Reserves for Insurance Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2023

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

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table shows incurred claims and allocated loss adjustment expenses, net of reinsurance.

	For the years ended December 31, ($ in millions)																				December 31, 2023 ($ in millions)
	(unaudited supplementary information)																				Total of incurred-but-not-reported liabilities plus expected development on reported claims (a)		Cumulative number of reported claims (a)
Accident year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	390	$	389	$	388	$	388	$	388	$	388	$	388	$	388	$	388	$	388	$	—	525,298
2015			274		271		272		272		272		272		272		272		272		—		342,280
2016					326		327		328		328		328		328		328		328		—		476,057
2017							310		314		315		315		315		315		315		—		481,750
2018									271		272		272		273		273		272		—		506,452
2019											303		306		305		305		305		—		542,360
2020													343		339		339		339		—		494,469
2021															243		237		237		—		493,571
2022																	258		267		2		512,716
2023																			385		40		568,345
Total																			$	3,108

(a)Claims are reported on a claimant basis in a given accident year. Claimant is defined as one vehicle for GAP products, one repair for VSCs and VMCs, one dealership for dealer inventory products, and per individual/coverage for run-off personal automotive products.

The following table shows cumulative paid claims and allocated loss adjustment expenses, net of reinsurance.

	For the years ended December 31, ($ in millions)
	(unaudited supplementary information)
Accident year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	369	$	388	$	388	$	388	$	388	$	388	$	388	$	388	$	388	$	388
2015			252		272		272		272		272		272		272		272		272
2016					302		327		328		328		328		328		328		328
2017							289		315		315		315		315		315		315
2018									245		273		273		273		273		272
2019											278		306		305		305		305
2020													313		339		339		340
2021															213		236		237
2022																	225		260
2023																			328
Total																			3,045
All outstanding liabilities for loss and allocated loss adjustment expenses before 2014, net of reinsurance																			8
Reserves for insurance losses and allocated loss adjustment expenses, net of reinsurance																			$	71

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

($ in millions)	2023		2022		2021
Total gross reserves for insurance losses and loss adjustment expenses at January 1,	$	119	$	122	$	129
Less: Reinsurance recoverable	72		81		90
Net reserves for insurance losses and loss adjustment expenses at January 1,	47		41		39
Net insurance losses and loss adjustment expenses incurred related to:
Current year	414		282		259
Prior years (a)	8		(2)		2
Total net insurance losses and loss adjustment expenses incurred	422		280		261
Net insurance losses and loss adjustment expenses paid or payable related to:
Current year	(354)		(246)		(229)
Prior years	(41)		(28)		(30)
Total net insurance losses and loss adjustment expenses paid or payable	(395)		(274)		(259)
Net reserves for insurance losses and loss adjustment expenses at December 31,	74		47		41
Plus: Reinsurance recoverable	66		72		81
Total gross reserves for insurance losses and loss adjustment expenses at December 31,	$	140	$	119	$	122

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

Schedule of Historical Claims Duration

The following table shows the average annual percentage payout of incurred claims by age, net of reinsurance. The information presented is unaudited supplementary information.

Year	1		2		3		4		5		6		7		8		9		10
Percentage payout of incurred claims	91.5	%	8.4	%	0.1	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%

Schedule of Short-Duration Insurance Contracts, Reconciliation of Claims Development to Liability

The following table shows a reconciliation of the disclosures of incurred and paid claims development to the reserves for insurance losses and loss adjustment expenses.

December 31, ($ in millions)	2023		2022		2021
Reserves for insurance losses and loss adjustment expenses, net of reinsurance	$	71	$	44	$	39
Total reinsurance recoverable on unpaid claims	66		72		81
Unallocated loss adjustment expenses	3		3		2
Total gross reserves for insurance losses and loss adjustment expenses	$	140	$	119	$	122