Insurance (Tables)

9 Months Ended

Sep. 30, 2020

Insurance [Abstract]

Reconciliation of beginning and ending liability for unpaid losses and loss adjustment expenses

The following table provides an analysis of changes in the liability for losses and loss adjustment expenses during the first nine months of 2020 and 2019 (in millions):

	Nine months ended September 30,
	2020		2019
Balance at beginning of year	$	10,232	$	9,741
Less reinsurance recoverables, net of allowance	3,024		2,942
Net liability at beginning of year	7,208		6,799
Provision for losses and LAE occurring in the current period	2,560		2,457
Net increase (decrease) in the provision for claims of prior years:
Special A&E charges	47		18
Other	(166)		(116)
Total losses and LAE incurred	2,441		2,359
Payments for losses and LAE of:
Current year	(592)		(731)
Prior years	(1,406)		(1,408)
Total payments	(1,998)		(2,139)
Foreign currency translation and other	(11)		(5)
Net liability at end of period	7,640		7,014
Add back reinsurance recoverables, net of allowance	3,114		2,833
Gross unpaid losses and LAE included in the balance sheet at end of period	$	10,754	$	9,847

Reinsurance Recoverable and Premiums Receivable, Allowance for Credit Loss

Progressions of the 2020 allowance for expected credit losses are shown below (in millions):

	Recoverables from Reinsurers		Premiums Receivable
Balance at June 30	$	13	$	10
Provision for expected credit losses	1		1
Write-offs charged against the allowance	—		—
Balance at September 30	$	14	$	11
Balance at January 1	$	18	$	13
Impact of adoption of new accounting policy	(6)		(3)
Provision for expected credit losses	2		1
Write-offs charged against the allowance	—		—
Balance at September 30	$	14	$	11