Reserves for Insurance Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2020

Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract]

Reserves for Insurance Losses and Loss Adjustment Expenses

Reserves for Insurance Losses and Loss Adjustment Expenses

The following table shows a rollforward of our reserves for insurance losses and loss adjustment expenses.

($ in millions)	2020		2019
Total gross reserves for insurance losses and loss adjustment expenses at January 1,	$	122	$	134
Less: Reinsurance recoverable	88		96
Net reserves for insurance losses and loss adjustment expenses at January 1,	34		38
Net insurance losses and loss adjustment expenses incurred related to:
Current year	298		259
Prior years (a)	3		1
Total net insurance losses and loss adjustment expenses incurred	301		260
Net insurance losses and loss adjustment expenses paid or payable related to:
Current year	(271)		(227)
Prior years	(27)		(29)
Total net insurance losses and loss adjustment expenses paid or payable	(298)		(256)
Net reserves for insurance losses and loss adjustment expenses at September 30,	37		42
Plus: Reinsurance recoverable	88		93
Total gross reserves for insurance losses and loss adjustment expenses at September 30,	$	125	$	135

(a)There have been no material adverse changes to the reserve for prior years.