Insurance Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

Rollforward of Activity in Loss Reserves

The following table presents the rollforward of activity in loss reserves:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)		2022		2021		2022		2021
Liability for unpaid loss and loss adjustment expenses, beginning of period	$	76,739	$	78,981	$	79,026	$	77,720
Reinsurance recoverable		(33,583)		(34,866)		(35,213)		(34,431)
Net Liability for unpaid loss and loss adjustment expenses, beginning of period		43,156		44,115		43,813		43,289
Losses and loss adjustment expenses incurred:
Current year		4,373		4,467		12,020		12,262
Prior years, excluding discount and amortization of deferred gain		(112)		(153)		(537)		(166)
Prior years, discount charge (benefit)		36		83		78		99
Prior years, amortization of deferred gain on retroactive reinsurance(a)		(23)		(13)		(37)		(107)
Total losses and loss adjustment expenses incurred		4,274		4,384		11,524		12,088
Losses and loss adjustment expenses paid:
Current year		(1,132)		(1,147)		(2,289)		(2,370)
Prior years		(2,673)		(2,449)		(8,844)		(8,653)
Total losses and loss adjustment expenses paid		(3,805)		(3,596)		(11,133)		(11,023)
Other changes:
Foreign exchange effect		(1,031)		(414)		(1,827)		(57)
Retroactive reinsurance adjustment (net of discount)(b)		101		159		318		351
Total other changes		(930)		(255)		(1,509)		294
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses		42,695		44,648		42,695		44,648
Reinsurance recoverable		32,824		34,626		32,824		34,626
Total	$	75,519	$	79,274	$	75,519	$	79,274

(a)Includes $5 million and $5 million for the retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (Berkshire), covering U.S. asbestos exposures for the three-month periods ended September 30, 2022 and 2021, respectively, and $15 million and $23 million for the nine-month periods ended September 30, 2022 and 2021.

(b)Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $17 million and $22 million for the three-month periods ended September 30, 2022 and 2021 respectively, and $74 million and $78 million for the nine-month periods ended September 30, 2022 and 2021 respectively.

Schedule of Components of Loss Reserve Discount

The following table presents the components of the loss reserve discount discussed above:

(in millions)		September 30, 2022		December 31, 2021
U.S. workers' compensation	$	1,825	$	1,829
Retroactive reinsurance		(879)		(953)
Total reserve discount(a)(b)	$	946	$	876

(a)Excludes $131 million and $116 million of discount related to certain long-tail liabilities in the UK at September 30, 2022 and December 31, 2021, respectively.

(b)Includes gross discount of $480 million and $500 million, which was 100 percent ceded to Fortitude Re at September 30, 2022 and December 31, 2021, respectively.

Schedule of Loss Reserve Discount

The following table presents the net loss reserve discount benefit (charge):

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)		2022		2021		2022		2021
Current accident year	$	26	$	11	$	74	$	37
Accretion and other adjustments to prior year discount		(36)		(83)		(78)		(99)
Net reserve discount benefit (charge)		(10)		(72)		(4)		(62)
Change in discount on loss reserves ceded under retroactive reinsurance		17		22		74		78
Net change in total reserve discount*	$	7	$	(50)	$	70	$	16

*Excludes $20 million and $(39) million discount related to certain long-tail liabilities in the UK for the three-month periods ended September 30, 2022 and 2021, respectively, and excludes $15 million and $(30) million discount related to certain long-tail liabilities in the UK for the nine-month periods ended September 30, 2022 and 2021, respectively.