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Reinsurance and indemnification (Tables)
 9 Months Ended
Sep. 30, 2020
Reinsurance Disclosures [Abstract]  
Schedule of reductions to premiums and contract charges due to reinsurance premium ceded amounts
Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and life premiums and contract charges
($ in millions)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020

2019
Property and casualty insurance premiums earned
 
$
(277
)
 
$
(289
)
 
$
(845
)
 
$
(836
)
Life premiums and contract charges
 
(62
)
 
(68
)
 
(173
)
 
(200
)
Schedule of reductions to costs and expenses due to reinsurance ceded amounts
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 September 30,
 
Nine months ended September 30,
 
2020
 
2019
 
2020
 
2019
Property and casualty insurance claims and claims expense (1) (2)
 
$
128

 
$
(216
)
 
$
(213
)
 
$
(465
)
Life contract benefits
 
15

 
(74
)
 
(121
)
 
(92
)
Interest credited to contractholder funds
 
(7
)
 
(6
)
 
(19
)
 
(14
)

(1) 
In the three and nine months ended September 30, 2020, ceded claims and claims expense were reduced by approximately $330 million for amounts returned to reinsurers related to the PG&E subrogation recovery. See Note 8 for further information.
(2) 
Includes $195 million and $205 million of ceded losses related to the Michigan Catastrophic Claims Association (“MCCA”) for the nine months ended September 30, 2020 and 2019, respectively. On May 30, 2019, the Governor of Michigan signed new legislation effective July 2, 2020 to reform Michigan’s no-fault auto insurance system, including implementing mandated rate reductions that correspond to the level of personal injury protection coverage chosen by insureds. At this time it is not possible for the Company to know the full impact the reform will have on its claims and claims expense reserves and corresponding MCCA indemnification recoverables as not all components of reform will be implemented until 2023. For more detail on these changes see the Form 10-K for the year ended December 31, 2019.
Schedule of reinsurance recoverable for paid and unpaid claims
Reinsurance and indemnification recoverables, net
($ in millions)
 
September 30, 2020
 
December 31, 2019
Property and casualty
 
 
 
 
Paid and due from reinsurers and indemnitors
 
$
94

 
$
112

Unpaid losses estimated (including IBNR)
 
6,889

 
6,912

Total property and casualty
 
$
6,983

 
$
7,024

 
 
 
 
 
Annuities
 
1,309

 
1,305

Life insurance
 
718

 
794

Other
 
87

 
88

Total
 
$
9,097

 
$
9,211
Rollforward of credit loss allowance for reinsurance recoverables
Rollforward of credit loss allowance for reinsurance recoverables
 
 
($ in millions)
 
Three months ended September 30, 2020
 
Nine months ended September 30, 2020
Property and casualty (1) (2)
 
 
 
 
Beginning balance
 
$
(59
)
 
$
(60
)
Decrease in the provision for credit losses
 
—

 
1

Ending balance
 
$
(59
)
 
$
(59
)
 
 
 
 
 
Annuities, life insurance and other
 
 
 
 
Beginning balance
 
$
(15
)
 
$
(14
)
Increase in the provision for credit losses
 
(1
)
 
(2
)
Ending balance
 
$
(16
)
 
$
(16
)
(1) 
Primarily related to discontinued lines and coverages reinsurance ceded.
(2) 
Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation.