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Unpaid losses and loss expenses | 6 Months Ended
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Jun. 30, 2023
Liability for Claims and Claims Adjustment Expense [Abstract] |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | Unpaid losses and loss expenses The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:
| Six Months Ended
| June 30
| 2023 |  | 2022
(in millions of U.S. dollars) |  |  | As Adjusted
Gross unpaid losses and loss expenses – beginning of period | $ | 75,747 |  |  | $ | 72,330 |
Reinsurance recoverable on unpaid losses – beginning of period (1) | (17,086) |  |  | (16,132) |
Net unpaid losses and loss expenses – beginning of period | 58,661 |  |  | 56,198 |
Net losses and loss expenses incurred in respect of losses occurring in: |  |  |
Current year | 11,227 |  |  | 10,391 |
Prior years (2) | (396) |  |  | (621) |
Total | 10,831 |  |  | 9,770 |
Net losses and loss expenses paid in respect of losses occurring in: |  |  |
Current year | 2,264 |  |  | 1,881 |
Prior years | 7,527 |  |  | 6,566 |
Total | 9,791 |  |  | 8,447 |
Foreign currency revaluation and other | 171 |  |  | (577) |
Net unpaid losses and loss expenses – end of period | 59,872 |  |  | 56,944 |
Reinsurance recoverable on unpaid losses (1) | 16,608 |  |  | 16,504 |
Gross unpaid losses and loss expenses – end of period | $ | 76,480 |  |  | $ | 73,448 |
(1) Net of valuation allowance for uncollectible reinsurance. (2) Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments, earned premiums, and development on international A&H lines totaling $0 million and $134 million for the six months ended June 30, 2023 and 2022, respectively. Gross and net unpaid losses and loss expenses increased $733 million and $1.2 billion for the six months ended June 30, 2023, respectively, principally reflecting underlying exposure growth and the unfavorable impact of foreign currency movement. This increase was partially offset by large payments related to the Boy Scouts of America and favorable prior period development. The increase in net unpaid losses also reflected seasonality in our crop insurance business. Prior Period Development Prior period development (PPD) arises from changes to loss estimates recognized in the current year that relate to loss events that occurred in previous calendar years and excludes the effect of losses from the development of earned premium from previous accident years. Long-tail lines include lines such as workers' compensation, general liability, and financial lines; while short-tail lines include lines such as most property lines, energy, personal accident, and agriculture. The following table summarizes (favorable) and adverse PPD by segment:
| Three Months Ended June 30 |  | Six Months Ended June 30
(in millions of U.S. dollars) | Long-tail |  | Short-tail |  | Total |  | Long-tail |  | Short-tail |  | Total
2023 |  |  |  |  |  |  |  |  |  |  |
North America Commercial P&C Insurance | $ | (139) |  |  | $ | (7) |  |  | $ | (146) |  |  | $ | (130) |  |  | $ | (88) |  |  | $ | (218) |
North America Personal P&C Insurance | — |  |  | (33) |  |  | (33) |  |  | — |  |  | (16) |  |  | (16) |
North America Agricultural Insurance | — |  |  | (3) |  |  | (3) |  |  | — |  |  | (3) |  |  | (3) |
Overseas General Insurance | — |  |  | (61) |  |  | (61) |  |  | — |  |  | (204) |  |  | (204) |
Global Reinsurance | 7 |  |  | (24) |  |  | (17) |  |  | 7 |  |  | (32) |  |  | (25) |
Corporate | 60 |  |  | — |  |  | 60 |  |  | 70 |  |  | — |  |  | 70 |
Total | $ | (72) |  |  | $ | (128) |  |  | $ | (200) |  |  | $ | (53) |  |  | $ | (343) |  |  | $ | (396) |
2022 |  |  |  |  |  |  |  |  |  |  |
North America Commercial P&C Insurance | $ | (266) |  |  | $ | (21) |  |  | $ | (287) |  |  | $ | (286) |  |  | $ | (109) |  |  | $ | (395) |
North America Personal P&C Insurance | — |  |  | (3) |  |  | (3) |  |  | — |  |  | (54) |  |  | (54) |
North America Agricultural Insurance | — |  |  | — |  |  | — |  |  | — |  |  | (26) |  |  | (26) |
Overseas General Insurance | — |  |  | (173) |  |  | (173) |  |  | — |  |  | (233) |  |  | (233) |
Global Reinsurance | (7) |  |  | 32 |  |  | 25 |  |  | (7) |  |  | 29 |  |  | 22 |
Corporate | 191 |  |  | — |  |  | 191 |  |  | 199 |  |  | — |  |  | 199 |
Total | $ | (82) |  |  | $ | (165) |  |  | $ | (247) |  |  | $ | (94) |  |  | $ | (393) |  |  | $ | (487) |
Significant prior period movements by segment, principally driven by reserve reviews completed during each respective period, are discussed in more detail below. The remaining net development for long-tail lines and short-tail business for each segment and Corporate comprises numerous favorable and adverse movements across a number of lines and accident years, none of which is significant individually or in the aggregate. North America Commercial P&C Insurance. Net favorable development for the three and six months ended June 30, 2023 included $264 million and $308 million, respectively, from workers' compensation lines due to lower-than-expected loss experience and our annual assessment of multi-claimant events, including industrial accidents. The favorable development was partially offset by net adverse development of $119 million and $125 million, respectively, in commercial auto liability due to adverse reported loss experience. Net favorable development for the three and six months ended June 30, 2022 included $286 million and $328 million, respectively, from workers' compensation lines due to lower-than-expected loss experience, related updates to loss development factors, and our annual assessment of multi-claimant events, including industrial accidents. Favorable development also included $132 million and $136 million, respectively, in primary general liability portfolios, due to lower-than-expected paid and reported case incurred activity. The favorable development was partially offset by net adverse development of $123 million and $116 million, respectively, in commercial auto liability due to adverse reported loss experience. Development for the six months ended June 30, 2022 also included favorable development of $78 million in A&H due to lower-than-expected loss emergence. North America Personal P&C Insurance. Net favorable development for the three and six months ended June 30, 2023 had no individually significant movements. Net favorable development for the six months ended June 30, 2022 included favorable development in the homeowners line of business driven by lower-than-expected paid and reported loss activity. Overseas General Insurance. Net favorable development for the three months ended June 30, 2023 included $61 million in short-tail property and casualty and A&H due to favorable claim development. Net favorable development for the six months ended June 30, 2023 was $204 million and included $110 million of favorable catastrophe development and non-catastrophe property loss emergence. Net favorable development for the three and six months ended June 30, 2022 included $173 million and $233 million primarily due to favorable loss development in A&H and property lines, as well as reduced loss frequency in personal lines. Corporate. Net adverse development for the three and six months ended June 30, 2023 was $60 million and $70 million, respectively, driven primarily by adverse development for molestation claims. Net adverse development for the three and six months ended June 30, 2022 was $191 million and $199 million, respectively, driven by adverse development of $155 million for molestation claims, primarily from updated modeling and specific account reviews. The remainder of the adverse development was driven by increased claim costs on non-A&E runoff workers’ compensation exposures, and charges relating to run-off operating expenses incurred.

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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//944-40/tableOfContent + Details
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