Reserves for Insurance Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2022

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)	2022		2021
Total gross reserves for insurance losses and loss adjustment expenses at January 1,	$	122	$	129
Less: Reinsurance recoverable	81		90
Net reserves for insurance losses and loss adjustment expenses at January 1,	41		39
Net insurance losses and loss adjustment expenses incurred related to:
Current year	220		207
Prior years (a)	(3)		(1)
Total net insurance losses and loss adjustment expenses incurred	217		206
Net insurance losses and loss adjustment expenses paid or payable related to:
Current year	(183)		(174)
Prior years	(26)		(29)
Total net insurance losses and loss adjustment expenses paid or payable	(209)		(203)
Net reserves for insurance losses and loss adjustment expenses at September 30,	49		42
Plus: Reinsurance recoverable	73		83
Total gross reserves for insurance losses and loss adjustment expenses at September 30,	$	122	$	125

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