Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables)

6 Months Ended

Jun. 30, 2022

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

Unfavorable (Favorable) Prior Accident Year Development

	For the six months ended June 30,
	2022		2021
Workers’ compensation	$	(85)	$	(83)
Workers’ compensation discount accretion	18		18
General liability	33		307
Marine	(3)		1
Package business	(24)		(46)
Commercial property	(21)		(20)
Professional liability	(9)		(7)
Bond	(4)		(14)
Assumed reinsurance	12		—
Automobile liability - Commercial Lines	12		—
Automobile liability - Personal Lines	(5)		(43)
Homeowners	—		1
Catastrophes	(30)		(98)
Uncollectible reinsurance	6		(10)
Other reserve re-estimates, net	6		29
Prior accident year development before change in deferred gain	(94)		35
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	—		45
Total prior accident year development	$	(94)	$	80

[1]The change in deferred gain for the six months ended June 30, 2021 included $45 of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by professional 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 six months ended June 30,
	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	2,497		2,464
Prior year's discount accretion	107		106
Prior incurral year development [1]	(242)		(282)
Total provision for unpaid losses and loss adjustment expenses [2]	2,362		2,288
Payments
Current incurral year	(984)		(1,000)
Prior incurral years	(1,500)		(1,414)
Total payments	(2,484)		(2,414)
Ending liabilities for unpaid losses and loss adjustment expenses, net	7,843		7,870
Reinsurance recoverables	254		250
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,097	$	8,120

[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 $92 and $87 for the six months ended June 30, 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 six months ended June 30,
	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	3,998		3,838
Prior accident year development [1]	(94)		80
Total provision for unpaid losses and loss adjustment expenses	3,904		3,918
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	—		(45)
Payments
Current accident year	(840)		(864)
Prior accident years	(2,680)		(2,222)
Total payments	(3,520)		(3,086)
Foreign currency adjustment	(29)		(7)
Ending liabilities for unpaid losses and loss adjustment expenses, net	25,723		24,677
Reinsurance and other recoverables	6,212		5,905
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	31,935	$	30,582

[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.