Claim and Claim Adjustment Expense Reserves (Tables)

3 Months Ended

Mar. 31, 2023

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.


Three Months Ended March 31	2023		2022 (a)
(In millions)

Reserves, beginning of year:
Gross	$	22,120	$	21,269
Ceded	5,191		4,969
Net reserves, beginning of year	16,929		16,300



Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	1,326		1,188
Increase (decrease) in provision for insured events of prior years	13		(7)
Amortization of discount	11		12
Total net incurred (b)	1,350		1,193

Net payments attributable to:
Current year events	(72)		(68)
Prior year events	(1,042)		(920)
Total net payments	(1,114)		(988)

Foreign currency translation adjustment and other	35		(92)

Net reserves, end of period	17,200		16,413
Ceded reserves, end of period	5,209		5,002
Gross reserves, end of period	$	22,409	$	21,415


(a)			In conjunction with the adoption of ASU 2018-22, at January 1, 2023, long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expenses into Future policy benefits and this change was applied retrospectively as of January 1, 2021. For additional information see Note 1.
(b)			Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting and uncollectible reinsurance, which are not reflected in the table above.

The following table presents details of the net prior year loss reserve development in Property & Casualty Operations:





Three Months Ended March 31	2023		2022
(In millions)

Medical professional liability	$	9	$	8

Surety			(9)


Workers’ compensation	(2)		(2)
Property and other	6		(9)

Total pretax (favorable) unfavorable development	$	13	$	(12)