Insurance (Tables)

9 Months Ended

Sep. 30, 2021

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 2021 and 2020 (in millions):

	Nine months ended September 30,
	2021		2020
Balance at beginning of year	$	10,392	$	10,232
Less reinsurance recoverables, net of allowance	3,117		3,024
Net liability at beginning of year	7,275		7,208
Provision for losses and LAE occurring in the current period	2,543		2,560
Net increase (decrease) in the provision for claims of prior years:
Special A&E charges	—		47
Other	(208)		(166)
Total losses and LAE incurred	2,335		2,441
Payments for losses and LAE of:
Current year	(589)		(592)
Prior years	(1,430)		(1,406)
Total payments	(2,019)		(1,998)
Foreign currency translation and other	—		(11)
Net liability at end of period	7,591		7,640
Add back reinsurance recoverables, net of allowance	3,400		3,114
Gross unpaid losses and LAE included in the balance sheet at end of period	$	10,991	$	10,754

Reinsurance Recoverable and Premiums Receivable, Allowance for Credit Loss

Progressions of the 2021 and 2020 allowance for expected credit losses on recoverables from reinsurers and premiums receivable related to continuing operations are shown below (in millions):

	Recoverables from Reinsurers				Premiums Receivable
	2021		2020		2021		2020
Balance at June 30	$	8	$	7	$	9	$	10
Provision (credit) for expected credit losses	—		—		1		1
Write-offs charged against the allowance	—		—		—		—
Balance at September 30	$	8	$	7	$	10	$	11
Balance at January 1	$	6	$	18	$	10	$	13
Impact of adoption of new accounting policy	—		(11)		—		(3)
Provision (credit) for expected credit losses	2		—		—		1
Write-offs charged against the allowance	—		—		—		—
Balance at September 30	$	8	$	7	$	10	$	11