Insurance Liabilities (Tables)

3 Months Ended

Mar. 31, 2026

Rollforward of Activity in Loss Reserves

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


Three Months Ended March 31,

(in millions)	2026		2025
Liability for unpaid loss and loss adjustment expenses, beginning of year	$	70,666	$	69,168
Reinsurance recoverable	(28,871)		(29,026)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year	41,795		40,142
Losses and loss adjustment expenses incurred:
Current year	3,661		3,809
Prior years, excluding discount and amortization of deferred gain	(126)		(33)
Prior years, discount charge (benefit)	(25)		40
Prior years, amortization of deferred gain on retroactive reinsurance(a)	(35)		(22)
Total losses and loss adjustment expenses incurred	3,475		3,794
Losses and loss adjustment expenses paid:
Current year	(480)		(429)
Prior years	(2,853)		(2,961)
Total losses and loss adjustment expenses paid	(3,333)		(3,390)
Other changes:
Foreign exchange effect	(194)		484

Losses and loss adjustment expenses recognized within net (gain) loss on divestitures	4		32
Retroactive reinsurance adjustment (net of discount)(b)	18		35


Total other changes	(172)		551
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses	41,765		41,097
Reinsurance recoverable	28,198		27,799
Total	$	69,963	$	68,896

(a)Includes $15 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, 2026 and 2025, respectively.

(b)Includes benefit (charge) from change in discount on retroactive reinsurance of $53 million and $1 million for the three months ended March 31, 2026 and 2025, 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, 2026		December 31, 2025
U.S. workers' compensation	$	2,111	$	2,063
Retroactive reinsurance		(838)		(891)
Total reserve discount(a)(b)	$	1,273	$	1,172

(a)Excludes $162 million and $166 million of discount related to certain long-tail liabilities in the UK at March 31, 2026 and December 31, 2025, respectively.

(b)Includes gross discount of $686 million and $693 million, which was 100 percent ceded to Fortitude Re at March 31, 2026 and December 31, 2025, respectively.

Schedule of Loss Reserve Discount

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


Three Months Ended March 31,

(in millions)		2026		2025
Current accident year	$	23	$	23
Accretion and other adjustments to prior year discount		25		(40)

Net reserve discount benefit (charge)		48		(17)
Change in discount on loss reserves ceded under retroactive reinsurance		53		1
Net change in total reserve discount*	$	101	$	(16)

*Excludes $(4) million and $6 million of discount related to certain long-tail liabilities in the UK for the three months ended March 31, 2026 and 2025, respectively.