Claim and Claim Adjustment Expense Reserves (Tables)

3 Months Ended

Mar. 31, 2021

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	2021			2020
(In millions)
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 the 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 (a)		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

(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, 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 Loss Reserve 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	2021			2020
(In millions)
Medical professional liability	$	8		$	10
Other professional liability and management liability					3
Surety		(15	)		(30	)
Commercial auto					9
Workers’ compensation					(13	)
Property and other		(8	)		6
Total pretax (favorable) unfavorable development	$	(15	)	$	(15	)