following table presents revenues from contracts with customers disaggregated by revenue type along with the reportable segment and a reconciliation to Operating revenues and other as reported in Note 19:
| Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
| Non-insurance warranty – CNA Financial | $ | 1,577 | $ | 1,609 | $ | 1,624 | |||||||||||
| Transportation and storage of natural gas and NGLs and ethane supply and transportation services – Boardwalk Pipelines | $ | 2,263 | $ | 1,987 | $ | 1,582 | |||||||||||
| Lodging and related services – Loews Hotels & Co | 911 | 906 | 778 | ||||||||||||||
| Total revenues from contracts with customers | 3,174 | 2,893 | 2,360 | ||||||||||||||
| Other revenues | 105 | 98 | 95 | ||||||||||||||
| Operating revenues and other | $ | 3,279 | $ | 2,991 | $ | 2,455 |
| 142 |
Receivables from contracts with customers – As of December 31, 2025 and 2024, receivables from contracts with customers were approximately $252 million and $240 million and are included within Receivables on the Consolidated Balance Sheets.
Deferred revenue – As of December 31, 2025 and 2024, deferred revenue resulting from contracts with customers was approximately $4.2 billion and $4.6 billion and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Balance Sheets. The decrease in the deferred revenue balance for the year ended December 31, 2025 was primarily driven by recognized revenue from prior periods outpacing new growth in CNA’s non-insurance warranty business. Approximately $1.4 billion and $1.5 billion of revenues recognized during each of the years ended December 31, 2025 and 2024 were included in deferred revenue as of January 1, 2025 and 2024.
Contract costs – As of December 31, 2025 and 2024, the Company had approximately $3.2 billion and $3.5 billion of costs to obtain contracts with customers related to CNA for amounts paid to dealers and other agents to obtain non-insurance warranty contracts, which are reported as Deferred non-insurance warranty acquisition expenses on the Consolidated Balance Sheets. For the years ended December 31, 2025 and 2024, amortization expense of $1.2 billion is reported as Non-insurance warranty expense on the Consolidated Statement of Operations. There were no adjustments to deferred costs recorded for the years ended December 31, 2025 and 2024.
Performance obligations – As of December 31, 2025, approximately $23.6 billion of estimated operating revenues is expected to be recognized in the future related to outstanding performance obligations. The balance relates primarily to revenues for transportation and storage services for natural gas and natural gas liquids, olefins and other hydrocarbons (“NGLs”) and certain ethane supply contracts at Boardwalk Pipelines and non-insurance warranty revenue at CNA. Included in the balance are $9.9 billion of revenues that are anticipated under executed precedent or long-term firm transportation agreements associated with Boardwalk Pipelines’ growth projects. Approximately $2.9 billion is expected to be recognized during 2026, $2.3 billion in 2027 and the remainder in following years. The actual timing of recognition may vary due to factors outside of the Company’s control.
Note 14. Statutory Accounting Practices
CNA’s insurance subsidiaries are domiciled in various jurisdictions. These subsidiaries prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the respective jurisdictions’ insurance regulators. Domestic prescribed statutory accounting practices are set forth in a variety of publications of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and general administrative rules. These statutory accounting principles vary in certain respects from GAAP. In converting from statutory accounting principles to GAAP, the more significant adjustments include deferral of policy acquisition costs and the inclusion of net unrealized holding gains or losses in shareholders’ equity relating to certain fixed maturity securities.
CNA has a prescribed practice as it relates to the accounting under Statement of Statutory Accounting Principles No. 62, Property and Casualty Reinsurance, paragraphs 87 and 88 in conjunction with the 2010 loss portfolio transfer with NICO which is further discussed in Note 7. The prescribed practice allows CNA to aggregate all third party A&EP reinsurance balances administered by NICO in Schedule F and to utilize the LPT as collateral for the underlying third-party reinsurance balances for purposes of calculating the statutory reinsurance penalty. This prescribed practice increased statutory capital and surplus by $45 million and $55 million at December 31, 2025 and 2024.
The payment of dividends by CNA’s insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is generally limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective insurance regulator.
Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance (the “Department”) are determined based on the greater of the prior year’s statutory net income or 10% of statutory surplus as of the end of the prior year, as well as the timing and amount of dividends paid in the preceding 12 months. Additionally, ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December 31, 2025, CCC was in a positive earned surplus position. The maximum allowable dividend CCC could pay during 2026 that would not be subject to the Department’s prior approval is $1.3 billion, less dividends paid during the preceding 12 months measured at that point in time. CCC paid dividends of $1.1 billion in 2025. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company.
| 143 |
Combined statutory capital and surplus and statutory net income for the Combined Continental Casualty Companies are presented in the table below, determined in accordance with accounting practices prescribed or permitted by insurance and/or other regulatory authorities.
| Statutory Capital and Surplus | Statutory Net Income | ||||||||||||||||||||||||||||
| December 31 | Year Ended December 31 | ||||||||||||||||||||||||||||
| 2025**(a)** | 2024 | 2025(a) | 2024(b) | 2023 | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Combined Continental Casualty Companies | $11,578 | $11,165 | $1,258 | $713 | $1,172 |
(a)Information derived from the statutory-basis financial statements to be filed with insurance regulators.
(b)Includes a $293 million after-tax loss from pension settlement transactions. Pension settlement transactions are further discussed in Note 15.
CNA’s domestic insurance subsidiaries are subject to risk-based capital (“RBC”) requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formula for determining the amount of RBC specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity. The adequacy of a company’s actual capital is evaluated by a comparison to the RBC results, as determined by the formula. Companies below minimum RBC requirements are classified within certain levels, each of which requires specified corrective action.
The statutory capital and surplus presented above for CCC as of December 31, 2025 and 2024 was significantly above the level at which any RBC regulatory action would occur. The statutory capital and surplus of CNA’s foreign insurance subsidiaries, which is not significant to the overall statutory capital and surplus, also met or exceeded their respective regulatory and other capital requirements.
Note 15. Benefit Plans
Pension Plans – Several non-contributory defined benefit plans are maintained for eligible employees. For benefits in certain plans, the accrued pension balance is credited with interest based on specified annual interest rates (which are established annually for all participants). The benefits for another plan which covers salaried employees are based on formulas which include, among others, years of service and average pay. The funding policy is to make contributions in accordance with applicable governmental regulatory requirements.
Other Postretirement Benefit Plans – Several postretirement benefit plans cover eligible employees and retirees. Participants generally become eligible after reaching age 55 with required years of service. Actual requirements for coverage vary by plan. Benefits for retirees who were covered by bargaining agreements vary by each unit and contract. Benefits for certain retirees are in the form of a health care account.
Benefits for retirees reaching age 65 are generally integrated with Medicare. Other retirees, based on plan provisions, must use Medicare as their primary coverage, with a portion of the unpaid amount being reimbursed by the employer; or are reimbursed for the Medicare Part B premium or have no employer coverage. The benefits provided are basically health and, for certain retirees, life insurance type benefits.
Certain of these benefit plans are funded and postretirement benefits are accrued during the active service of those employees who would become eligible for such benefits when they retire. December 31 is used as the measurement date for the plans.
| 144 |
Weighted average assumptions used to determine benefit obligations:
| Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||
| December 31 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||
| Discount rate | 5.1 | % | 5.4 | % | 5.0 | % | 5.3 | % | 5.5 | % | 5.1 | % | |||||||||||||||||||||||
| Interest crediting rate | 4.4 | % | 4.3 | % | 4.5 | % | |||||||||||||||||||||||||||||
| Rate of compensation increase | 0.0% to 5.0% | 0.0% to 4.5% | 0.0% to 3.5% |
Weighted average assumptions used to determine net periodic benefit cost:
| Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||
| Year Ended December 31 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||
| Discount rate | 5.4 | % | 5.0 | % | 5.2 | % | 5.5 | % | 5.1 | % | 5.4 | % | |||||||||||||||||||||||
| Expected long-term rate of return on plan assets | 6.2 | % | 6.1 | % | 6.2 | % | 3.4 | % | 3.3 | % | 3.0 | % | |||||||||||||||||||||||
| Interest crediting rate | 4.3 | % | 4.5 | % | 3.5 | % | |||||||||||||||||||||||||||||
| Rate of compensation increase | 0.0% to 4.5% | 0.0% to 3.5% | 0.0% to 3.8% |
In determining the discount rate assumption, current market and liability information is utilized, including a discounted cash flow analysis of the pension and postretirement obligations. In particular, the basis for the discount rate selection was the yield on indices of highly rated fixed income debt securities with durations comparable to that of plan liabilities. The yield curve was applied to expected future retirement plan payments to adjust the discount rate to reflect the cash flow characteristics of the plans. The yield curves and indices evaluated in the selection of the discount rate are comprised of high quality corporate bonds that are rated AA by an accepted rating agency.
The expected long-term rate of return for plan assets is determined based on widely-accepted capital market principles, long-term return analysis for global fixed income and equity markets as well as the active total return oriented portfolio management style. Long-term trends are evaluated relative to market factors such as inflation, interest rates and fiscal and monetary policies, in order to assess the capital market assumptions as applied to the plan. Consideration of diversification needs and rebalancing is maintained.
Assumed health care cost trend rates:
| December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| Health care cost trend rate assumed for next year | 4.0% to 7.0% | 4.0% to 8.0% | 4.0% to 7.0% | ||||||||||||||
| Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.0% to 5.3% | 4.0% to 5.5% | 4.0% to 5.5% | ||||||||||||||
| Year that the rate reaches the ultimate trend rate | 2026-2033 | 2025-2029 | 2024-2028 |
In 2024, a subsidiary of CNA, as a sponsor of the CNA Employee Retirement Plan Trust (the “Plan”), paid $1 billion to purchase a nonparticipating single premium group annuity contract with Metropolitan Life Insurance Company (the “Insurer”) that transferred to the Insurer $1 billion of the Plan’s defined benefit pension obligations. The group annuity contract covers approximately 7,600 Plan participants and beneficiaries (the “Transferred Participants”), representing approximately 60% of the Plan’s obligations. Under the group annuity contract, the Insurer has made an irrevocable commitment, and will be solely responsible, to pay the pension benefits of each Transferred Participant that are due on and after January 1, 2025. The purchase of the group annuity contract was funded directly by assets of the Plan and required no cash or asset contributions from CNA. As a result of the transaction, CNA recognized a pretax pension settlement charge of $367 million ($265 million after tax and noncontrolling interest). This charge is largely driven by the accelerated recognition of the actuarial pension loss from Accumulated other comprehensive income into Net income, which does not impact Shareholders’ equity.
| 145 |
In 2023, the Parent Company completed the termination of a non-contributory defined benefit plan. In total, the plan paid $66 million for the purchase of group annuity contracts from a third party insurance company to settle its obligations to retirees and certain participants and $34 million in lump sum payments to settle its obligations to certain other participants. The Company recorded a settlement expense of $47 million ($37 million after-tax) to recognize unrealized losses which were previously included in AOCI.
In 2023, the CNA Retirement Plan paid $80 million to settle its obligation to certain retirees through the purchase of a group annuity contract from a third party insurance company, which reduced the plan’s projected benefit obligation by $86 million.
| 146 |
Net periodic (benefit) cost components:
| Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||
| Year Ended December 31 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Service cost | $ | 2 | $ | 2 | $ | 2 | |||||||||||||||||||||||||||||
| Interest cost | 45 | 96 | 110 | $ | 2 | $ | 2 | $ | 2 | ||||||||||||||||||||||||||
| Expected return on plan assets | (60) | (119) | (125) | (3) | (3) | (3) | |||||||||||||||||||||||||||||
| Amortization of unrecognized net loss | 7 | 29 | 35 | 1 | 1 | 1 | |||||||||||||||||||||||||||||
| Amortization of unrecognized prior service benefit | (2) | ||||||||||||||||||||||||||||||||||
| Settlements | 1 | 372 | 48 | 3 | |||||||||||||||||||||||||||||||
| Regulatory asset decrease | 1 | ||||||||||||||||||||||||||||||||||
| Net periodic (benefit) cost | $ | (4) | $ | 380 | $ | 70 | $ | 1 | $ | — | $ | — |
The following provides a reconciliation of benefit obligations and plan assets:
| Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Change in benefit obligation: | |||||||||||||||||||||||
| Benefit obligation at January 1 | $ | 857 | $ | 1,991 | $ | 31 | $ | 34 | |||||||||||||||
| Service cost | 2 | 2 | |||||||||||||||||||||
| Interest cost | 45 | 96 | 2 | 2 | |||||||||||||||||||
| Plan participants’ contributions | 1 | 2 | |||||||||||||||||||||
| Amendments | 8 | ||||||||||||||||||||||
| Actuarial (gain) loss | 18 | (29) | 2 | ||||||||||||||||||||
| Benefits paid from plan assets | (58) | (149) | (7) | (7) | |||||||||||||||||||
| Settlements | (9) | (1,052) | |||||||||||||||||||||
| Foreign exchange | 5 | (2) | |||||||||||||||||||||
| Benefit obligation at December 31 | $ | 860 | $ | 857 | $ | 37 | $ | 31 | |||||||||||||||
| Change in plan assets: | |||||||||||||||||||||||
| Fair value of plan assets at January 1 | $ | 1,004 | $ | 2,074 | $ | 83 | $ | 83 | |||||||||||||||
| Actual return on plan assets | 96 | 120 | 5 | 3 | |||||||||||||||||||
| Company contributions | 14 | 13 | 3 | 2 | |||||||||||||||||||
| Plan participants' contributions | 1 | 2 | |||||||||||||||||||||
| Benefits paid from plan assets | (58) | (149) | (7) | (7) | |||||||||||||||||||
| Settlements | (9) | (1,052) | |||||||||||||||||||||
| Foreign exchange | 6 | (2) | |||||||||||||||||||||
| Fair value of plan assets at December 31 | $ | 1,053 | $ | 1,004 | $ | 85 | $ | 83 | |||||||||||||||
| Funded status | $ | 193 | $ | 147 | $ | 48 | $ | 52 |
| 147 |
| Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Amounts recognized in the Consolidated Balance Sheets consist of: | |||||||||||||||||||||||
| Other assets | $ | 332 | $ | 283 | $ | 56 | $ | 61 | |||||||||||||||
| Other liabilities | (139) | (136) | (8) | (9) | |||||||||||||||||||
| Net amount recognized | $ | 193 | $ | 147 | $ | 48 | $ | 52 | |||||||||||||||
| Amounts recognized in Accumulated other comprehensive income (loss), not yet recognized in net periodic (benefit) cost: | |||||||||||||||||||||||
| Prior service credit | $ | 1 | $ | 1 | $ | 9 | |||||||||||||||||
| Net actuarial loss | 216 | 241 | (2) | $ | 2 | ||||||||||||||||||
| Net amount recognized | $ | 217 | $ | 242 | $ | 7 | $ | 2 | |||||||||||||||
| Information for plans with projected and accumulated benefit obligations in excess of plan assets: | |||||||||||||||||||||||
| Projected benefit obligation | $ | 139 | $ | 136 | |||||||||||||||||||
| Accumulated benefit obligation | 139 | 136 | $ | 8 | $ | 9 | |||||||||||||||||
| Fair value of plan assets | — | — |
The accumulated benefit obligation for all defined benefit pension plans was $856 million and $854 million at December 31, 2025 and 2024.
A total return approach is employed whereby a mix of equity, limited partnerships and fixed maturity securities are used to maximize the long-term return of plan assets for a prudent level of risk and to manage cash flows according to plan requirements. The target allocation of plan assets is 0% to 40% invested in equity securities and limited partnerships, with the remainder primarily invested in fixed maturity securities. The intent of this strategy is to minimize expenses by generating investment returns that exceed the growth of the plan liabilities over the long run. Risk tolerance is established after careful consideration of the plan liabilities, plan funded status and corporate financial conditions. The investment portfolios contain a diversified blend of fixed maturity, equity and short-term securities. Alternative investments, including limited partnerships, are used to enhance risk adjusted long-term returns while improving portfolio diversification. At December 31, 2025, $86 million is committed to fund future capital calls from various third party limited partnership investments in exchange for an ownership interest in the related partnerships. Investment risk is monitored through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews.
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The table below presents the estimated future minimum benefit payments at December 31, 2025.
| Expected future benefit payments | Pension Benefits | Other Postretirement Benefits | |||||||||
| (In millions) | |||||||||||
| 2026 | $ | 85 | $ | 4 | |||||||
| 2027 | 80 | 4 | |||||||||
| 2028 | 76 | 3 | |||||||||
| 2029 | 73 | 4 | |||||||||
| 2030 | 71 | 3 | |||||||||
| 2031 – 2035 | 310 | 11 |
In 2026, it is expected that contributions of approximately $19 million will be made to pension plans and $1 million to postretirement health care and life insurance benefit plans.
Pension plan assets measured at fair value on a recurring basis are summarized below.
| December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Plan assets at fair value: | |||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| Corporate and other bonds | $ | 473 | $ | 4 | $ | 477 | |||||||||||||||||
| States, municipalities and political subdivisions | 11 | 11 | |||||||||||||||||||||
| Asset-backed | 103 | 8 | 111 | ||||||||||||||||||||
| Total fixed maturities | $ | — | 587 | 12 | 599 | ||||||||||||||||||
| Equity securities | 35 | 36 | 71 | ||||||||||||||||||||
| Short-term investments | 56 | 56 | |||||||||||||||||||||
| Fixed income mutual funds | 31 | 31 | |||||||||||||||||||||
| Other assets | 3 | 3 | |||||||||||||||||||||
| Total plan assets at fair value | $ | 122 | $ | 626 | $ | 12 | $ | 760 | |||||||||||||||
| Plan assets at net asset value: (a) | |||||||||||||||||||||||
| Limited partnerships | 293 | ||||||||||||||||||||||
| Total plan assets | $ | 122 | $ | 626 | $ | 12 | $ | 1,053 |
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| December 31, 2024 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Plan assets at fair value: | |||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| Corporate and other bonds | $ | 408 | $ | 5 | $ | 413 | |||||||||||||||||
| States, municipalities and political subdivisions | 6 | 6 | |||||||||||||||||||||
| Asset-backed | 113 | 8 | 121 | ||||||||||||||||||||
| Total fixed maturities | — | 527 | 13 | 540 | |||||||||||||||||||
| Equity securities | 44 | 15 | 59 | ||||||||||||||||||||
| Short-term investments | 59 | 59 | |||||||||||||||||||||
| Fixed income mutual funds | 40 | 40 | |||||||||||||||||||||
| Other assets | 2 | 2 | |||||||||||||||||||||
| Total plan assets at fair value | $ | 143 | $ | 544 | $ | 13 | $ | 700 | |||||||||||||||
| Plan assets at net asset value: (a) | |||||||||||||||||||||||
| Limited partnerships | 304 | ||||||||||||||||||||||
| Total plan assets | $ | 143 | $ | 544 | $ | 13 | $ | 1,004 |
(a)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.
The limited partnership investments held within the plans are recorded at fair value, which represents the plans’ shares of the net asset value of each partnership, as determined by the general partner. Limited partnerships comprising more than 99% of the carrying value as of December 31, 2025 and 2024 were invested in private debt and equity. Limited partnerships comprising less than 1% of the carrying value as of December 31, 2025 and 2024 employ hedge fund strategies. Private debt and equity funds cover a broad range of investment strategies including buyout, private credit, growth capital and distressed investing. Hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments. Within hedge fund strategies, approximately 100% were equity related, none pursued a multi-strategy approach and none were focused on distressed investments at December 31, 2025.
For a discussion of the valuation methodologies used to measure fixed maturity securities, equities and short-term investments, see Note 4.
Other postretirement benefits plan assets measured at fair value on a recurring basis are summarized below.
| December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| Corporate and other bonds | $ | 45 | $ | 45 | |||||||||||||||||||
| States, municipalities and political subdivisions | 32 | 32 | |||||||||||||||||||||
| Asset-backed | 1 | 1 | |||||||||||||||||||||
| Total fixed maturities | $ | — | 78 | $ | — | 78 | |||||||||||||||||
| Short-term investments | 6 | 6 | |||||||||||||||||||||
| Fixed income mutual funds | 2 | 2 | |||||||||||||||||||||
| Total assets | $ | 8 | $ | 78 | $ | — | $ | 86 | |||||||||||||||
| Other liabilities | $ | 1 | $ | 1 |
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| December 31, 2024 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| Corporate and other bonds | $ | 48 | $ | 48 | |||||||||||||||||||
| States, municipalities and political subdivisions | 35 | 35 | |||||||||||||||||||||
| Asset-backed | 1 | 1 | |||||||||||||||||||||
| Total fixed maturities | $ | — | 84 | $ | — | 84 | |||||||||||||||||
| Short-term investments | 2 | 2 | |||||||||||||||||||||
| Fixed income mutual funds | 15 | 15 | |||||||||||||||||||||
| Total | $ | 17 | $ | 84 | $ | — | $ | 101 | |||||||||||||||
| Other liabilities | $ | 18 | $ | 18 |
There were no Level 3 assets at December 31, 2025 and 2024.
Savings Plans – Several contributory savings plans are maintained which allow employees to make regular contributions based upon a percentage of their salaries. Matching contributions are made up to specified percentages of employees’ contributions. In addition, in certain plans, eligible employees also receive a contribution of a percentage of their annual eligible compensation. Employer contributions to these plans amounted to $119 million, $110 million and $103 million for the years ended December 31, 2025, 2024 and 2023.
Stock-based Compensation – In 2025, shareholders approved the Loews Corporation 2025 Incentive Compensation Plan (the “2025 Loews Plan”) which replaced a previously existing equity plan. The aggregate number of shares of Loews Corporation common stock authorized under the 2025 Loews Plan is 6,000,000 shares, plus up to 1,773,495 shares that were subject to outstanding awards and may be forfeited under the prior plan.
Loews Corporation stock-based compensation consists of time-based restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), stock appreciation rights (“SARs”) and awards of common stock. RSUs and PSUs represent the right to receive one share of Loews Corporation common stock for each vested award. RSUs and PSUs vest 50% on the second anniversary of the grant date and 50% on the third anniversary of the grant date. PSUs are also subject to the achievement of specified performance goals by the Company. SARs represent the right to receive payment with respect to the difference, if any, between the value of a share of Loews Corporation common stock and the exercise price of the SAR on the exercise date. SARs become exercisable seven years after the grant date and expire ten years after the grant date.
In 2025, Loews Corporation granted an aggregate of 136,092 RSUs and PSUs at a weighted average grant-date fair value of $84.92 per unit, 1,237,500 SARs with a weighted average exercise price of $161.11 per share and 5,462 shares of common stock with a weighted average grant-date fair value of $100.12 per share. No RSUs were forfeited during the year and all 1,237,500 SARs remained outstanding at December 31, 2025.
The Company recognized compensation expense in connection with stock-based compensation that decreased net income by $41 million, $39 million and $36 million for the years ended December 31, 2025, 2024 and 2023. CNA also maintains its own stock-based compensation plan.
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Note 16. Reinsurance
CNA cedes insurance to reinsurers to limit its maximum loss, provide greater diversification of risk, minimize exposures on larger risks and to exit certain lines of business. The ceding of insurance does not discharge the primary liability of CNA. A credit exposure exists with respect to reinsurance ceded to the extent that any reinsurer is unable to meet its obligations. A collectability exposure also exists to the extent that the reinsurer disputes the liabilities assumed under reinsurance agreements. Property and casualty reinsurance coverages are tailored to the specific risk characteristics of each product line and CNA’s retained amount varies by type of coverage. Reinsurance contracts are purchased to protect specific lines of business such as property and workers’ compensation. Corporate catastrophe reinsurance is also purchased for property and workers’ compensation exposure. CNA also utilizes facultative reinsurance in certain lines. In addition, CNA assumes reinsurance, primarily through Hardy and as a member of various reinsurance pools and associations.
The following table presents the amounts receivable from reinsurers:
| December 31 | 2025 | 2024 | |||||||||
| (In millions) | |||||||||||
| Reinsurance receivables related to insurance reserves: | |||||||||||
| Ceded claim and claim adjustment expenses | $ | 5,982 | $ | 5,713 | |||||||
| Reinsurance receivables related to paid losses | 426 | 359 | |||||||||
| Reinsurance receivables | 6,408 | 6,072 | |||||||||
| Less allowance for doubtful accounts | 27 | 21 | |||||||||
| Reinsurance receivables, net of allowance for doubtful accounts | $ | 6,381 | $ | 6,051 |
CNA has established an allowance for doubtful accounts on voluntary reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The following table summarizes the outstanding amount of voluntary reinsurance receivables, gross of any collateral arrangements, by financial strength rating:
| As of December 31, 2025 | |||||
| (In millions) | |||||
| A- to A++ | $ | 4,864 | |||
| B- to B++ | 967 | ||||
| Insolvent | 9 | ||||
| Total voluntary reinsurance outstanding balance (a) | $ | 5,840 |
| (a) | Expected credit losses for legacy A&EP receivables are ceded to NICO and the reinsurance limit on the LPT has not been exhausted, therefore no allowance is recorded for these receivables and they are excluded from the table above. See Note 7 for more information on the LPT. Also excluded are receivables from involuntary pools. |
CNA attempts to mitigate its credit risk related to reinsurance by entering into reinsurance arrangements with reinsurers that have credit ratings above certain levels and by obtaining collateral. On a limited basis, CNA may enter into reinsurance agreements with reinsurers that are not rated, primarily captive reinsurers. Receivables from captive reinsurers are backed by collateral arrangements and comprise the majority of the voluntary reinsurance receivables within the B- to B++ rating distribution in the table above. The primary methods of obtaining collateral are through reinsurance trusts, letters of credit and funds withheld balances. Such collateral, limited by the balance of open recoverables, was approximately $3.8 billion and $3.4 billion at December 31, 2025 and 2024.
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CNA’s largest recoverables from a single reinsurer, including ceded unearned premium reserves as of December 31, 2025 were approximately $1.9 billion from subsidiaries of the Berkshire Hathaway Insurance Group, $466 million from Cavello Bay Reinsurance Limited and $390 million from the Swiss Reinsurance Group. These amounts are substantially collateralized or otherwise secured. The recoverable from subsidiaries of the Berkshire Hathaway Insurance Group includes amounts related to third party reinsurance for which NICO has assumed the credit risk under the terms of the loss portfolio transfer as discussed in Note 7.
The effects of reinsurance on earned premiums are presented in the following table:
| Assumed/ | |||||||||||||||||||||||||||||
| Direct | Assumed | Ceded | Net | Net % | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Property and casualty | $ | 14,974 | $ | 253 | $ | 4,750 | $ | 10,477 | 2.4 | % | |||||||||||||||||||
| Long-term care | 383 | 40 | 423 | 9.5 | |||||||||||||||||||||||||
| Earned premiums | $ | 15,357 | $ | 293 | $ | 4,750 | $ | 10,900 | 2.7 | % | |||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Property and casualty | $ | 14,629 | $ | 252 | $ | 5,107 | $ | 9,774 | 2.6 | % | |||||||||||||||||||
| Long-term care | 396 | 41 | 437 | 9.4 | |||||||||||||||||||||||||
| Earned premiums | $ | 15,025 | $ | 293 | $ | 5,107 | $ | 10,211 | 2.9 | % | |||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Property and casualty | $ | 13,908 | $ | 223 | $ | 5,102 | $ | 9,029 | 2.5 | % | |||||||||||||||||||
| Long-term care | 407 | 44 | 451 | 9.8 | |||||||||||||||||||||||||
| Earned premiums | $ | 14,315 | $ | 267 | $ | 5,102 | $ | 9,480 | 2.8 | % |
Included in the direct and ceded earned premiums for the years ended December 31, 2025, 2024 and 2023 are $2.3 billion, $2.7 billion and $2.9 billion related to insurance policies supporting service contracts associated with portable electronic devices, which are 100% reinsured under a significant third party warranty captive program. The third-party captives that participate in this program are affiliated with the non-insurance company policyholders, therefore this program provides a means for the policyholders to self-insure the risk. CNA receives and retains a ceding commission.
Insurance claims and policyholders’ benefits reported on the Consolidated Statements of Operations are net of estimated reinsurance recoveries of $2.9 billion, $3.5 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, including $1.3 billion, $1.7 billion and $1.5 billion related to the significant third party captive program discussed above.
Long-term care premiums are from long-duration contracts; property and casualty premiums are from short-duration contracts.
Note 17. Legal Proceedings
Loews Hotels & Co
On February 20, 2024, Jeanette Portillo and other plaintiffs filed a putative class action against Loews Hotels Holdings Corporation and other defendants in the United States District Court for the Western District of Washington. On March 1, 2024, Ryan Segal filed a putative class action against Loews Hotels Holdings Corporation and other defendants in the United States District Court for the Northern District of Illinois. Both suits assert antitrust claims against defendants under the Sherman Act, 15 U.S.C. § 1. Defendants jointly filed motions to dismiss the complaints in Portillo and Segal on May 17, 2024 and June 24, 2024, respectively. On March 31, 2025, the court granted the defendants’ motion to dismiss in Segal, and granted plaintiff leave to amend the complaint. On April 28, 2025, Segal filed a third amended complaint alleging that
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Loews Hotels & Co and other defendants violated the Sherman Act. Defendants jointly filed a motion to dismiss the third amended complaint in Segal on June 12, 2025. The court has not ruled on the motion to dismiss the third amended complaint in Segal. On August 29, 2025, the court granted the defendants’ motion to dismiss in Portillo and granted plaintiffs leave to amend their complaint. On October 3, 2025, plaintiffs in Portillo filed an amended class action complaint alleging violations of the Sherman Act by Loews Hotels & Co and others. Defendants moved to dismiss the amended complaint in Portillo on November 3, 2025. The court has not ruled on the motion to dismiss the amended complaint in Portillo.
Boardwalk Pipelines
On May 25, 2018, plaintiffs Tsemach Mishal and Paul Berger (on behalf of themselves and the purported class, “Plaintiffs”) initiated a purported class action in the Court of Chancery of the State of Delaware (the “Trial Court”) against the following defendants: Boardwalk Pipelines, Boardwalk GP, LP (“General Partner”), Boardwalk GP, LLC and Boardwalk Pipelines Holding Corp. (“BPHC”) (together, “Defendants”), regarding the potential exercise by the General Partner of its right to purchase all of the issued and outstanding common units representing limited partnership interests in Boardwalk Pipelines not already owned by the General Partner or its affiliates.
On June 25, 2018, Plaintiffs and Defendants entered into a Stipulation and Agreement of Compromise and Settlement, subject to the approval of the Trial Court (the “Proposed Settlement”). Under the terms of the Proposed Settlement, the lawsuit would be dismissed, and related claims against the Defendants would be released by the Plaintiffs, if BPHC, the sole member of the General Partner, elected to cause the General Partner to exercise its right to purchase the issued and outstanding common units of Boardwalk Pipelines pursuant to Boardwalk Pipelines’ Third Amended and Restated Agreement of Limited Partnership, as amended (“Limited Partnership Agreement”), within a period specified by the Proposed Settlement. On June 29, 2018, the General Partner elected to exercise its right to purchase all of the issued and outstanding common units representing limited partnership interests in Boardwalk Pipelines not already owned by the General Partner or its affiliates pursuant to the Limited Partnership Agreement within the period specified by the Proposed Settlement. The transaction was completed on July 18, 2018.
On September 28, 2018, the Trial Court denied approval of the Proposed Settlement. On February 11, 2019, a substitute verified class action complaint was filed in this proceeding, which among other things, added the Parent Company as a Defendant. The Defendants filed a motion to dismiss, which was heard by the Trial Court in July of 2019. In October of 2019, the Trial Court ruled on the motion and granted a partial dismissal, with certain aspects of the case proceeding to trial. A trial was held the week of February 22, 2021 and post-trial oral arguments were held on July 14, 2021.
On November 12, 2021, the Trial Court issued a ruling in the case. The Trial Court held that the General Partner breached the Limited Partnership Agreement and awarded Plaintiffs approximately $690 million, plus pre-judgment interest (approximately $166 million), post-judgment interest and attorneys’ fees.
The Company believed that the Trial Court ruling included factual and legal errors. Therefore, on January 3, 2022, the Defendants appealed the Trial Court’s ruling to the Supreme Court of the State of Delaware (the “Supreme Court”). On January 17, 2022, the Plaintiffs filed a cross-appeal to the Supreme Court contesting the calculation of damages by the Trial Court. Oral arguments were held on September 14, 2022, and on December 19, 2022, the Supreme Court reversed the Trial Court’s ruling and remanded the case to the Trial Court for further proceedings related to claims not decided by the Trial Court’s ruling. Briefing by the parties at the Trial Court on the remanded issues was completed in September 2023. A hearing on the remanded issues was held at the Trial Court in April 2024. In September 2024, the Trial Court ruled in favor of the Defendants on all of the remanded issues.
On October 21, 2024, the Plaintiffs appealed the Trial Court’s ruling on the remanded issues to the Supreme Court. Briefing on this appeal was completed in March 2025 and a hearing on this appeal occurred in June 2025. On December 10, 2025, the Supreme Court affirmed in part and reversed in part the Trial Court’s ruling. In its decision the Supreme Court found that the General Partner had breached the Limited Partnership Agreement in its exercise of the Purchase Right. In its 2022 decision, the Supreme Court had previously determined that the General Partner was exculpated from damages. The remaining claims that have been remanded by the Supreme Court to the Trial Court for further proceedings are tortious interference and unjust enrichment claims related to the exercise of the Purchase Right against the non-General Partner defendants.
Litigation is inherently uncertain, and the ultimate outcome of this matter cannot be predicted with certainty. Based on currently available information, the Company is unable to reasonably estimate the amount of loss or range of loss, if any, associated with this matter. Accordingly, no accrual has been recorded. Although the Company is unable to estimate the amount of loss or range of loss at this time, it is possible that the resolution of this matter could be material to the Company’s consolidated financial position, results of operations and/or cash flows in a particular period. The Company will continue to evaluate developments in this matter and will record an accrual if it is determined that a loss is probable and reasonably estimable.
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Other Litigation
The Company is from time to time party to other litigation arising in the ordinary course of business. While it is difficult to predict the outcome or effect of any litigation, management does not believe that the outcome of any pending litigation, including the Loews Hotels & Co matter described above, will materially affect the Company’s results of operations or equity.
Note 18. Commitments and Contingencies
CNA Guarantees
CNA has provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities issued by a previously owned subsidiary. As of December 31, 2025, the potential amount of future payments CNA could be required to pay under these guarantees was approximately $1.9 billion, which will be paid over the lifetime of the annuitants. CNA does not believe any payment is likely under these guarantees, as CNA is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities.
Boardwalk Pipelines
Boardwalk Pipelines’ future capital commitments are comprised of binding commitments under purchase orders for materials ordered but not received. As of December 31, 2025, the commitments totaled approximately $355 million, which are expected to be settled through 2028.
Note 19. Segments
Loews Corporation has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA, Boardwalk Pipelines and Loews Hotels & Co; and the Corporate segment. The Corporate segment is comprised of Loews Corporation, excluding its consolidated subsidiaries, and includes the equity method of accounting for Altium Packaging. Each of the consolidated operating subsidiaries is headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position.
CNA’s business is the sale of property and casualty insurance products and services, including surety, primarily through a network of independent agents, retail and wholesale brokers and managing general underwriters. CNA’s operations also include its long-term care business that is in run-off, certain corporate expenses, including interest on CNA’s corporate debt, and the results of certain property and casualty businesses in run-off, including A&EP, a legacy portfolio of EWC policies and certain legacy mass tort reserves.
Boardwalk Pipelines operates in the midstream portion of the natural gas and NGLs industry, providing transportation and storage for those commodities. It also provides ethane supply and transportation services for petrochemical customers in Louisiana and Texas. Boardwalk Pipelines owns approximately 14,275 miles of natural gas and NGL pipelines and underground storage caverns. Boardwalk Pipelines’ natural gas pipeline systems are located in the Gulf Coast region, Oklahoma, Arkansas, Tennessee, Kentucky, Illinois, Indiana and Ohio, and its NGL pipelines and storage facilities are located in Louisiana and Texas.
Loews Hotels & Co operates a chain of 27 hotels in the United States. Eleven of these hotels are owned by Loews Hotels & Co, fifteen are owned by joint ventures in which Loews Hotels & Co has noncontrolling equity interests and one is managed for an unaffiliated owner.
The Corporate segment consists of investment income from the Parent Company’s cash and investments, Parent Company interest expense and other unallocated Parent Company expenses. Corporate also includes the equity method of accounting for Altium Packaging. Purchase accounting adjustments have been pushed down to the appropriate subsidiary.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1.
In the following tables certain financial measures are presented to provide information used by management to monitor the Company’s operating performance. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM uses the trend of net income attributable to Loews Corporation from the most recent years to evaluate the performance of the segments and to make decisions regarding the allocation of capital. The following schedules present the reportable segments of the Company and their contribution to the consolidated financial statements. Amounts presented
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will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests.
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Statements of Operations and Total assets by segment are presented in the following tables.
| Year Ended December 31, 2025 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Insurance premiums | $ | 10,900 | $ | 10,900 | |||||||||||||||||||||||||||||||
| Net investment income | 2,557 | $ | 14 | $ | 12 | $ | 196 | 2,779 | |||||||||||||||||||||||||||
| Investment losses | (81) | (81) | |||||||||||||||||||||||||||||||||
| Non-insurance warranty revenue | 1,577 | 1,577 | |||||||||||||||||||||||||||||||||
| Operating revenues and other | 36 | 2,310 | 933 | 3,279 | |||||||||||||||||||||||||||||||
| Total | 14,989 | 2,324 | 945 | 196 | 18,454 | ||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Insurance claims and policyholders’ benefits (a) | 8,294 | 8,294 | |||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs | 1,898 | 1,898 | |||||||||||||||||||||||||||||||||
| Non-insurance warranty expense | 1,526 | 1,526 | |||||||||||||||||||||||||||||||||
| Operating expenses and other (b) | 1,516 | 1,579 | 926 | 69 | 4,090 | ||||||||||||||||||||||||||||||
| Equity method (income) loss | (102) | 28 | (74) | ||||||||||||||||||||||||||||||||
| Interest | 135 | 161 | 69 | 72 | 437 | ||||||||||||||||||||||||||||||
| Total | 13,369 | 1,740 | 893 | 169 | 16,171 | ||||||||||||||||||||||||||||||
| Income before income tax | 1,620 | 584 | 52 | 27 | 2,283 | ||||||||||||||||||||||||||||||
| Income tax expense | (342) | (140) | (21) | (8) | (511) | ||||||||||||||||||||||||||||||
| Net income | 1,278 | 444 | 31 | 19 | 1,772 | ||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (105) | (105) | |||||||||||||||||||||||||||||||||
| Net income attributable to Loews Corporation | $ | 1,173 | $ | 444 | $ | 31 | $ | 19 | $ | 1,667 | |||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Total assets | $ | 69,381 | $ | 10,586 | $ | 2,487 | $ | 3,894 | $ | 86,348 |
| (a) | Significant segment expenses within Insurance claims and policyholders' benefits include catastrophe losses of $240 million and unfavorable development of $185 million. Development does not include the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. |
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| (b) | Significant segment expenses included in Operating expenses and other: |
| Year Ended December 31, 2025 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| Insurance related administrative expenses | $ | 1,349 | $ | 1,349 | |||||||||||||||||||||||||||||||
| Operating expenses | $ | 800 | $ | 589 | 1,389 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 443 | 100 | $ | 2 | 545 | ||||||||||||||||||||||||||||||
| Other (c) | 167 | 336 | 237 | 67 | 807 | ||||||||||||||||||||||||||||||
| Operating expenses and other | $ | 1,516 | $ | 1,579 | $ | 926 | $ | 69 | $ | 4,090 |
| (c) | Other expenses for each reportable segment include: | ||||
| CNA Financial: reflects expenses not directly related to insurance operations, which includes certain expenses related to non-insurance warranty business and claims services offerings, as well as foreign currency transaction gains and losses. | |||||
| Boardwalk Pipelines: general and administrative expenses | |||||
| Loews Hotels & Co: general and administrative, reimbursable and asset impairment expenses | |||||
| Corporate: general and administrative expenses |
| 158 |
| Year Ended December 31, 2024 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Insurance premiums | $ | 10,211 | $ | 10,211 | |||||||||||||||||||||||||||||||
| Net investment income | 2,497 | $ | 32 | $ | 9 | $ | 242 | 2,780 | |||||||||||||||||||||||||||
| Investment losses | (81) | (81) | |||||||||||||||||||||||||||||||||
| Non-insurance warranty revenue | 1,609 | 1,609 | |||||||||||||||||||||||||||||||||
| Operating revenues and other | 34 | 2,033 | 924 | 2,991 | |||||||||||||||||||||||||||||||
| Total | 14,270 | 2,065 | 933 | 242 | 17,510 | ||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Insurance claims and policyholders’ benefits (a) | 7,738 | 7,738 | |||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs | 1,798 | 1,798 | |||||||||||||||||||||||||||||||||
| Non-insurance warranty expense | 1,547 | 1,547 | |||||||||||||||||||||||||||||||||
| Operating expenses and other (b) | 1,843 | 1,377 | 873 | 77 | 4,170 | ||||||||||||||||||||||||||||||
| Equity method (income) loss | (86) | 28 | (58) | ||||||||||||||||||||||||||||||||
| Interest | 133 | 183 | 51 | 74 | 441 | ||||||||||||||||||||||||||||||
| Total | 13,059 | 1,560 | 838 | 179 | 15,636 | ||||||||||||||||||||||||||||||
| Income before income tax | 1,211 | 505 | 95 | 63 | 1,874 | ||||||||||||||||||||||||||||||
| Income tax expense | (252) | (92) | (25) | (11) | (380) | ||||||||||||||||||||||||||||||
| Net income | 959 | 413 | 70 | 52 | 1,494 | ||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (80) | (80) | |||||||||||||||||||||||||||||||||
| Net income attributable to Loews Corporation | $ | 879 | $ | 413 | $ | 70 | $ | 52 | $ | 1,414 | |||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Total assets | $ | 66,434 | $ | 9,853 | $ | 2,498 | $ | 3,158 | $ | 81,943 |
| (a) | Significant segment expenses within Insurance claims and policyholders' benefits include catastrophe losses of $358 million and unfavorable development of $48 million. Development does not include the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. |
| (b) | Significant segment expenses included in Operating expenses and other: |
| 159 |
| Year Ended December 31, 2024 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| Insurance related administrative expenses | $ | 1,275 | $ | 1,275 | |||||||||||||||||||||||||||||||
| Operating expenses | $ | 633 | $ | 580 | 1,213 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 429 | 93 | $ | 2 | 524 | ||||||||||||||||||||||||||||||
| Other (c) | 568 | 315 | 200 | 75 | 1,158 | ||||||||||||||||||||||||||||||
| Operating expenses and other | $ | 1,843 | $ | 1,377 | $ | 873 | $ | 77 | $ | 4,170 |
| (c) | Other expenses for each reportable segment include: | ||||
| CNA Financial: reflects expenses not directly related to insurance operations, which includes certain expenses related to non-insurance warranty business and claims services offerings, as well as foreign currency transaction gains and losses. For 2024, this also includes a pension settlement charge of $367 million; see Note 15 for more information. | |||||
| Boardwalk Pipelines: general and administrative expenses | |||||
| Loews Hotels & Co: general and administrative, reimbursable and asset impairment expenses | |||||
| Corporate: general and administrative expenses. |
| 160 |
| Year Ended December 31, 2023 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Insurance premiums | $ | 9,480 | $ | 9,480 | |||||||||||||||||||||||||||||||
| Net investment income | 2,264 | $ | 11 | $ | 6 | $ | 114 | 2,395 | |||||||||||||||||||||||||||
| Investment gains (losses) | (99) | 46 | (53) | ||||||||||||||||||||||||||||||||
| Non-insurance warranty revenue | 1,624 | 1,624 | |||||||||||||||||||||||||||||||||
| Operating revenues and other | 30 | 1,625 | 800 | 2,455 | |||||||||||||||||||||||||||||||
| Total | 13,299 | 1,636 | 852 | 114 | 15,901 | ||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Insurance claims and policyholders’ benefits (a) | 7,068 | 7,068 | |||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs | 1,644 | 1,644 | |||||||||||||||||||||||||||||||||
| Non-insurance warranty expense | 1,544 | 1,544 | |||||||||||||||||||||||||||||||||
| Operating expenses and other (b) | 1,398 | 1,108 | 767 | 120 | 3,393 | ||||||||||||||||||||||||||||||
| Equity method (income) loss | (129) | 9 | (120) | ||||||||||||||||||||||||||||||||
| Interest | 127 | 155 | 14 | 80 | 376 | ||||||||||||||||||||||||||||||
| Total | 11,781 | 1,263 | 652 | 209 | 13,905 | ||||||||||||||||||||||||||||||
| Income (loss) before income tax | 1,518 | 373 | 200 | (95) | 1,996 | ||||||||||||||||||||||||||||||
| Income tax (expense) benefit | (313) | (90) | (53) | 5 | (451) | ||||||||||||||||||||||||||||||
| Net income (loss) | 1,205 | 283 | 147 | (90) | 1,545 | ||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (111) | (111) | |||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Loews Corporation | $ | 1,094 | $ | 283 | $ | 147 | $ | (90) | $ | 1,434 |
| (a) | Significant segment expenses within Insurance claims and policyholders' benefits include catastrophe losses of $236 million and unfavorable development of $48 million. Development does not include the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. |
| (b) | Significant segment expenses included in Operating expenses and other: |
| 161 |
| Year Ended December 31, 2023 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| Insurance related administrative expenses | $ | 1,251 | $ | 1,251 | |||||||||||||||||||||||||||||||
| Operating expenses | $ | 395 | $ | 485 | 880 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 412 | 69 | $ | 1 | 482 | ||||||||||||||||||||||||||||||
| Other (c) | 147 | 301 | 213 | 119 | 780 | ||||||||||||||||||||||||||||||
| Operating expenses and other | $ | 1,398 | $ | 1,108 | $ | 767 | $ | 120 | $ | 3,393 |
| (c) | Other expenses for each reportable segment include: | ||||
| CNA Financial: reflects expenses not directly related to insurance operations, which includes certain expenses related to non-insurance warranty business and claims services offerings, as well as foreign currency transaction gains and losses. | |||||
| Boardwalk Pipelines: general and administrative expenses | |||||
| Loews Hotels & Co: general and administrative, reimbursable and asset impairment expenses | |||||
| Corporate: general and administrative expenses. For 2023, this also includes a pension settlement charge of $47 million; see Note 15 for additional information. |
| 162 |
Previous: Item 7A. Quantitative and Qualitative Disclosures about Market Risk. · Next: Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.