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Unpaid losses and loss expenses, and Future policy benefits | 6 Months Ended
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Jun. 30, 2024
Liability for Future Policy Benefits and Unpaid 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
(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 | 12,604 |  |  | 11,227 |
Prior years (2) | (446) |  |  | (396) |
Total | 12,158 |  |  | 10,831 |
Net losses and loss expenses paid in respect of losses occurring in: |  |  |
Current year | 2,492 |  |  | 2,264 |
Prior years | 6,918 |  |  | 7,527 |
Total | 9,410 |  |  | 9,791 |
Foreign currency revaluation and other | (204) |  |  | 171 |
Net unpaid losses and loss expenses – end of period | 64,782 |  |  | 59,872 |
Reinsurance recoverable on unpaid losses (1) | 17,409 |  |  | 16,608 |
Gross unpaid losses and loss expenses – end of period | $ | 82,191 |  |  | $ | 76,480 |
(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 $47 million and nil for the six months ended June 30, 2024 and 2023, respectively. Net unpaid losses and loss expenses increased $2,544 million for the six months ended June 30, 2024, principally reflecting underlying exposure growth and the impact of a reinsurance commutation in connection with a large structured transaction during the first quarter, partially offset by the impact of favorable prior period development. 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
2024 |  |  |  |  |  |  |  |  |  |  |
North America Commercial P&C Insurance | $ | (142) |  |  | $ | (2) |  |  | $ | (144) |  |  | $ | (46) |  |  | $ | (146) |  |  | $ | (192) |
North America Personal P&C Insurance | — |  |  | (64) |  |  | (64) |  |  | — |  |  | (116) |  |  | (116) |
North America Agricultural Insurance | — |  |  | — |  |  | — |  |  | — |  |  | (28) |  |  | (28) |
Overseas General Insurance | 36 |  |  | (97) |  |  | (61) |  |  | 35 |  |  | (185) |  |  | (150) |
Global Reinsurance | 5 |  |  | (21) |  |  | (16) |  |  | 5 |  |  | (20) |  |  | (15) |
Corporate | 93 |  |  | — |  |  | 93 |  |  | 102 |  |  | — |  |  | 102 |
Total | $ | (8) |  |  | $ | (184) |  |  | $ | (192) |  |  | $ | 96 |  |  | $ | (495) |  |  | $ | (399) |
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) |
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, 2024, included $288 million and $338 million, respectively, from workers' compensation 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 $117 million and $167 million, respectively, in commercial auto liability mainly due to higher-than-expected loss development and severity trend. Development for the six months ended June 30, 2024, included $144 million of favorable development in surety, property and marine lines, partially offset by net adverse development of $97 million in commercial excess and umbrella lines. 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. Overseas General Insurance. Net favorable development for the three months ended June 30, 2024 included favorable claim development, mainly in marine and property lines. Net favorable development for the six months ended June 30, 2024 included favorable development of $85 million in property and $73 million in marine. Net favorable development for the three months ended June 30, 2023 included favorable claim development in short-tail property and casualty and A&H. Net favorable development for the six months ended June 30, 2023 included $110 million of favorable catastrophe development and non-catastrophe property loss emergence. Corporate. Net adverse development for the three and six months ended June 30, 2024 and 2023 was driven primarily by molestation-related claims development. 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 | Six Months Ended June 30, 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 |  |  | 111 |  |  | — |  |  | 187 |
Effect of actual variances from expected experience | (12) |  |  | 21 |  |  | (129) |  |  | (1) |  |  | (121) |
Adjusted beginning of period balance | 1,986 |  |  | 4,036 |  |  | 10,674 |  |  | 63 |  |  | 16,759 |
Issuances | 111 |  |  | 620 |  |  | 1,196 |  |  | 39 |  |  | 1,966 |
Interest accrual | 26 |  |  | 55 |  |  | 239 |  |  | 2 |  |  | 322 |
Net premiums collected (1) | (122) |  |  | (603) |  |  | (729) |  |  | (20) |  |  | (1,474) |
Other (including foreign exchange) | (25) |  |  | (77) |  |  | (273) |  |  | 10 |  |  | (365) |
Ending balance at original discount rate | 1,976 |  |  | 4,031 |  |  | 11,107 |  |  | 94 |  |  | 17,208 |
Effect of changes in discount rate assumptions | (397) |  |  | 17 |  |  | (162) |  |  | — |  |  | (542) |
Balance – end of period | $ | 1,579 |  |  | $ | 4,048 |  |  | $ | 10,945 |  |  | $ | 94 |  |  | $ | 16,666 |
(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 | Six Months Ended June 30, 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 |  |  | 85 |  |  | 102 |  |  | — |  |  | 195 |
Effect of actual variances from expected experience | (9) |  |  | 31 |  |  | (129) |  |  | — |  |  | (107) |
Adjusted beginning of period balance | 2,748 |  |  | 10,107 |  |  | 15,044 |  |  | 492 |  |  | 28,391 |
Issuances | 111 |  |  | 620 |  |  | 1,196 |  |  | 39 |  |  | 1,966 |
Interest accrual | 35 |  |  | 151 |  |  | 300 |  |  | 8 |  |  | 494 |
Benefits payments | (115) |  |  | (179) |  |  | (789) |  |  | (10) |  |  | (1,093) |
Other (including foreign exchange) | (3) |  |  | (169) |  |  | (356) |  |  | 9 |  |  | (519) |
Ending balance at original discount rate | 2,776 |  |  | 10,530 |  |  | 15,395 |  |  | 538 |  |  | 29,239 |
Effect of changes in discount rate assumptions | (512) |  |  | 129 |  |  | (337) |  |  | 17 |  |  | (703) |
Balance – end of period | $ | 2,264 |  |  | $ | 10,659 |  |  | $ | 15,058 |  |  | $ | 555 |  |  | $ | 28,536 |
Liability for Future Policy Benefits, Life Insurance Segment | June 30, 2024
(in millions of U.S. dollars) | Term Life |  | Whole Life |  | A&H |  | Other |  | Total
Net liability for future policy benefits | $ | 685 |  |  | $ | 6,611 |  |  | $ | 4,113 |  |  | $ | 461 |  |  | $ | 11,870 |
Deferred profit liability | 268 |  |  | 986 |  |  | 174 |  |  | 24 |  |  | 1,452 |
Net liability for future policy benefits, before reinsurance recoverable | 953 |  |  | 7,597 |  |  | 4,287 |  |  | 485 |  |  | 13,322 |
Less: Reinsurance recoverable on future policy benefits | 103 |  |  | 44 |  |  | 110 |  |  | — |  |  | 257 |
Net liability for future policy benefits, after reinsurance recoverable | $ | 850 |  |  | $ | 7,553 |  |  | $ | 4,177 |  |  | $ | 485 |  |  | $ | 13,065 |
Weighted average duration (years) | 10.2 |  | 25.0 |  | 10.0 |  | 16.3 |  | 19.1
Present Value of Expected Net Premiums | Six Months Ended June 30, 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 | 16 |  |  | (1) |  |  | (772) |  |  | 1 |  |  | (756) |
Effect of actual variances from expected experience | (6) |  |  | 41 |  |  | (79) |  |  | (1) |  |  | (45) |
Adjusted beginning of period balance | 1,877 |  |  | 2,401 |  |  | 10,407 |  |  | 43 |  |  | 14,728 |
Issuances | 63 |  |  | 123 |  |  | 540 |  |  | 3 |  |  | 729 |
Interest accrual | 37 |  |  | 34 |  |  | 226 |  |  | 1 |  |  | 298 |
Net premiums collected (1) | (87) |  |  | (170) |  |  | (654) |  |  | (11) |  |  | (922) |
Other (including foreign exchange) | 78 |  |  | 11 |  |  | (150) |  |  | 1 |  |  | (60) |
Ending balance at original discount rate | 1,968 |  |  | 2,399 |  |  | 10,369 |  |  | 37 |  |  | 14,773 |
Effect of changes in discount rate assumptions | (54) |  |  | (21) |  |  | (346) |  |  | — |  |  | (421) |
Balance – end of period | $ | 1,914 |  |  | $ | 2,378 |  |  | $ | 10,023 |  |  | $ | 37 |  |  | $ | 14,352 |
(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 | Six Months Ended June 30, 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 | 19 |  |  | (1) |  |  | (782) |  |  | 3 |  |  | (761) |
Effect of actual variances from expected experience | (6) |  |  | 46 |  |  | (75) |  |  | (1) |  |  | (36) |
Adjusted beginning of period balance | 2,460 |  |  | 5,919 |  |  | 14,998 |  |  | 282 |  |  | 23,659 |
Issuances | 63 |  |  | 123 |  |  | 540 |  |  | 3 |  |  | 729 |
Interest accrual | 43 |  |  | 105 |  |  | 289 |  |  | 3 |  |  | 440 |
Benefit payments | (85) |  |  | (130) |  |  | (707) |  |  | (5) |  |  | (927) |
Other (including foreign exchange) | 184 |  |  | 423 |  |  | (507) |  |  | (22) |  |  | 78 |
Ending balance at original discount rate | 2,665 |  |  | 6,440 |  |  | 14,613 |  |  | 261 |  |  | 23,979 |
Effect of changes in discount rate assumptions | (127) |  |  | (76) |  |  | (575) |  |  | (4) |  |  | (782) |
Balance – end of period | $ | 2,538 |  |  | $ | 6,364 |  |  | $ | 14,038 |  |  | $ | 257 |  |  | $ | 23,197 |
Liability for Future Policy Benefits, Life Insurance Segment | June 30, 2023
(in millions of U.S. dollars) | Term Life |  | Whole Life |  | A&H |  | Other |  | Total
Net liability for future policy benefits | $ | 624 |  |  | $ | 3,986 |  |  | $ | 4,015 |  |  | $ | 220 |  |  | $ | 8,845 |
Deferred profit liability | 243 |  |  | 640 |  |  | 148 |  |  | 13 |  |  | 1,044 |
Net liability for future policy benefits, before reinsurance recoverable | 867 |  |  | 4,626 |  |  | 4,163 |  |  | 233 |  |  | 9,889 |
Less: Reinsurance recoverable on future policy benefits | 110 |  |  | 42 |  |  | 119 |  |  | 1 |  |  | 272 |
Net liability for future policy benefits, after reinsurance recoverable | $ | 757 |  |  | $ | 4,584 |  |  | $ | 4,044 |  |  | $ | 232 |  |  | $ | 9,617 |
Weighted average duration (years) | 9.4 |  | 25.3 |  | 10.5 |  | 14.0 |  | 17.6
The following table presents a reconciliation of the roll-forwards above to the Future policy benefits liability presented in the Consolidated balance sheets.
| June 30
(in millions of U.S. dollars) | 2024 |  | 2023
Net liability for future policy benefits, Life Insurance segment | $ | 11,870 |  |  | $ | 8,845 |
Other (1) | 1,341 |  |  | 1,175 |
Deferred profit liability | 1,452 |  |  | 1,044 |
Liability for future policy benefits, per consolidated balance sheet | $ | 14,663 |  |  | $ | 11,064 |
(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:
| June 30 |  | June 30 |
(in millions of U.S. dollars) | 2024 |  | 2023 |
Term Life |  |  |  |
Undiscounted expected future benefit payments | $ | 4,334 |  |  | $ | 4,085 |  |
Undiscounted expected future gross premiums | 7,223 |  |  | 6,543 |  |
Discounted expected future benefit payments | 2,264 |  |  | 2,538 |  |
Discounted expected future gross premiums | 4,776 |  |  | 3,779 |  |
Whole Life |  |  |  |
Undiscounted expected future benefit payments | 25,052 |  |  | 16,759 |  |
Undiscounted expected future gross premiums | 9,555 |  |  | 6,972 |  |
Discounted expected future benefit payments | 10,659 |  |  | 6,364 |  |
Discounted expected future gross premiums | 7,744 |  |  | 5,455 |  |
A&H |  |  |  |
Undiscounted expected future benefit payments | 26,037 |  |  | 23,661 |  |
Undiscounted expected future gross premiums | 38,166 |  |  | 34,381 |  |
Discounted expected future benefit payments | 15,058 |  |  | 14,038 |  |
Discounted expected future gross premiums | 22,556 |  |  | 21,019 |  |
Other |  |  |  |
Undiscounted expected future benefit payments | 956 |  |  | 346 |  |
Undiscounted expected future gross premiums | 174 |  |  | 94 |  |
Discounted expected future benefit payments | 555 |  |  | 257 |  |
Discounted expected future gross premiums | $ | 155 |  |  | $ | 84 |  |
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 |
| Six Months Ended |  | Six Months Ended |
| June 30 |  | June 30 |
(in millions of U.S. dollars) | 2024 |  | 2023 |  | 2024 |  | 2023 |
Life Insurance |  |  |  |  |  |  |  |
Term Life | $ | 337 |  |  | $ | 322 |  |  | $ | 9 |  |  | $ | 6 |  |
Whole Life | 1,008 |  |  | 475 |  |  | 96 |  |  | 71 |  |
A&H | 1,525 |  |  | 1,422 |  |  | 61 |  |  | 63 |  |
Other | 32 |  |  | 21 |  |  | 6 |  |  | 2 |  |
Total | $ | 2,902 |  |  | $ | 2,240 |  |  | $ | 172 |  |  | $ | 142 |  |
The following table presents the weighted-average interest rates for the Life Insurance segment:
| Interest Accretion Rate |  | Current Discount Rate |
| June 30 |  | June 30 |
| 2024 |  | 2023 |  | 2024 |  | 2023 |
Life Insurance |  |  |  |  |  |  |  |
Term Life | 2.9 | % |  | 2.9 | % |  | 5.7 | % |  | 5.9 | % |
Whole Life | 3.2 | % |  | 4.0 | % |  | 4.6 | % |  | 5.3 | % |
A&H | 3.7 | % |  | 3.8 | % |  | 6.3 | % |  | 6.4 | % |
Other | 2.7 | % |  | 3.8 | % |  | 4.2 | % |  | 5.1 | % |

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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 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-3 Reference 2: 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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