2 unchanged sentences
CONSOLIDATED CONDENSED BALANCE SHEETS
−Removed: June 30, December 31,
+Added: September 30, December 31,
(Dollar amounts in millions, except per share data)
43 unchanged sentences
See accompanying Notes to Consolidated Condensed Financial Statements.
−Removed: Table of c o ntents
Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
24 unchanged sentences
See accompanying Notes to Consolidated Condensed Financial Statements.
−Removed: Table of c o ntents
Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
3 unchanged sentences
Net unrealized losses on investments with an allowance for credit losses ( 2 ) ( 8 )
−Removed: Net unrealized gains (losses) on other investments ( 1,346 ) 300 ( 2,957 ) ( 327 )
−Removed: Total unrealized gains (losses) on investments ( 1,348 ) 300 ( 2,963 ) ( 327 )
+Added: Net unrealized losses on other investments ( 1,327 ) ( 138 ) ( 4,284 ) ( 465 )
+Added: Total unrealized losses on investments ( 1,329 ) ( 138 ) ( 4,292 ) ( 465 )
Unrealized gains on cash flow hedges 4 2 28 14
1 unchanged sentence
Foreign currency translation ( 106 ) ( 33 ) ( 189 ) ( 19 )
−Removed: Other comprehensive income (loss) ( 1,405 ) 326 ( 3,010 ) ( 285 )
+Added: Other comprehensive loss ( 1,425 ) ( 153 ) ( 4,435 ) ( 438 )
Comprehensive income (loss) ( 1,282 ) 93 ( 3,720 ) 894
2 unchanged sentences
See accompanying Notes to Consolidated Condensed Financial Statements.
−Removed: Table of c o ntents
Loews Corporation and Subsidiaries
4 unchanged sentences
(In millions)
−Removed: Balance, April 1, 2021
+Added: Balance, July 1, 2021
$ 19,398 $ 3 $ 3,121 $ 15,132 $ 327 $ ( 500 ) $ 1,315
Net income 246 220 26
−Removed: Other comprehensive income 326 293 33
+Added: Other comprehensive loss ( 153 ) ( 136 ) ( 17 )
Dividends paid ($ 0.0625 per share)
( 27 ) ( 16 ) ( 11 )
−Removed: Purchase of subsidiary stock from noncontrolling interests ( 15 ) ( 15 )
Purchases of Loews Corporation treasury stock ( 333 ) ( 333 )
Stock-based compensation ( 2 ) ( 2 )
−Removed: Other — ( 1 ) 1
−Removed: Balance, June 30, 2021
+Added: Balance, September 30, 2021
$ 19,130 $ 3 $ 3,120 $ 15,336 $ 191 $ ( 833 ) $ 1,313
−Removed: Balance, April 1, 2022
+Added: Balance, July 1, 2022
$ 16,221 $ 2 $ 2,869 $ 15,261 $ ( 2,510 ) $ ( 386 ) $ 985
3 unchanged sentences
( 23 ) ( 15 ) ( 8 )
+Added: Purchase of subsidiary stock from noncontrolling interests ( 45 ) 5 ( 50 )
Purchases of Loews Corporation treasury stock ( 230 ) ( 230 )
1 unchanged sentence
Other 3 4 1 ( 2 )
−Removed: Balance, June 30, 2022
+Added: Balance, September 30, 2022
$ 14,653 $ 2 $ 2,886 $ 15,377 $ ( 3,803 ) $ ( 616 ) $ 807
See accompanying Notes to Consolidated Condensed Financial Statements.
−Removed: Table of c o ntents
Loews Corporation and Subsidiaries
14 unchanged sentences
Other ( 3 ) ( 2 ) ( 1 )
−Removed: Balance, June 30, 2021
+Added: Balance, September 30, 2021
$ 19,130 $ 3 $ 3,120 $ 15,336 $ 191 $ ( 833 ) $ 1,313
9 unchanged sentences
Other — 3 ( 1 ) 1 ( 3 )
−Removed: Balance, June 30, 2022
+Added: Balance, September 30, 2022
$ 14,653 $ 2 $ 2,886 $ 15,377 $ ( 3,803 ) $ ( 616 ) $ 807
See accompanying Notes to Consolidated Condensed Financial Statements.
−Removed: Table of c o ntents
Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
−Removed: Six Months Ended June 30
+Added: Nine Months Ended September 30
(In millions)
20 unchanged sentences
Dispositions 16 52
−Removed: Sale of interest in Altium Packaging 417
+Added: (Investment in) sale of interest in Altium Packaging ( 79 ) 417
Change in short term investments 568 725
Other, net 65 13
−Removed: Net cash flow (used) provided by investing activities ( 786 ) 93
+Added: Net cash flow used by investing activities ( 1,779 ) ( 424 )
Financing Activities:
12 unchanged sentences
See accompanying Notes to Consolidated Condensed Financial Statements.
−Removed: Table of c o ntents
Loews Corporation and Subsidiaries
3 unchanged sentences
Its consolidated operating subsidiaries are engaged in the following lines of business:
−Removed: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), an 89.6 % owned subsidiary);
+Added: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), a 90 % owned subsidiary);
transportation and storage of natural gas and natural gas liquids (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).
2 unchanged sentences
Effective April 1, 2021, Loews Corporation’s investment in Altium Packaging is accounted for under the equity method of accounting, with the investment reported in Other assets on the Consolidated Condensed Balance Sheets and equity income (loss) reported in Operating expenses and other on the Consolidated Condensed Statements of Operations.
−Removed: The transaction resulted in a gain of $ 555 million ($ 438 million after tax) for the six months ended June 30, 2021, which was recorded in Investment gains (losses) on the Consolidated Condensed Statement of Operations.
+Added: The transaction resulted in a gain of $ 555 million ($ 438 million after tax) for the nine months ended September 30, 2021, which was recorded in Investment gains (losses) on the Consolidated Condensed Statement of Operations.
For additional information regarding the deconsolidation of Altium Packaging, see Note 2 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
−Removed: In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of June 30, 2022 and December 31, 2021 and results of operations, comprehensive income (loss) and changes in shareholders’ equity for the three and six months ended June 30, 2022 and 2021 and cash flows for the six months ended June 30, 2022 and 2021.
−Removed: Net income for the second quarter and first half of each of the years is not necessarily indicative of net income for that entire year.
+Added: In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2022 and December 31, 2021 and results of operations, comprehensive income (loss) and changes in shareholders’ equity for the three and nine months ended September 30, 2022 and 2021 and cash flows for the nine months ended September 30, 2022 and 2021, in each case in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
+Added: Net income for the third quarter and first nine months of each of the years is not necessarily indicative of net income for that entire year.
These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
2 unchanged sentences
Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
−Removed: For the three and six months ended June 30, 2022 and 2021 there were no shares attributable to employee stock-based compensation awards excluded from the diluted weighted average shares outstanding amounts because the effect would have been antidilutive.
+Added: For the three and nine months ended September 30, 2022 and 2021 there were no shares attributable to employee stock-based compensation awards excluded from the diluted weighted average shares outstanding amounts because the effect would have been antidilutive.
Recently issued Accounting Standards Updates (“ASUs”) – In August of 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12, “Financial Services – Insurance (Topic 944):
8 unchanged sentences
dollar denominated corporate bonds matched to the duration of the corresponding insurance liabilities will be used to calculate discount rates.
−Removed: Long-duration contracts will be grouped into calendar year cohorts based on the contract issue date and product line.
+Added: Long-duration contracts will be grouped into calendar year cohorts based on the contract issue date and
+Added: product line.
Long term care contracts will be grouped separately from the fully-ceded single premium immediate annuity contracts.
−Removed: Table of c o ntents
The most significant impact at the transition date will be the effect of updating the discount rate assumption to reflect an upper-medium grade fixed-income instrument yield, which will be partially offset by the de-recognition of Shadow Adjustments associated with long-duration contracts.
−Removed: The Company expects the net impact of these changes will be a $ 2.0 billion - $ 2.3 billion (after tax and noncontrolling interests) decrease in Accumulated other comprehensive income (“AOCI”) as of the transition date of January 1, 2021.
+Added: The Company expects the net impact of these changes will be a decrease of approximately $ 2.1 billion (after tax and noncontrolling interests) in Accumulated other comprehensive income (“AOCI”) as of the transition date of January 1, 2021.
There is a minimal transition impact expected to retained earnings.
5 unchanged sentences
Net investment income is as follows:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
2 unchanged sentences
Limited partnership investments ( 32 ) 89 ( 5 ) 285
−Removed: Equity securities ( 11 ) 20 ( 9 ) 49
+Added: Equity securities (a) 2 4 ( 7 ) 53
Income (loss) from trading portfolio (a) ( 18 ) ( 30 ) ( 95 ) 46
−Removed: ( 62 ) 26 ( 77 ) 76
Other 19 13 47 43
2 unchanged sentences
Net investment income $ 404 $ 483 $ 1,202 $ 1,649
−Removed: (a) During the three and six months ended June 30, 2022, $ 95 and $ 120 of net investment losses were recognized due to the change in fair value of securities still held as of June 30, 2022.
−Removed: During the three and six months ended June 30, 2021, $ 28 and $ 58 of net investment income was recognized due to the change in fair value of securities still held as of June 30, 2021.
−Removed: Table of c o ntents
+Added: (a) Net investment income (loss) recognized due to the change in fair value of equity and trading portfolio securities held as of September 30, 2022 and 2021 $ ( 68 ) $ ( 55 ) $ ( 179 ) $ ( 9 )
Investment gains (losses) are as follows:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
4 unchanged sentences
Investment gains (losses) on fixed maturity securities ( 111 ) 22 ( 128 ) 91
−Removed: Equity securities ( 71 ) 17 ( 109 ) 19
+Added: Equity securities (a) ( 2 ) ( 2 ) ( 111 ) 17
Derivative instruments 24 2 79 7
1 unchanged sentence
Altium Packaging (see Note 1) 555
−Removed: Investment gains (losses) (a) $ ( 59 ) $ 578 $ ( 70 ) $ 635
−Removed: (a) During the three and six months ended June 30, 2022, $ 70 and $ 108 of investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2022.
−Removed: During the three and six months ended June 30, 2021, $ 15 of investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2021.
−Removed: The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets.
−Removed: Accrued interest receivables on available-for-sale fixed maturity securities totaled $ 374 million, $ 369 million and $ 374 million as of June 30, 2022, December 31, 2021 and June 30, 2021 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.
−Removed: Three months ended June 30, 2022 Corporate and Other Bonds
−Removed: Asset-backed Total
−Removed: (In millions)
−Removed: Allowance for credit losses:
−Removed: Balance as of April 1, 2022
−Removed: $ 12 $ 5 $ 17
−Removed: Additions to the allowance for credit losses:
−Removed: Available-for-sale securities accounted for as PCD assets 3 3
−Removed: Reductions to the allowance for credit losses:
−Removed: Write-offs charged against the allowance 12 12
−Removed: Additional decreases to the allowance for credit losses
−Removed: on securities that had an allowance recorded in a previous period
−Removed: Total allowance for credit losses $ — $ 5 $ 5
−Removed: Table of c o ntents
−Removed: Three months ended June 30, 2021 Corporate and Other Bonds Asset-backed Total
−Removed: Allowance for credit losses:
−Removed: Balance as of April 1, 2021
−Removed: $ 27 $ 16 $ 43
−Removed: Additions to the allowance for credit losses:
−Removed: Available-for-sale securities accounted for as PCD assets 4 4
−Removed: Additional increases or (decreases) to the allowance for credit losses
−Removed: on securities that had an allowance recorded in a previous period
−Removed: ( 3 ) 1 ( 2 )
−Removed: Total allowance for credit losses $ 24 $ 21 $ 45
−Removed: Six months ended June 30, 2022
−Removed: Allowance for credit losses:
−Removed: Balance as of January 1, 2022
−Removed: $ 11 $ 7 $ 18
−Removed: Additions to the allowance for credit losses:
−Removed: Available-for-sale securities accounted for as PCD assets 3 3
−Removed: Reductions to the allowance for credit losses:
−Removed: Write-offs charged against the allowance 12 12
−Removed: Additional increases or (decreases) to the allowance for credit
−Removed: losses on securities that had an allowance recorded in a previous period
−Removed: 1 ( 5 ) ( 4 )
−Removed: Total allowance for credit losses $ — $ 5 $ 5
−Removed: Six months ended June 30, 2021
−Removed: Allowance for credit losses:
−Removed: Balance as of January 1, 2021
−Removed: $ 23 $ 17 $ 40
−Removed: Additions to the allowance for credit losses:
−Removed: Securities for which credit losses were not previously recorded 14 14
−Removed: Available-for-sale securities accounted for as PCD assets 2 4 6
−Removed: Reductions to the allowance for credit losses:
−Removed: Securities sold during the period (realized) 6 6
−Removed: Additional decreases to the allowance for credit losses
−Removed: on securities that had an allowance recorded in a previous period
−Removed: Total allowance for credit losses $ 24 $ 21 $ 45
−Removed: Table of c o ntents
+Added: Investment gains (losses) $ ( 96 ) $ 22 $ ( 166 ) $ 657
+Added: (a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of September 30, 2022 and 2021 $ ( 2 ) $ ( 2 ) $ ( 109 ) $ 15
+Added: Investment gains (losses) for the three months ended September 30, 2022 in the table above include a $ 35 million net loss related to the expected novation of a coinsurance agreement on CNA’s legacy annuity business, which was transacted on a funds withheld basis and gave rise to an embedded derivative.
+Added: The net loss of $ 35 million is comprised of a $ 59 million loss on the fixed maturity securities supporting the funds withheld liability to recognize unrealized losses which had been included in AOCI since the inception of the coinsurance agreement, partially offset by a $ 24 million gain on the associated embedded derivative.
+Added: Taken together, this net loss is the final recognition of changes in the valuation of the funds held assets and offsets previously recognized investment gains on the associated embedded derivative.
The components of 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:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
4 unchanged sentences
Impairment losses (gains) recognized in earnings $ 25 $ 11 $ 55 $ 16
−Removed: There were no losses recognized on mortgage loans during the three and six months ended June 30, 2022 or 2021.
−Removed: The amortized cost and fair values of fixed maturity securities are as follows:
−Removed: June 30, 2022 Cost or Amortized Cost Gross Unrealized
+Added: There were $ 8 million of losses on mortgage loans recognized during the three and nine months ended September 30, 2022 primarily due to changes in expected credit losses.
+Added: T here were no losses recognized on mortgage loans during the three and nine months ended September 30, 2021.
+Added: The following tables present a summary of fixed maturity securities:
+Added: September 30, 2022 Cost or Amortized Cost Gross Unrealized
Gains Gross Unrealized
18 unchanged sentences
Total fixed maturity securities $ 41,588 $ 507 $ 4,588 $ 3 $ 37,504
−Removed: Table of c o ntents
December 31, 2021 Cost or Amortized Cost Gross Unrealized
20 unchanged sentences
When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments.
−Removed: To the extent there are unrealized gains on fixed income securities supporting the reserves of certain products within the Life & Group business that would result in a premium deficiency, or would impact the reserve balance if realized, a related increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains (losses) through Other comprehensive income (loss) (“Shadow Adjustments”).
−Removed: As of June 30, 2022 and December 31, 2021, the net unrealized gains and losses on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $ 432 million and $ 2.2 billion (after tax and noncontrolling interests).
−Removed: Table of c o ntents
+Added: To the extent there are unrealized gains on fixed income securities supporting the reserves of certain products within the Life & Group business that would result in a premium deficiency, or would impact the reserve balance if realized, a related increase in Insurance reserves is recorded as a reduction of net unrealized gains (losses), net of tax and noncontrolling interests, through Other comprehensive income (loss) (“Shadow Adjustments”).
+Added: As of September 30, 2022
+Added: and December 31, 2021, the net unrealized gains and losses on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $ 41 million and $ 2.2 billion (after tax and noncontrolling interests).
The available-for-sale 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
−Removed: June 30, 2022 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses
+Added: September 30, 2022 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses
(In millions)
26 unchanged sentences
Total fixed maturity securities $ 5,695 $ 92 $ 370 $ 20 $ 6,065 $ 112
−Removed: Table of c o ntents
The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses
7 unchanged sentences
Total $ 29,944 $ 4,583 $ 6,065 $ 112
−Removed: Based on current facts and circumstances, the unrealized losses presented in the June 30, 2022 securities in the gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates and a general market widening of credit spreads.
+Added: Based on current facts and circumstances, the unrealized losses presented in the September 30, 2022 securities in the gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates and a general market widening of credit spreads.
In reaching this determination, the recent 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;
−Removed: accordingly, it was determined that there are no additional impairment losses to be recorded at June 30, 2022.
+Added: accordingly, it was determined that there are no additional impairment losses to be recorded at September 30, 2022.
+Added: The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets.
+Added: Accrued interest receivables on available-for-sale fixed maturity securities totaled $ 401 million, $ 369 million and $ 387 million as of September 30, 2022, December 31, 2021 and September 30, 2021 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.
+Added: Three months ended September 30, 2022 Corporate and Other Bonds
+Added: Asset-backed Total
+Added: (In millions)
+Added: Allowance for credit losses:
+Added: Balance as of July 1, 2022
+Added: Additions to the allowance for credit losses:
+Added: Available-for-sale securities accounted for as PCD assets —
+Added: Reductions to the allowance for credit losses:
+Added: Write-offs charged against the allowance —
+Added: Additional decreases to the allowance for credit losses
+Added: on securities that had an allowance recorded in a previous period
+Added: Total allowance for credit losses $ — $ 3 $ 3
+Added: Three months ended September 30, 2021 Corporate and Other Bonds Asset-backed Total
+Added: (In millions)
+Added: Allowance for credit losses:
+Added: Balance as of July 1, 2021
+Added: $ 24 $ 21 $ 45
+Added: Additions to the allowance for credit losses:
+Added: Available-for-sale securities accounted for as PCD assets 2 2
+Added: Reductions to the allowance for credit losses:
+Added: Write-offs charged against the allowance 16 16
+Added: Total allowance for credit losses $ 10 $ 21 $ 31
+Added: Nine months ended September 30, 2022
+Added: Allowance for credit losses:
+Added: Balance as of January 1, 2022
+Added: $ 11 $ 7 $ 18
+Added: Additions to the allowance for credit losses:
+Added: Available-for-sale securities accounted for as PCD assets 3 3
+Added: Reductions to the allowance for credit losses:
+Added: Write-offs charged against the allowance 12 12
+Added: Additional increases or (decreases) to the allowance for credit
+Added: losses on securities that had an allowance recorded in a previous period
+Added: 1 ( 7 ) ( 6 )
+Added: Total allowance for credit losses $ — $ 3 $ 3
+Added: Nine months ended September 30, 2021
+Added: Allowance for credit losses:
+Added: Balance as of January 1, 2021
+Added: $ 23 $ 17 $ 40
+Added: Additions to the allowance for credit losses:
+Added: Securities for which credit losses were not previously recorded 14 14
+Added: Available-for-sale securities accounted for as PCD assets 4 4 8
+Added: Reductions to the allowance for credit losses:
+Added: Securities sold during the period (realized) 6 6
+Added: Write-offs charged against the allowance 16 16
+Added: Additional decreases to the allowance for credit losses
+Added: on securities that had an allowance recorded in a previous period
+Added: Total allowance for credit losses $ 10 $ 21 $ 31
Contractual Maturity
The following table presents available-for-sale fixed maturity securities by contractual maturity.
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Cost or Amortized Cost Estimated Fair
8 unchanged sentences
Securities not due at a single date are allocated based on weighted average life.
−Removed: Table of c o ntents
Mortgage Loans
2 unchanged sentences
Mortgage Loans Amortized Cost Basis by Origination Year (a)
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
(In millions)
13 unchanged sentences
A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows.
−Removed: The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under related agreements and may not be representative of the potential for gain or loss on these instruments.
+Added: The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under related agreements and may not be representative of the potential for gain or loss on these
Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets.
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Contractual/Notional Amount Estimated Fair Value Contractual/Notional Amount Estimated Fair Value
5 unchanged sentences
Embedded derivative on funds withheld liability 220 1 270 $ ( 12 )
−Removed: Table of c o ntents
Investment Commitments
1 unchanged sentence
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.
−Removed: As of June 30, 2022, commitments to purchase or fund were approximately $ 1.5 billion and to sell were approximately $ 25 million under the terms of these investments.
+Added: As of September 30, 2022, commitments to purchase or fund were approximately $ 1.6 billion and to sell were approximately $ 100 million under the terms of these investments.
Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables.
1 unchanged sentence
Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.
−Removed: June 30, 2022 Level 1
+Added: September 30, 2022 Level 1
Level 3 Total
23 unchanged sentences
Payable to brokers ( 70 ) ( 70 )
−Removed: Table of c o ntents
−Removed: 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 three and six months ended June 30, 2022 and 2021:
−Removed: 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 June 30
−Removed: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
−Removed: 2022 Balance, April 1 Included in Net Income
+Added: 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 three and nine months ended September 30, 2022 and 2021:
+Added: Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
+Added: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
+Added: 2022 Balance, July 1 Included in Net Income
Included in OCI Purchases Sales
1 unchanged sentence
Level 3 Transfers out of Level 3
−Removed: Balance, June 30
+Added: Balance, September 30
(In millions)
8 unchanged sentences
Equity securities $ 47 $ ( 7 ) $ ( 10 ) $ 30 $ ( 7 )
−Removed: Table of c o ntents
−Removed: 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 June 30
−Removed: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
−Removed: 2021 Balance, April 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into
−Removed: Level 3 Transfers out of Level 3 Balance, June 30
+Added: Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
+Added: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
+Added: 2021 Balance, July 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into
+Added: Level 3 Transfers out of Level 3 Balance, September 30
(In millions)
8 unchanged sentences
Equity securities $ 36 $ ( 2 ) $ 1 $ ( 11 ) $ 11 $ ( 10 ) $ 25 $ ( 3 )
−Removed: Table of c o ntents
−Removed: 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 June 30
−Removed: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
+Added: Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
+Added: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2022 Balance, January 1 Included in Net Income
2 unchanged sentences
Level 3 Transfers out of Level 3
−Removed: Balance, June 30
+Added: Balance, September 30
(In millions)
8 unchanged sentences
Equity securities $ 29 $ ( 7 ) $ 12 $ ( 3 ) $ 9 $ ( 10 ) $ 30 $ ( 8 )
−Removed: Table of c o ntents
−Removed: 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 June 30
−Removed: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
+Added: Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
+Added: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2021 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into
−Removed: Level 3 Transfers out of Level 3 Balance, June 30
+Added: Level 3 Transfers out of Level 3 Balance, September 30
(In millions)
1 unchanged sentence
Corporate bonds and other $ 770 $ ( 9 ) $ ( 23 ) $ 219 $ ( 3 ) $ ( 35 ) $ 10 $ ( 52 ) $ 877 $ ( 22 )
−Removed: States, municipalities and political subdivisions 46 12 ( 1 ) 57
+Added: States, municipalities and political
+Added: subdivisions 46 12 ( 1 ) 57
Asset-backed 308 4 ( 4 ) 197 ( 9 ) ( 38 ) 71 ( 51 ) 478 ( 5 )
11 unchanged sentences
Derivative financial instruments, other Investment gains (losses) and Operating revenues and other
−Removed: Table of c o ntents
Significant Unobservable Inputs
3 unchanged sentences
The weighted average rate is calculated based on fair value.
−Removed: June 30, 2022 Estimated
+Added: September 30, 2022 Estimated
Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average)
9 unchanged sentences
Carrying Amount Estimated Fair Value
−Removed: June 30, 2022 Level 1 Level 2 Level 3 Total
+Added: September 30, 2022 Level 1 Level 2 Level 3 Total
(In millions)
6 unchanged sentences
Long term debt 8,981 $ 9,170 611 9,781
−Removed: Table of c o ntents
−Removed: Claim and Claim Adjustment Expense Reserves
+Added: Claim and Claim Adjustment Expense Reserves and Future Policy Benefit Reserves
Property and casualty insurance 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.
10 unchanged sentences
Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in the Company’s results of operations and/or equity.
−Removed: The Company reported catastrophe losses, net of reinsurance, of $ 37 million and $ 54 million for the three months ended June 30, 2022 and 2021 and of $ 57 million and $ 179 million for the six months ended June 30, 2022 and 2021, in each case primarily related to severe weather related events.
−Removed: Table of c o ntents
+Added: Catastrophe losses, net of reinsurance, of $ 114 million and $ 178 million were recorded for the three months ended September 30, 2022 and 2021 and $ 171 million and $ 357 million were recorded for the nine months ended September 30, 2022 and 2021.
+Added: Catastrophe losses for the three and nine months ended September 30, 2022 were driven primarily by severe weather related events, including $ 87 million for Hurricane Ian.
+Added: Catastrophe losses for the three months ended September 30, 2021 included $ 114 million for Hurricane Ida.
+Added: Catastrophe losses for the nine months ended September 30, 2021 were driven by severe weather related events, primarily Hurricane Ida and Winter Storms Uri and Viola.
Liability for Unpaid Claim and Claim Adjustment Expenses
−Removed: The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of operations outside CNA’s commercial property and casualty operations.
−Removed: Six Months Ended June 30
+Added: The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group business.
+Added: Nine Months Ended September 30
(In millions)
21 unchanged sentences
These changes can be favorable or unfavorable.
−Removed: Favorable net prior year development of $ 37 million and $ 11 million was recorded for commercial property and casualty operations (“Property & Casualty Operations”) for the three months ended June 30, 2022 and 2021 and favorable net prior year development of $ 49 million and $ 26 million was recorded for the six months ended June 30, 2022 and 2021.
−Removed: Unfavorable net prior year loss reserve development of $ 64 million and $ 40 million was recorded for CNA’s operations outside of Property & Casualty Operations (“Other Insurance Operations”) for the three and six months ended June 30, 2022 and 2021.
−Removed: Table of c o ntents
+Added: For commercial property and casualty operations (“Property & Casualty Operations”) favorable net prior year development of $ 17 million and $ 10 million was recorded for the three months ended September 30, 2022 and 2021 and favorable net prior year development of $ 66 million and $ 36 million was recorded for the nine months ended September 30, 2022 and 2021.
+Added: Unfavorable net prior year loss reserve development of $ 64 million and $ 40 million was recorded for CNA’s operations outside of Property & Casualty Operations (“Other Insurance Operations”) for the nine months ended September 30, 2022 and 2021.
The following table and discussion presents details of the net prior year loss reserve development in Property & Casualty Operations and Other Insurance Operations:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
10 unchanged sentences
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years.
−Removed: Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s construction business in multiple accident years.
−Removed: Unfavorable development in general liability was due to higher than expected claim severity in construction, middle market and small business across multiple accident years.
−Removed: Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
−Removed: Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims, including the recent Diocese of Rochester proposed settlement.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years.
−Removed: Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s construction and middle market businesses in recent accident years.
−Removed: Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
−Removed: Unfavorable development in other insurance operations was due to legacy mass tort exposures, primarily related to abuse.
−Removed: Table of c o ntents
+Added: Unfavorable development in medical professional liability was due to higher than expected large loss activity in recent accident years.
+Added: Unfavorable development in other professional liability and management liability was due to higher than expected claim severity and frequency in CNA’s cyber and professional errors and omissions businesses in multiple accident years.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years.
2 unchanged sentences
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
+Added: Favorable development in property and other was mainly due to lower than expected loss emergence in a recent accident year for warranty.
Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims, including the recent Diocese of Rochester proposed settlement.
+Added: Unfavorable development in medical professional liability was due to higher than expected frequency of large losses in recent accident years.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years.
1 unchanged sentence
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
+Added: Unfavorable development in property and other was due to higher than expected claim severity in CNA’s medical treatment business mostly offset by favorable development due to lower than expected loss emergence across multiple accident years in commercial.
Unfavorable development in other insurance operations was due to legacy mass tort exposures, primarily related to abuse.
11 unchanged sentences
The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders’ benefits on the Consolidated Condensed Statements of Operations.
−Removed: The impact of the LPT on the Consolidated Condensed Statements of Operations was the recognition of a retroactive reinsurance benefit of $ 11 million and $ 12 million for the three months ended June 30, 2022 and 2021 and $ 23 million and $ 22 million for the six months ended June 30, 2022 and 2021 .
−Removed: As of June 30, 2022 and December 31, 2021, the cumulative amounts ceded under the LPT were $ 3.4 billion.
−Removed: The unrecognized deferred retroactive reinsurance benefit was
−Removed: Table of c o ntents
−Removed: $ 406 million and $ 429 million as of June 30, 2022 and December 31, 2021 and is included within Other liabilities on the Consolidated Condensed Balance Sheets.
+Added: The impact of the LPT on the Consolidated Condensed Statements of Operations was the recognition of a retroactive reinsurance benefit of $ 17 million and $ 8 million for the three months ended September 30, 2022 and 2021 and $ 40 million and $ 30 million for the nine months ended September 30, 2022 and 2021 .
+Added: As of September 30, 2022 and December 31, 2021, the cumulative amounts ceded under the LPT were $ 3.4 billion.
+Added: The unrecognized deferred retroactive reinsurance benefit was $ 389 million and $ 429 million as of September 30, 2022 and December 31, 2021 and is included within Other liabilities on the Consolidated Condensed Balance Sheets.
NICO established a collateral trust account as security for its obligations under the LPT.
−Removed: The fair value of the collateral trust account was $ 2.4 billion as of June 30, 2022.
+Added: The fair value of the collateral trust account was $ 2.3 billion as of September 30, 2022.
In addition, Berkshire Hathaway Inc.
4 unchanged sentences
Receivables due from reinsurers with lower financial strength ratings are primarily due from captive reinsurers and are backed by collateral arrangements.
−Removed: Table of c o ntents
+Added: Life & Group Policyholder Reserves
+Added: CNA’s Life & Group business includes its run-off long term care business as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.
+Added: Long term care policies provide benefits for nursing homes, assisted living facilities and home health care subject to various daily and lifetime caps.
+Added: Generally, policyholders must continue to make periodic premium payments to keep the policy in force and CNA has the ability to increase policy premiums, subject to state regulatory approval.
+Added: CNA maintains both claim and claim adjustment expense reserves as well as future policy benefit reserves for policyholder benefits for its Life & Group business.
+Added: Claim and claim adjustment expense reserves consist of estimated reserves for long term care policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported.
+Added: In developing the claim and claim adjustment expense reserve estimates for long term care policies, CNA’s actuaries perform a detailed claim reserve review on an annual basis.
+Added: The review analyzes the sufficiency of existing reserves for policyholders currently on claim and includes an evaluation of expected benefit utilization and claim duration.
+Added: In addition, claim and claim adjustment expense reserves are also maintained for the structured settlement obligations.
+Added: In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, CNA’s actuaries review mortality experience on an annual basis.
+Added: CNA’s recorded claim and claim adjustment expense reserves reflect management’s best estimate after incorporating the results of the most recent reviews.
+Added: CNA’s most recent annual claim reserve reviews were completed in the third quarter of 2022.
+Added: The long term care claim reserve review resulted in a $ 25 million pretax reduction in reserves driven by a $ 107 million favorable impact from the release of all remaining IBNR reserves established during 2020 and 2021 in response to the COVID-19 pandemic partially offset by an $ 82 million unfavorable impact from higher claim severity, including utilization and cost of care inflation, than anticipated in the reserve estimates.
+Added: The structured settlement claim reserve review resulted in a $ 5 million pretax reduction in reserves due to discount rate assumption changes.
+Added: CNA’s 2021 annual claim reserve reviews were completed in the third quarter of 2021 resulting in a $ 40 million pretax reduction in long term care reserves primarily due to lower claim severity than anticipated in the reserve estimates and a $ 2 million pretax increase in the structured settlement claim reserves primarily due to lower discount rate assumptions and mortality assumption changes.
+Added: Future policy benefit reserves consist of active life reserves related to CNA’s long term care policies for policyholders that are not currently receiving benefits and represent the present value of expected future benefit payments and expenses less expected future premium.
+Added: The determination of these reserves requires management to make estimates and assumptions about expected investment and policyholder experience over the life of the contract.
+Added: Since many of these contracts may be in force for several decades, these assumptions are subject to significant estimation risk.
+Added: The actuarial assumptions that CNA believes are subject to the most variability are morbidity, persistency, discount rates and anticipated future premium rate increases.
+Added: Morbidity is the frequency and severity of injury, illness, sickness and diseases contracted.
+Added: Persistency is the percentage of policies remaining in force and can be affected by policy lapses, benefit reductions and death.
+Added: Discount rates are influenced by the investment yield on assets supporting long term care reserves which is subject to interest rate and market volatility and may also be affected by changes to the Internal Revenue Code.
+Added: Future premium rate increases are generally subject to regulatory approval, and therefore the exact timing and size of the approved rate increases are unknown.
+Added: As a result of this variability, CNA’s long term care reserves may be subject to material increases if actual experience develops adversely to CNA’s expectations.
+Added: Annually, in the third quarter, CNA assesses the adequacy of its long term care future policy benefit reserves by performing a gross premium valuation (“GPV”) to determine if there is a premium deficiency.
+Added: Under the GPV, management estimates required reserves using best estimate assumptions as of the date of the assessment without provisions for adverse deviation.
+Added: The GPV required reserves are then compared to the existing recorded reserves.
+Added: If the GPV required reserves are greater than the existing recorded reserves, the existing assumptions are unlocked and future policy benefit reserves are increased to the greater amount.
+Added: Any such increase is reflected in the Company’s results of operations in the period in which the need for such adjustment is determined.
+Added: If the GPV required reserves are less than the existing recorded reserves, assumptions remain locked in and no adjustment is made.
+Added: The GPV for the long term care future policy benefit reserves, performed in the third quarters of 2022 and 2021, indicated recorded reserves included a pretax margin of approximately $ 125 million and $ 72 million as of September 30, 2022 and 2021.
Shareholders’ Equity
Accumulated other comprehensive income (loss)
−Removed: The tables below present the changes in AOCI by component for the three and six months ended June 30, 2021 and 2022 :
+Added: The tables below present the changes in AOCI by component for the three and nine months ended September 30, 2021 and 2022 :
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Unrealized Gains (Losses) on Cash Flow Hedges Pension and Postretirement Benefits Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss)
(In millions)
−Removed: Balance, April 1, 2021
+Added: Balance, July 1, 2021
$ — $ 1,271 $ ( 11 ) $ ( 863 ) $ ( 70 ) $ 327
3 unchanged sentences
( 17 ) 1 13 ( 3 )
−Removed: Other comprehensive income — 300 8 7 11 326
+Added: Other comprehensive income (loss) — ( 138 ) 2 16 ( 33 ) ( 153 )
Amounts attributable to noncontrolling interests 14 ( 1 ) 4 17
−Removed: Balance, June 30, 2021
+Added: Balance, September 30, 2021
$ — $ 1,147 $ ( 9 ) $ ( 848 ) $ ( 99 ) $ 191
−Removed: Balance, April 1, 2022
+Added: Balance, July 1, 2022
$ ( 7 ) $ ( 1,721 ) $ 18 $ ( 625 ) $ ( 175 ) $ ( 2,510 )
5 unchanged sentences
Amounts attributable to noncontrolling interests ( 1 ) 124 ( 1 ) 10 132
−Removed: Balance, June 30, 2022
+Added: Balance, September 30, 2022
$ ( 10 ) $ ( 2,924 ) $ 22 $ ( 620 ) $ ( 271 ) $ ( 3,803 )
−Removed: Table of c o ntents
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Unrealized Gains (Losses) on Cash Flow Hedges Pension and Postretirement Benefits Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss)
8 unchanged sentences
Amounts attributable to noncontrolling interests 49 ( 3 ) 2 48
−Removed: Balance, June 30, 2021
+Added: Balance, September 30, 2021
$ — $ 1,147 $ ( 9 ) $ ( 848 ) $ ( 99 ) $ 191
7 unchanged sentences
Amounts attributable to noncontrolling interests 430 ( 2 ) 18 446
−Removed: Balance, June 30, 2022
+Added: Balance, September 30, 2022
$ ( 10 ) $ ( 2,924 ) $ 22 $ ( 620 ) $ ( 271 ) $ ( 3,803 )
4 unchanged sentences
Pension and postretirement benefits Operating expenses and other
−Removed: Table of c o ntents
Treasury Stock
−Removed: Loews Corporation repurchased 6.3 million and 9.5 million shares of its common stock at aggregate costs of $ 384 million and $ 493 million during the six months ended June 30, 2022 and 2021.
+Added: Loews Corporation repurchased 10.5 million and 15.7 million shares of its common stock at aggregate costs of $ 614 million and $ 826 million during the nine months ended September 30, 2022 and 2021.
+Added: Loews Corporation purchased 0.7 million shares of CNA’s common stock at an aggregate cost of $ 26 million during the nine months ended September 30, 2022.
In February of 2022, Boardwalk Pipelines completed a public offering of $ 500 million aggregate principal amount of its 3.6 % senior notes due September 1, 2032.
3 unchanged sentences
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 11:
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
8 unchanged sentences
(a) Revenues presented reflect the consolidated results of Altium Packaging through March 31, 2021.
−Removed: Receivables from contracts with customers – As of June 30, 2022 and December 31, 2021, receivables from contracts with customers were approximately $ 141 million and $ 145 million and are included within Receivables on the Consolidated Condensed Balance Sheets.
−Removed: Deferred revenue – As of June 30, 2022 and December 31, 2021, deferred revenue resulting from contracts with customers was approximately $ 4.7 billion and $ 4.6 billion and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Condensed Balance Sheets.
−Removed: Approximately $ 723 million and $ 624 million of revenues recognized during the six months ended June 30, 2022 and 2021 were included in deferred revenue as of December 31, 2021 and 2020.
−Removed: Performance obligations – As of June 30, 2022, approximately $ 13.4 billion of estimated operating revenues is expected to be recognized in the future related to outstanding performance obligations.
+Added: Receivables from contracts with customers – As of September 30, 2022 and December 31, 2021, receivables from contracts with customers were approximately $ 144 million and $ 145 million and are included within Receivables on the Consolidated Condensed Balance Sheets.
+Added: Deferred revenue – As of September 30, 2022 and December 31, 2021, deferred revenue resulting from contracts with customers was approximately $ 4.8 billion and $ 4.6 billion and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Condensed Balance Sheets.
+Added: Approximately $ 1.0 billion and $ 916 million of revenues recognized during the nine months ended September 30, 2022 and 2021 were included in deferred revenue as of December 31, 2021 and 2020.
+Added: Performance obligations – As of September 30, 2022, approximately $ 13.4 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 and hydrocarbons (“NGLs”) at Boardwalk Pipelines and non-insurance warranty revenue at CNA.
−Removed: Approximately $ 1.4 billion will be recognized during the remaining six months of 2022 , $ 2.4 billion in 2023 and the remainder in following years.
+Added: Approximately $ 0.8 billion will be recognized during the remaining three months of 2022 , $ 2.7 billion in 2023 and the remainder in following years.
The actual timing of recognition may vary due to factors outside of the Company’s control.
−Removed: Table of c o ntents
Benefit Plans
2 unchanged sentences
Pension Benefits
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
5 unchanged sentences
Settlements 2 2
−Removed: Regulatory asset decrease 1 2
+Added: Regulatory asset (increase) decrease ( 1 ) 1 1 1
Net periodic benefit $ ( 13 ) $ ( 10 ) $ ( 38 ) $ ( 32 )
Other Postretirement Benefits
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2022 2021 2022 2021
12 unchanged sentences
The transaction was completed on July 18, 2018.
−Removed: Table of c o ntents
On September 28, 2018, the Trial Court denied approval of the Proposed Settlement.
8 unchanged sentences
On January 17, 2022, the Plaintiffs filed a cross-appeal to the Supreme Court contesting the calculation of damages by the Trial Court.
−Removed: Oral arguments have been set for this case on September 14, 2022.
+Added: Oral arguments were held for this case on September 14, 2022.
At this time, given the Trial Court’s ruling and the pending appeals, the Company believes that it is reasonably possible that a loss has occurred, although the Company is unable to estimate any potential loss as it may range from zero up to the full amount of the Trial Court’s award of $ 690 million, plus pre- and post-judgment interest and attorneys’ fees, or more, depending on the extent of the Defendants’ and Plaintiffs’ success on appeal.
7 unchanged sentences
CNA has provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities issued by a previously owned subsidiary.
−Removed: As of June 30, 2022, the potential amount of future payments CNA could be required to pay under these guarantees was approximately $ 1.6 billion, which will be paid over the lifetime of the annuitants.
+Added: As of September 30, 2022, the potential amount of future payments CNA could be required to pay under these guarantees was approximately $ 1.6 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.
+Added: Loews Hotels & Co
+Added: In October of 2022, Loews Hotels & Co contributed $ 34 million as an initial investment in two joint venture development projects expected to open in 2025.
+Added: These projects are currently estimated to require an aggregate investment of approximately $ 200 million in capital contributions from Loews Hotels & Co.
Loews Corporation has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA, Boardwalk Pipelines and Loews Hotels & Co;
5 unchanged sentences
Amounts presented will not necessarily be the same as those in the individual financial statements of the subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests.
−Removed: Table of c o ntents
Statements of Operations by segment are presented in the following tables.
−Removed: Three Months Ended June 30, 2022 CNA Financial
+Added: Three Months Ended September 30, 2022 CNA Financial
Boardwalk Pipelines
18 unchanged sentences
Net income (loss) attributable to Loews Corporation $ 115 $ 34 $ 25 $ ( 44 ) $ 130
−Removed: Table of c o ntents
−Removed: Three Months Ended June 30, 2021 CNA Financial Boardwalk Pipelines Loews
+Added: Three Months Ended September 30, 2021 CNA Financial Boardwalk Pipelines Loews
Hotels & Co Corporate Total
1 unchanged sentence
Insurance premiums $ 2,059 $ 2,059
−Removed: Net investment income 591 $ 1 $ 24 616
+Added: Net investment income (loss) 513 $ ( 30 ) 483
Investment gains 22 22
13 unchanged sentences
Net income (loss) attributable to Loews Corporation $ 229 $ 38 $ 13 $ ( 60 ) $ 220
−Removed: Table of c o ntents
−Removed: Six Months Ended June 30, 2022 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate Total
+Added: Nine Months Ended September 30, 2022 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate Total
(In millions)
16 unchanged sentences
Net income (loss) attributable to Loews Corporation $ 579 $ 164 $ 84 $ ( 179 ) $ 648
−Removed: Table of c o ntents
−Removed: Six Months Ended June 30, 2021 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate (a) Total
+Added: Nine Months Ended September 30, 2021 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate (a) Total
(In millions)
18 unchanged sentences
Beginning April 1, 2021, Altium Packaging is recorded as an equity method investment.
−Removed: Table of c o ntents
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.