Claim and Claim Adjustment Expense Reserves (Tables)

9 Months Ended

Sep. 30, 2023

Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items]

Schedule of liability for unpaid claims and claims adjustment expense

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.

For the nine months ended September 30
(In millions)	2023		2022 (1)
Reserves, beginning of year:
Gross	$	22,120	$	21,269
Ceded	5,191		4,969
Net reserves, beginning of year	16,929		16,300
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	4,221		3,830
Increase (decrease) in provision for insured events of prior years	43		(4)
Amortization of discount	33		33
Total net incurred (2)	4,297		3,859
Net payments attributable to:
Current year events	(588)		(482)
Prior year events	(2,953)		(2,700)
Total net payments	(3,541)		(3,182)
Foreign currency translation adjustment and other	(30)		(383)
Net reserves, end of period	17,655		16,594
Ceded reserves, end of period	5,181		5,147
Gross reserves, end of period	$	22,836	$	21,741

(1) In conjunction with the Company's adoption of ASU 2018-12, at January 1, 2023, long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expenses into Future policy benefits and this change was applied retrospectively as of January 1, 2021. See Note A to the Condensed Consolidated Financial Statements for additional information.

(2) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Condensed Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting and uncollectible reinsurance, which are not reflected in the table above.

Net prior year development

The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments.

Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Pretax (favorable) unfavorable development:
Specialty	$	(5)	$	(15)	$	(9)	$	(35)
Commercial	(2)		(2)		(17)		(26)
International	—		—		15		(5)
Corporate & Other	20		—		55		64
Total pretax (favorable) unfavorable development	$	13	$	(17)	$	44	$	(2)

Specialty

Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items]

Net prior year claim and allocated claim adjustment expense reserve development

The following table presents further detail of the development recorded for the Specialty segment.

Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Pretax (favorable) unfavorable development:
Medical Professional Liability	$	—	$	8	$	9	$	17
Other Professional Liability and Management Liability	17		9		16		22
Surety	(21)		(20)		(28)		(48)
Warranty	(2)		(13)		(11)		(22)
Other	1		1		5		(4)
Total pretax (favorable) unfavorable development	$	(5)	$	(15)	$	(9)	$	(35)

Commercial

Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items]

Net prior year claim and allocated claim adjustment expense reserve development

The following table presents further detail of the development recorded for the Commercial segment.

Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Pretax (favorable) unfavorable development:
Commercial Auto	$	—	$	—	$	11	$	21
General Liability	—		—		70		41
Workers' Compensation	(2)		(2)		(100)		(86)
Property and Other	—		—		2		(2)
Total pretax (favorable) unfavorable development	$	(2)	$	(2)	$	(17)	$	(26)

International

Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items]

Net prior year claim and allocated claim adjustment expense reserve development

The following table presents further detail of the development recorded for the International segment.

Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Pretax (favorable) unfavorable development:
Commercial	$	—	$	—	$	(5)	$	(4)
Specialty	—		—		22		(1)
Other	—		—		(2)		—
Total pretax (favorable) unfavorable development	$	—	$	—	$	15	$	(5)