Retroactive reinsurance policies provide indemnification of losses and loss adjustment expenses of short-duration insurance contracts with respect to underlying loss events that occurred prior to the contract inception date. Reconciliations of the changes in estimated liabilities for retroactive reinsurance unpaid losses and loss adjustment expenses for the nine months ended September 30, 2023 and 2022 follow (in millions).


	2023			2022
Balances at beginning of year	$	35,415		$	37,855
Incurred losses and loss adjustment expenses	13				(23	)
Paid losses and loss adjustment expenses		(1,471	)		(1,567	)
Foreign currency effect		(38	)		(289	)
Balances at September 30	$	33,919		$	35,976
Incurred losses and loss adjustment expenses	$	13		$	(23	)
Deferred charge amortization and adjustments		605			649
Incurred losses and loss adjustment expenses included in the Consolidated Statements of Earnings	$	618		$	626

In the preceding table, incurred and paid losses and loss adjustment expenses related to contracts incepting in prior years. Claims payments under our contracts may commence immediately after the contract date or, when applicable, after a contractual retention amount has been reached. Incurred losses and loss adjustment expenses in the Consolidated Statements of Earnings include changes in estimated liabilities and related deferred charge asset amortization and adjustments arising from the changes in the estimated timing and amount of future loss payments. Unamortized deferred charges related to retroactive reinsurance contracts were $9.3 billion at September 30, 2023 and $9.9 billion at December 31, 2022.