Earnings Document

Periods ended December 31

Three Months

Twelve Months

(In millions)

2021

2020

Change

2021

2020

Change

Revenues:

Net earned premiums

$

2,119

$

1,977

7 %

$

8,175

$

7,649

7

%

Net investment income

551

555

(1)

2,159

1,935

12

Net investment gains (losses)

3

66

120

(54)

Non-insurance warranty revenue

376

326

1,430

1,252

Other revenues

5

7

24

26

Total revenues

3,054

2,931

4

11,908

10,808

10

Claims, Benefits and Expenses:

Insurance claims and policyholders' benefits

1,665

1,487

6,349

6,170

Amortization of deferred acquisition costs

359

364

1,443

1,410

Non-insurance warranty expense

355

300

1,328

1,159

Other operating expenses

317

274

1,191

1,126

Interest

28

28

113

122

Total claims, benefits and expenses

2,724

2,453

(11)

10,424

9,987

(4)

Income (loss) before income tax

330

478

1,484

821

Income tax (expense) benefit

(64)

(91)

(282)

(131)

Net income (loss)

$

266

$

387

(31) %

$

1,202

$

690

74

%

Periods ended December 31

Three Months

Twelve Months

(In millions, except per share data)

2021

2020

2021

2020

Components of Income (Loss)

Core income (loss)

$

265

$

335

$

1,106

$

735

Net investment gains (losses)

1

52

96

(45)

Net income (loss)

$

266

$

387

$

1,202

$

690

Diluted Earnings (Loss) Per Common Share

Core income (loss)

$

0.97

$

1.23

$

4.06

$

2.70

Net investment gains (losses)

0.01

0.19

0.35

(0.17)

Diluted earnings (loss) per share

$

0.98

$

1.42

$

4.41

$

2.53

Weighted Average Outstanding Common Stock and Common Stock Equivalents

Basic

271.7

271.7

271.8

271.6

Diluted

272.9

272.6

272.8

272.4

Retuon Equity

Net income (loss) (1)

8.4

%

12.5

%

9.5

%

5.5

%

Core income (loss) (2)

8.5

11.4

9.1

6.1

(In millions, except per share data)

December 31, 2021

December 31, 2020

Total investments

$

50,328

$

50,293

Reinsurance receivables, net of allowance for uncollectible receivables

5,463

4,457

Total assets

66,639

64,026

Insurance reserves

43,171

41,143

Debt

2,779

2,776

Total liabilities

53,830

51,319

Accumulated other comprehensive income (loss) (1)

320

803

Total stockholders' equity

12,809

12,707

Book value per common share

$

47.20

$

46.82

Book value per common share excluding AOCI

$

46.02

$

43.86

Outstanding shares of common stock (in millions of shares)

271.4

271.4

Statutory capital and surplus - Combined Continental Casualty Companies (2)

$

11,321

$

10,708

Three months ended December 31

2021

2020

Net cash flows provided (used) by operating activities

$

643

$

367

Net cash flows provided (used) by investing activities

(631)

(298)

Net cash flows provided (used) by financing activities

(103)

(101)

Net cash flows provided (used) by operating, investing and financing activities

$

(91)

$

(32)

Twelve months ended December 31

2021

2020

Net cash flows provided (used) by operating activities

$

1,997

$

1,775

Net cash flows provided (used) by investing activities

(1,228)

(705)

Net cash flows provided (used) by financing activities

(648)

(902)

Net cash flows provided (used) by operating, investing and financing activities

$

121

$

168