Claim and Claim Adjustment Expense Reserves (Tables)

9 Months Ended

Sep. 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.


Nine Months Ended September 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	4,221		3,830
Increase (decrease) in provision for insured events of prior years	43		(4)
Amortization of discount	33		33
Total net incurred (b)	4,297		3,859

Net payments attributable to:
Current year events	(588)		(482)
Prior year events	(2,953)		(2,700)
Total net payments	(3,541)		(3,182)

Foreign currency translation adjustment and other	(30)		(383)

Net reserves, end of period	17,655		16,594
Ceded reserves, end of period	5,181		5,147
Gross reserves, end of period	$	22,836	$	21,741


(a)			In conjunction with the adoption of ASU 2018-12, 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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022

(In millions)

Medical professional liability			$	8	$	9	$	17
Other professional liability and management liability	$	17	9		16		22
Surety	(21)		(20)		(28)		(48)
Commercial auto					11		21
General liability					70		41
Workers’ compensation	(2)		(2)		(100)		(86)
Warranty	(2)		(13)		(11)		(22)
Property and other	1		1		22		(11)
Other insurance operations	20				55		64
Total pretax (favorable) unfavorable development	$	13	$	(17)	$	44	$	(2)