Short-Duration Insurance Contracts

3 Months Ended

Mar. 31, 2024

Property & Casualty Unpaid Claims and Claim Expense Reserves

The following table is a summary reconciliation of the beginning and ending Property & Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Property & Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets.


($ in millions)	Three Months Ended March 31,
		2024		2023
Property & Casualty
Beginning gross reserves		$	416.8	$	388.7
Less: reinsurance recoverables		104.0		100.8
Net reserves, beginning of period(1)		312.8		287.9
Incurred claims and claim expenses:
Claims occurring in the current period		124.7		128.8
Increase (decrease) in estimated reserves for claims occurring in prior periods(2)		—		—
Total claims and claim expenses incurred		124.7		128.8
Claims and claim expense payments for claims occurring during:
Current period		44.6		40.6
Prior periods		78.3		79.6
Total claims and claim expense payments		122.9		120.2
Net reserves, end of period(1)		314.6		296.5
Plus: reinsurance recoverables		103.6		101.3
Ending gross reserves		$	418.2	$	397.8

(1)Reserves net of expected reinsurance recoverables.

(2)Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development.

There was no prior years' reserve development for Property & Casualty claims for the three months ended March 31, 2024 or March 31, 2023.

Group Benefits Unpaid Claims and Claim Expense Reserves

The following table is a summary reconciliation of the beginning and ending Group Benefits unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance). The total net Group Benefits insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets.


($ in millions)	Three Months Ended March 31,
		2024		2023
Group Benefits
Beginning gross reserves		$	116.6	$	121.6
Less: reinsurance recoverables		27.7		27.9
Net reserves, beginning of period(1)		88.9		93.7
Incurred claims and claim expenses:
Claims occurring in the current period		20.2		20.2
Increase (decrease) in estimated reserves for claims occurring in prior periods(2)		(6.1)		(4.9)
Total claims and claim expenses incurred		14.1		15.3
Claims and claim expense payments for claims occurring during:
Current period		3.9		4.2
Prior periods		12.4		12.4
Total claims and claim expense payments		16.3		16.6
Net reserves, end of period(1)		86.7		92.3
Plus: reinsurance recoverables		27.6		28.0
Ending gross reserves		$	114.3	$	120.3

(1) Reserves net of expected reinsurance recoverables.

(2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development.

Favorable prior years' reserve development for Group Benefits was $6.1 million and $4.9 million for the three months ended March 31, 2024 and 2023, respectively. The favorable development for the three months ended March 31, 2024 was primarily the result of favorable loss trends in specialty health and group life and disability for loss years 2023 and prior. The favorable development for the three months ended March 31, 2023 was primarily the result of favorable loss trends in specialty health for loss years 2022 and prior.

Reconciliation of Property & Casualty and Group Benefits Unpaid Claims and Claim Expense Reserves to the Consolidated Balance Sheets


($ in millions)	As of March 31, 2024		As of December 31, 2023
Ending gross reserves
Property & Casualty	$	418.2	$	416.8
Group Benefits	114.3		116.6
Total short-duration insurance contracts	532.5		533.4
Other than short-duration(1)	51.9		48.3
Total unpaid claims and claims expenses	$	584.4	$	581.7

(1) This line includes Life & Retirement, Supplemental, and other certain group benefit reserves.