Insurance Liabilities (Tables)

3 Months Ended

Mar. 31, 2025

Insurance [Abstract]

Rollforward of Activity in Loss Reserves

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

Three Months Ended March 31,
(in millions)	2025		2024
Liability for unpaid loss and loss adjustment expenses, beginning of year	$	69,168	$	70,393
Reinsurance recoverable	(29,026)		(30,289)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year	40,142		40,104
Losses and loss adjustment expenses incurred:
Current year	3,809		3,365
Prior years, excluding discount and amortization of deferred gain	(33)		—
Prior years, discount charge (benefit)	40		106
Prior years, amortization of deferred gain on retroactive reinsurance(a)	(22)		(32)
Total losses and loss adjustment expenses incurred	3,794		3,439
Losses and loss adjustment expenses paid:
Current year	(429)		(286)
Prior years	(2,961)		(2,857)
Total losses and loss adjustment expenses paid	(3,390)		(3,143)
Other changes:
Foreign exchange effect	484		(496)
Losses and loss adjustment expenses recognized within gain on divestitures	32		—
Retroactive reinsurance adjustment (net of discount)(b)	35		(8)
Reclassified to held for sale, net of reinsurance recoverables	—		(5)
Total other changes	551		(509)
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses	41,097		39,891
Reinsurance recoverable	27,799		30,169
Total	$	68,896	$	70,060

(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 months ended March 31, 2025 and 2024, respectively.

(b)Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $1 million and $55 million for the three months ended March 31, 2025 and 2024, respectively.

Schedule of Components of Loss Reserve Discount

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

(in millions)		March 31, 2025		December 31, 2024
U.S. workers' compensation	$	2,094	$	2,111
Retroactive reinsurance		(935)		(936)
Total reserve discount(a)(b)	$	1,159	$	1,175

(a)Excludes $190 million and $184 million of discount related to certain long-tail liabilities in the UK at March 31, 2025 and December 31, 2024, respectively.

(b)Includes gross discount of $736 million and $627 million, which was 100 percent ceded to Fortitude Re at March 31, 2025 and December 31, 2024, respectively.

Schedule of Loss Reserve Discount

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

Three Months Ended March 31,
(in millions)		2025		2024
Current accident year	$	23	$	30
Accretion and other adjustments to prior year discount		(40)		(106)
Net reserve discount benefit (charge)		(17)		(76)
Change in discount on loss reserves ceded under retroactive reinsurance		1		55
Net change in total reserve discount*	$	(16)	$	(21)

*Excludes $6 million and $(2) million of discount related to certain long-tail liabilities in the UK for the three months ended March 31, 2025 and 2024, respectively.