Business Segments (Tables)

3 Months Ended

Mar. 31, 2026

Significant components of the Company's continuing operations and selected balance sheet items

The Company's results of operations and selected balance sheet items by segment are presented in the following tables.


Three months ended March 31, 2026	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	852	$	1,412	$	334	$	103	$	—	$	—	$	2,701
Net investment income	142		190		43		224		11		—		610
Non-insurance warranty revenue	374		—		—		—		—		—		374
Other revenues	1		9		—		—		3		(3)		10
Total operating revenues	1,369		1,611		377		327		14		(3)		3,695
Claims, benefits and expenses
Net incurred claims and benefits	586		1,076		204		314		(17)		—		2,163
Policyholders’ dividends	4		8		—		—		—		—		12
Amortization of deferred acquisition costs	197		206		73		—		—		—		476
Non-insurance warranty expense	356		—		—		—		—		—		356
Insurance related administrative expenses	89		171		43		29		—		—		332
Interest expense	—		—		—		—		33		—		33
Other segment items (1)	12		11		2		1		15		(3)		38
Total claims, benefits and expenses	1,244		1,472		322		344		31		(3)		3,410



Income tax (expense) benefit on core income (loss)	(26)		(27)		(18)		8		3		—		(60)

Core income (loss)	$	99	$	112	$	37	$	(9)	$	(14)	$	—	$	225
Net investment gains (losses)													(18)
Income tax (expense) benefit on net investment gains (losses)													4
Net investment gains (losses), after tax													(14)



Net income (loss)													$	211

(1) Other segment items for the Company's property and casualty commercial insurance segments reflects expenses not directly related to the Company's insurance operations, including certain expenses related to the Company's non-insurance warranty business within Specialty, claims services offerings within Commercial and foreign currency transaction gains and losses within International. Other segment items for the Corporate & Other segment reflects certain corporate expenses not attributable to the Company's ongoing property and casualty insurance operations.


March 31, 2026	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Reinsurance receivables	$	1,658	$	1,901	$	575	$	56	$	2,229	$	—	$	6,419
Insurance receivables	885		2,432		427		1		—		—		3,745
Deferred acquisition costs	454		407		147		—		—		—		1,008
Goodwill	117		—		30		—		—		—		147
Deferred non-insurance warranty acquisition expense	3,098		—		—		—		—		—		3,098
Insurance reserves
Claim and claim adjustment expenses	7,785		12,668		3,396		578		2,506		—		26,933
Unearned premiums	3,281		3,453		806		107		—		(1)		7,646
Future policy benefits	—		—		—		13,195		—		—		13,195
Deferred non-insurance warranty revenue	3,976		—		—		—		—		—		3,976


Three months ended March 31, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total

Operating revenues
Net earned premiums	$	830	$	1,380	$	310	$	106	$	—	$	—	$	2,626
Net investment income	151		177		34		226		16		—		604
Non-insurance warranty revenue	397		—		—		—		—		—		397
Other revenues	1		8		—		—		3		(3)		9
Total operating revenues	1,379		1,565		344		332		19		(3)		3,636
Claims, benefits and expenses
Net incurred claims and benefits	509		1,007		192		300		9		—		2,017
Policyholders’ dividends	2		8		—		—		—		—		10
Amortization of deferred acquisition costs	189		219		63		—		—		—		471
Non-insurance warranty expense	385		—		—		—		—		—		385
Insurance related administrative expenses	88		163		40		30		—		—		321
Interest expense	—		—		—		—		32		—		32
Other segment items (1)	15		10		(1)		—		21		(3)		42
Total claims, benefits and expenses	1,188		1,407		294		330		62		(3)		3,278


Income tax (expense) benefit on core income (loss)	(41)		(34)		(13)		4		7		—		(77)

Core income (loss)	$	150	$	124	$	37	$	6	$	(36)	$	—	$	281
Net investment gains (losses)													(9)
Income tax (expense) benefit on net investment gains (losses)													2
Net investment gains (losses), after tax													(7)



Net income (loss)													$	274


December 31, 2025	Specialty		Commercial		International		Life & Group		Corporate & Other
(In millions)											Eliminations		Total
Reinsurance receivables	$	1,716	$	1,762	$	577	$	56	$	2,297	$	—	$	6,408
Insurance receivables	1,008		2,315		438		2		1		—		3,764
Deferred acquisition costs	447		391		148		—		—		—		986
Goodwill	117		—		31		—		—		—		148
Deferred non-insurance warranty acquisition expense	3,220		—		—		—		—		—		3,220
Insurance reserves
Claim and claim adjustment expenses	7,784		12,249		3,376		591		2,599		—		26,599
Unearned premiums	3,317		3,411		819		88		—		—		7,635
Future policy benefits	—		—		—		13,448		—		—		13,448
Deferred non-insurance warranty revenue	4,138		—		—		—		—		—		4,138

The following table presents further detail of significant segment expenses included within Net incurred claims and benefits for the Property & Casualty segments.


Three months ended March 31
(In millions)	2026		2025
Specialty
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	536	$	499
Catastrophe losses	—		—
(Favorable) unfavorable development (1)	45		10
Commercial
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	936	$	868
Catastrophe losses	84		86
(Favorable) unfavorable development (1)	55		51
International
Non-catastrophe net incurred claim and claim adjustment expenses related to current year	$	200	$	181
Catastrophe losses	4		11
(Favorable) unfavorable development (1)	—		—

(1) (Favorable) unfavorable development does not include the effects of interest accretion and change in allowance for uncollectible reinsurance.

Revenues by line of business

The following table presents operating revenues by line of business for each reportable segment.


Three months ended March 31
(In millions)	2026		2025
Specialty
Management & Professional Liability	$	761	$	746
Surety	191		188
Warranty & Alternative Risks	417		445
Specialty revenues	1,369		1,379
Commercial
Middle Market (1)	479		453
Construction (1)	501		506
Small Business	151		156
Other Commercial (1)	480		450
Commercial revenues	1,611		1,565
International
Canada	107		94
Europe	169		144
Hardy	101		106
International revenues	377		344
Life & Group revenues	327		332
Corporate & Other revenues	14		19
Eliminations	(3)		(3)
Total operating revenues	3,695		3,636
Net investment gains (losses)	(18)		(9)
Total revenues	$	3,677	$	3,627

(1) Effective March 31, 2026, certain Commercial lines of businesses were realigned to reflect changes in management's responsibility for those businesses. Prior period information has been conformed to the new line of business presentation.