Benefit Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Benefit Plans

Note 15 Benefit Plans

Components of net cost (benefit) for pension and other postretirement plans
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2023		2022		2023		2022
Pension benefits
Service cost	$	32	$	28	$	65	$	57
Interest cost	58		52		118		98
Expected return on plan assets	(79)		(100)		(156)		(210)
Amortization of prior service credit	—		(12)		—		(25)
Costs and expenses	11		(32)		27		(80)
Remeasurement of projected benefit obligation	(68)		(421)		55		(1,173)
Remeasurement of plan assets	30		699		(150)		1,228
Remeasurement (gains) losses	(38)		278		(95)		55
Pension net (benefit) cost	$	(27)	$	246	$	(68)	$	(25)
Postretirement benefits
Service cost	$	—	$	1	$	—	$	1
Interest cost	2		2		5		4
Amortization of prior service credit	(6)		(6)		(12)		(12)
Costs and expenses	(4)		(3)		(7)		(7)
Remeasurement of projected benefit obligation	(2)		(19)		2		(43)
Remeasurement of plan assets	—		—		—		—
Remeasurement (gains) losses	(2)		(19)		2		(43)
Postretirement net benefit	$	(6)	$	(22)	$	(5)	$	(50)
Pension and postretirement benefits
Costs and expenses	$	7	$	(35)	$	20	$	(87)
Remeasurement (gains) losses	(40)		259		(93)		12
Total net (benefit) cost	$	(33)	$	224	$	(73)	$	(75)

Differences in actual experience and changes in other assumptions affect our pension and other postretirement obligations and expenses. Differences between expected and actual returns on plan assets affect remeasurement (gains) losses.

Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statements of Operations.

Pension and postretirement benefits remeasurement gains and losses
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2023		2022		2023		2022
Remeasurement of projected benefit obligation (gains) losses:
Discount rate	$	(73)	$	(420)	$	51	$	(1,005)
Other assumptions	3		(20)		6		(211)
Remeasurement of plan assets (gains) losses	30		699		(150)		1,228
Remeasurement (gains) losses	$	(40)	$	259	$	(93)	$	12

Remeasurement gains for the second quarter of 2023 are primarily related to an increase in the liability discount rate, partially offset by unfavorable asset performance compared to expected return on plan assets. Remeasurement gains in the first six months of 2023 are primarily related to favorable asset performance compared to expected return on plan assets, partially offset by a decrease in the liability discount rate.

The weighted average discount rate used to measure the pension benefit obligation increased to 5.50% at June 30, 2023 compared to 5.33% at March 31,

2023 and decreased compared to 5.64% at December 31, 2022 resulting in gains for the second quarter and losses for the first six months of 2023.

For the second quarter of 2023, the actual return on plan assets was lower than the expected return due to lower fixed income valuations from higher market yields during the quarter partially offset by higher equity returns. For the first six months of 2023, the actual return on plan assets was higher than the expected return due to higher fixed income valuations from lower market yields and positive equity returns.