Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Unfavorable (Favorable) Prior Accident Year Development


	For the six months ended June 30,
		2021		2020
Workers’ compensation		$	(83)	$	(38)

Workers’ compensation discount accretion		18		18
General liability		307		114
Marine		1		1
Package business		(46)		(6)
Commercial property		(20)		(2)
Professional liability		(7)		5
Bond		(14)		(10)
Assumed reinsurance		—		(7)
Automobile liability - Commercial Lines		—		27
Automobile liability - Personal Lines		(43)		(21)
Homeowners		1		—



Catastrophes		(98)		(413)
Uncollectible reinsurance		(10)		(2)
Other reserve re-estimates, net		29		6
Prior accident year development before change in deferred gain		35		(328)
Change in deferred gain on retroactive reinsurance included in other liabilities [1]		45		83
Total prior accident year development		$	80	$	(245)

[1] The change in deferred gain for the six months ended June 30, 2021 and 2020 included $45 and $83, respectively, of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by professional liability in the 2021 period and professional liability, marine, general liability, prior accident year catastrophes, and assumed reinsurance in the 2020 period.

Property, Liability and Casualty Insurance Product Line

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses


	For the six months ended June 30,
	2021		2020
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	29,622	$	28,261
Reinsurance and other recoverables	5,725		5,275
Beginning liabilities for unpaid losses and loss adjustment expenses, net	23,897		22,986

Provision for unpaid losses and loss adjustment expenses
Current accident year	3,838		3,962
Prior accident year development [1]	80		(245)
Total provision for unpaid losses and loss adjustment expenses	3,918		3,717
Change in deferred gain on retroactive reinsurance included in other liabilities [1]	(45)		(83)
Payments
Current accident year	(864)		(778)
Prior accident years	(2,222)		(2,575)
Total payments	(3,086)		(3,353)

Foreign currency adjustment	(7)		(10)
Ending liabilities for unpaid losses and loss adjustment expenses, net	24,677		23,257
Reinsurance and other recoverables	5,905		5,427
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	30,582	$	28,684

[1] Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and A&E ADC which, under retroactive reinsurance accounting, is deferred and is recognized over the period the ceded losses are recovered in cash from NICO. For additional information regarding the two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below.

Group Benefits

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses


	For the six months ended June 30,
	2021		2020
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,233	$	8,256
Reinsurance recoverables [1]	237		246
Beginning liabilities for unpaid losses and loss adjustment expenses, net	7,996		8,010

Provision for unpaid losses and loss adjustment expenses
Current incurral year	2,464		2,297
Prior year's discount accretion	106		111
Prior incurral year development [2]	(282)		(315)
Total provision for unpaid losses and loss adjustment expenses [3]	2,288		2,093
Payments
Current incurral year	(1,000)		(871)
Prior incurral years	(1,414)		(1,290)
Total payments	(2,414)		(2,161)
Ending liabilities for unpaid losses and loss adjustment expenses, net	7,870		7,942
Reinsurance recoverables	250		244
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,120	$	8,186

[1]Includes a cumulative effect adjustment of $(1) representing an adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to 2020 10-K, Note 1 - Basis of Presentation and Significant Accounting Policies.

[2]Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[3]Includes unallocated loss adjustment expenses ("ULAE") of $87 and $89 for the six months ended June 30, 2021 and 2020, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations