Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Unfavorable (Favorable) Prior Accident Year Development

	For the three months ended March 31,
	2021		2020
Workers’ compensation	$	(40)	$	(17)
Workers’ compensation discount accretion	9		9
General liability	307		12
Marine	6		—
Package business	(27)		1
Commercial property	(13)		(7)
Professional liability	(1)		1
Bond	—		—
Assumed reinsurance	2		—
Automobile liability - Commercial Lines	—		5
Automobile liability - Personal Lines	(23)		(6)
Homeowners	(3)		(2)
Catastrophes	(16)		(13)
Uncollectible reinsurance	(9)		—
Other reserve re-estimates, net	31		11
Prior accident year development before change in deferred gain	223		(6)
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	6		29
Total prior accident year development	$	229	$	23

[1] The change in deferred gain for the three months ended March 31, 2021 and 2020 included $6 and $29, respectively, of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by marine for both periods and due to commercial automobile liability in the 2021 period and prior accident year catastrophes in the 2020 period.

Property, Liability and Casualty Insurance Product Line

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the three months ended March 31,
	2021		2020
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	29,622	$	28,261
Reinsurance and other recoverables	5,725		5,275
Beginning liabilities for unpaid losses and loss adjustment expenses, net	23,897		22,986
Provision for unpaid losses and loss adjustment expenses
Current accident year	1,924		1,883
Prior accident year development [1]	229		23
Total provision for unpaid losses and loss adjustment expenses	2,153		1,906
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	(6)		(29)
Payments
Current accident year	(292)		(304)
Prior accident years	(1,221)		(1,491)
Total payments	(1,513)		(1,795)
Net change in reserves transferred to liabilities held for sale	(1)		—
Foreign currency adjustment	(6)		(20)
Ending liabilities for unpaid losses and loss adjustment expenses, net	24,524		23,048
Reinsurance and other recoverables	5,808		5,332
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	30,332	$	28,380

[1] Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and A&E ADC which, under retroactive reinsurance accounting, is deferred and is recognized over the period the ceded losses are recovered in cash from NICO. For additional information regarding the two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below.

Group Benefits

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the three months ended March 31,
	2021		2020
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,233	$	8,256
Reinsurance recoverables [1]	237		246
Beginning liabilities for unpaid losses and loss adjustment expenses, net	7,996		8,010
Provision for unpaid losses and loss adjustment expenses
Current incurral year	1,325		1,148
Prior year's discount accretion	55		57
Prior incurral year development [2]	(151)		(163)
Total provision for unpaid losses and loss adjustment expenses [3]	1,229		1,042
Payments
Current incurral year	(350)		(278)
Prior incurral years	(914)		(821)
Total payments	(1,264)		(1,099)
Ending liabilities for unpaid losses and loss adjustment expenses, net	7,961		7,953
Reinsurance recoverables	247		249
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,208	$	8,202

[1]Includes a cumulative effect adjustment of $(1) representing an adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to 2020 10-K, Note 1 - Basis of Presentation and Significant Accounting Policies.

[2]Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[3]Includes unallocated loss adjustment expenses ("ULAE") of $43 and $44 for the three months ended March 31, 2021 and 2020, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations