Company: L
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000060086-25-000036
Chunk: 426

Company: LOEWS CORP
Filing Date: 2025-02-11
Form: 10-K
Item: Item 7
Chunk 426
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, 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 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.

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For the year ended December 31, 2024Estimated Reduction to Pretax Income(In millions)   Hypothetical revisionsMorbidity:2.5% increase in morbidity$290 5% increase in morbidity590 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,