Reserves for Insurance Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2024

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, 2024 ($ 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	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	274	$	271	$	272	$	272	$	272	$	272	$	272	$	272	$	272	$	272	$	—	342,280
2016			326		327		328		328		328		328		328		328		328		—		476,057
2017					310		314		315		315		315		315		315		315		—		481,750
2018							271		272		272		273		273		272		273		—		506,454
2019									303		306		305		305		305		305		—		542,361
2020											343		339		339		339		340		—		494,524
2021													243		237		237		237		—		493,714
2022															258		267		269		—		513,434
2023																	385		403		7		602,714
2024																			488		78		621,826
Total																			$	3,230

(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 most other 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	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	252	$	272	$	272	$	272	$	272	$	272	$	272	$	272	$	272	$	272
2016			302		327		328		328		328		328		328		328		328
2017					289		315		315		315		315		315		315		315
2018							245		273		273		273		273		272		273
2019									278		306		305		305		305		305
2020											313		339		339		340		340
2021													213		236		237		237
2022															225		260		265
2023																	328		387
2024																			390
Total																			3,112
All outstanding liabilities for loss and allocated loss adjustment expenses before 2015, net of reinsurance																			8
Reserves for insurance losses and allocated loss adjustment expenses, net of reinsurance																			$	126

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

($ in millions)	2024		2023		2022
Total gross reserves for insurance losses and loss adjustment expenses at January 1,	$	140	$	119	$	122
Less: Reinsurance recoverable	66		72		81
Net reserves for insurance losses and loss adjustment expenses at January 1,	74		47		41
Net insurance losses and loss adjustment expenses incurred related to:
Current year	521		414		282
Prior years (a)	23		8		(2)
Total net insurance losses and loss adjustment expenses incurred	544		422		280
Net insurance losses and loss adjustment expenses paid or payable related to:
Current year	(420)		(354)		(246)
Prior years	(69)		(41)		(28)
Total net insurance losses and loss adjustment expenses paid or payable	(489)		(395)		(274)
Net reserves for insurance losses and loss adjustment expenses at December 31,	129		74		47
Plus: Reinsurance recoverable (b)	60		66		72
Total gross reserves for insurance losses and loss adjustment expenses at December 31, (c)	$	189	$	140	$	119

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

(b)Included in premiums receivable and other insurance assets on our Consolidated Balance Sheet.

(c)Included in accrued expenses and other liabilities on our Consolidated Balance Sheet.

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	89.7	%	9.9	%	0.3	%	—	%	—	%	—	%	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)	2024		2023		2022
Reserves for insurance losses and loss adjustment expenses, net of reinsurance	$	126	$	71	$	44
Total reinsurance recoverable on unpaid claims	60		66		72
Unallocated loss adjustment expenses	3		3		3
Total gross reserves for insurance losses and loss adjustment expenses	$	189	$	140	$	119