Claim and Claim Adjustment Expense Reserves (Tables)

3 Months Ended

Mar. 31, 2023

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.

Three months ended March 31
(In millions)	2023		2022 (1)
Reserves, beginning of year:
Gross	$	22,120	$	21,269
Ceded	5,191		4,969
Net reserves, beginning of year	16,929		16,300
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	1,326		1,188
Increase (decrease) in provision for insured events of prior years	13		(7)
Amortization of discount	11		12
Total net incurred (2)	1,350		1,193
Net payments attributable to:
Current year events	(72)		(68)
Prior year events	(1,042)		(920)
Total net payments	(1,114)		(988)
Foreign currency translation adjustment and other	35		(92)
Net reserves, end of period	17,200		16,413
Ceded reserves, end of period	5,209		5,002
Gross reserves, end of period	$	22,409	$	21,415

(1) In conjunction with the Company's adoption of ASU 2018-12, at January 1, 2023, long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expenses into Future policy benefits and this change was applied retrospectively as of January 1, 2021. See Note A to the Condensed Consolidated Financial Statements for additional information.

(2) 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 and uncollectible reinsurance, 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)	2023		2022
Pretax (favorable) unfavorable development:
Specialty	$	—	$	(10)
Commercial	(2)		(2)
International	15		—
Corporate & Other	—		—
Total pretax (favorable) unfavorable development	$	13	$	(12)

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)	2023		2022
Pretax (favorable) unfavorable development:
Medical Professional Liability	$	9	$	8
Other Professional Liability and Management Liability	—		—
Surety	—		(9)
Warranty	(9)		(9)
Other	—		—
Total pretax (favorable) unfavorable development	$	—	$	(10)

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)	2023		2022
Pretax (favorable) unfavorable development:
Commercial Auto	$	—	$	—
General Liability	—		—
Workers' Compensation	(2)		(2)
Property and Other	—		—
Total pretax (favorable) unfavorable development	$	(2)	$	(2)

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

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

Three months ended March 31
(In millions)	2023		2022
Pretax (favorable) unfavorable development:
Commercial	$	(2)	$	—
Specialty	19		—
Other	(2)		—
Total pretax (favorable) unfavorable development	$	15	$	—