Benefit Plans

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Benefit Plans

Note 14 Benefit Plans

Components of net cost (benefit) for pension and other postretirement plans
	Three months ended September 30,				Nine months ended September 30,
($ in millions)	2021		2020		2021		2020
Pension benefits
Service cost	$	27	$	25	$	78	$	78
Interest cost	47		49		145		161
Expected return on plan assets	(112)		(104)		(338)		(303)
Amortization of prior service credit	(13)		(14)		(38)		(42)
Curtailment loss	—		10		—		10
Costs and expenses	(51)		(34)		(153)		(96)
Remeasurement of projected benefit obligation	(25)		130		(292)		686
Remeasurement of plan assets	68		(202)		(99)		(391)
Remeasurement (gains) losses	43		(72)		(391)		295
Pension net (benefit) cost	$	(8)	$	(106)	$	(544)	$	199
Postretirement benefits
Service cost	$	—	$	1	$	1	$	4
Interest cost	2		2		6		8
Amortization of prior service credit	(5)		(1)		(18)		(3)
Curtailment gain	—		(8)		—		(8)
Costs and expenses	(3)		(6)		(11)		1
Remeasurement of projected benefit obligation	(3)		1		(13)		25
Remeasurement of plan assets	—		—		—		—
Remeasurement (gains) losses	(3)		1		(13)		25
Postretirement net (benefit) cost	$	(6)	$	(5)	$	(24)	$	26
Pension and postretirement benefits
Costs and expenses	$	(54)	$	(40)	$	(164)	$	(95)
Remeasurement (gains) losses	40		(71)		(404)		320
Total net (benefit) cost	$	(14)	$	(111)	$	(568)	$	225

Differences between expected and actual returns on plan assets and changes in assumptions affect the Company’s pension and other postretirement obligations, plan assets and expenses.

Pension and other postretirement service cost, interest cost, expected return on plan assets, amortization of prior service credit and curtailment gains and losses are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statement of Operations.

Pension and postretirement benefits remeasurement gains and losses
	Three months ended September 30,				Nine months ended September 30,
($ in millions)	2021		2020		2021		2020
Remeasurement of projected benefit obligation (gains) losses:
Discount rate	$	(32)	$	57	$	(271)	$	454
Other assumptions	4		74		(34)		257
Remeasurement of plan assets (gains) losses	68		(202)		(99)		(391)
Remeasurement (gains) losses	$	40	$	(71)	$	(404)	$	320

Remeasurement losses for the third quarter of 2021 primarily related to unfavorable asset performance compared to the expected return on plan assets, partially offset by an increase in the liability discount rate. Remeasurement gains in the first nine months of 2021 primarily related to an increase in the liability discount rate and favorable asset performance compared to the expected return on plan assets.

The weighted average discount rate used to measure the benefit obligation increased to 2.90% at

September 30, 2021 compared to 2.85% at June 30, 2021, decreased compared to 3.13% at March 31, 2021 and increased compared to 2.51% at December 31, 2020 resulting in gains for the third quarter and first nine months of 2021.

For the third quarter of 2021, the actual return on plan assets was lower due to higher market yields resulting in decreased fixed income valuations and modest public equity performance. For the first nine

months of 2021, the actual return on plan assets was higher primarily due to strong equity performance.