Reinsurance (Tables)

12 Months Ended

Dec. 31, 2022

The following table presents the amounts receivable from reinsurers:


December 31	2022		2021
(In millions)

Reinsurance receivables related to insurance reserves:
Ceded claim and claim adjustment expenses	$	5,191	$	4,969
Ceded future policy benefits			288
Reinsurance receivables related to paid losses	247		227
Reinsurance receivables	5,438		5,484
Less allowance for doubtful accounts	22		21
Reinsurance receivables, net of allowance for doubtful accounts	$	5,416	$	5,463

Voluntary Reinsurance Receivables by Financial Strength Rating

CNA has established an allowance for doubtful accounts on voluntary reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The following table summarizes the outstanding amount of voluntary reinsurance receivables, gross of any collateral arrangements, by financial strength rating:


As of December 31, 2022
(In millions)

A- to A++	$	3,785
B- to B++	1,020
Insolvent	3
Total voluntary reinsurance outstanding balance (a)	$	4,808


(a)			Expected credit losses for legacy A&EP receivables are ceded to NICO and the reinsurance limit on the LPT has not been exhausted, therefore no allowance is recorded for these receivables and they are excluded from the table above. See Note 8 for more information on the LPT. Also excluded are receivables from involuntary pools.

Effects of Reinsurance on Earned Premiums

The effects of reinsurance on earned premiums are presented in the following table:


									Assumed/
	Direct		Assumed		Ceded		Net		Net %
(In millions)

Year Ended December 31, 2022

Property and casualty	$	13,097	$	231	$	5,134	$	8,194	2.8	%
Long term care	427		46				473		9.7
Earned premiums	$	13,524	$	277	$	5,134	$	8,667	3.2	%

Year Ended December 31, 2021

Property and casualty	$	12,554	$	240	$	5,110	$	7,684	3.1	%
Long term care	443		48				491		9.8
Earned premiums	$	12,997	$	288	$	5,110	$	8,175	3.5	%

Year Ended December 31, 2020

Property and casualty	$	11,547	$	238	$	4,640	$	7,145	3.3	%
Long term care	454		50				504		9.9
Earned premiums	$	12,001	$	288	$	4,640	$	7,649	3.8	%