Unpaid Claims and Claims Expense Short Duration Contracts

3 Months Ended

Jun. 30, 2024

Insurance [Abstract]

Short-Duration Insurance and Deposit Contracts [Text Block]

UNPAID CLAIMS AND CLAIM EXPENSE – SHORT-DURATION CONTRACTS

Rollforward of Claims and Claim Adjustment Expenses

The liability for unpaid claims for short-duration contracts is reported in other policy claims and benefits on the Company’s condensed consolidated balance sheets. Activity associated with unpaid claims is summarized below (dollars in millions):

	Six months ended June 30,
	2024		2023
Balance, beginning of year	$	2,730	$	2,480
Less: reinsurance recoverable	(80)		(57)
Net balance, beginning of year	2,650		2,423
Incurred:
Current year	771		789
Prior years	(55)		(55)
Total incurred	716		734
Payments:
Current year	(107)		(119)
Prior years	(532)		(539)
Total payments	(639)		(658)
Other changes:
Interest accretion	19		17
Foreign exchange adjustments	(46)		(7)
Total other changes	(27)		10
Net balance, end of period	2,700		2,509
Plus: reinsurance recoverable	69		70
Balance, end of period	$	2,769	$	2,579

Incurred claims associated with prior periods are primarily due to the development of claims for prior years being different than were anticipated when the liabilities for unpaid claims were originally estimated. These trends have been considered in establishing the current year liability for unpaid claims.