Claim and Claim Adjustment Expense Reserves (Tables)

3 Months Ended

Mar. 31, 2020

Claim and Claim Adjustment Expense Reserves [Abstract]

Reconciliation of Claim and Claim Adjustment Expense Reserves

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of Other Insurance Operations.

Three Months Ended March 31	2020			2019
(In millions)
Reserves, beginning of year:
Gross	$	21,720		$	21,984
Ceded		3,835			4,019
Net reserves, beginning of year		17,885			17,965
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year		1,355			1,309
Increase (decrease) in provision for insured events of prior years		(8	)		8
Amortization of discount		51			50
Total net incurred (a)		1,398			1,367
Net payments attributable to:
Current year events		(72	)		(100	)
Prior year events		(1,218	)		(1,309	)
Total net payments		(1,290	)		(1,409	)
Foreign currency translation adjustment and other		(88	)		13
Net reserves, end of period		17,905			17,936
Ceded reserves, end of period		3,967			3,900
Gross reserves, end of period	$	21,872		$	21,836

(a) Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above.

Net Prior Year Development in Property and Casualty Operations

The following table and discussion present details of the net prior year claim and claim adjustment expense reserve development in Property & Casualty Operations:

Three Months Ended March 31	2020			2019
(In millions)
Medical professional liability	$	10		$	15
Other professional liability and management liability		3			(12	)
Surety		(30	)		(25	)
Commercial auto		9			(5	)
General liability					(20	)
Workers’ compensation		(13	)		2
Property and other		6			31
Total pretax (favorable) unfavorable development	$	(15	)	$	(14	)