Company: L
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000060086-25-000036
Chunk: 87

Company: LOEWS CORP
Filing Date: 2025-02-11
Form: 10-K
Item: Item 3
Chunk 87
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590 Persistency:5% decrease in active life mortality and lapse$160 10% decrease in active life mortality and lapse310 Premium rate actions:25% decrease in anticipated future premium rate increases$10 50% decrease in anticipated future premium rate increases20 

As part of the annual reserve review, statutory long-term care reserve adequacy is evaluated by premium deficiency testing, by comparing carried statutory reserves with best estimate reserves, which incorporates best estimate discount rate and liability assumptions in its determination. Statutory margin is the excess of carried reserves over best estimate reserves. As of September 30, 2024, statutory long-term care margin increased to $1.4 billion from $1.3 billion, primarily driven by a more favorable interest rate environment resulting in a higher yielding investment portfolio. 

The following tables summarize policyholder reserves for CNA’s long-term care operations:

December 31, 2024Claim and claim adjustment expensesFuture policy benefitsTotal(In millions)       Long-term care$13,158 $13,158 Structured settlement and other$541 541 Total541 13,158 13,699 Ceded reserves81 81 Total gross reserves$622 $13,158 $13,780 December 31, 2023Long-term care$13,959 $13,959 Structured settlement and other$582 582 Total582 13,959 14,541 Ceded reserves93 93 Total gross reserves$675 $13,959 $14,634 

CATASTROPHES AND RELATED REINSURANCE

Various events can cause catastrophe losses. These events can be natural or man-made, including hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, fires, floods, riots, strikes, civil unrest, cyber attacks, pandemics and acts of terrorism that produce unusually large aggregate losses. In most, but not all cases, CNA’s catastrophe losses from these events in the U.S. are defined consistent with the definition of the Property Claims Service (“PCS”). PCS defines a catastrophe as an event that causes damage of $25 million or more in direct insured losses to property and affects a significant number of policyholders and insurers. For events outside of the U.S., CNA defines a catastrophe as an industry recognized event that generates an accumulation of claims amounting to more than $1 million for the International line of business.

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Catastrophes are an inherent risk of