XML 45 R33.htm IDEA: XBRL DOCUMENT

RESERVES FOR LOSSES AND LAE (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Activity in the Reserve for Losses and Loss Adjustment Expenses (“LAE”)

The following table provides a roll forward of the Company’s beginning and ending reserves for losses and LAE and is summarized for the periods indicated:


	At December 31,
(Dollars in millions)	2023		2022		2021
Gross reserves beginning of period	$	14,977	$	13,121	$	11,578
Less reinsurance recoverables on unpaid losses	(3,684)		(3,651)		(3,951)
Net reserves beginning of period	11,294		9,470		7,627

Incurred related to:
Current year	5,599		5,815		5,382
Prior years	(21)		7		5
Total incurred losses and LAE	5,578		5,823		5,387

Paid related to:
Current year	1,169		1,097		2,374
Prior years	3,128		2,867		1,127
Total paid losses and LAE	4,298		3,964		3,501

Foreign exchange/translation adjustment	40		(35)		(42)

Net reserves end of period	12,614		11,294		9,470
Plus reinsurance recoverables on unpaid losses	3,182		3,684		3,651
Gross reserves end of period	$	15,796	$	14,977	$	13,121

(Some amounts may not reconcile due to rounding.)

Schedule of Reconciliation of the Net Incurred and Paid Claims Development

The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows.


	At December 31,
	2023
(Dollars in millions)
Net outstanding liabilities
Reinsurance Casualty	$	5,433
Reinsurance Property	3,161
Insurance Casualty	3,310
Insurance Property	493
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance	12,396

Reinsurance recoverable on unpaid claims
Reinsurance Casualty	492
Reinsurance Property	816
Insurance Casualty	1,695
Insurance Property	179
Total reinsurance recoverable on unpaid claims	3,182

Unallocated claims adjustment expenses	184
Other	33
	218

Total gross liability for unpaid claims and claim adjustment expense	$	15,796

(Some amounts may not reconcile due to rounding.)

Schedule of Incurred Loss And ALAE And Paid Loss And ALAE, Net Of Reinsurance

Reinsurance - Casualty Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	341	$	327	$	258	$	229	$	229	$	229	$	229	$	229	$	229	$	229	—	N/A
2015			294		250		238		238		238		238		238		238		238		6	N/A
2016					243		239		239		239		239		239		239		239		18	N/A
2017							198		204		204		204		204		204		204		50	N/A
2018									814		799		845		867		919		1,029		115	N/A
2019											1,009		1,057		1,058		1,073		1,109		285	N/A
2020													1,085		1,057		1,026		1,017		373	N/A
2021															1,358		1,351		1,309		693	N/A
2022																	1,331		1,290		912	N/A
2023																			1,634		1,283	N/A
																			$	8,299

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	15	$	36	$	77	$	107	$	145	$	175	$	184	$	188	$	211	$	216
2015			16		39		86		147		168		188		194		209		216
2016					18		54		89		143		161		187		214		220
2017							27		87		110		123		150		180		187
2018									132		200		318		415		473		510
2019											165		265		381		487		531
2020													146		237		334		447
2021															156		230		377
2022																	105		222
2023																			175
																			$	3,101
All outstanding liabilities prior to 2014, net of reinsurance																			235
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	5,433

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Casualty	11.5	%	8.9	%	11.6	%	11.7	%	6.8	%	7.3	%	5.5	%	3.6	%	6.3	%	2.0	%

Reinsurance - Property Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	715	$	527	$	369	$	339	$	340	$	340	$	340	$	340	$	340	$	340	3	N/A
2015			640		341		311		311		311		311		311		311		311		1	N/A
2016					612		631		632		628		627		627		627		628		2	N/A
2017							1,262		1,847		2,015		2,109		2,162		2,200		2,203		2	N/A
2018									2,214		2,103		2,093		2,041		2,011		1,982		(1)	N/A
2019											1,658		1,664		1,591		1,486		1,479		(7)	N/A
2020													1,843		1,887		1,827		1,805		23	N/A
2021															2,140		2,126		2,068		87	N/A
2022																	2,535		2,223		549	N/A
2023																			1,958		980	N/A
																			$	14,996

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	145	$	222	$	273	$	301	$	317	$	319	$	323	$	325	$	332	$	339
2015			148		213		261		276		282		287		291		300		314
2016					223		475		569		575		580		582		592		603
2017							773		1,529		1,887		2,011		2,105		2,181		2,219
2018									470		1,358		1,652		1,808		1,866		1,909
2019											656		1,016		1,258		1,376		1,472
2020													528		1,100		1,408		1,590
2021															625		1,274		1,634
2022																	548		1,209
2023																			525
																			$	11,815
All outstanding liabilities prior to 2014, net of reinsurance																			(20)
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	3,161

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Property	30.9	%	32.8	%	16.2	%	7.2	%	3.9	%	2.4	%	1.6	%	1.7	%	3.3	%	1.9	%

Insurance - Casualty Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	238	$	239	$	241	$	255	$	255	$	255	$	256	$	256	$	256	$	256	1	24,779
2015			259		259		277		277		277		266		266		269		278		4	26,300
2016					351		276		279		281		288		287		281		281		—	30,606
2017							304		237		238		237		236		232		235		—	34,567
2018									645		644		666		689		698		793		135	35,301
2019											768		756		794		814		996		194	39,356
2020													817		792		793		841		287	38,099
2021															1,112		1,112		1,106		457	44,387
2022																	1,039		1,054		450	45,829
2023																			1,236		620	36,309
																			$	7,076

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	20	$	72	$	114	$	144	$	229	$	229	$	250	$	253	$	254	$	255
2015			20		68		117		199		244		259		263		266		270
2016					25		101		276		299		308		313		318		321
2017							23		151		157		217		233		239		243
2018									63		189		271		383		435		476
2019											11		217		350		489		598
2020													82		209		340		448
2021															201		339		521
2022																	222		470
2023																			193
																			$	3,793
All outstanding liabilities prior to 2014, net of reinsurance																			27
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	3,310

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Casualty	12.1	%	19.7	%	16.7	%	15.0	%	11.1	%	3.6	%	3.2	%	1.1	%	0.9	%	0.2	%

Insurance - Property Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	76	$	89	$	84	$	82	$	82	$	82	$	82	$	82	$	82	$	82	—	N/A
2015			96		93		93		92		95		107		107		103		95		—	N/A
2016					150		186		180		177		175		174		181		181		—	N/A
2017							233		300		303		309		322		332		329		—	N/A
2018									382		380		392		390		395		402		5	N/A
2019											350		367		359		365		378		7	N/A
2020													524		523		513		478		24	N/A
2021															557		550		578		31	N/A
2022																	708		711		115	N/A
2023																			638		164	N/A
																			$	3,872

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	45	$	77	$	81	$	81	$	82	$	82	$	82	$	82	$	82	$	82
2015			51		82		91		91		91		94		94		94		95
2016					78		162		180		175		178		180		180		181
2017							164		298		287		305		321		329		329
2018									238		349		376		388		391		396
2019											224		346		357		364		367
2020													271		374		395		453
2021															361		515		537
2022																	390		548
2023																			391
																			$	3,379
All outstanding liabilities prior to 2014, net of reinsurance																			—
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	493

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Property	57.1	%	29.8	%	4.0	%	4.7	%	1.8	%	1.6	%	0.2	%	0.7	%	0.2	%	0.1	%

Schedule of Average Annual Percentage Payout Incurred Claims By Age, Net Of Reinsurance

Reinsurance - Casualty Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	341	$	327	$	258	$	229	$	229	$	229	$	229	$	229	$	229	$	229	—	N/A
2015			294		250		238		238		238		238		238		238		238		6	N/A
2016					243		239		239		239		239		239		239		239		18	N/A
2017							198		204		204		204		204		204		204		50	N/A
2018									814		799		845		867		919		1,029		115	N/A
2019											1,009		1,057		1,058		1,073		1,109		285	N/A
2020													1,085		1,057		1,026		1,017		373	N/A
2021															1,358		1,351		1,309		693	N/A
2022																	1,331		1,290		912	N/A
2023																			1,634		1,283	N/A
																			$	8,299

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	15	$	36	$	77	$	107	$	145	$	175	$	184	$	188	$	211	$	216
2015			16		39		86		147		168		188		194		209		216
2016					18		54		89		143		161		187		214		220
2017							27		87		110		123		150		180		187
2018									132		200		318		415		473		510
2019											165		265		381		487		531
2020													146		237		334		447
2021															156		230		377
2022																	105		222
2023																			175
																			$	3,101
All outstanding liabilities prior to 2014, net of reinsurance																			235
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	5,433

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Casualty	11.5	%	8.9	%	11.6	%	11.7	%	6.8	%	7.3	%	5.5	%	3.6	%	6.3	%	2.0	%

Reinsurance - Property Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	715	$	527	$	369	$	339	$	340	$	340	$	340	$	340	$	340	$	340	3	N/A
2015			640		341		311		311		311		311		311		311		311		1	N/A
2016					612		631		632		628		627		627		627		628		2	N/A
2017							1,262		1,847		2,015		2,109		2,162		2,200		2,203		2	N/A
2018									2,214		2,103		2,093		2,041		2,011		1,982		(1)	N/A
2019											1,658		1,664		1,591		1,486		1,479		(7)	N/A
2020													1,843		1,887		1,827		1,805		23	N/A
2021															2,140		2,126		2,068		87	N/A
2022																	2,535		2,223		549	N/A
2023																			1,958		980	N/A
																			$	14,996

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	145	$	222	$	273	$	301	$	317	$	319	$	323	$	325	$	332	$	339
2015			148		213		261		276		282		287		291		300		314
2016					223		475		569		575		580		582		592		603
2017							773		1,529		1,887		2,011		2,105		2,181		2,219
2018									470		1,358		1,652		1,808		1,866		1,909
2019											656		1,016		1,258		1,376		1,472
2020													528		1,100		1,408		1,590
2021															625		1,274		1,634
2022																	548		1,209
2023																			525
																			$	11,815
All outstanding liabilities prior to 2014, net of reinsurance																			(20)
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	3,161

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Property	30.9	%	32.8	%	16.2	%	7.2	%	3.9	%	2.4	%	1.6	%	1.7	%	3.3	%	1.9	%

Insurance - Casualty Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	238	$	239	$	241	$	255	$	255	$	255	$	256	$	256	$	256	$	256	1	24,779
2015			259		259		277		277		277		266		266		269		278		4	26,300
2016					351		276		279		281		288		287		281		281		—	30,606
2017							304		237		238		237		236		232		235		—	34,567
2018									645		644		666		689		698		793		135	35,301
2019											768		756		794		814		996		194	39,356
2020													817		792		793		841		287	38,099
2021															1,112		1,112		1,106		457	44,387
2022																	1,039		1,054		450	45,829
2023																			1,236		620	36,309
																			$	7,076

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	20	$	72	$	114	$	144	$	229	$	229	$	250	$	253	$	254	$	255
2015			20		68		117		199		244		259		263		266		270
2016					25		101		276		299		308		313		318		321
2017							23		151		157		217		233		239		243
2018									63		189		271		383		435		476
2019											11		217		350		489		598
2020													82		209		340		448
2021															201		339		521
2022																	222		470
2023																			193
																			$	3,793
All outstanding liabilities prior to 2014, net of reinsurance																			27
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	3,310

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Casualty	12.1	%	19.7	%	16.7	%	15.0	%	11.1	%	3.6	%	3.2	%	1.1	%	0.9	%	0.2	%

Insurance - Property Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	76	$	89	$	84	$	82	$	82	$	82	$	82	$	82	$	82	$	82	—	N/A
2015			96		93		93		92		95		107		107		103		95		—	N/A
2016					150		186		180		177		175		174		181		181		—	N/A
2017							233		300		303		309		322		332		329		—	N/A
2018									382		380		392		390		395		402		5	N/A
2019											350		367		359		365		378		7	N/A
2020													524		523		513		478		24	N/A
2021															557		550		578		31	N/A
2022																	708		711		115	N/A
2023																			638		164	N/A
																			$	3,872

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	45	$	77	$	81	$	81	$	82	$	82	$	82	$	82	$	82	$	82
2015			51		82		91		91		91		94		94		94		95
2016					78		162		180		175		178		180		180		181
2017							164		298		287		305		321		329		329
2018									238		349		376		388		391		396
2019											224		346		357		364		367
2020													271		374		395		453
2021															361		515		537
2022																	390		548
2023																			391
																			$	3,379
All outstanding liabilities prior to 2014, net of reinsurance																			—
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	493

Schedule of Incurred Losses With Respect to A&E Reserve on Both Gross and Net of Reinsurance Basis

The following table summarizes incurred losses with respect to A&E reserves on both a gross and net of reinsurance basis for the periods indicated:


	At December 31,
(Dollars in millions)	2023		2022		2021
Gross basis:
Beginning of period reserves	$	278	$	175	$	219
Incurred losses	—		144		11
Paid losses	(31)		(42)		(55)
End of period reserves	$	246	$	278	$	175

Net basis:
Beginning of period reserves	$	210	$	128	$	167
Incurred losses	—		113		(3)
Paid losses	(21)		(32)		(36)
End of period reserves	$	189	$	210	$	128