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Unpaid losses and loss expenses | 9 Months Ended
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Sep. 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:
| Nine Months Ended
| September 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 | 18,604 |  |  | 17,755 |
Prior years (2) | (667) |  |  | (922) |
Total | 17,937 |  |  | 16,833 |
Net losses and loss expenses paid in respect of losses occurring in: |  |  |
Current year | 4,853 |  |  | 4,511 |
Prior years | 10,158 |  |  | 9,217 |
Total | 15,011 |  |  | 13,728 |
Consolidation of Huatai Group | 405 |  |  | — |
Foreign currency revaluation and other | (95) |  |  | (1,280) |
Net unpaid losses and loss expenses – end of period | 61,897 |  |  | 58,023 |
Reinsurance recoverable on unpaid losses (1) | 17,808 |  |  | 17,313 |
Gross unpaid losses and loss expenses – end of period | $ | 79,705 |  |  | $ | 75,336 |
(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 $71 million and $213 million for the nine months ended September 30, 2023 and 2022, respectively. Gross and net unpaid losses and loss expenses increased $4.0 billion and $3.2 billion for the nine months ended September 30, 2023, respectively, principally reflecting underlying exposure growth and the consolidation of Huatai. The increase in net unpaid losses also reflected seasonality in our crop insurance business. This increase was partially offset by favorable prior period development and by large payments related to the Boy Scouts of America. 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 September 30 |  | Nine Months Ended September 30
(in millions of U.S. dollars) | Long-tail |  | Short-tail |  | Total |  | Long-tail |  | Short-tail |  | Total
2023 |  |  |  |  |  |  |  |  |  |  |
North America Commercial P&C Insurance | $ | 107 |  |  | $ | (191) |  |  | $ | (84) |  |  | $ | (23) |  |  | $ | (279) |  |  | $ | (302) |
North America Personal P&C Insurance | — |  |  | (119) |  |  | (119) |  |  | — |  |  | (135) |  |  | (135) |
North America Agricultural Insurance | — |  |  | (9) |  |  | (9) |  |  | — |  |  | (12) |  |  | (12) |
Overseas General Insurance | (52) |  |  | 3 |  |  | (49) |  |  | (52) |  |  | (201) |  |  | (253) |
Global Reinsurance | — |  |  | — |  |  | — |  |  | 7 |  |  | (32) |  |  | (25) |
Corporate | 61 |  |  | — |  |  | 61 |  |  | 131 |  |  | — |  |  | 131 |
Total | $ | 116 |  |  | $ | (316) |  |  | $ | (200) |  |  | $ | 63 |  |  | $ | (659) |  |  | $ | (596) |
2022 |  |  |  |  |  |  |  |  |  |  |
North America Commercial P&C Insurance | $ | (29) |  |  | $ | (137) |  |  | $ | (166) |  |  | $ | (315) |  |  | $ | (246) |  |  | $ | (561) |
North America Personal P&C Insurance | — |  |  | (133) |  |  | (133) |  |  | — |  |  | (187) |  |  | (187) |
North America Agricultural Insurance | — |  |  | 9 |  |  | 9 |  |  | — |  |  | (17) |  |  | (17) |
Overseas General Insurance | (5) |  |  | — |  |  | (5) |  |  | (5) |  |  | (233) |  |  | (238) |
Global Reinsurance | — |  |  | — |  |  | — |  |  | (7) |  |  | 29 |  |  | 22 |
Corporate | 73 |  |  | — |  |  | 73 |  |  | 272 |  |  | — |  |  | 272 |
Total | $ | 39 |  |  | $ | (261) |  |  | $ | (222) |  |  | $ | (55) |  |  | $ | (654) |  |  | $ | (709) |
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 months ended September 30, 2023 included $71 million in workers' compensation lines, mainly due to lower than expected loss experience, and $188 million in commercial property and marine lines, mainly due to net lower than expected development impacting the most recent accident years. The favorable development was partially offset by adverse development of $222 million in commercial excess and umbrella lines, driven by higher than expected loss development, principally related to automobile exposures. Net favorable development for the nine months ended September 30, 2023 included $379 million in workers' compensation lines, $113 million in commercial property and marine lines, and $101 million in surety, all mainly driven by lower than expected development. These favorable movements were partially offset by adverse development of $227 million in commercial excess and umbrella lines and $125 million in commercial auto liability, both driven by higher than expected loss experience. Net favorable development for the three months ended September 30, 2022 included $164 million from lower than expected loss experience in workers’ compensation lines and $66 million, net of premium adjustments, from lower claims activity in large multi-line loss sensitive accounts. The favorable development was partially offset by net adverse development of $58 million from higher than expected claims severity in commercial auto liability, and $71 million in commercial umbrella/excess portfolios. Net favorable development on our short-tail businesses primarily included $132 million in property and marine portfolios, where paid and reported loss activity for the most recent accident years was lower than expected. Net favorable development for the nine months ended September 30, 2022 also included favorable development in workers’ compensation lines due to updates to loss development factors and our annual assessment of multi-claimant events, including industrial accidents. North America Personal P&C Insurance. Net favorable development for the three and nine months ended September 30, 2023 included $263 million and $244 million, respectively, in homeowners and valuables lines, mainly due to lower than expected loss experience in accident year 2022. The favorable development was partially offset by net adverse development of $145 million in the three months ended September 30, 2023 in personal excess liability due to adverse development on reported losses. Net favorable development for the three and nine months ended September 30, 2022 included favorable development in the homeowners and valuables lines of business, driven by lower than expected claims reserve development. Overseas General Insurance. Net favorable development for the three months ended September 30, 2023 included favorable loss emergence in financial lines of $77 million primarily in accident years 2019 and prior of partially offset by net adverse development of $51 million in political risks. Net favorable development for the nine months ended September 30, 2023, also included net favorable development of $147 million in property and marine lines, and $45 million in A&H lines. Net favorable development for the three months ended September 30, 2022, included lower than expected paid and reported loss activity of $82 million in casualty lines, including primary and excess lines in Continental Europe, the U.K., and Asia Pacific, and $34 million in environmental lines. The favorable development was partially offset by net adverse development of $114 million in financial lines, including Directors and Officers (D&O) due to a combination of higher than expected development on specific claims and increased expected future development in the U.K., Continental Europe, Asia Pacific, and London wholesale business. Net favorable development for the nine months ended September 30, 2022, also included net favorable development of $75 million in A&H lines, $67 million in property lines, and $53 million in personal lines. Corporate. Net adverse development for the three months ended September 30, 2023 and 2022, included adverse development for environmental liabilities. Net adverse development for the nine months ended September 30, 2023 and 2022 also included adverse development for molestation claims of $49 million and $155 million, respectively.

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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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