Benefit Plans

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Benefit Plans

Note 15 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)	2023		2022		2023		2022
Pension benefits
Service cost	$	34	$	22	$	99	$	79
Interest cost	58		59		176		157
Expected return on plan assets	(78)		(85)		(234)		(295)
Amortization of prior service credit	—		(2)		—		(27)
Costs and expenses	14		(6)		41		(86)
Remeasurement of projected benefit obligation	(211)		(254)		(156)		(1,427)
Remeasurement of plan assets	369		335		219		1,563
Remeasurement (gains) losses	158		81		63		136
Pension net cost	$	172	$	75	$	104	$	50
Postretirement benefits
Service cost	$	—	$	—	$	—	$	1
Interest cost	3		3		8		7
Amortization of prior service credit	(6)		(7)		(18)		(19)
Costs and expenses	(3)		(4)		(10)		(11)
Remeasurement of projected benefit obligation	(9)		(2)		(7)		(45)
Remeasurement of plan assets	—		—		—		—
Remeasurement (gains) losses	(9)		(2)		(7)		(45)
Postretirement net benefit	$	(12)	$	(6)	$	(17)	$	(56)
Pension and postretirement benefits
Costs and expenses	$	11	$	(10)	$	31	$	(97)
Remeasurement (gains) losses	149		79		56		91
Total net cost (benefit)	$	160	$	69	$	87	$	(6)

Differences in actual experience and changes in other assumptions affect our pension and other postretirement obligations and expenses. Differences between expected and actual returns on plan assets affect remeasurement (gains) losses.

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 September 30,				Nine months ended September 30,
($ in millions)	2023		2022		2023		2022
Remeasurement of projected benefit obligation (gains) losses:
Discount rate	$	(231)	$	(284)	$	(180)	$	(1,289)
Other assumptions	11		28		17		(183)
Remeasurement of plan assets (gains) losses	369		335		219		1,563
Remeasurement (gains) losses	$	149	$	79	$	56	$	91

Remeasurement losses for the third quarter and first nine months of 2023 are primarily related to unfavorable asset performance compared to expected return on plan assets, partially offset by an increase in the liability discount rate.

The weighted average discount rate used to measure the pension benefit obligation increased to 6.16% at September 30, 2023 compared to 5.50% at June 30, 2023, 5.33% at March 31, 2023 and 5.64% at December 31, 2022 resulting in gains for the third quarter and the first nine months of 2023.

For the third quarter of 2023, the actual return on plan assets was lower than the expected return due to lower equity and fixed income valuations from higher market yields during the quarter. For the first nine months of 2023, the actual return on plan assets was lower than the expected return due to lower fixed income valuations from higher market yields, partially offset by higher equity valuations.