Claim and Claim Adjustment Expense Reserves (Tables)

6 Months Ended

Jun. 30, 2023

Reconciliation of Claim and Claim Adjustment Expense Reserves

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


Six Months Ended June 30	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	2,746		2,452
Increase (decrease) in provision for insured events of prior years	37		30
Amortization of discount	22		22
Total net incurred (b)	2,805		2,504

Net payments attributable to:
Current year events	(287)		(233)
Prior year events	(2,014)		(1,882)
Total net payments	(2,301)		(2,115)

Foreign currency translation adjustment and other	57		(222)

Net reserves, end of period	17,490		16,467
Ceded reserves, end of period	5,312		5,156
Gross reserves, end of period	$	22,802	$	21,623


(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.

Net Prior Year Loss Reserve Development in Property and Casualty Operations

The following table and discussion present details of the net prior year loss reserve development in Property & Casualty Operations and Other Insurance Operations:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022

(In millions)

Medical professional liability			$	1	$	9	$	9
Other professional liability and management liability	$	(1)	13		(1)		13
Surety	(7)		(19)		(7)		(28)
Commercial auto	11		21		11		21
General liability	70		41		70		41
Workers’ compensation	(96)		(82)		(98)		(84)
Property and other	6		(12)		12		(21)
Other insurance operations	35		64		35		64
Total pretax (favorable) unfavorable development	$	18	$	27	$	31	$	15