Benefit Plans

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Benefit Plans

Note 13 Benefit Plans

Components of net cost (benefit) for pension and other postretirement plans
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2022		2021		2022		2021
Pension benefits
Service cost	$	28	$	25	$	57	$	51
Interest cost	52		52		98		98
Expected return on plan assets	(100)		(109)		(210)		(226)
Amortization of prior service credit	(12)		(12)		(25)		(25)
Costs and expenses	(32)		(44)		(80)		(102)
Remeasurement of projected benefit obligation	(421)		245		(1,173)		(267)
Remeasurement of plan assets	699		(388)		1,228		(167)
Remeasurement (gains) losses	278		(143)		55		(434)
Pension net cost (benefit)	$	246	$	(187)	$	(25)	$	(536)
Postretirement benefits
Service cost	$	1	$	1	$	1	$	1
Interest cost	2		2		4		4
Amortization of prior service credit	(6)		(7)		(12)		(13)
Costs and expenses	(3)		(4)		(7)		(8)
Remeasurement of projected benefit obligation	(19)		9		(43)		(10)
Remeasurement of plan assets	—		—		—		—
Remeasurement (gains) losses	(19)		9		(43)		(10)
Postretirement net (benefit) cost	$	(22)	$	5	$	(50)	$	(18)
Pension and postretirement benefits
Costs and expenses	$	(35)	$	(48)	$	(87)	$	(110)
Remeasurement (gains) losses	259		(134)		12		(444)
Total net cost (benefit)	$	224	$	(182)	$	(75)	$	(554)

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 and

amortization of prior service credit 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 Statements of Operations.

Pension and postretirement benefits remeasurement gains and losses
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2022		2021		2022		2021
Remeasurement of projected benefit obligation (gains) losses:
Discount rate	$	(420)	$	178	$	(1,005)	$	(239)
Other assumptions	(20)		76		(211)		(38)
Remeasurement of plan assets (gains) losses	699		(388)		1,228		(167)
Remeasurement (gains) losses	$	259	$	(134)	$	12	$	(444)

Remeasurement losses for the second quarter and first six months of 2022 are primarily related to unfavorable asset performance compared to expected return on plan assets, partially offset by a reduction in the projected benefit obligation due to an increase in the liability discount rate and changes in other assumptions.

The weighted average discount rate used to measure the benefit obligation increased to 4.92% at June 30, 2022 compared to 3.97% at March 31, 2022 and 2.93% at December 31, 2021 resulting in gains for the second quarter and first six months of 2022.

Remeasurement gains for other assumptions in the second quarter and first six months of 2022 are primarily related to an increase in the long-term lump sum interest rate.

For the second quarter and first six months of 2022, the actual return on plan assets was lower than the expected return due to higher interest rates, widening credit spreads and weak equity market performance.