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v3.23.2

General and significant accounting policies (Tables) | 6 Months Ended
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Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash and restricted cash reported within the Consolidated balance sheets that total to the amounts shown in the Consolidated statements of cash flows:
| June 30 |  | December 31
(in millions of U.S. dollars) | 2023 |  | 2022
Cash | $ | 2,285 |  |  | $ | 2,012 |
Restricted cash | 90 |  |  | 115 |
Total cash and restricted cash shown in the Consolidated statements of cash flows | $ | 2,375 |  |  | $ | 2,127 |
Accounting Standards Update and Change in Accounting Principle | The impact of adoption of the new guidance on our historical financial statements is as follows:
| December 31, 2022
(in millions of U.S. dollars) | As Previously Reported |  | LDTI Adoption Adjustment |  | As Adjusted
Consolidated balance sheet |  |  |  |  |
Reinsurance recoverable on losses and loss expenses | $ | 18,901 |  |  | $ | (42) |  |  | $ | 18,859 |
Reinsurance recoverable on policy benefits | 303 |  |  | (1) |  |  | 302 |
Deferred policy acquisition costs | 5,788 |  |  | 243 |  |  | 6,031 |
Value of business acquired | 3,596 |  |  | 106 |  |  | 3,702 |
Prepaid reinsurance premiums | 3,140 |  |  | (4) |  |  | 3,136 |
Investments in partially-owned insurance companies | 2,877 |  |  | (370) |  |  | 2,507 |
Unpaid losses and loss expenses | 76,323 |  |  | (576) |  |  | 75,747 |
Unearned premiums | 20,360 |  |  | (647) |  |  | 19,713 |
Future policy benefits | 10,120 |  |  | 356 |  |  | 10,476 |
Market risk benefits | — |  |  | 800 |  |  | 800 |
Insurance and reinsurance balances payable | 7,795 |  |  | (15) |  |  | 7,780 |
Deferred tax liabilities | 292 |  |  | 85 |  |  | 377 |
Retained Earnings | 48,334 |  |  | (29) |  |  | 48,305 |
Accumulated other comprehensive income (loss) | (10,193) |  |  | 8 |  |  | (10,185) |
Excluded from the table above is the reclassification of separate accounts assets, separate account liabilities, and Policyholders' account balances as separate line items on the consolidated balance sheets. Separate accounts assets were previously classified in Other assets, and separate account liabilities and Policyholders' account balances were previously classified in Accounts payable, accrued expenses, and other liabilities.
| Three Months Ended |  | Six Months Ended |  |
| June 30, 2022 |  | June 30, 2022 |  |
(in millions of U.S. dollars) | As Previously Reported |  | LDTI Adoption Adjustment |  | As Adjusted |  | As Previously Reported |  | LDTI Adoption Adjustment |  | As Adjusted |  |  |  |  |  |  |
Consolidated statements of operations and comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net premiums written | $ | 10,302 |  |  | $ | (9) |  |  | $ | 10,293 |  |  | $ | 19,501 |  |  | $ | (19) |  |  | $ | 19,482 |  |  |  |  |  |  |  |
Net premiums earned | 9,557 |  |  | (8) |  |  | 9,549 |  |  | 18,303 |  |  | (17) |  |  | 18,286 |  |  |  |  |  |  |  |
Net realized gains (losses) | (504) |  |  | 1 |  |  | (503) |  |  | (403) |  |  | (77) |  |  | (480) |  |  |  |  |  |  |  |
Market risk benefits gains (losses) | — |  |  | (33) |  |  | (33) |  |  | — |  |  | 16 |  |  | 16 |  |  |  |  |  |  |  |
Losses and loss expenses | 5,408 |  |  | (202) |  |  | 5,206 |  |  | 10,195 |  |  | (425) |  |  | 9,770 |  |  |  |  |  |  |  |
Policy benefits | 159 |  |  | 202 |  |  | 361 |  |  | 304 |  |  | 430 |  |  | 734 |  |  |  |  |  |  |  |
Policy acquisition costs | 1,739 |  |  | (13) |  |  | 1,726 |  |  | 3,476 |  |  | (31) |  |  | 3,445 |  |  |  |  |  |  |  |
Other (income) expense | 101 |  |  | — |  |  | 101 |  |  | (209) |  |  | (2) |  |  | (211) |  |  |  |  |  |  |  |
Income tax expense | 293 |  |  | (2) |  |  | 291 |  |  | 648 |  |  | (4) |  |  | 644 |  |  |  |  |  |  |  |
Net Income | 1,215 |  |  | (25) |  |  | 1,190 |  |  | 3,189 |  |  | (46) |  |  | 3,143 |  |  |  |  |  |  |  |
Other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in current discount rate on future policy benefits | — |  |  | 632 |  |  | 632 |  |  | — |  |  | 1,067 |  |  | 1,067 |  |  |  |  |  |  |  |
Change in instrument-specific credit risk on market risk benefits | — |  |  | 17 |  |  | 17 |  |  | — |  |  | 40 |  |  | 40 |  |  |  |  |  |  |  |
Income tax benefit related to OCI items | 245 |  |  | (62) |  |  | 183 |  |  | 1,057 |  |  | (95) |  |  | 962 |  |  |  |  |  |  |  |
Comprehensive income | (3,656) |  |  | 583 |  |  | (3,073) |  |  | (5,436) |  |  | 987 |  |  | (4,449) |  |  |  |  |  |  |  |
| Six Months Ended |  |
| June 30,2022 |  |
(in millions of U.S. dollars) | As Previously Reported |  | LDTI Adoption Adjustment |  | As Adjusted |  |  |  |  |  |  |
Consolidated statement of cash flows |  |  |  |  |  |  |  |  |  |  |  |
Net cash flows from operating activities | $ | 5,160 |  |  | $ | 6 |  |  | $ | 5,166 |  |  |  |  |  |  |  |
Net cash flows used for financing activities | (719) |  |  | (6) |  |  | (725) |  |  |  |  |  |  |  |
The following table presents a reconciliation of the pre-adoption December 31, 2020, to the post adoption January 1, 2021, balance of future policy benefits:
| Life Insurance |  | Overseas General Insurance |  |  |  | Offsetting Equity Line Classification
(in millions of U.S. dollars) | Term Life |  |  |  | Whole Life |  | A&H |  | Other |  | A&H |  | Total |  |
Future policy benefits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance – December 31, 2020(1) | $ | 391 |  |  |  |  | $ | 2,578 |  |  | $ | 2,270 |  |  | $ | 72 |  |  | $ | 754 |  |  | $ | 6,065 |  |  |
Effect of change in current discount rate | 63 |  |  |  |  | 1,189 |  |  | 299 |  |  | 17 |  |  | 19 |  |  | 1,587 |  |  | AOCI
Balance – January 1, 2021 | $ | 454 |  |  |  |  | $ | 3,767 |  |  | $ | 2,569 |  |  | $ | 89 |  |  | $ | 773 |  |  | $ | 7,652 |  |  |
(1) Includes future policy benefits previously included within Unpaid losses on the pre-adoption consolidated balance sheets, primarily certain international A&H business, and excludes deferred profit liability and certain guaranteed minimum death benefits reclassified to Market risk benefits on the post adoption period balance sheets. The following table presents a reconciliation of the pre-adoption December 31, 2020, to the post adoption January 1, 2021, balance of market risk benefits:
(in millions of U.S. dollars) |  |  |  |  |  |  | Offsetting Equity Line Classification
Market risk benefits |  |  |  |  |  |  |
Balance – December 31, 2020 |  |  | $ | 1,138 |  |  |  |  |
Cumulative effect of changes in instrument-specific credit risk between original contract issuance date and transition date (1) |  |  | 84 |  |  |  |  | AOCI
Other fair value adjustments |  |  | (59) |  |  |  |  | Retained Earnings
Balance – January 1, 2021 |  |  | $ | 1,163 |  |  |  |  |
(1) Includes $77 million of instrument-specific credit risk allocated from retained earnings to AOCI.

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