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Unpaid losses and loss expenses | 3 Months Ended
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Mar. 31, 2024
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:
| Three Months Ended
| March 31
(in millions of U.S. dollars) | 2024 |  | 2023
Gross unpaid losses and loss expenses – beginning of period | $ | 80,122 |  |  | $ | 75,747 |
Reinsurance recoverable on unpaid losses – beginning of period (1) | (17,884) |  |  | (17,086) |
Net unpaid losses and loss expenses – beginning of period | 62,238 |  |  | 58,661 |
Net losses and loss expenses incurred in respect of losses occurring in: |  |  |
Current year | 5,980 |  |  | 5,336 |
Prior years (2) | (253) |  |  | (188) |
Total | 5,727 |  |  | 5,148 |
Net losses and loss expenses paid in respect of losses occurring in: |  |  |
Current year | 767 |  |  | 805 |
Prior years | 4,055 |  |  | 3,911 |
Total | 4,822 |  |  | 4,716 |
Foreign currency revaluation and other | 35 |  |  | (196) |
Net unpaid losses and loss expenses – end of period | 63,178 |  |  | 58,897 |
Reinsurance recoverable on unpaid losses (1) | 17,163 |  |  | 16,520 |
Gross unpaid losses and loss expenses – end of period | $ | 80,341 |  |  | $ | 75,417 |
(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 A&H long-duration lines totaling $46 million and $(8) million for the three months ended March 31, 2024 and 2023, respectively. Net unpaid losses and loss expenses increased $940 million for the three months ended March 31, 2024, principally reflecting underlying exposure growth and the impact of a reinsurance commutation in connection with a large structured transaction during the quarter, partially offset by the impact of favorable prior period development and crop activity. 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 March 31 |  |
(in millions of U.S. dollars) | Long-tail |  | Short-tail |  | Total |  |  |  |  |  |
2024 |  |  |  |  |  |  |  |  |  |  |
North America Commercial P&C Insurance | $ | 96 |  |  | $ | (144) |  |  | $ | (48) |  |  |  |  |  |  |
North America Personal P&C Insurance | — |  |  | (52) |  |  | (52) |  |  |  |  |  |  |
North America Agricultural Insurance | — |  |  | (28) |  |  | (28) |  |  |  |  |  |  |
Overseas General Insurance | (1) |  |  | (88) |  |  | (89) |  |  |  |  |  |  |
Global Reinsurance | — |  |  | 1 |  |  | 1 |  |  |  |  |  |  |
Corporate | 9 |  |  | — |  |  | 9 |  |  |  |  |  |  |
Total | $ | 104 |  |  | $ | (311) |  |  | $ | (207) |  |  |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |
North America Commercial P&C Insurance | $ | 9 |  |  | $ | (81) |  |  | $ | (72) |  |  |  |  |  |  |
North America Personal P&C Insurance | — |  |  | 17 |  |  | 17 |  |  |  |  |  |  |
North America Agricultural Insurance | — |  |  | — |  |  | — |  |  |  |  |  |  |
Overseas General Insurance | — |  |  | (143) |  |  | (143) |  |  |  |  |  |  |
Global Reinsurance | — |  |  | (8) |  |  | (8) |  |  |  |  |  |  |
Corporate | 10 |  |  | — |  |  | 10 |  |  |  |  |  |  |
Total | $ | 19 |  |  | $ | (215) |  |  | $ | (196) |  |  |  |  |  |  |
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 March 31, 2024, included $74 million in surety lines and $62 million in property and marine lines due to lower-than-expected loss development. The favorable development was partially offset by net adverse development of $102 million in commercial excess and umbrella lines, driven by higher-than-expected loss development. Net favorable development for the three months ended March 31, 2023, was $72 million favorable with $81 million favorable in short-tail lines and $9 million adverse in long-tail lines. The short tail development was primarily in surety and A&H, partially offset by adverse development in property and marine due to the net impact of positive development from Hurricane Ian and negative development from Winter Storm Elliott. The long-tail development was the net of favorable developments in specialty casualty and workers comp due to lower than expected paid and reported loss activity offset by adverse development in general liability and certain financial lines due to higher-than-expected development. Overseas General Insurance. Net favorable development for the three months ended March 31, 2024, was $89 million, which included $58 million in property lines driven by favorable development across all regions, primarily in accident years 2020 through 2023. Net favorable development for the three months ended March 31, 2023 included $85 million in property lines, driven by lower-than-expected catastrophe loss development activity of $43 million in accident year 2022, and non-catastrophe loss emergence in Continental Europe and the U.K. Future policy benefits The following tables present a roll-forward of the liability for future policy benefits included in the Life Insurance segment:
Present Value of Expected Net Premiums | Three Months Ended March 31, 2024
(in millions of U.S. dollars) | Term Life |  | Whole Life |  | A&H |  | Other |  | Total
Balance – beginning of period | $ | 1,590 |  |  | $ | 3,950 |  |  | $ | 10,432 |  |  | $ | 64 |  |  | $ | 16,036 |
Beginning balance at original discount rate | 1,992 |  |  | 3,945 |  |  | 10,692 |  |  | 64 |  |  | 16,693 |
Effect of changes in cash flow assumptions | 6 |  |  | 70 |  |  | 109 |  |  | — |  |  | 185 |
Effect of actual variances from expected experience | (1) |  |  | 22 |  |  | (37) |  |  | — |  |  | (16) |
Adjusted beginning of period balance | 1,997 |  |  | 4,037 |  |  | 10,764 |  |  | 64 |  |  | 16,862 |
Issuances | 65 |  |  | 295 |  |  | 697 |  |  | 2 |  |  | 1,059 |
Interest accrual | 14 |  |  | 27 |  |  | 133 |  |  | — |  |  | 174 |
Net premiums collected (1) | (57) |  |  | (310) |  |  | (363) |  |  | (7) |  |  | (737) |
Other (including foreign exchange) | (5) |  |  | (4) |  |  | 82 |  |  | — |  |  | 73 |
Ending balance at original discount rate | 2,014 |  |  | 4,045 |  |  | 11,313 |  |  | 59 |  |  | 17,431 |
Effect of changes in discount rate assumptions | (407) |  |  | 18 |  |  | (295) |  |  | — |  |  | (684) |
Balance – end of period | $ | 1,607 |  |  | $ | 4,063 |  |  | $ | 11,018 |  |  | $ | 59 |  |  | $ | 16,747 |
(1)Net premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected benefit.
Present Value of Expected Future Policy Benefits | Three Months Ended March 31, 2024
(in millions of U.S. dollars) | Term Life |  | Whole Life |  | A&H |  | Other |  | Total
Balance – beginning of period | $ | 2,254 |  |  | $ | 10,063 |  |  | $ | 14,650 |  |  | $ | 495 |  |  | $ | 27,462 |
Beginning balance at original discount rate | 2,749 |  |  | 9,991 |  |  | 15,071 |  |  | 492 |  |  | 28,303 |
Effect of changes in cash flow assumptions | 8 |  |  | 86 |  |  | 100 |  |  | — |  |  | 194 |
Effect of actual variances from expected experience | 3 |  |  | 27 |  |  | (36) |  |  | — |  |  | (6) |
Adjusted beginning of period balance | 2,760 |  |  | 10,104 |  |  | 15,135 |  |  | 492 |  |  | 28,491 |
Issuances | 65 |  |  | 295 |  |  | 697 |  |  | 2 |  |  | 1,059 |
Interest accrual | 19 |  |  | 74 |  |  | 164 |  |  | 3 |  |  | 260 |
Benefits payments | (59) |  |  | (87) |  |  | (398) |  |  | (6) |  |  | (550) |
Other (including foreign exchange) | 30 |  |  | (2) |  |  | 114 |  |  | 21 |  |  | 163 |
Ending balance at original discount rate | 2,815 |  |  | 10,384 |  |  | 15,712 |  |  | 512 |  |  | 29,423 |
Effect of changes in discount rate assumptions | (516) |  |  | 184 |  |  | (487) |  |  | 18 |  |  | (801) |
Balance – end of period | $ | 2,299 |  |  | $ | 10,568 |  |  | $ | 15,225 |  |  | $ | 530 |  |  | $ | 28,622 |
Liability for Future Policy Benefits, Life Insurance Segment | March 31, 2024
(in millions of U.S. dollars) | Term Life |  | Whole Life |  | A&H |  | Other |  | Total
Net liability for future policy benefits | $ | 692 |  |  | $ | 6,505 |  |  | $ | 4,207 |  |  | $ | 471 |  |  | $ | 11,875 |
Deferred profit liability | 254 |  |  | 904 |  |  | 174 |  |  | 19 |  |  | 1,351 |
Net liability for future policy benefits, before reinsurance recoverable | 946 |  |  | 7,409 |  |  | 4,381 |  |  | 490 |  |  | 13,226 |
Less: Reinsurance recoverable on future policy benefits | 107 |  |  | 45 |  |  | 113 |  |  | 1 |  |  | 266 |
Net liability for future policy benefits, after reinsurance recoverable | $ | 839 |  |  | $ | 7,364 |  |  | $ | 4,268 |  |  | $ | 489 |  |  | $ | 12,960 |
Weighted average duration (years) | 10.2 |  | 25.6 |  | 10.1 |  | 15.1 |  | 19.3
Present Value of Expected Net Premiums | Three Months Ended March 31, 2023
(in millions of U.S. dollars) | Term Life |  | Whole Life |  | A&H |  | Other |  | Total
Balance – beginning of period | $ | 1,806 |  |  | $ | 2,308 |  |  | $ | 10,711 |  |  | $ | 42 |  |  | $ | 14,867 |
Beginning balance at original discount rate | 1,867 |  |  | 2,361 |  |  | 11,258 |  |  | 43 |  |  | 15,529 |
Effect of changes in cash flow assumptions | 17 |  |  | (1) |  |  | (786) |  |  | 1 |  |  | (769) |
Effect of actual variances from expected experience | (6) |  |  | (8) |  |  | (89) |  |  | (1) |  |  | (104) |
Adjusted beginning of period balance | 1,878 |  |  | 2,352 |  |  | 10,383 |  |  | 43 |  |  | 14,656 |
Issuances | 36 |  |  | 69 |  |  | 288 |  |  | 1 |  |  | 394 |
Interest accrual | 28 |  |  | 18 |  |  | 125 |  |  | — |  |  | 171 |
Net premiums collected (1) | (44) |  |  | (82) |  |  | (327) |  |  | (6) |  |  | (459) |
Other (including foreign exchange) | 35 |  |  | 8 |  |  | (139) |  |  | 1 |  |  | (95) |
Ending balance at original discount rate | 1,933 |  |  | 2,365 |  |  | 10,330 |  |  | 39 |  |  | 14,667 |
Effect of changes in discount rate assumptions | (48) |  |  | (8) |  |  | (263) |  |  | — |  |  | (319) |
Balance – end of period | $ | 1,885 |  |  | $ | 2,357 |  |  | $ | 10,067 |  |  | $ | 39 |  |  | $ | 14,348 |
(1)Net premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected benefit.
Present Value of Expected Future Policy Benefits | Three Months Ended March 31, 2023
(in millions of U.S. dollars) | Term Life |  | Whole Life |  | A&H |  | Other |  | Total
Balance – beginning of period | $ | 2,321 |  |  | $ | 5,696 |  |  | $ | 15,038 |  |  | $ | 269 |  |  | $ | 23,324 |
Beginning balance at original discount rate | 2,447 |  |  | 5,874 |  |  | 15,855 |  |  | 280 |  |  | 24,456 |
Effect of changes in cash flow assumptions | 20 |  |  | (1) |  |  | (798) |  |  | 3 |  |  | (776) |
Effect of actual variances from expected experience | (3) |  |  | (7) |  |  | (87) |  |  | (1) |  |  | (98) |
Adjusted beginning of period balance | 2,464 |  |  | 5,866 |  |  | 14,970 |  |  | 282 |  |  | 23,582 |
Issuances | 36 |  |  | 69 |  |  | 288 |  |  | 1 |  |  | 394 |
Interest accrual | 32 |  |  | 52 |  |  | 156 |  |  | 2 |  |  | 242 |
Benefit payments | (46) |  |  | (65) |  |  | (362) |  |  | (3) |  |  | (476) |
Other (including foreign exchange) | 72 |  |  | 28 |  |  | (153) |  |  | (14) |  |  | (67) |
Ending balance at original discount rate | 2,558 |  |  | 5,950 |  |  | 14,899 |  |  | 268 |  |  | 23,675 |
Effect of changes in discount rate assumptions | (118) |  |  | (42) |  |  | (463) |  |  | — |  |  | (623) |
Balance – end of period | $ | 2,440 |  |  | $ | 5,908 |  |  | $ | 14,436 |  |  | $ | 268 |  |  | $ | 23,052 |
Liability for Future Policy Benefits, Life Insurance Segment | March 31, 2023
(in millions of U.S. dollars) | Term Life |  | Whole Life |  | A&H |  | Other |  | Total
Net liability for future policy benefits | $ | 555 |  |  | $ | 3,551 |  |  | $ | 4,369 |  |  | $ | 229 |  |  | $ | 8,704 |
Deferred profit liability | 223 |  |  | 581 |  |  | 135 |  |  | 13 |  |  | 952 |
Net liability for future policy benefits, before reinsurance recoverable | 778 |  |  | 4,132 |  |  | 4,504 |  |  | 242 |  |  | 9,656 |
Less: Reinsurance recoverable on future policy benefits | 105 |  |  | 33 |  |  | 112 |  |  | — |  |  | 250 |
Net liability for future policy benefits, after reinsurance recoverable | $ | 673 |  |  | $ | 4,099 |  |  | $ | 4,392 |  |  | $ | 242 |  |  | $ | 9,406 |
Weighted average duration (years) | 9.4 |  | 25.3 |  | 10.7 |  | 14.5 |  | 17.7
The following table presents a reconciliation of the roll-forwards above to the Future policy benefits liability presented in the Consolidated balance sheets.
| March 31
(in millions of U.S. dollars) | 2024 |  | 2023
Net liability for future policy benefits, Life Insurance segment | $ | 11,875 |  |  | $ | 8,704 |
Other (1) | 1,149 |  |  | 1,126 |
Deferred profit liability | 1,351 |  |  | 952 |
Liability for future policy benefits, per consolidated balance sheet | $ | 14,375 |  |  | $ | 10,782 |
(1)Other business principally comprises certain Overseas General Insurance accident and health (A&H) policies and certain Chubb Life Re business. The following table presents the amount of undiscounted and discounted expected gross premiums and expected future policy benefit payments included in the Life Insurance segment:
| March 31 |  | March 31 |
(in millions of U.S. dollars) | 2024 |  | 2023 |
Term Life |  |  |  |
Undiscounted expected future benefit payments | $ | 4,358 |  |  | $ | 4,041 |  |
Undiscounted expected future gross premiums | 7,291 |  |  | 6,452 |  |
Discounted expected future benefit payments | 2,299 |  |  | 2,440 |  |
Discounted expected future gross premiums | 3,909 |  |  | 3,773 |  |
Whole Life |  |  |  |
Undiscounted expected future benefit payments | 24,834 |  |  | 16,446 |  |
Undiscounted expected future gross premiums | 9,593 |  |  | 6,895 |  |
Discounted expected future benefit payments | 10,568 |  |  | 5,908 |  |
Discounted expected future gross premiums | 7,774 |  |  | 5,398 |  |
A&H |  |  |  |
Undiscounted expected future benefit payments | 26,475 |  |  | 23,186 |  |
Undiscounted expected future gross premiums | 39,002 |  |  | 33,809 |  |
Discounted expected future benefit payments | 15,225 |  |  | 14,436 |  |
Discounted expected future gross premiums | 22,975 |  |  | 20,766 |  |
Other |  |  |  |
Undiscounted expected future benefit payments | 901 |  |  | 342 |  |
Undiscounted expected future gross premiums | 94 |  |  | 97 |  |
Discounted expected future benefit payments | 530 |  |  | 268 |  |
Discounted expected future gross premiums | $ | 83 |  |  | $ | 87 |  |
The following table presents the amount of revenue and interest recognized in the Consolidated statement of operations for the Life Insurance segment:
| Gross Premiums or Assessments |  | Interest Accretion |
| Three Months Ended |  | Three Months Ended |
| March 31 |  | March 31 |
(in millions of U.S. dollars) | 2024 |  | 2023 |  | 2024 |  | 2023 |
Life Insurance |  |  |  |  |  |  |  |
Term Life | $ | 167 |  |  | $ | 160 |  |  | $ | 5 |  |  | $ | 4 |  |
Whole Life | 530 |  |  | 230 |  |  | 47 |  |  | 34 |  |
A&H | 753 |  |  | 733 |  |  | 31 |  |  | 31 |  |
Other | 20 |  |  | 17 |  |  | 3 |  |  | 2 |  |
Total | $ | 1,470 |  |  | $ | 1,140 |  |  | $ | 86 |  |  | $ | 71 |  |
The following table presents the weighted-average interest rates for the Life Insurance segment:
| Interest Accretion Rate |  | Current Discount Rate |
| March 31 |  | March 31 |
| 2024 |  | 2023 |  | 2024 |  | 2023 |
Life Insurance |  |  |  |  |  |  |  |
Term Life | 2.9 | % |  | 2.8 | % |  | 5.7 | % |  | 5.7 | % |
Whole Life | 3.2 | % |  | 4.0 | % |  | 4.5 | % |  | 5.2 | % |
A&H | 3.7 | % |  | 3.8 | % |  | 6.3 | % |  | 6.2 | % |
Other | 2.6 | % |  | 3.8 | % |  | 3.8 | % |  | 4.8 | % |

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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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