XML 53 R36.htm IDEA: XBRL DOCUMENT v3.24.3
Insurance Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
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)2024202320242023
Liability for unpaid loss and loss adjustment expenses, beginning of period$69,783 $70,284 $70,393 $75,167 
Reinsurance recoverable(29,849)(30,226)(30,289)(32,102)
Net Liability for unpaid loss and loss adjustment expenses, beginning of period39,934 40,058 40,104 43,065 
Losses and loss adjustment expenses incurred:
Current year3,749 3,922 10,660 11,651 
Prior years, excluding discount and amortization of deferred gain187 (246)79 (380)
Prior years, discount charge (benefit)49 52 217 200 
Prior years, amortization of deferred gain on retroactive reinsurance(a)
(212)27 (277)(58)
Total losses and loss adjustment expenses incurred3,773 3,755 10,679 11,413 
Losses and loss adjustment expenses paid:
Current year(1,169)(1,190)(2,310)(2,360)
Prior years(2,285)(2,561)(7,739)(9,104)
Total losses and loss adjustment expenses paid(3,454)(3,751)(10,049)(11,464)
Other changes:
Foreign exchange effect891 (583)237 (211)
Losses and loss adjustment expenses recognized within gain on divestitures— 316 — 316 
Retroactive reinsurance adjustment (net of discount)(b)
(107)121 71 180 
Dispositions(5)— (5)— 
Reclassified to held for sale, net of reinsurance recoverables(c)
5 (159)— (3,542)
Total other changes784 (305)303 (3,257)
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses41,037 39,757 41,037 39,757 
Reinsurance recoverable(d)
30,029 30,066 30,029 30,066 
Total$71,066 $69,823 $71,066 $69,823 
(a)Includes $3 million and $9 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 months ended September 30, 2024 and 2023, respectively, and $47 million and $22 million for the nine months ended September 30, 2024 and 2023, respectively.
(b)Includes benefit (charge) from change in discount on retroactive reinsurance of $22 million and $24 million for the three months ended September 30, 2024 and 2023 respectively, and $100 million and $120 million for the nine months ended September 30, 2024 and 2023, respectively.
(c)Represents change in loss reserves included in Liabilities held for sale for the three months ended September 30, 2024 and 2023. For additional information, see Note 4.
(d)Excludes $1.5 billion of Reinsurance recoverable reclassified to Assets held for sale on the Condensed Consolidated Balance Sheets at September 30, 2023.
Schedule of Components of Loss Reserve Discount
The following table presents the components of the loss reserve discount discussed above:
(in millions)September 30, 2024December 31, 2023
U.S. workers' compensation$2,206 $2,337 
Retroactive reinsurance(1,004)(1,104)
Total reserve discount(a)(b)
$1,202 $1,233 
(a)Excludes $197 million and $196 million of discount related to certain long-tail liabilities in the UK at September 30, 2024 and December 31, 2023, respectively.
(b)Includes gross discount of $665 million and $687 million, which was 100 percent ceded to Fortitude Re at September 30, 2024 and December 31, 2023, 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)2024202320242023
Current accident year$20 $47 $86 $115 
Accretion and other adjustments to prior year discount(49)(52)(217)(200)
Net reserve discount benefit (charge)(29)(5)(131)(85)
Change in discount on loss reserves ceded under retroactive reinsurance22 24 100 120 
Net change in total reserve discount*$(7)$19 $(31)$35 
*Excludes $1 million and $7 million discount related to certain long-tail liabilities in the UK for the three months ended September 30, 2024 and 2023, respectively, and excludes $1 million and $15 million discount related to certain long-tail liabilities in the UK for the nine months ended September 30, 2024 and 2023, respectively.
Schedule of Activity for Future Policy Benefits Liability
The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Condensed Consolidated Balance Sheets:
Nine Months Ended September 30,
(in millions, except for liability durations)20242023
Present value of expected net premiums
Balance, beginning of year$1,702 $1,929 
Effect of changes in discount rate assumptions (AOCI)339 262 
Beginning balance at original discount rate2,041 2,191 
Effect of actual variances from expected experience(7)(44)
Adjusted beginning of year balance2,034 2,147 
Issuances75 100 
Interest accrual22 22 
Net premium collected(268)(160)
Foreign exchange impact(87)(62)
Other— (63)
Ending balance at original discount rate1,776 1,984 
Effect of changes in discount rate assumptions (AOCI)(193)(354)
Balance, end of period$1,583 $1,630 
Nine Months Ended September 30,
(in millions, except for liability durations)20242023
Present value of expected future policy benefits
Balance, beginning of year$2,149 $2,380 
Effect of changes in discount rate assumptions (AOCI)441 362 
Beginning balance at original discount rate2,590 2,742 
Effect of actual variances from expected experience(8)(43)
Adjusted beginning of year balance2,582 2,699 
Issuances79 104 
Interest accrual27 27 
Benefit payments(273)(153)
Foreign exchange impact(107)(93)
Other— (74)
Ending balance at original discount rate2,308 2,510 
Effect of changes in discount rate assumptions (AOCI)(264)(461)
Balance, end of period$2,044 $2,049 
Net liability for future policy benefits, end of period$461 $419 
Deferred profit liability1 1 
Other reconciling items(a)
1,009 891 
Future policy benefits1,471 1,311 
Less: Reinsurance recoverable(813)(712)
Net liability for future policy benefits after reinsurance recoverable$658 $599 
Weighted average liability duration of the liability for future policy benefits(b)
9.89.5
(a)Other reconciling items primarily include Accident & Health (short-duration) contracts of $776 million and $661 million at September 30, 2024 and 2023, respectively, of certain long-duration contracts that are 100 percent ceded.
(b)The weighted average liability durations are calculated as the modified duration using projected future net liability cash flows that are aggregated at the segment level, utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.
The following table presents the amount of undiscounted expected future benefit payments and undiscounted and discounted expected gross premiums for future policy benefits for nonparticipating contracts:
Nine Months Ended September 30,
(in millions)20242023
Undiscounted expected future benefits and expense$2,820 $3,099 
Undiscounted expected future gross premiums3,881 4,275 
Discounted expected future gross premiums (at current discount rate)2,905 2,963 
The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for future policy benefits for nonparticipating contracts:
Nine Months Ended September 30,
(in millions)20242023
Gross premiums$326 $338 
Interest accretion$5 $5 
The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:
Nine Months Ended September 30,20242023
Weighted-average interest rate, original discount rate1.83 %1.84 %
Weighted-average interest rate, current discount rate3.30 %3.92 %