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Reserve for Future Policy Benefits | 6 Months Ended
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Jun. 30, 2023
Insurance Loss Reserves [Abstract] |
Reserve for Future Policy Benefits | 9. RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES |PROPERTY & CASUALTY INSURANCE PRODUCT RESERVES, NET OF REINSURANCE Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses
| For the six months ended June 30,
| 2023 | 2022 |
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ | 33,083 |  | $ | 31,449 |  |
Reinsurance and other recoverables | 6,465 |  | 6,081 |  |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 26,618 |  | 25,368 |  |
Provision for unpaid losses and loss adjustment expenses |  |  |
Current accident year | 4,712 |  | 3,998 |  |
Prior accident year development | (39) |  | (94) |  |
Total provision for unpaid losses and loss adjustment expenses | 4,673 |  | 3,904 |  |
Payments |  |  |
Current accident year | (997) |  | (840) |  |
Prior accident years | (3,731) |  | (2,680) |  |
Total payments | (4,728) |  | (3,520) |  |
Foreign currency adjustment | 18 |  | (29) |  |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 26,581 |  | 25,723 |  |
Reinsurance and other recoverables | 6,448 |  | 6,212 |  |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | $ | 33,029 |  | $ | 31,935 |  |
Unfavorable (Favorable) Prior Accident Year Development
|  | For the six months ended June 30,
|  |  | 2023 | 2022
Workers’ compensation |  |  | $ | (113) |  | $ | (85) |
Workers’ compensation discount accretion |  |  | 22 |  | 18 |
General liability |  |  | 28 |  | 33 |
Marine |  |  | (1) |  | (3) |
Package business |  |  | (8) |  | (24) |
Commercial property |  |  | — |  | (21) |
Professional liability |  |  | (3) |  | (9) |
Bond |  |  | 12 |  | (4) |
Assumed reinsurance |  |  | 17 |  | 12 |
Automobile liability - Commercial Lines |  |  | 6 |  | 12 |
Automobile liability - Personal Lines |  |  | — |  | (5) |
Homeowners |  |  | 1 |  | — |
Net asbestos and environmental ("A&E") reserves |  |  | — |  | — |
Catastrophes |  |  | (44) |  | (30) |
Uncollectible reinsurance |  |  | 12 |  | 6 |
Other reserve re-estimates, net |  |  | 32 |  | 6 |
Total prior accident year development |  |  | $ | (39) |  | $ | (94) |
Re-estimates of prior accident year reserves for the six months ended June 30, 2023 Workers’ compensation reserves were decreased within the 2014 to 2019 accident years primarily in small commercial, driven by lower than previously estimated claim severity. In addition, the 2020 accident year reflects a $20 reduction of COVID-19 related reserves. General liability reserves were increased driven by higher frequency and estimated cost to settle large individual claims for the 2016 to 2019 accident years, partially offset by a decrease in reserves for the 2020 accident year due to favorable experience. In addition, reserves for sexual molestation and sexual abuse claims were increased for older accident years. Also included was a decrease in reserves for extra contractual liability claims and other miscellaneous run-off lines. Package business reserves decreased primarily due to lower than previously estimated property severity for accident year 2021. Package liability is flat overall with improvement in accident year 2020 due to favorable claim count emergence offset by reserve increases in accident years 2019 and prior related to higher severity. Commercial property reserves were flat primarily due to unfavorable development for accident year 2022 in middle & large commercial, offset by favorable development in global specialty. Bond reserves were increased primarily due to unfavorable development for 2013 and prior accident years related to customs bonds. Assumed reinsurance reserves were increased due to higher reserve estimates in the specialty casualty, Latin America casualty and surety business. Automobile liability reserves - Commercial Lines increased primarily due to adverse loss development within accident years 2017 to 2019. Automobile liability reserves - Personal Lines were flat as increases for accident year 2022 from higher estimated severity and increasing attorney representation rates were fully offset by decreases, primarily within accident years 2019 to 2021, due to lower estimated severity. Catastrophes reserves were decreased primarily within Commercial Lines driven by a reduction in reserves in accident year 2022 for Hurricane Ian and accident year 2021 for Hurricane Ida. Uncollectible reinsurance was increased primarily in Commercial Lines related to a captive reinsurer and, to a lesser extent, an increase in reserves for potential collection disputes and credit concerns. Other reserve re-estimates, net, were increased primarily due to an increase in accident year 2022 Personal Lines automobile physical damage severity. Re-estimates of prior accident year reserves for the six months ended June 30, 2022 Workers’ compensation reserves were decreased for the 2014 through 2018 accident years, predominately within small commercial, driven by lower than previously estimated claim severity. General liability reserves were increased, driven by an increase in the estimated cost to settle large individual claims in middle & large commercial for the 2016 to 2019 accident years, an increase in excess casualty for the 2019 accident year, and increases in primary construction on older accident years, partially offset by a decrease in reserves for other mass torts. Package business reserves decreased due to lower estimated loss adjustment expenses for accident years 2015 to 2018 and a reduction in property reserves for the 2020 and 2021 accident years. Commercial property reserves were decreased primarily due to favorable development for the 2020 accident year in middle & large commercial related to COVID-19 claims and a reduction in property reserves for the 2021 accident year. Professional liability reserves were decreased primarily due to favorable development on directors’ and officers’ claims for the 2018 to 2020 accident years and on errors and omissions claims for the 2013 to 2017 accident years, partially offset by large losses related to 2018 and prior accident years for primary and excess directors’ and officers’ claims. Assumed reinsurance reserves were increased primarily due to higher reserve estimates for syndicate property claims, including higher expected COVID-19 property losses in the 2020 accident year and increased reserves for international agriculture related to drought claims. Automobile liability reserves were decreased in Personal Lines principally due to lower estimated severity on AARP Direct claims, primarily within accident years 2016 to 2020 and were increased in Commercial Lines principally due to a higher number of large claims in accident years 2017 to 2019. Catastrophe reserves were decreased in both Commercial and Personal Lines with the largest reduction related to 2019 and 2020 wind and hail events. Other reserve re-estimates, net, were increased primarily due to an increase in automobile physical damage severity and unfavorable development from participation in involuntary market pools. Settlement Agreement with Boy Scouts of America Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses
| For the six months ended June 30,
| 2023 | 2022
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ | 8,160 |  | $ | 8,210 |
Reinsurance recoverables | 245 |  | 245 |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 7,915 |  | 7,965 |
Provision for unpaid losses and loss adjustment expenses |  |
Current incurral year | 2,622 |  | 2,497 |
Prior year's discount accretion | 103 |  | 107 |
Prior incurral year development [1] | (265) |  | (242) |
Total provision for unpaid losses and loss adjustment expenses [2] | 2,460 |  | 2,362 |
Payments |  |
Current incurral year | (1,012) |  | (984) |
Prior incurral years | (1,416) |  | (1,500) |
Total payments | (2,428) |  | (2,484) |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 7,947 |  | 7,843 |
Reinsurance recoverables | 243 |  | 254 |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | $ | 8,190 |  | $ | 8,097 |
[1]Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis. [2]Includes unallocated loss adjustment expenses ("ULAE") of $91 and $92 for the six months ended June 30, 2023 and 2022, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations. Re-estimates of prior incurral years reserves for the six months ended June 30, 2023 Group disability- Prior period reserve estimates decreased by approximately $236 largely driven by group long-term disability claim incidence lower than prior assumptions and strong recoveries on prior incurral year claims. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $19 largely driven by continued low incidence in group life premium waiver. Supplemental accident and health- Prior period reserve estimates decreased by approximately $10 driven by lower than previously expected claim incidence. Re-estimates of prior incurral years reserves for the six months ended June 30, 2022 Group disability- Prior period reserve estimates decreased by approximately $195 largely driven by group long-term disability claim incidence lower than prior assumptions together with strong recoveries on prior incurral year claims. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $40 largely driven by continued low incidence in group life premium waiver as well as a reduction in estimated mortality group term life losses incurred in fourth quarter 2021. Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $10 driven by lower than previously expected claim incidence. . RESERVE FOR FUTURE POLICY BENEFITS
Rollforward of Reserve for Future Policy Benefits
| For the six months ended June 30,
| 2023 |  | 2022
| Payout Annuities | Life Conversions | Paid-up Life |  | Payout Annuities | Life Conversions | Paid-up Life
Present Value of Expected Net Premiums |  |  |  |  |  |  |
Balance, beginning of the period |  | $ | 47 |  |  |  |  | $ | 58 |  |
Balance, ending of the period |  | $ | 44 |  |  |  |  | $ | 49 |  |
Present Value of Expected Future Policy Benefits |  |  |  |  |  |  |
Beginning balance at single-A rate | $ | 140 |  | $ | 112 |  | $ | 192 |  |  | $ | 188 |  | $ | 152 |  | $ | 262 |
Beginning adjustment for changes in single-A rate | 4 |  | (14) |  | (39) |  |  | 47 |  | 19 |  | 14 |
Beginning balance at original discount rate | 136 |  | 126 |  | 231 |  |  | 141 |  | 133 |  | 248 |
Effect of actual variances from expected experience | 1 |  | 3 |  | (1) |  |  | — |  | 3 |  | — |
Adjusted beginning balance | 137 |  | 129 |  | 230 |  |  | 141 |  | 136 |  | 248 |
Interest accrual | 4 |  | 9 |  | 3 |  |  | 4 |  | 8 |  | 4 |
Benefit Payments | (6) |  | (14) |  | (9) |  |  | (6) |  | (15) |  | (13) |
Ending balance at original discount rate | 135 |  | 124 |  | 224 |  |  | 139 |  | 129 |  | 239 |
Ending adjustment for changes in single-A rate | 4 |  | (15) |  | (38) |  |  | 13 |  | (7) |  | (27) |
Ending balance at single-A rate | $ | 139 |  | $ | 109 |  | $ | 186 |  |  | $ | 152 |  | $ | 122 |  | $ | 212 |
Net reserve for future policy benefits | $ | 139 |  | $ | 65 |  | $ | 186 |  |  | $ | 152 |  | $ | 73 |  | $ | 212 |
Weighted-average duration of the reserve for future policy benefits (years) | 9.1 | 12.2 | 6.3 |  | 9.2 | 13.0 | 6.9
Net Reserve for Future Policy Benefits
| As of June 30,
| 2023 | 2022
Payout Annuities | $ | 139 |  | $ | 152 |
Life Conversions | 65 |  | 73 |
Paid-up Life | 186 |  | 212 |
DPL | 19 |  | 20 |
Other | 80 |  | 93 |
Total | $ | 489 |  | $ | 550 |
Undiscounted Expected Future Gross Premiums and Benefit Payments
| As of June 30,
| 2023 | 2022 |
Payout Annuities [1] |  |  |
Expected future benefit payments | $ | 267 |  | $ | 277 |  |
Life Conversions |  |  |
Expected future gross premiums | $ | 117 |  | $ | 126 |  |
Expected future benefit payments | $ | 208 |  | $ | 218 |  |
Paid-up Life [1] |  |  |
Expected future benefit payments | $ | 290 |  | $ | 312 |  |
[1]Payout Annuities and Paid-up Life have no expected future gross premiums.
Weighted-Average Interest Rates
| For the six months ended June 30,
| 2023 | 2022
Payout Annuities |  |
Interest accretion rate | 5.6 | % | 5.6 | %
Current discount rate | 5.2 | % | 4.6 | %
Life Conversions |  |
Interest accretion rate | 4.2 | % | 4.1 | %
Current discount rate | 5.2 | % | 4.7 | %
Paid-up Life |  |
Interest accretion rate | 2.9 | % | 2.9 | %
Current discount rate | 5.3 | % | 4.3 | %
Gross premiums and interest accretion recognized on long-duration insurance policies for the six months ended June 30, 2023 and 2022 were immaterial.

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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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