Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Unfavorable (Favorable) Prior Accident Year Development

	For the three months ended March 31,
	2022		2021
Workers’ compensation	$	(45)	$	(40)
Workers’ compensation discount accretion	9		9
General liability	12		307
Marine	—		6
Package business	(11)		(27)
Commercial property	(15)		(13)
Professional liability	—		(1)
Bond	—		—
Assumed reinsurance	12		2
Automobile liability - Commercial Lines	—		—
Automobile liability - Personal Lines	(5)		(23)
Homeowners	—		(3)
Catastrophes	(3)		(16)
Uncollectible reinsurance	—		(9)
Other reserve re-estimates, net	10		31
Prior accident year development before change in deferred gain	(36)		223
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	—		6
Total prior accident year development	$	(36)	$	229

[1]The change in deferred gain for the three months ended March 31, 2021 included $6 of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by marine and commercial automobile liability.

Group Benefits

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the three months ended March 31,
	2022		2021
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,210	$	8,233
Reinsurance recoverables	245		237
Beginning liabilities for unpaid losses and loss adjustment expenses, net	7,965		7,996
Provision for unpaid losses and loss adjustment expenses
Current incurral year	1,324		1,325
Prior year's discount accretion	53		55
Prior incurral year development [1]	(119)		(151)
Total provision for unpaid losses and loss adjustment expenses [2]	1,258		1,229
Payments
Current incurral year	(354)		(350)
Prior incurral years	(974)		(914)
Total payments	(1,328)		(1,264)
Ending liabilities for unpaid losses and loss adjustment expenses, net	7,895		7,961
Reinsurance recoverables	247		247
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,142	$	8,208

[1]Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[2]Includes unallocated loss adjustment expenses ("ULAE") of $46 and $43 for the three months ended March 31, 2022 and 2021, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations

Property, Liability and Casualty Insurance Product Line

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the three months ended March 31,
	2022		2021
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	31,449	$	29,622
Reinsurance and other recoverables	6,081		5,725
Beginning liabilities for unpaid losses and loss adjustment expenses, net	25,368		23,897
Provision for unpaid losses and loss adjustment expenses
Current accident year	1,931		1,924
Prior accident year development [1]	(36)		229
Total provision for unpaid losses and loss adjustment expenses	1,895		2,153
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	—		(6)
Payments
Current accident year	(281)		(292)
Prior accident years	(1,525)		(1,221)
Total payments	(1,806)		(1,513)
Net change in reserves transferred to liabilities held for sale	—		(1)
Foreign currency adjustment	(5)		(6)
Ending liabilities for unpaid losses and loss adjustment expenses, net	25,452		24,524
Reinsurance and other recoverables	6,165		5,808
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	31,617	$	30,332

[1]Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and Asbestos and Environmental ("A&E") Adverse Development Cover ("ADC") which, under retroactive reinsurance accounting, is deferred and is recognized over the period the ceded losses are recovered in cash from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc. For additional information regarding the two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below.