Reserves are discounted at rates in effect at the time claims were incurred, ranging from 0.83% for accident year 2020 to 14.03% for accident year 1981.

The reserves recorded for the Company’s property and casualty insurance products at December 31, 2021 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows.

Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured.

(Favorable) Unfavorable Prior Accident Year Development


	For the years ended December 31,
	2021		2020		2019
Workers’ compensation	$	(190)	$	(110)	$	(120)

Workers’ compensation discount accretion	35		35		33
General liability	454		237		61
Marine	1		3		8
Package business	(91)		(58)		(47)
Commercial property	(26)		(4)		(11)
Professional liability	(2)		(14)		29
Bond	(26)		(19)		(3)
Assumed reinsurance	(6)		(6)		3
Automobile liability - Commercial Lines	9		27		27
Automobile liability - Personal Lines	(90)		(61)		(38)
Homeowners	3		7		3



Net asbestos and environmental reserves	—		(2)		—
Catastrophes	(154)		(529)		(42)
Uncollectible reinsurance	(6)		(8)		(30)
Other reserve re-estimates, net	42		54		46

Prior accident year development, including full benefit for the ADC cession	(47)		(448)		(81)
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	246		312		16
Total prior accident year development	$	199	$	(136)	$	(65)

[1]The change in deferred gain for the years ended December 31, 2021 and 2020 included $155 and $210, respectively of adverse development on A&E reserves in excess of ceded premium paid and included $91 and $102, respectively, of adverse development on Navigators 2018 and prior accident year reserves, primarily within professional liability, general liability and marine.

2021 re-estimates of prior accident year reserves

Workers’ compensation reserves were decreased within small commercial and middle & large commercial for the

2013 through 2018 accident years driven by lower than previously estimated claim severity.

General liability reserves were increased including an increase for sexual molestation and sexual abuse claims above the amount of reserves previously recorded for this exposure, primarily to reflect an increase in reserves for claims made against the Boy Scouts of America ("BSA") as discussed further below, partially offset by reserve decreases for other mass torts and extra contractual liability claims. In addition, the Company recognized reserve increases on Navigators’ wholesale construction business for 2018 and prior accident years, largely included within the change in deferred gain on retroactive reinsurance in the above table.

Package business reserves decreased largely due to lower estimated loss adjustment expenses for accident years 2014 to 2018 and a reduction in estimated reserves for extra contractual liability claims.

Commercial property reserves were decreased primarily due to favorable development for the 2020 accident year in both middle & large commercial and global specialty.

Professional liability reserves were decreased due to lower estimated severity in both large and middle market directors’ and officers’ (“D&O”) insurance for older accident years. More than offsetting this favorable reserve development were reserve increases on legacy Navigators public company directors’ and officers’ insurance for 2019 and prior accident years, a portion of which is reflected within the change in deferred gain on retroactive reinsurance in the above table.

Bond reserves were reduced mostly due to favorable emergence on contract surety claims driven by higher than previously anticipated recoveries, largely for the 2016 to 2017 accident years.

Automobile liability reserves were decreased in Personal Lines principally due to lower estimated severity on AARP Direct and Agency claims, primarily within accident years 2017 to 2020, and a reduction in estimated reserves for extra contractual liability claims.

Catastrophes reserves were decreased in both Commercial and Personal Lines primarily driven by a reduction in reserves for 2018 and 2019 wind and hail events, lower estimated losses from 2018 and 2020 hurricanes, a reduction in estimated losses from the 2017 and 2018 California wildfires, including an expected recovery of subrogation from a utility related to the 2018 Woolsey wildfire in California, and a reduction in losses relating to the 2020 civil unrest.

Asbestos and environmental reserves were reviewed in fourth quarter 2021 resulting in a $155 increase in reserves before ADC reinsurance, including $106 for asbestos and $49 for environmental. The Company recognized a $155 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 15 - Commitments and Contingencies.

Other reserve re-estimates, net, were increased primarily due to an increase in reserves for sexual molestation and sexual abuse claims within P&C Other Operations, principally on assumed reinsurance, as well as an increase in unallocated loss adjustment expense ("ULAE") reserves within P&C Other Operations driven by an increase in gross asbestos and environmental reserves.

2020 re-estimates of prior accident year reserves

Workers’ compensation reserves were reduced on national account business within middle & large commercial, driven by lower than previously estimated claim severity for the 2015 and prior accident years, including on captives business, and were reduced in small commercial due to lower than expected claim severity for the 2013 to 2018 accident years.

General liability reserves were increased primarily due to a $254 increase in reserves for sexual molestation and sexual abuse claims related to cases brought against religious and other organizations that were insureds of the Company, partly offset by a decrease in reserves for other mass torts and extra contractual liability claims. The sexual molestation and sexual abuse exposures may involve potentially long latency periods and may implicate coverage in multiple policy periods, which can raise complex coverage issues with significant effects on the ultimate scope of coverage. This increase in reserves reflects an increase in claim incidence largely due to reviver statutes, which is legislation passed in a number of states that provides an opportunity for claimants to file claims for a period of time despite the fact that the original statute of limitations had expired. The reserve increase in 2020 was principally from claims asserted against the Boy Scouts of America (“Boy Scouts”).

In addition, general liability reserve increases on construction account business were largely offset by decreases in ULAE reserves. Reserves were increased for guaranteed cost construction business for accident years 2014 to 2019 as incurred losses are developing higher than previously expected for premises and operations claims and product liability claims, partly due to a change in industry mix and a heavier concentration of losses in California than initially assumed, as well as increased reserves for middle market and complex liability claims for accident year 2018 largely due to higher than expected severity. Also contributing were increases in reserves on primary layer construction account business within global specialty, mainly related to accident years 2015 to 2017, which is included as a component of the change in deferred gain under retroactive reinsurance in the above table.

Marine reserves were increased principally due to an increase in domestic marine liability, mostly in accident years 2017 and 2018 due to a higher number of large losses. The increase in marine reserves is included as a component of the change in deferred gain under retroactive reinsurance in the above table.

Package business reserves decreased for accident years 2014 to 2017 largely due to lower estimates of allocated loss adjustment expenses.

Commercial property reserves were decreased for accident year 2019 due to favorable developments on marine and middle market property claims.

Professional liability reserves were decreased primarily due to lower estimated severity on non-security class action D&O claims and fewer than expected E&O claims with financial institutions for the 2011 to 2018 accident years, partially offset by an increase in D&O reserves for the 2019 accident year driven by higher frequency of class action lawsuits and an increase in large Syndicate D&O losses for the 2016 and 2017 accident years. These Syndicate reserve increases within global specialty are included as a component of the change in deferred gain under retroactive reinsurance in the above table.

Bond reserves were reduced within contract surety driven by both favorable loss development on the 2015 to 2017 accident years and higher than expected loss recoveries on older accident years

Assumed reinsurance reserves were increased for accident year 2018 mostly due to higher accident and health reserve estimates for medical professionals on assumed casualty business. These reserve increases are included as a component of the change in deferred gain under retroactive reinsurance in the above table.

Automobile liability reserves were decreased in Personal Lines principally due to lower than previously expected AARP Direct automobile liability claim severity for the 2017 to 2019 accident years. Automobile liability reserves were increased in Commercial Lines primarily due to higher than expected large losses within middle & large commercial, predominantly within the 2015 to 2019 accident years.

Catastrophes reserves were reduced, primarily due to a reduction in estimated reserves for 2017 and 2018 California wildfires and a reduction in estimated catastrophes for wind and hail events in the 2017 to 2019 accident years, partially offset by an increase in reserves for 2019 typhoons Hagibis and Faxai in Asia. The reduction in reserves for the 2017 and 2018 wildfires was largely due to recognizing a $289 subrogation benefit in the second quarter of 2020 from PG&E Corporation and Pacific Gas and Electric Company ("PG&E") as well as a reduction in gross estimated losses on those wildfires.

In December, 2019, the judge overseeing the bankruptcy of PG&E approved an $11 billion settlement of insurance subrogation claims to resolve all such claims arising from the 2017 Northern California wildfires and 2018 Camp wildfire. That settlement was contingent upon, among other things, the judge entering an order confirming PG&E’s chapter 11 bankruptcy plan (“PG&E Plan”) incorporating the settlement agreement. On June 20, 2020, the bankruptcy court judge approved the PG&E Plan and PG&E subsequently transferred the $11 billion settlement amount to a trust designed to allocate and distribute the settlement among subrogation holders, including certain of the Company’s insurance subsidiaries. In the second quarter of 2020, the Company recorded an estimated $289 subrogation benefit though the ultimate amount it collects will depend on how the Company’s ultimate paid claims subject to subrogation compare to other insurers’ ultimate paid claims subject to subrogation.

Uncollectible reinsurance reserves were reduced due to higher than expected recoveries from reinsurers in older accident years.

Asbestos and environmental reserves were reviewed in fourth quarter 2020 resulting in a $218 increase in reserves before ADC reinsurance, including $127 for asbestos and $91 for environmental. Of the $218 increase in A&E reserves, the Company ceded $220 to the A&E ADC resulting in a net reserve release of $2. Of the $220 of adverse development ceded to the A&E ADC, the Company recognized a $210 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 15 - Commitments and Contingencies.

Other reserve re-estimates, net, primarily represents an increase in ULAE reserves in Property & Casualty Other Operations that was largely driven by an increase in gross asbestos and environmental reserves.

2019 re-estimates of prior accident year reserves

Workers’ compensation reserves were reduced, principally in small commercial driven by lower than previously estimated claim severity for the 2014 through 2017 accident years and, to a lesser extent, in national accounts due to lower estimated claim severity, primarily for accident years 2013 and prior.

General liability reserves were increased, primarily due to reserve increases in small commercial for accident years 2017 and 2018 due to higher frequency of high-severity bodily injury claims, reserve increases in middle & large commercial for accident years 2015 to 2018 due to higher estimated severity, as well as increased estimated severity on the acquired Navigators Group book of business related to U.S. construction, premises liability, products liability and excess casualty, mostly related to accident years 2014 to 2017. In addition, an increase in reserves for mass torts for 2009 and prior accident years was offset by a decrease in reserves for extra contractual liability claims for more recent accident years, including the 2018 accident year.

Marine reserves were increased, principally related to pollution exposure from the 1980s and 1990s related to the Navigators Group book of business.

Package business reserves were decreased, primarily due to favorable emergence on property claims related to accident years 2016 through 2018 and due to favorable development of loss adjustment expenses on general liability claims for 2017 and prior accident years.

Commercial property reserves were decreased, principally due to favorable emergence of reported losses, including on the acquired Navigators Group book of business, related to offshore energy in accident years 2017 to 2018 and construction engineering across accident years 2015 to 2018.

Professional liability reserves were increased, primarily due to increased securities litigation and large loss

activity, including wrongful termination and discrimination claims, related to accident years 2017 and 2018 and increased estimated frequency and severity of directors’ and officers’ reserves on the Navigators Group book of business, principally for the 2014 to 2018 accident years. Partially offsetting the increase was a decrease in average severity on public company directors’ and officers’ claim reserves and errors and omissions claim reserves for accident years 2014 and prior.

Automobile liability reserves were decreased in Personal Lines and increased in Commercial Lines. The decrease in Personal Lines was due to the emergence of lower estimated severity in automobile liability for accident year 2017. The increase in Commercial Lines was due to higher estimated severity on national accounts, principally in accident years 2017 and 2018, and higher estimated severity for accident year 2018 in small commercial and middle market, partially offset by lower estimated severity for 2017 and prior accident years in small commercial and middle market.

Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 hurricanes Harvey and Irma and the 2017 California wildfires. While gross loss reserve estimates for the 2018 California wildfires were also reduced, this was largely offset by a reduction in reinsurance recoverables resulting in very little change to estimated net losses from those wildfires.

Uncollectible reinsurance reserves were reduced due to higher than expected recoveries from reinsurers in older accident years.

Other reserve re-estimates, net, primarily represents an increase in ULAE reserves in Property & Casualty Other Operations that was driven by an increase in gross asbestos and environmental reserves, as well as higher than anticipated ULAE costs in recent years, prompting an increase in the projected ULAE run rate.

Settlement Agreement with Boy Scouts of America

On September 14, 2021, the Company announced that it entered into a new agreement-in-principle with the BSA, related to sexual molestation and sexual abuse claims associated with liability policies issued by various Hartford writing companies in the 1970s and early 1980s, superseding its prior agreement of April 16, 2021, which now includes the BSA, its local councils and the representatives of a majority of the sexual abuse claimants. As part of the agreement-in-principle, The Hartford will pay $787, before tax, for claims associated with policies mostly issued in the 1970s. In exchange for The Hartford’s payment, the BSA and its local councils will fully release The Hartford from any obligation under policies The Hartford issued to the BSA and its local councils. In addition, the representatives for the claimants joining this agreement-in-principle will support a plan of reorganization which incorporates the settlement. The prior agreement of April 16, 2021 to settle these claims for $650 did not include the local councils or representatives of a majority of the claimants.

The agreement-in-principle was reached in connection with BSA’s Chapter 11 bankruptcy and will become a final settlement upon the occurrence of certain conditions, including, but not

limited to, execution of a definitive settlement agreement, confirmation of BSA’s plan of reorganization, receipt of executed releases from the local councils, and approval of the parties' settlement as part of the confirmation of BSA's plan of reorganization by the bankruptcy and district courts. Assuming that all conditions are satisfied, the parties to the agreement-in-principle expect to receive court approval of the settlement by mid 2022. However, no assurance can be given that all the conditions precedent to the settlement will be satisfied or that final court approval, if obtained, will not be delayed for various procedural reasons.

If the bankruptcy court ultimately does not approve BSA’s plan of reorganization including terms of the agreement-in-principle, it is possible that adverse outcomes, if any, could have a material adverse effect on the Company’s consolidated operating results.

Adverse Development Covers

The Company has an adverse development cover reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., to reinsure loss development after 2016 on substantially all of the Company’s asbestos and environmental reserves (the “A&E ADC”). Under the A&E ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion including reserves for A&E exposure for accident years prior to 1986 that are reported in Property & Casualty Other Operations ("Run-off A&E") and reserves for A&E exposure for accident years 1986 and subsequent from policies underwritten prior to 2016 that are reported in ongoing Commercial Lines and Personal Lines. The $650 reinsurance premium was placed into a collateral trust account as security for NICO’s claim payment obligations to the Company. The Company has retained the risk of collection on amounts due from other third-party reinsurers and continues to be responsible for claims handling and other administrative services, subject to certain conditions. The A&E ADC covers substantially all the Company’s A&E reserve development up to the reinsurance limit.

Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 results in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid have been recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid result in a deferred gain. As of December 31, 2021, the Company has incurred $1,015 in cumulative adverse development on asbestos and environmental reserves that have been ceded under the A&E ADC treaty with NICO with $485 of available limit remaining under the A&E ADC. As a result, the Company has recorded a $365 deferred gain within other liabilities, representing the difference between the reinsurance recoverable of $1,015 and ceded premium paid of $650. The deferred gain is recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of asbestos and environmental claims will result in charges against earnings which may be significant.

Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased the Navigators ADC, an aggregate excess of loss reinsurance agreement covering adverse reserve development, from NICO on behalf of Navigators Insurers. Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018.

As of December 31, 2021, the Company has recorded a reinsurance recoverable under the Navigators ADC of $300 as estimated cumulative loss development on the 2018 and prior accident year reserves has exhausted the treaty limit. While the reinsurance recoverable is $300, the Company has recorded a $209 cumulative deferred gain within other liabilities since, under retroactive reinsurance accounting, ceded losses in excess of the $91 of ceded premium paid must be recognized as a deferred gain. Of the $209 of cumulative ceded losses in excess of ceded premium paid, $91, $102 and $16 were recognized as changes in deferred gain in 2021, 2020 and 2019, respectively.

Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2021


	Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance										Subtotal
Reserve Line	Cumulative Incurred for Accident Years Displayed in Triangles		Cumulative Paid for Accident Years Displayed in Triangles		Unpaid for Accident Years not Displayed in Triangles		Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance		Discount			Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance		Reinsurance and Other Recoverables		Liability for Unpaid Losses and Loss Adjustment Expenses
Workers' compensation	$	18,263	$	(9,992)	$	2,981	$	348	$	(341)		$	11,259	$	1,793	$	13,052
General liability	6,731		(3,157)		1,240		146		—			4,960		870		5,830
Marine	1,516		(1,242)		17		12		—			303		235		538
Package business	6,952		(5,208)		77		103		—			1,924		90		2,014
Commercial property	3,830		(3,342)		24		18		—			530		268		798
Commercial automobile liability	3,908		(2,778)		22		23		—			1,175		91		1,266
Commercial automobile physical damage	172		(162)		4		—		—			14		(1)		13
Professional liability	2,511		(1,335)		47		38		—			1,261		781		2,042
Bond	625		(254)		32		31		—			434		10		444
Assumed Reinsurance	1,384		(1,106)		3		4		—			285		50		335
Personal automobile liability	11,104		(9,809)		29		66		—			1,390		23		1,413
Personal automobile physical damage	1,200		(1,170)		7		3		—			40		—		40
Homeowners	6,307		(5,982)		5		34		—			364		17		381
Other ongoing business					183		5		(14)			174		310		484
Asbestos and environmental [1]					724		—		—			724		1,545		2,269
Other operations [1]					374		157		—			531		(1)		530
Total P&C	$	64,503	$	(45,537)	$	5,769	$	988	$	(355)		$	25,368	$	6,081	$	31,449

[1]Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, sexual molestation and sexual abuse and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles.

The reserve lines in the above table and the loss triangles that follow represent the significant lines of business for which the Company regularly reviews the appropriateness of reserve levels. These reserve lines differ from the reserve lines reported on a statutory basis, as prescribed by the National Association of Insurance Commissioners ("NAIC"). The cumulative incurred losses displayed in the above table include the full reinsurance benefit of ceding $300 of losses to the Navigators ADC even though $209 of that benefit has been recorded as a deferred gain within other liabilities and recognized as a charge to earnings within incurred loss and loss adjustment expenses included in the consolidated statement of operations. The $300 of Navigators Insurers losses ceded to the Navigators ADC included in the following triangles $110 for professional liability,$86 for general liability, $39 for marine, $29 for assumed reinsurance, $16 for commercial automobile and $3 for commercial property and included $17 for older accident years and lines of business that are not in the following triangles.

The following loss triangles present historical loss development for incurred and paid claims by accident year, including loss development on Navigators Insurers reserves prior to and after the May 23, 2019 acquisition date. Because the loss triangles include pre-acquisition date changes in ultimate incurred loss estimates for Navigators Insurers’ reserves, changes in reserve development evident in the incurred loss triangles may differ from prior accident year development recorded by the Company as shown in the (Favorable) Unfavorable Prior Accident Year Development table above as that only includes changes in Navigators Insurers’ reserves post acquisition. In addition, the incurred loss triangles include reserve development on both catastrophe and non-catastrophe claims whereas the (Favorable) Unfavorable Prior Accident Year Development table above shows the total amount of catastrophe reserve development across all lines of business on a single line.

Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. Incurred but not reported ("IBNR") reserves shown in loss triangles include reserves for incurred but not reported claims as well as reserves for expected development on reported claims. Incurred and cumulative paid losses in currencies other than the U.S. dollar have been converted into U.S. dollars using the exchange rates as of December 31, 2021.

Workers' Compensation


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	2,185	$	2,207	$	2,207	$	2,181	$	2,168	$	2,169	$	2,154	$	2,146	$	2,135	$	2,133	$	310	171,562
2013			2,020		1,981		1,920		1,883		1,861		1,861		1,850		1,831		1,811		346		151,492
2014					1,869		1,838		1,789		1,761		1,713		1,692		1,679		1,654		386		126,288
2015							1,873		1,835		1,801		1,724		1,714		1,699		1,667		412		114,113
2016									1,772		1,772		1,780		1,767		1,748		1,708		489		112,302
2017											1,862		1,869		1,840		1,822		1,757		636		111,800
2018													1,916		1,917		1,915		1,904		726		118,951
2019															1,937		1,935		1,934		844		119,416
2020																	1,865		1,864		1,114		90,199
2021																			1,831		1,314		93,860
Total																			$	18,263


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	359	$	809	$	1,106	$	1,313	$	1,436	$	1,529	$	1,587	$	1,644	$	1,678	$	1,706
2013			304		675		917		1,071		1,175		1,260		1,304		1,339		1,361
2014					275		598		811		960		1,041		1,099		1,137		1,167
2015							261		576		778		909		1,004		1,068		1,117
2016									255		579		779		908		1,003		1,064
2017											261		575		778		900		977
2018													283		624		837		983
2019															291		637		856
2020																	223		507
2021																			254
Total																			$	9,992

General Liability


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	423	$	402	$	399	$	392	$	410	$	408	$	421	$	413	$	407	$	406	$	41	16,768
2013			455		442		456		484		488		502		505		508		500		42		14,134
2014					506		475		481		494		513		522		515		505		52		15,242
2015							556		560		554		594		633		647		637		71		15,627
2016									613		583		607		632		632		620		92		16,817
2017											626		614		613		615		613		174		16,447
2018													692		669		697		703		295		17,749
2019															822		827		822		512		16,858
2020																	938		923		739		11,991
2021																			1,002		929		8,364
Total																			$	6,731


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	13	$	55	$	101	$	170	$	233	$	280	$	305	$	323	$	332	$	352
2013			13		53		141		233		320		372		398		422		442
2014					15		42		130		214		304		358		402		423
2015							10		55		156		278		409		477		524
2016									12		52		131		283		368		447
2017											15		67		156		255		344
2018													21		84		177		288
2019															29		100		193
2020																	45		110
2021																			34
Total																			$	3,157

Marine


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves [1]		Claims Reported
2012	$	196	$	220	$	180	$	169	$	163	$	164	$	168	$	164	$	164	$	165	$	1	6,789
2013			149		152		134		136		140		135		138		140		139		(2)		6,629
2014					163		160		158		165		164		169		167		171		1		7,137
2015							158		146		146		148		134		138		140		(3)		10,137
2016									140		143		138		148		150		147		(17)		13,178
2017											160		187		175		174		180		(8)		15,586
2018													144		161		154		161		(8)		14,037
2019															144		142		140		15		8,413
2020																	150		142		26		4,730
2021																			131		72		3,499
Total																			$	1,516

[1]Contributing to the negative IBNR reserves for some accident years is a lag in the timing of expected reinsurance recoveries under the Navigators ADC with NICO. Recoveries from NICO will not be collected until the Company has cumulative loss payments for all covered lines of more than the attachment point.


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	51	$	101	$	125	$	139	$	148	$	152	$	155	$	159	$	158	$	159
2013			42		82		100		112		119		121		126		133		134
2014					41		81		116		131		151		157		159		162
2015							40		85		116		126		134		140		141
2016									35		80		106		123		132		141
2017											48		111		142		154		163
2018													37		104		138		148
2019															36		83		101
2020																	32		69
2021																			24
Total																			$	1,242

Package Business


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	736	$	725	$	728	$	731	$	736	$	735	$	739	$	732	$	732	$	727	$	24	59,921
2013			579		565		573		585		586		592		586		587		583		22		43,675
2014					566		578		601		602		603		603		593		581		29		43,321
2015							582		588		585		583		588		581		567		34		42,232
2016									655		638		632		625		611		595		51		44,079
2017											695		702		692		657		644		73		46,638
2018													719		724		688		667		114		44,822
2019															813		769		749		175		43,073
2020																	915		893		316		61,161
2021																			946		412		40,792
Total																			$	6,952


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	286	$	486	$	560	$	616	$	652	$	673	$	687	$	694	$	697	$	699
2013			225		339		414		467		504		522		541		549		552
2014					226		345		416		468		507		525		535		542
2015							212		332		383		445		486		505		513
2016									225		353		410		465		500		521
2017											235		372		447		496		534
2018													237		402		451		498
2019															254		413		488
2020																	326		493
2021																			368
Total																			$	5,208

Commercial Property


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	369	$	333	$	334	$	335	$	337	$	335	$	334	$	333	$	332	$	332	$	—	26,861
2013			268		252		254		252		249		248		247		247		247		—		21,620
2014					293		281		282		280		279		280		280		279		(1)		21,030
2015							299		301		302		301		305		304		301		—		21,029
2016									406		420		399		406		408		408		3		23,781
2017											577		516		456		439		441		5		24,382
2018													450		437		424		403		8		21,715
2019															480		440		419		4		21,002
2020																	501		469		96		20,327
2021																			531		108		16,394
Total																			$	3,830


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	182	$	296	$	317	$	326	$	331	$	331	$	331	$	330	$	330	$	330
2013			161		223		238		243		242		244		245		245		245
2014					170		250		270		279		279		279		280		280
2015							179		257		285		296		302		303		302
2016									215		342		379		396		402		406
2017											229		378		412		427		433
2018													188		344		379		386
2019															215		351		383
2020																	221		336
2021																			241
Total																			$	3,342

Commercial Automobile Liability


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	311	$	377	$	391	$	402	$	395	$	389	$	387	$	388	$	388	$	387	$	6	36,053
2013			311		318		334		341		340		339		336		334		333		7		32,242
2014					309		317		331		337		341		334		333		332		6		29,613
2015							308		358		372		356		356		359		360		10		28,565
2016									385		393		390		391		391		395		15		29,167
2017											372		383		379		383		381		11		26,341
2018													349		396		405		406		36		24,610
2019															425		439		450		114		28,216
2020																	428		424		227		21,557
2021																			440		340		17,404
Total																			$	3,908


Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance
	For the years ended December 31
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	65	$	143	$	234	$	307	$	346	$	359	$	372	$	376	$	378	$	379
2013			62		130		202		259		295		311		320		323		324
2014					59		131		197		252		299		309		318		320
2015							62		142		207		267		314		335		344
2016									65		147		232		303		339		357
2017											60		134		211		285		328
2018													62		153		238		305
2019															67		160		247
2020																	55		119
2021																			55
Total																			$	2,778

Commercial Automobile Physical Damage


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2019		2020		2021		IBNR Reserves		Claims Reported
2019	$	63	$	64	$	63	$	1	19,853
2020			51		51		1		14,671
2021					58		2		14,253
Total					$	172


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2019		2020		2021
2019	$	56	$	62	$	62
2020			45		50
2021					50
Total					$	162

Professional Liability


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Claims Made Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	242	$	238	$	238	$	218	$	221	$	221	$	219	$	225	$	217	$	212	$	(3)	7,037
2013			207		195		187		174		174		173		171		171		169		14		5,979
2014					187		183		181		178		179		182		183		174		21		6,734
2015							164		174		180		190		214		207		200		15		7,245
2016									183		176		204		197		196		197		27		8,391
2017											205		203		232		226		241		47		9,466
2018													248		281		278		278		74		10,040
2019															298		317		336		150		9,654
2020																	370		365		259		7,713
2021																			339		310		5,450
Total																			$	2,511


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Claims Made Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	17	$	67	$	100	$	139	$	155	$	169	$	172	$	175	$	175	$	176
2013			10		44		67		88		116		131		137		142		148
2014					8		38		74		108		131		135		146		145
2015							9		40		85		107		125		141		164
2016									8		51		88		112		125		149
2017											11		48		88		123		151
2018													15		73		130		166
2019															21		78		150
2020																	19		71
2021																			15
Total																			$	1,335

Bond


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	71	$	70	$	61	$	55	$	49	$	49	$	45	$	48	$	48	$	46	$	11	1,729
2013			64		58		55		48		49		39		35		34		34		13		1,468
2014					71		67		66		67		59		59		60		60		8		1,387
2015							67		67		63		60		54		48		47		17		1,395
2016									61		61		61		55		51		45		23		1,339
2017											63		90		101		94		79		36		1,724
2018													68		68		72		71		36		1,664
2019															72		73		74		58		1,779
2020																	83		84		71		1,889
2021																			85		68		1,960
Total																			$	625


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	12	$	25	$	26	$	24	$	26	$	26	$	34	$	35	$	35	$	34
2013			3		9		17		19		19		19		20		20		20
2014					18		31		40		43		43		44		46		47
2015							9		20		24		31		34		32		30
2016									2		12		15		20		22		22
2017											5		46		55		54		42
2018													6		16		23		24
2019															3		13		15
2020																	4		12
2021																			8
Total																			$	254

Assumed Reinsurance


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves [1]		Claims Reported
2012	$	107	$	99	$	93	$	88	$	115	$	120	$	119	$	120	$	120	$	120	$	—	1,468
2013			115		119		103		105		102		102		103		103		103		(1)		1,656
2014					119		142		122		118		115		116		116		115		(1)		1,820
2015							102		92		94		94		95		96		96		—		1,582
2016									89		91		98		100		102		102		(5)		1,730
2017											129		153		162		157		153		(3)		2,166
2018													129		128		130		135		(13)		2,263
2019															181		190		187		20		2,522
2020																	183		181		71		1,623
2021																			192		104		584
Total																			$	1,384


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	38	$	77	$	83	$	85	$	112	$	118	$	118	$	119	$	119	$	119
2013			53		83		91		98		100		101		103		103		103
2014					66		119		106		109		112		113		114		115
2015							42		65		77		83		91		94		95
2016									36		66		84		90		95		97
2017											44		116		135		145		147
2018													25		112		134		140
2019															62		132		154
2020																	50		90
2021																			46
Total																			$	1,106

Personal Automobile Liability


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	1,141	$	1,149	$	1,146	$	1,142	$	1,133	$	1,130	$	1,130	$	1,130	$	1,129	$	1,128	$	4	210,757
2013			1,131		1,145		1,144		1,153		1,152		1,153		1,157		1,156		1,155		6		205,485
2014					1,146		1,153		1,198		1,200		1,199		1,202		1,201		1,199		6		209,022
2015							1,195		1,340		1,338		1,330		1,331		1,328		1,324		8		216,889
2016									1,407		1,402		1,393		1,397		1,395		1,386		11		215,839
2017											1,277		1,275		1,228		1,214		1,200		18		187,513
2018													1,108		1,104		1,072		1,058		51		156,152
2019															1,018		1,010		991		97		139,360
2020																	805		782		192		95,755
2021																			881		444		94,494
Total																			$	11,104


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	441	$	818	$	986	$	1,067	$	1,104	$	1,114	$	1,120	$	1,122	$	1,123	$	1,123
2013			442		816		1,002		1,091		1,121		1,135		1,142		1,144		1,148
2014					430		843		1,032		1,125		1,165		1,182		1,186		1,190
2015							475		935		1,142		1,243		1,292		1,304		1,310
2016									505		968		1,188		1,308		1,345		1,363
2017											441		836		1,033		1,123		1,161
2018													359		710		888		965
2019															323		654		816
2020																	238		486
2021																			247
Total																			$	9,809

Personal Automobile Physical Damage


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2019		2020		2021		IBNR Reserves		Claims Reported
2019	$	445	$	442	$	441	$	—	277,060
2020			349		346		5		210,783
2021					413		(6)		213,209
Total					$	1,200


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2019		2020		2021
2019	$	427	$	441	$	441
2020			333		341
2021					388
Total					$	1,170

Homeowners


Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	774	$	741	$	741	$	741	$	739	$	738	$	738	$	738	$	737	$	737	$	—	142,860
2013			673		638		637		634		632		630		629		630		629		1		113,552
2014					710		707		702		700		698		698		698		698		—		121,923
2015							690		703		690		684		684		684		684		1		119,997
2016									669		673		663		658		658		658		2		119,793
2017											866		889		884		783		775		6		124,713
2018													903		910		673		642		(6)		102,784
2019															501		475		470		13		84,536
2020																	525		512		26		87,841
2021																			502		107		71,196
Total																			$	6,307


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	547	$	696	$	719	$	727	$	731	$	734	$	735	$	736	$	736	$	736
2013			467		590		611		622		626		627		628		628		628
2014					526		663		684		691		695		697		697		698
2015							487		645		665		674		680		681		681
2016									481		621		640		649		653		655
2017											538		747		795		757		761
2018													484		712		616		619
2019															318		425		445
2020																	335		454
2021																			305
Total																			$	5,982

Property and casualty reserves, including IBNR reserves

The Company estimates ultimate losses and allocated loss adjustment expenses by accident year. IBNR represents the excess of estimated ultimate loss reserves over case reserves. The process to estimate ultimate losses and loss adjustment expenses is an integral part of the Company's reserve setting. Reserves for allocated and unallocated loss adjustment expenses are generally established separate from the reserves for losses.

Reserves for losses are set by line of business within the reporting segments. Case reserves are established by a claims handler on each individual claim and are adjusted as new information becomes known during the course of handling the

claim. Lines of business for which reported losses emerge over a long period of time are referred to as long-tail lines of business. Lines of business for which reported losses emerge more quickly are referred to as short-tail lines of business. The Company’s shortest tail lines of business are homeowners, commercial property and automobile physical damage. The longest tail lines of business include workers’ compensation, general liability and professional liability. For short-tail lines of business, emergence of paid loss and case reserves is credible and likely indicative of ultimate losses. For long-tail lines of business, emergence of paid losses and case reserves is less credible in the early periods after a given accident year and, accordingly, may not be indicative of ultimate losses.

The Company’s reserving actuaries regularly review reserves for both current and prior accident years using the most current

claim data. A variety of actuarial methods and judgments are used for most lines of business to arrive at selections of estimated ultimate losses and loss adjustment expenses. The reserve selections incorporate input, as appropriate, from claims personnel, pricing actuaries and operating management about reported loss cost trends and other factors that could affect the reserve estimates.

For both short-tail and long-tail lines of business, an expected loss ratio is used to record initial reserves. This expected loss ratio is determined by starting with the average loss ratio of recent prior accident years and adjusting that ratio for the effect of expected changes to earned pricing, loss frequency and severity, mix of business, ceded reinsurance and other factors. For short-tail lines, IBNR for the current accident year is initially recorded as the product of the expected loss ratio for the period, earned premium for the period and the proportion of losses expected to be reported in future calendar periods for the current accident period. For long-tailed lines, IBNR reserves for the current accident year are initially recorded as the product of the expected loss ratio for the period and the earned premium for the period, less reported losses for the period. For certain short-tailed lines of business, IBNR amounts in the above loss development triangles are negative due to anticipated salvage and subrogation recoveries on paid losses.

As losses for a given accident year emerge or develop in subsequent periods, reserving actuaries use other methods to estimate ultimate unpaid losses in addition to the expected loss ratio method. These primarily include paid and reported loss development methods, frequency/severity techniques and the Bornhuetter-Ferguson method (a combination of the expected loss ratio and paid development or reported development method). Within any one line of business, the methods that are given more weight vary based primarily on the maturity of the accident year, the mix of business and the particular internal and external influences impacting the claims experience or the methods. The output of the reserve reviews are reserve estimates that are referred to as actuarial indications.

Paid development and reported development techniques are used for most lines of business though more weight is given to the reported development method for some of the long-tailed lines like general liability. In addition, for long-tailed lines of business, the Company relies on the expected loss ratio method for immature accident years. Frequency/severity techniques are used predominantly for professional liability and are also used for automobile liability. The Berquist-Sherman technique is also used for automobile liability, marine and assumed reinsurance. For most lines, reserves for allocated loss adjustment expenses ("ALAE", or those expenses related to specific claims) are analyzed using paid development techniques and an analysis of the relationship between ALAE and loss payments. For most of the lines acquired through the Navigators Group book of business, loss and ALAE are reviewed on a combined basis. Reserves for ULAE are determined using the expected cost per claim year and the anticipated claim closure pattern as well as the ratio of paid ULAE to paid losses.

The recorded reserve for losses and loss adjustment expenses represents the actuarial best estimate of the ultimate settlement amount of unpaid losses and loss adjustment expenses. In applying judgment, actuaries select the best estimate after considering the estimates derived from a number of actuarial

methods, giving more weight to those methods deemed more predictive of ultimate unpaid losses and loss adjustment expenses. The Company does not produce a statistical range or confidence interval of reserve estimates and, since reserving methods with more credibility are given greater weight, the selected best estimate may differ from the mid-point of the various estimates produced by the actuarial methods used.

Cumulative number of reported claims

For most property and casualty lines, claim counts represent the number of claim features on a reported claim where a claim feature is each separate coverage for each claimant affected by the claim event. For example, one car accident that results in two bodily injury claims and one automobile damage liability claim would be counted as three claims within the personal automobile liability triangle. Similarly, a fire that impacts one commercial building may result in multiple claim features due to the potential for claims related to business interruption, structural damage, and loss of the physical contents of the building. Claim features that result in no paid losses are included in the reported claim counts. For some property and casualty lines, such as marine and assumed reinsurance, a claim count represents each reported claim regardless of the number of features. For assumed bordereau business and business written on binders, one claim count is posted for each bordereau received, which could account for multiple claims.


Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [1]
	(Unaudited)
Reserve Line	1st Year		2nd Year		3rd Year		4th Year		5th Year		6th Year		7th Year		8th Year		9th Year		10th Year
Workers' compensation	15.1	%	18.7	%	12.3	%	8.2	%	5.4	%	4.0	%	2.6	%	2.1	%	1.4	%	1.3	%
General liability	2.9	%	7.8	%	14.2	%	18.2	%	16.6	%	11.2	%	6.9	%	4.5	%	3.1	%	4.8	%
Marine	25.3	%	31.4	%	17.5	%	8.0	%	6.6	%	3.4	%	1.9	%	3.1	%	—	%	0.7	%
Package business	37.4	%	21.8	%	10.4	%	8.6	%	6.2	%	3.2	%	2.1	%	1.2	%	0.4	%	0.3	%
Commercial property	53.5	%	30.6	%	7.7	%	3.0	%	1.0	%	0.5	%	0.1	%	(0.1	%)	(0.1	%)	—	%
Commercial automobile liability	15.8	%	20.3	%	20.6	%	17.6	%	11.4	%	4.5	%	2.7	%	0.8	%	0.5	%	0.4	%
Commercial automobile physical damage	88.0	%	9.7	%	(0.4	%)
Professional liability	5.3	%	18.4	%	18.7	%	14.3	%	10.8	%	7.6	%	5.9	%	1.1	%	1.6	%	0.7	%
Bond	12.2	%	22.2	%	10.3	%	4.6	%	(0.2	%)	(0.5	%)	4.4	%	1.8	%	(0.2	%)	(1.6	%)
Assumed Reinsurance	35.2	%	36.9	%	9.1	%	4.9	%	7.0	%	2.4	%	1.0	%	0.3	%	0.3	%	0.1	%
Personal automobile liability	34.7	%	33.3	%	16.0	%	7.7	%	3.1	%	1.2	%	0.5	%	0.2	%	0.2	%	—	%
Personal automobile physical damage	95.7	%	2.7	%	(0.1	%)
Homeowners	70.7	%	23.5	%	1.4	%	0.3	%	0.6	%	0.3	%	0.1	%	0.1	%	—	%	—	%

[1]Negative percentages are generally due to salvage, subrogation or other recoveries.

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses


	For the years ended December 31,
	2021		2020		2019
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,233	$	8,256	$	8,445
Reinsurance recoverables [1]	237		247		239
Beginning liabilities for unpaid losses and loss adjustment expenses, net	7,996		8,009		8,206
Provision for unpaid losses and loss adjustment expenses
Current incurral year	5,021		4,511		4,385
Prior year's discount accretion	201		209		219
Prior incurral year development [2]	(458)		(445)		(410)
Total provision for unpaid losses and loss adjustment expenses [3]	4,764		4,275		4,194
Payments
Current incurral year	(2,631)		(2,288)		(2,277)
Prior incurral years	(2,164)		(2,000)		(2,114)
Total payments	(4,795)		(4,288)		(4,391)
Ending liabilities for unpaid losses and loss adjustment expenses, net	7,965		7,996		8,009
Reinsurance recoverables	245		237		247
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,210	$	8,233	$	8,256

[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. See 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 of $179, $178 and $178 for the years ended December 31, 2021, 2020 and 2019, respectively, that are recorded in insurance operating costs and other expenses in the Consolidated Statements of Operations.

Group Life, Disability and Accident Products Reserves, Net of Reinsurance, that are Discounted


	For the years ended December 31,
	2021						2020						2019
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts	$	8,176					$	8,380					$	8,636
Amount of discount	(1,304)						(1,353)						(1,401)
Carrying value of liability for unpaid losses and loss adjustment expenses	$	6,872					$	7,027					$	7,235
Weighted average discount rate	3.3					%	3.4					%	3.4					%
Range of discount rate	2.1		%	-	8.0	%	2.1		%	-	8.0	%	2.1		%	-	8.0	%

Reserves are discounted at rates in effect at the time claims were incurred, ranging from 2.1% for life and disability reserves acquired from Aetna based on interest rates in effect at the acquisition date of November 1, 2017, to 8.0% for the Company’s pre-acquisition reserves for incurral year 1990, and vary by product. Prior year's discount accretion has been calculated as the average reserve balance for the year times the weighted average discount rate.

2021 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $380 largely driven by group long-term disability claim incidence lower than prior assumptions together with strong recoveries on prior incurral year claims, and by a New York Paid Family Leave program refund.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $65 largely driven by lower-than-previously expected claim incidence in both group life premium waiver and group accidental death and dismemberment.

Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $10 driven by lower-than-previously expected claim incidence during the pandemic.

2020 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $365 largely driven by group long-term disability lower claim incidence and higher recoveries on prior incurral year claims, and a refund on the New York Paid Family Leave program.

Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $15 driven by lower-than-expected emergence of prior year claims, especially for voluntary critical Illness and voluntary accident products.

2019 re-estimates of prior incurral year reserves

Group disability- Prior period reserve estimates decreased by approximately $340 largely driven by group long-term disability claim incidence lower than prior assumptions and strong recoveries on prior incurral year claims, including the impact of updating Long-term Disability ("LTD") recovery probabilities to be based on more recent experience. New York Paid Family Leave also experienced favorable claim emergence including an experience refund.

Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $60 largely driven by lower-than-previously expected claim incidence in group life premium waiver.

Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses as of December 31, 2021


	Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance										Subtotal
Reserve Line	Cumulative Incurred for Incurral Years Displayed in Triangles		Cumulative Paid for Incurral Years Displayed in Triangles		Unpaid for Incurral Years not Displayed in Triangles		Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance		Discount		Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance		Reinsurance and Other Recoverables		Liability for Unpaid Losses and Loss Adjustment Expenses
Group long-term disability	$	14,113	$	(8,219)	$	1,546	$	189	$	(1,192)	$	6,437	$	234	$	6,671
Group life and accident, excluding premium waiver	6,323		(5,644)		163		4		(18)		828		5		833
Group short-term disability					124		5		—		129		—		129
Group life premium waiver					620		11		(94)		537		1		538
Group supplemental health					34		—				34		5		39
Total Group Benefits	$	20,436	$	(13,863)	$	2,487	$	209	$	(1,304)	$	7,965	$	245	$	8,210

The following loss triangles present historical loss development for incurred and paid claims by the year the insured claim occurred, referred to as the incurral year. Triangles are limited to the number of years for which claims incurred typically remain

outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed.

Group Long-Term Disability


Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		IBNR Reserves		Claims Reported
2012	$	1,829	$	1,605	$	1,539	$	1,532	$	1,530	$	1,515	$	1,504	$	1,486	$	1,479	$	1,474	$	—	35,814
2013			1,660		1,479		1,429		1,429		1,416		1,413		1,399		1,385		1,378		—		30,757
2014					1,636		1,473		1,430		1,431		1,431		1,408		1,395		1,389		—		31,927
2015							1,595		1,442		1,422		1,420		1,401		1,385		1,380		—		32,727
2016									1,651		1,481		1,468		1,437		1,417		1,409		—		33,301
2017											1,597		1,413		1,358		1,316		1,304		1		30,902
2018													1,647		1,387		1,309		1,277		1		28,403
2019															1,650		1,424		1,327		5		27,375
2020																	1,686		1,407		29		25,503
2021																			1,768		881		17,132
Total																			$	14,113


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
			For the years ended December 31,
			(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	108	$	483	$	708	$	835	$	933	$	1,014	$	1,080	$	1,138	$	1,185	$	1,227
2013			102		443		664		791		881		954		1,016		1,067		1,113
2014					103		448		675		801		884		960		1,025		1,079
2015							108		460		687		806		891		962		1,025
2016									112		479		705		819		907		981
2017											109		452		658		757		842
2018													105		447		639		743
2019															101		454		650
2020																	100		458
2021																			101
Total																			$	8,219

Group Life and Accident, excluding Premium Waiver


Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Incurral Year	2019		2020		2021		IBNR Reserves		Claims Reported
2019	$	1,902	$	1,866	$	1,867	$	9	57,811
2020			2,072		2,072		21		60,509
2021					2,384		467		51,507
Total					$	6,323


Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the years ended December 31,
	(Unaudited)
Incurral Year	2019		2020		2021
2019	$	1,471	$	1,830	$	1,847
2020			1,524		2,033
2021					1,764
Total					$	5,644

Group life, disability and accident reserves, including IBNR

The majority of Group Benefits’ reserves are for LTD claimants who are known to be disabled and are currently receiving benefits. A Disabled Life Reserve ("DLR") is calculated for each

LTD claim. The DLR for each claim is the expected present value of all estimated future benefit payments and includes estimates of claim recovery, investment yield, and offsets from other income, including offsets from Social Security benefits and workers’ compensation. Estimated future benefit payments represent the monthly income benefit that is paid until recovery, death or expiration of benefits. Claim recoveries are estimated based on claim characteristics such as age and diagnosis and represent an estimate of benefits that will terminate, generally as a result of the claimant returning to work or being deemed able to return to work. The DLR also includes a liability for payments to claimants who have not yet been approved for LTD. In these cases, the present value of future benefits is reduced for the likelihood of claim denial based on Company experience. For claims recently closed due to recovery, a portion of the DLR is retained for the possibility that the claim reopens upon further evidence of disability. In addition, a reserve for estimated unpaid claim expenses is included in the DLR.

For incurral years with IBNR claims, estimates of ultimate losses are made by applying completion factors to the dollar amount of claims reported or expected depending on the market segment. IBNR represents estimated ultimate losses less both DLR and cumulative paid amounts for all reported claims. Completion factors are derived using standard actuarial techniques using triangles that display historical claim count emergence by incurral month. These estimates are reviewed for reasonableness and are adjusted for current trends and other factors expected to cause a change in claim emergence. The IBNR includes an estimate of unpaid claim expenses, including a provision for the cost of initial set-up of the claim once reported.

For all products, including LTD, there is a period generally ranging from two to twelve months, depending on the product and market segment, where emerged claim information for an incurral year is not yet credible enough to be a basis for an IBNR projection. In these cases, the ultimate losses and allocated loss adjustment expenses are estimated using earned premium multiplied by an expected loss ratio.

The Company also records reserves for future death benefits under group term life policies that provide for premiums to be waived in the event the insured is unable to work due to disability and has satisfied an elimination period, which is typically nine months (premium waiver reserves). The death benefit reserve for these group life premium waiver claims is estimated for a known disabled claimant equal to the present value of expected future cash outflows (typically a lump sum face amount payable at death plus claim expenses) with separate estimates for claimant recovery (when no death benefit is payable) and for death before recovery or benefit expiry (when death benefit is payable). The IBNR for premium waiver death benefits is estimated with standard actuarial development methods.

In addition, the Company also records reserves for group term life, accidental death & dismemberment, short term disability, and other group products that have short claim payout periods. For these products, reserves are determined using paid or reported actuarial development methods. The resulting claim triangles produce a completion pattern and estimate of ultimate loss. IBNR for these lines of business equals the estimated ultimate losses and loss adjustment expenses less the amount of paid or reported claims depending on whether the paid or reported development method was used. Estimates are reviewed for reasonableness and are adjusted for current trends or other factors that affect the development pattern.

Cumulative number of reported claims

For group life, disability and accident coverages, claim counts include claims that are approved, pending approval and terminated and exclude denied claims. Due to the nature of the claims, one claimant represents one event.


Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
	(Unaudited)
	1st Year		2nd Year		3rd Year		4th Year		5th Year		6th Year		7th Year		8th Year		9th Year		10th Year
Group long-term disability	7.5	%	25.8	%	15.7	%	8.5	%	6.3	%	5.4	%	4.5	%	3.8	%	3.3	%	2.8	%
Group life and accident, excluding premium waiver	75.4	%	21.9	%	1.0	%

13. RESERVE FOR FUTURE POLICY BENEFITS


Changes in Reserves for Future Policy Benefits [1]
	For the years ended December 31,
	2021		2020
Beginning liability balance	$	638	$	635

Incurred	61		85
Paid	(94)		(85)
Change in unrealized investment gains and losses	(9)		3
Ending liability balance	$	596	$	638



Ending reinsurance recoverable asset	$	22	$	28

[1]Reserve for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities, which are in the Corporate category.