Claim and Claim Adjustment Expense Reserves and Future Policy Benefit Reserves (Tables)

9 Months Ended

Sep. 30, 2022

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 nine months ended September 30
(In millions)	2022		2021
Reserves, beginning of year:
Gross	$	24,174	$	22,706
Ceded	4,969		4,005
Net reserves, beginning of year	19,205		18,701
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	4,638		4,474
Increase (decrease) in provision for insured events of prior years	(144)		(130)
Amortization of discount	131		137
Total net incurred (1)	4,625		4,481
Net payments attributable to:
Current year events	(523)		(629)
Prior year events	(3,371)		(2,874)
Total net payments	(3,894)		(3,503)
Foreign currency translation adjustment and other	(383)		(51)
Net reserves, end of period	19,553		18,996
Ceded reserves, end of period	5,147		4,836
Gross reserves, end of period	$	24,700	$	23,832

(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.

Periods ended September 30	Three Months				Nine Months
(In millions)	2022		2021		2022		2021
Pretax (favorable) unfavorable development:
Specialty	$	(15)	$	(15)	$	(35)	$	(40)
Commercial	(2)		2		(26)		2
International	—		3		(5)		2
Corporate & Other	—		—		64		40
Total pretax (favorable) unfavorable development	$	(17)	$	(10)	$	(2)	$	4

Net prior year claim and allocated claim adjustment expense reserve development

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

Periods ended September 30	Three Months				Nine Months
(In millions)	2022		2021 (1)		2022		2021 (1)
Pretax (favorable) unfavorable development:
Commercial	$	—	$	(21)	$	(4)	$	(24)
Specialty	—		23		(1)		25
Other	—		1		—		1
Total pretax (favorable) unfavorable development	$	—	$	3	$	(5)	$	2

(1) Effective December 31, 2021 the International lines of business were consolidated to align with domestic operations. Prior period information has been conformed to the new line of business presentation.

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.

Periods ended September 30	Three Months				Nine Months
(In millions)	2022		2021		2022		2021
Pretax (favorable) unfavorable development:
Medical Professional Liability	$	8	$	8	$	17	$	16
Other Professional Liability and Management Liability	9		—		22		10
Surety	(20)		(15)		(48)		(53)
Warranty	(13)		(6)		(22)		(14)
Other	1		(2)		(4)		1
Total pretax (favorable) unfavorable development	$	(15)	$	(15)	$	(35)	$	(40)

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.

Periods ended September 30	Three Months				Nine Months
(In millions)	2022		2021		2022		2021
Pretax (favorable) unfavorable development:
Commercial Auto	$	—	$	—	$	21	$	30
General Liability	—		—		41		—
Workers' Compensation	(2)		2		(86)		(40)
Property and Other	—		—		(2)		12
Total pretax (favorable) unfavorable development	$	(2)	$	2	$	(26)	$	2