Reinsurance and indemnification

3 Months Ended

Mar. 31, 2020

Reinsurance Disclosures [Abstract]

Reinsurance and indemnification

Note 9 Reinsurance and indemnification

Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and life premiums and contract charges
($ in millions)	Three months ended March 31,
	2020			2019
Property and casualty insurance premiums earned	$	(289	)	$	(260	)
Life premiums and contract charges	(44		)	(63		)

Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense, life contract benefits and interest credited to contractholder funds
($ in millions)	Three months ended March 31,
	2020			2019
Property and casualty insurance claims and claims expense	$	(131	)	$	(91	)
Life contract benefits	(91		)	(23		)
Interest credited to contractholder funds	(5		)	(3		)

Reinsurance and indemnification recoverables

Reinsurance and indemnification recoverables, net
($ in millions)	March 31, 2020		December 31, 2019
Property and casualty
Paid and due from reinsurers and indemnitors	$	101	$	112
Unpaid losses estimated (including IBNR)	6,913		6,912
Total property and casualty	$	7,014	$	7,024
Annuities	1,377		1,305
Life insurance	735		794
Other	88		88
Total	$	9,214	$	9,211

Property and casualty As of March 31, 2020, the credit loss allowance for reinsurance recoverables, primarily related to discontinued lines and coverages reinsurance ceded decreased to $59 million from $60 million at January 1, 2020 primarily due to a $1 million decrease in the current provision for credit losses.

Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation.

Annuities, life insurance and other As of March 31, 2020, the credit loss allowance for reinsurance recoverables related to life reinsurance ceded increased to $15 million from $14 million at January 1, 2020 primarily due to $1 million of credit losses.

The Company had $63 million and $70 million of reinsurance recoverables, net of an allowance for estimated uncollectible amounts, related to Scottish Re (U.S.), Inc. as of March 31, 2020 and December 31, 2019. On December 14, 2018, the Delaware Insurance Commissioner placed Scottish Re (U.S.), Inc. under regulatory supervision.  On March 6, 2019, the Chancery Court of the State of Delaware entered a Rehabilitation and Injunction Order (the “Rehabilitation Order”) in response to a petition filed by the Insurance Commissioner (the “Petition”). 

Pursuant to the Petition, it is expected that Scottish Re (U.S.), Inc. will submit a Plan of Rehabilitation. The Company joined in a joint motion filed on behalf of several affected parties asking the court to allow a specified amount of offsetting claim payments and losses against premiums remitted to Scottish Re (U.S.), Inc. The Company also filed a separate motion related to the reimbursement of claim payments where Scottish Re (U.S.), Inc. is also acting as administrator. The Court has not yet ruled on either of these motions. In the interim, the Company and several other affected parties have been permitted to exercise certain setoff rights while the parties address any potential disputes.

The Company continues to monitor Scottish Re (U.S.), Inc. for future developments and will reevaluate its allowance for uncollectible amounts as new information becomes available.