Company: L
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000060086-25-000181
Chunk: 168

Company: LOEWS CORP
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 168
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 for the nine months ended September 30, 2025 as compared with the comparable 2024 period. 

The impact of the assumption updates as a result of the annual long-term care reserve reviews completed in the third quarter of each year is discussed in the three month summary above. 

Future Policy Benefit Reserves

Annually in the third quarter, an 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 liability for future policyholder benefits (“LFPB”).  For further information on the long-term care reserving process see Note 1 of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024. 

The table below summarizes the estimated pretax impact on CNA’s results of operations from various hypothetical revisions to its LFPB reserve assumptions. CNA has assumed that revisions to such assumptions would occur in each policy type, age and duration within each long-term care product. The impact of each sensitivity is discrete and does not reflect the impact one factor may have on another or the mitigating impact from management actions, which may include additional future premium rate increases. Although such hypothetical revisions are not currently required or anticipated, CNA believes they could occur based on past variances in experience and its expectations of the ranges of future 

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experience that could reasonably occur. Any actual adjustment would be dependent on the specific policies affected and, therefore, may differ from the estimates summarized below. The estimated impacts to results of operations in the table below are after consideration of any net premium ratio impacts.

September 30, 2025Estimated Reduction to Pretax Income(In millions)   Hypothetical revisions Morbidity:  2.5% increase in morbidity$300 5% increase in morbidity620 Persistency:5% decrease in active life mortality and lapse$180 10% decrease in active life mortality and lapse350 Premium rate actions:25% decrease in anticipated future premium rate increases$30 50% decrease in anticipated future premium rate increases50 

The following table summarizes policyholder reserves for CNA’s Other Insurance Operations:

September 30, 2025Claim and claim adjustment expensesFuture policy benefitsTotal(In millions)Long-term care$13,546 $13,546 Structured settlements and other$538 538 Total538 13,546 14,