Claim and Claim Adjustment Expense Reserves (Tables)

9 Months Ended

Sep. 30, 2021

Claim and Claim Adjustment Expense Reserves [Abstract]

Reconciliation of Claim and Claim Adjustment Expense Reserves

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of other insurance operations.

Nine Months Ended September 30	2021			2020
(In millions)
Reserves, beginning of year:
Gross	$	22,706		$	21,720
Ceded		4,005			3,835
Net reserves, beginning of year		18,701			17,885
Reduction of net reserves due to the excess workers’ compensation loss portfolio transfer		(632	)
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year		4,474			4,425
Increase (decrease) in provision for insured events of prior years		(130	)		(68	)
Amortization of discount		137			143
Total net incurred (a)		4,481			4,500
Net payments attributable to:
Current year events		(629	)		(556	)
Prior year events		(2,874	)		(3,285	)
Total net payments		(3,503	)		(3,841	)
Foreign currency translation adjustment and other		(51	)		39
Net reserves, end of period		18,996			18,583
Ceded reserves, end of period		4,836			3,951
Gross reserves, end of period	$	23,832		$	22,534

(a) 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, the loss on the excess workers’ compensation loss portfolio transfer, uncollectible reinsurance and benefit expenses related to future policy benefits, 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,
	2021			2020			2021			2020
(In millions)
Medical professional liability	$	8		$	25		$	16		$	35
Other professional liability and management liability								10			(6	)
Surety		(15	)		(40	)		(53	)		(70	)
Commercial auto					9			30			33
General liability					15						15
Workers’ compensation		2			(23	)		(40	)		(97	)
Property and other		(5	)		(1	)		1			32
Other insurance operations								40			50
Total pretax (favorable) unfavorable development	$	(10	)	$	(15	)	$	4		$	(8	)