Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2022

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

Unfavorable (Favorable) Prior Accident Year Development

	For the nine months ended September 30,
	2022		2021
Workers’ compensation	$	(143)	$	(113)
Workers’ compensation discount accretion	27		26
General liability	33		451
Marine	2		—
Package business	(35)		(66)
Commercial property	(17)		(24)
Professional liability	(9)		(7)
Bond	(4)		(26)
Assumed reinsurance	12		—
Automobile liability - Commercial Lines	23		9
Automobile liability - Personal Lines	(14)		(73)
Homeowners	(2)		2
Catastrophes	(32)		(98)
Uncollectible reinsurance	3		(10)
Other reserve re-estimates, net	9		26
Prior accident year development before change in deferred gain	(147)		97
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	—		73
Total prior accident year development	$	(147)	$	170

[1]The change in deferred gain for the nine months ended September 30, 2021 included $73 of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by professional liability.

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 nine months ended September 30,
	2022		2021
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,210	$	8,233
Reinsurance recoverables	245		237
Beginning liabilities for unpaid losses and loss adjustment expenses, net	7,965		7,996
Provision for unpaid losses and loss adjustment expenses
Current incurral year	3,665		3,753
Prior year's discount accretion	156		155
Prior incurral year development [1]	(323)		(382)
Total provision for unpaid losses and loss adjustment expenses [2]	3,498		3,526
Payments
Current incurral year	(1,703)		(1,776)
Prior incurral years	(1,900)		(1,804)
Total payments	(3,603)		(3,580)
Ending liabilities for unpaid losses and loss adjustment expenses, net	7,860		7,942
Reinsurance recoverables	251		246
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,111	$	8,188

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

[2]Includes unallocated loss adjustment expenses ("ULAE") of $138 and $131 for the nine months ended September 30, 2022 and 2021, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations

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 nine months ended September 30,
	2022		2021
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	31,449	$	29,622
Reinsurance and other recoverables	6,081		5,725
Beginning liabilities for unpaid losses and loss adjustment expenses, net	25,368		23,897
Provision for unpaid losses and loss adjustment expenses
Current accident year	6,361		5,968
Prior accident year development [1]	(147)		170
Total provision for unpaid losses and loss adjustment expenses	6,214		6,138
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	—		(73)
Payments
Current accident year	(1,571)		(1,549)
Prior accident years	(3,671)		(3,155)
Total payments	(5,242)		(4,704)
Foreign currency adjustment	(55)		1
Ending liabilities for unpaid losses and loss adjustment expenses, net	26,285		25,259
Reinsurance and other recoverables	6,205		5,931
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	32,490	$	31,190

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