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Property Casualty Loss and Loss Expenses
 3 Months Ended
Mar. 31, 2022
Premiums Written, Net [Abstract]  
Property Casualty Loss And Loss Expenses Property Casualty Loss and Loss Expenses
This table summarizes activity for our consolidated property casualty loss and loss expense reserves:
(Dollars in millions)Three months ended March 31,
20222021
Gross loss and loss expense reserves, beginning of period$7,229 $6,677 
Less reinsurance recoverable327 277 
Net loss and loss expense reserves, beginning of period6,902 6,400 
Net incurred loss and loss expenses related to:  
Current accident year997 1,033 
Prior accident years(41)(110)
Total incurred956 923 
Net paid loss and loss expenses related to:  
Current accident year169 143 
Prior accident years721 562 
Total paid890 705 
Net loss and loss expense reserves, end of period6,968 6,618 
Plus reinsurance recoverable319 262 
Gross loss and loss expense reserves, end of period$7,287 $6,880 
 
We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and accounting management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $79 million at March 31, 2022, and $70 million at March 31, 2021, for certain life and health loss and loss expense reserves.

For the three months ended March 31, 2022, we experienced $41 million of favorable development on prior accident years, including $18 million of favorable development in commercial lines, $34 million of favorable development in personal lines and $5 million of favorable development in excess and surplus lines. Within commercial lines, we recognized favorable reserve development of $10 million for the workers' compensation line and $6 million for the commercial auto line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable development of $31 million for the homeowner line.
For the three months ended March 31, 2021, we experienced $110 million of favorable development on prior accident years, including $83 million of favorable development in commercial lines, $20 million of favorable development in personal lines and $4 million of unfavorable development in excess and surplus lines. Within commercial lines, we recognized favorable reserve development of $25 million for the workers' compensation line, $24 million for the commercial auto line and $21 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $15 million in personal auto.