Claim and Claim Adjustment Expense Reserves (Tables)

3 Months Ended

Mar. 31, 2021

Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items]

Schedule of liability for unpaid claims and claims adjustment expense

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group segment.

For the three months ended March 31, 2021
(In millions)	2021		2020
Reserves, beginning of year:
Gross	$	22,706	$	21,720
Ceded	4,005		3,835
Net reserves, beginning of year	18,701		17,885
Reduction of net reserves due to Excess Workers' Compensation Loss Portfolio Transfer	(632)		—
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	1,474		1,355
Increase (decrease) in provision for insured events of prior years	(54)		(8)
Amortization of discount	50		51
Total net incurred (1)	1,470		1,398
Net payments attributable to:
Current year events	(85)		(72)
Prior year events	(1,067)		(1,218)
Total net payments	(1,152)		(1,290)
Foreign currency translation adjustment and other	(32)		(88)
Net reserves, end of period	18,355		17,905
Ceded reserves, end of period	4,701		3,967
Gross reserves, end of period	$	23,056	$	21,872

(1) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Condensed Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, the loss on the Excess Workers' Compensation Loss Portfolio Transfer, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above.

Net prior year development

The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments.

Three months ended March 31
(In millions)	2021		2020
Pretax (favorable) unfavorable development:
Specialty	$	(15)	$	(11)
Commercial	—		(4)
International	—		—
Corporate & Other	—		—
Total pretax (favorable) unfavorable development	$	(15)	$	(15)

Specialty

Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items]

Net prior year claim and allocated claim adjustment expense reserve development

The following table presents further detail of the development recorded for the Specialty segment.

Three months ended March 31
(In millions)	2021		2020
Pretax (favorable) unfavorable development:
Medical Professional Liability	$	8	$	10
Other Professional Liability and Management Liability	—		3
Surety	(15)		(30)
Warranty	(8)		—
Other	—		6
Total pretax (favorable) unfavorable development	$	(15)	$	(11)

Commercial

Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items]

Net prior year claim and allocated claim adjustment expense reserve development

The following table presents further detail of the development recorded for the Commercial segment.

Three months ended March 31
(In millions)	2021		2020
Pretax (favorable) unfavorable development:
Commercial Auto	$	—	$	9
General Liability	—		—
Workers' Compensation	—		(13)
Property and Other	—		—
Total pretax (favorable) unfavorable development	$	—	$	(4)

International

Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items]

Net prior year claim and allocated claim adjustment expense reserve development