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, which may include significant levels of asbestos, environmental and other mass tort claims. Retroactive reinsurance contracts are generally subject to aggregate policy limits and thus, our exposure to such claims under these contracts is likewise limited. Reconciliations of the changes in estimated liabilities for retroactive reinsurance unpaid losses and loss adjustment expenses for each of the three-month periods ended March 31, 2024 and 2023 follow (in millions).


	2024			2023
Balance at the beginning of the year	$	34,647		$	35,415
Incurred losses and loss adjustment expenses
Current contract year		51			—
Prior contract years		—			14
Total		51			14
Paid losses and loss adjustment expenses		(408	)		(372	)
Foreign currency effect		(45	)		6
Balance at March 31	$	34,245		$	35,063

Incurred losses and loss adjustment expenses	$	51		$	14
Deferred charge amortization and adjustments		177			171
Incurred losses and loss adjustment expenses included in the Consolidated Statements of Earnings	$	228		$	185

In the preceding table, the classification of incurred losses and loss adjustment expenses is based on the inception dates of the contracts, which reflect when our exposure to losses began. 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 estimated timing and amount of future loss payments. Unamortized deferred charges on retroactive reinsurance contracts were $9.3 billion at March 31, 2024 and $9.5 billion at December 31, 2023.