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Reserve for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended
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Dec. 31, 2024
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] |
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 years ended December 31,
| 2024 | 2023 | 2022
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ | 34,044 |  | $ | 33,083 |  | $ | 31,449 |
Reinsurance and other recoverables | 6,696 |  | 6,465 |  | 6,081 |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 27,348 |  | 26,618 |  | 25,368 |
Provision for unpaid losses and loss adjustment expenses |  |  |
Current accident year | 10,305 |  | 9,538 |  | 8,577 |
Prior accident year development [1] | (120) |  | 10 |  | 36 |
Total provision for unpaid losses and loss adjustment expenses | 10,185 |  | 9,548 |  | 8,613 |
Change in deferred gain on retroactive reinsurance included in other liabilities [1] | 83 |  | (194) |  | (229) |
Payments |  |  |
Current accident year | (2,765) |  | (2,716) |  | (2,424) |
Prior accident years | (5,175) |  | (5,926) |  | (4,678) |
Total payments | (7,940) |  | (8,642) |  | (7,102) |
Foreign currency adjustment | (25) |  | 18 |  | (32) |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 29,651 |  | 27,348 |  | 26,618 |
Reinsurance and other recoverables | 6,753 |  | 6,696 |  | 6,465 |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | $ | 36,404 |  | $ | 34,044 |  | $ | 33,083 |
[1] Prior accident year development for the year ended December 31, 2024 includes a $145 benefit for amortization of a deferred gain under retroactive reinsurance accounting related to the Navigator's ADC as the Company began collecting recoveries of the ceded losses from National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc, during the period. Prior accident year development does not include the benefit of a portion of losses ceded under the 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. Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted
| For the years ended December 31,
| 2024 | 2023 | 2022
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | $ | 1,184 |  | $ | 1,255 |  | $ | 1,343 |
Amount of discount | 333 |  | 339 |  | 347 |
Carrying value of liability for unpaid losses and loss adjustment expenses | $ | 851 |  | $ | 916 |  | $ | 996 |
Discount accretion included in losses and loss adjustment expenses | $ | 44 |  | $ | 42 |  | $ | 36 |
Weighted average discount rate | 2.80 | % | 2.74 | % | 2.71 | %
Range of discount rates | 0.83 | % | - | 14.03 | % | 0.83 | % | - | 14.03 | % | 0.83 | % | - | 14.03 | %
Reserves are discounted at rates in effect at the time claims were incurred, ranging from 0.83% for accident year 2020 to 14.03% for accident year 1981. The reserves recorded for the Company’s property and casualty insurance products at December 31, 2024 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows. Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured. (Favorable) Unfavorable Prior Accident Year Development
| For the years ended December 31,
| 2024 | 2023 | 2022
Workers’ compensation | $ | (258) |  | $ | (236) |  | $ | (204) |
Workers’ compensation discount accretion | 44 |  | 42 |  | 36 |
General liability | 211 |  | 41 |  | 56 |
Marine | (1) |  | (2) |  | 2 |
Package business | (6) |  | (24) |  | (39) |
Commercial property | (7) |  | (7) |  | (11) |
Professional liability | (27) |  | (2) |  | (11) |
Bond | (56) |  | (27) |  | (32) |
Assumed reinsurance | 24 |  | 34 |  | 19 |
Commercial automobile liability | 47 |  | 20 |  | 38 |
Personal automobile liability | (30) |  | — |  | (14) |
Homeowners | (28) |  | (6) |  | (1) |
Net asbestos and environmental reserves | 141 |  | — |  | — |
Catastrophes | (87) |  | (87) |  | (62) |
Uncollectible reinsurance | (19) |  | 13 |  | 3 |
Other reserve re-estimates, net | 15 |  | 57 |  | 27 |
Prior accident year development, including full benefit for the ADC cession | (37) |  | (184) |  | (193) |
Change in deferred gain on retroactive reinsurance included in other liabilities [1] | (83) |  | 194 |  | 229 |
Total prior accident year development | $ | (120) |  | $ | 10 |  | $ | 36 |
[1] The change in deferred gain on retroactive reinsurance for the year ended December 31, 2024, included a benefit for amortization of the Navigators ADC deferred gain of $145. The change in deferred gain for the years ended December 31, 2024, 2023 and 2022 also included $62, $194 and $229, respectively of adverse development on A&E reserves in excess of ceded premium paid. 2024 re-estimates of prior accident year reserves Workers’ compensation reserves were decreased within the 2016 to 2020 accident years primarily in small business (formerly "small commercial"), driven by lower than anticipated claim severity. In addition, the 2020 accident year includes a $48 reduction of COVID-19 related reserves driven by favorable claim count emergence. General liability reserves were increased primarily in response to a higher frequency of large losses in the 2015 to 2019 accident years. In addition, the incurred but not reported reserves for more recent accident years were increased as management has observed an increase in severity on reported claims above expectations and anticipates a higher claim severity trend on unreported claims. Reserves for sexual molestation and sexual abuse claims were increased for older accident years. Lastly, reserves for extra contractual liability claims and other miscellaneous run-off lines were reduced in response to recent favorable loss activity. Professional liability reserves decreased due to favorable development on directors and officers ("D&O") claims driven by the 2020 to 2022 accident years combined with favorable errors and omissions experience in the 2018 accident year, partially offset by deterioration in older accident years. Bond reserves decreased due to favorable development on commercial and contract surety and fidelity bonds, driven by accident years 2019 and prior. Assumed reinsurance reserves were increased due to higher reserve estimates in the Latin America surety and Latin America P&C businesses related to the 2020 to 2023 accident years. Commercial automobile liability reserves increased primarily due to adverse loss development within accident years 2022 and 2023, driven by higher severity than estimated. Personal automobile liability reserves were decreased primarily in response to better than anticipated accident years 2021 to 2023 severity for bodily injury liability claims and property damage liability. Homeowners reserves were decreased primarily due to favorable severity impacting accident years 2022 and 2023. Asbestos and environmental reserves were reviewed in fourth quarter 2024 resulting in a $203 increase in reserves before ADC reinsurance, including $167 for asbestos and $36 for environmental. The Company ceded to the A&E ADC $62, which is accounted for as a deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 14 - Commitments and Contingencies. Catastrophes reserves were decreased primarily within Business Insurance driven by a reduction in reserves in accident years 2020 to 2022 related to favorable emergence related to various hail events, as well as favorable development in both Business Insurance and Personal Insurance in accident year 2022 related to Hurricane Ian. Uncollectible reinsurance was decreased due to a reduction in a previously established reserve for an A&E reinsurer that entered into liquidation proceedings. Other reserve re-estimates, net, were increased primarily due to an increase in unallocated loss adjustment expenses ("ULAE") reserves within P&C Other Operations driven by an increase in gross asbestos and environmental reserves and an increase in reserves related to unfavorable development from participation in involuntary market pools environmental reserves, partially offset by a decrease in reserves due to lower severity than expected on personal automobile physical damage for accident year 2023. 2023 re-estimates of prior accident year reserves Workers’ compensation reserves were decreased within the 2014 to 2020 accident years primarily in small business, driven by lower than previously estimated claim severity. In addition, the majority of the 2020 accident year relates to a $38 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 2019 and 2021. Package liability is flat overall with reserve increases related to higher severity across multiple accident years offset by improvement in accident year 2020 due to favorable claim count emergence. Commercial property reserves decreased primarily due to favorable development for accident years 2018 and 2021. In accident year 2022, unfavorable development in middle & large business (formerly "middle & large commercial") was offset by favorable development in global specialty. Professional liability reserves decreased modestly due to favorable development on directors and officers claims driven by the 2020 and 2021 accident years, partially offset by deterioration in 2019 and prior accident years experience across errors and omissions and other claims. Bond reserves decreased primarily due to improvement in fidelity in 2013 and prior accident years, as well as improvement in contract surety in 2019 and prior accident years, partially offset by unfavorable development for 2013 and prior accident years related to customs bonds. Assumed reinsurance reserves were increased due to higher reserve estimates in the Latin America casualty and surety business. Commercial automobile liability reserves increased primarily due to adverse loss development from elevated large loss frequency and severity pressures within middle & large business for accident year 2022, as well as unfavorable experience in accident year 2019, partly offset by favorable development in accident years 2020 and 2021. Personal automobile liability reserves 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. Asbestos and environmental reserves were reviewed in fourth quarter 2023 resulting in a $194 increase in reserves before ADC reinsurance, including $156 for asbestos and $38 for environmental. The Company recognized a $194 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 14 - Commitments and Contingencies. Catastrophes reserves were decreased primarily within Business Insurance 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 Business Insurance 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 ULAE reserves within P&C Other Operations driven by an increase in gross asbestos and environmental reserves, as well as unfavorable development from participation in involuntary market pools, and increased automobile physical damage severity. 2022 re-estimates of prior accident year reserves Workers’ compensation reserves were decreased for the 2014 through 2018 accident years, predominately within small business, and to a lesser extent in middle & large business, driven by lower than previously estimated claim severity and, to a lesser extent, a $14 reduction of COVID-19 related claims from 2020. General liability reserves were increased, driven by an increase in the estimated cost to settle large individual claims in middle & large business for the 2016 to 2019 accident years, an increase in excess casualty and environmental in recent accident years, 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 severity and lower estimated loss adjustment expenses for accident years 2018 and prior, 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 business related to COVID-19 claims. Professional liability reserves were decreased primarily due to favorable development on D&O 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 D&O claims. Bond reserves were decreased primarily in contract surety due to favorable development on older accident years. 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. Also contributing were reserve increases for Latin America P&C and specialty casualty business in recent accident years. Automobile liability reserves were decreased in Personal Insurance principally due to lower estimated severity on AARP Direct claims, primarily within accident years 2015 to 2020 and were increased in Business Insurance principally due to a higher number of large claims in accident years 2017 to 2019, along with decreasing settlement rates and increasing attorney rep rates. Asbestos and environmental reserves were reviewed in fourth quarter 2022 resulting in a $229 increase in reserves before ADC reinsurance, including $162 for asbestos and $67 for environmental. The Company recognized a $229 deferred gain on retroactive reinsurance, representing the amount of losses ceded to the ADC in excess of ceded premium paid. For additional information related to the adverse development cover with NICO, see the Adverse Development Covers section below and Note 14 - Commitments and Contingencies. Catastrophes reserves were decreased in both Business Insurance and Personal Insurance 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 ULAE reserves within P&C Other Operations driven by an increase in gross asbestos and environmental reserves, as well as unfavorable development from participation in involuntary market pools, and increased automobile physical damage severity. Settlement Agreement with Boy Scouts of America On February 14, 2022, the Company executed a final settlement agreement (the “Settlement”) with the Boy Scouts of America ("BSA"), the Local Councils, and the attorneys representing a majority of the alleged victims, pursuant to which The Hartford agreed to pay $787 for sexual molestation and sexual abuse claims associated with liability policies issued by various Hartford Writing Companies in the 1970s and early 1980s. In exchange for its payment, the Company receives a complete release of its policies issued to BSA and the Local Councils, as well as an injunction against further abuse claims involving BSA. All conditions precedent to the Settlement have been satisfied, including approval by the bankruptcy court and the district court, and on April 20, 2023, The Hartford paid the Settlement amount of $787. Certain objecting parties have appealed the district court’s ruling and that appeal is pending before the Third Circuit. If the court approvals for the BSA’s plan of reorganization are not affirmed on appeal, it is possible that adverse outcomes, if any, could have a material adverse effect on the Company’s operating results. Adverse Development Covers The Company has an adverse development cover reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., to reinsure loss development after 2016 on substantially all of the Company’s asbestos and environmental reserves (the “A&E ADC”). Under the A&E ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion including reserves for A&E exposure for accident years prior to 1986 that are reported in Property & Casualty Other Operations ("Run-off A&E") and reserves for A&E exposure for accident years 1986 and subsequent from policies underwritten prior to 2016 that are reported in ongoing Business Insurance and Personal Insurance. The $650 reinsurance premium was placed into a collateral trust account as security for NICO’s claim payment obligations to the Company. The Company has retained the risk of collection on amounts due from other third-party reinsurers and continues to be responsible for claims handling and other administrative services, subject to certain conditions. The A&E ADC covered substantially all the Company’s A&E reserve development up to the reinsurance limit. Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 results in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid have been recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid result in a deferred gain. As of December 31, 2024, the Company has incurred $1.5 billion in cumulative adverse development on asbestos and environmental reserves that have been ceded under the A&E ADC treaty with NICO with no available limit remaining. As such, no remaining coverage is available for any future adverse net reserve development, which may be significant. The Company has recorded a $850 deferred gain within other liabilities, representing the difference between the reinsurance recoverable of $1.5 billion and ceded premium paid of $650. Recoveries from NICO will be collected once the Company has paid cumulative losses in excess of the $1.7 billion attachment point. T he deferred gain will be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased the Navigators ADC, an aggregate excess of loss reinsurance agreement covering adverse reserve development, from NICO on behalf of Navigators Insurance Company and certain of its affiliates (collectively, “Navigators Insurers"). Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018. As of December 31, 2024, the Company has recorded a reinsurance recoverable under the Navigators ADC of $91 as estimated cumulative loss development on the 2018 and prior accident year reserves has exhausted the treaty limit. While the reinsurance recoverable is $91, the Company previously recorded a $209 cumulative deferred gain within other liabilities since, under retroactive reinsurance accounting, ceded losses in excess of the $91 of ceded premium paid must be recognized as a deferred gain. During 2024, the Company collected recoveries from NICO under the Navigators ADC and as a result amortized $145 of the $209 deferred gain within benefits, losses and loss adjustment expenses in the Consolidated Statements of Operations. As there were no collected recoveries during the years ended December 31, 2023, and December 31, 2022, there were no changes to the deferred gain in those years. As of December 31, 2024, and December 31, 2023, the deferred gain on the Navigators ADC was $64 and $209, respectively, and is included in other liabilities on the Consolidated Balance Sheets. Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2024
| Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance |  |  |  | Subtotal |  |
Reserve Line | Cumulative Incurred for Accident Years Displayed in Triangles |  | Cumulative Paid for Accident Years Displayed in Triangles | Unpaid for Accident Years not Displayed in Triangles | Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | Discount |  | Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | Reinsurance and Other Recoverables | Liability for Unpaid Losses and Loss Adjustment Expenses
Workers' compensation | $ | 18,389 |  |  | $ | (9,665) |  | $ | 3,836 |  | $ | 419 |  | $ | (319) |  |  | $ | 12,660 |  | $ | 1,721 |  | $ | 14,381 |
General liability | 9,416 |  |  | (4,177) |  | 494 |  | 202 |  | — |  |  | 5,935 |  | 1,230 |  | 7,165 |
Marine | 1,427 |  |  | (1,114) |  | 15 |  | 15 |  | — |  |  | 343 |  | 244 |  | 587 |
Package business | 8,630 |  |  | (6,279) |  | 109 |  | 130 |  | — |  |  | 2,590 |  | 31 |  | 2,621 |
Commercial property | 4,244 |  |  | (3,676) |  | 13 |  | 31 |  | — |  |  | 612 |  | 299 |  | 911 |
Commercial automobile liability | 4,606 |  |  | (3,106) |  | 16 |  | 38 |  | — |  |  | 1,554 |  | 113 |  | 1,667 |
Commercial automobile physical damage | 239 |  |  | (213) |  | 4 |  | 1 |  | — |  |  | 31 |  | — |  | 31 |
Professional liability | 3,042 |  |  | (1,567) |  | 55 |  | 47 |  | — |  |  | 1,577 |  | 611 |  | 2,188 |
Bond | 667 |  |  | (276) |  | 19 |  | 33 |  | — |  |  | 443 |  | 14 |  | 457 |
Assumed Reinsurance | 2,107 |  |  | (1,356) |  | — |  | 7 |  | — |  |  | 758 |  | 30 |  | 788 |
Personal automobile liability | 10,862 |  |  | (9,240) |  | 31 |  | 74 |  | — |  |  | 1,727 |  | 18 |  | 1,745 |
Personal automobile physical damage | 1,640 |  |  | (1,574) |  | 7 |  | 5 |  | — |  |  | 78 |  | — |  | 78 |
Homeowners | 5,876 |  |  | (5,521) |  | 6 |  | 42 |  | — |  |  | 403 |  | 5 |  | 408 |
Other ongoing business |  |  |  | 168 |  | 7 |  | (14) |  |  | 161 |  | 356 |  | 517 |
Asbestos and environmental [1] |  |  |  | 315 |  | — |  | — |  |  | 315 |  | 2,038 |  | 2,353 |
Other operations [1] |  |  |  | 293 |  | 171 |  | — |  |  | 464 |  | 43 |  | 507 |
Total P&C | $ | 71,145 |  |  | $ | (47,764) |  | $ | 5,381 |  | $ | 1,222 |  | $ | (333) |  |  | $ | 29,651 |  | $ | 6,753 |  | $ | 36,404 |
[1]Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, sexual molestation and sexual abuse and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles. The reserve lines in the above table and the loss triangles that follow represent the significant lines of business for which the Company regularly reviews the appropriateness of reserve levels. These reserve lines differ from the reserve lines reported on a statutory basis, as prescribed by the National Association of Insurance Commissioners ("NAIC"). The cumulative incurred losses displayed in the above table include the full reinsurance benefit of ceding $300 of losses to the Navigators ADC even though $64 of that benefit has been recorded as a deferred gain within other liabilities. The $300 of Navigators Insurers losses ceded to the Navigators ADC and reflected in the following triangles include $95 for professional liability, $105 for general liability, $38 for marine, $27 for assumed reinsurance, $14 for commercial automobile, $3 for commercial property, and $1 for bond. The triangles do not include $17 of losses ceded to the Navigators ADC related to older accident years and lines of business not in the triangles. The following loss triangles present historical loss development for incurred and paid claims by accident year, including loss development on Navigators Insurers reserves prior to and after the May 23, 2019 acquisition date. Because the loss triangles include pre-acquisition date changes in ultimate incurred loss estimates for Navigators Insurers’ reserves, changes in reserve development evident in the incurred loss triangles may differ from prior accident year development ("PYD") recorded by the Company as shown in the (Favorable) Unfavorable Prior Accident Year Development table above as that only includes changes in Navigators Insurers’ reserves post acquisition. In addition, the incurred loss triangles include reserve development on both catastrophe and non-catastrophe claims whereas the (Favorable) Unfavorable Prior Accident Year Development table above shows the total amount of catastrophe reserve development across all lines of business on a single line. Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. IBNR reserves shown in loss triangles include reserves for incurred but not reported claims as well as reserves for expected development on reported claims. Incurred and cumulative paid losses in currencies other than the U.S. dollar have been converted into U.S. dollars using the exchange rates as of December 31, 2024. Workers' Compensation
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 1,873 |  | $ | 1,835 |  | $ | 1,801 |  | $ | 1,724 |  | $ | 1,714 |  | $ | 1,699 |  | $ | 1,667 |  | $ | 1,645 |  | $ | 1,625 |  | $ | 1,625 |  | $ | 329 |  | 114,700 |
2016 |  | 1,772 |  | 1,772 |  | 1,780 |  | 1,767 |  | 1,748 |  | 1,708 |  | 1,670 |  | 1,634 |  | 1,621 |  | 331 |  | 112,747 |
2017 |  |  | 1,862 |  | 1,869 |  | 1,840 |  | 1,822 |  | 1,757 |  | 1,665 |  | 1,635 |  | 1,597 |  | 392 |  | 112,274 |
2018 |  |  |  | 1,916 |  | 1,917 |  | 1,915 |  | 1,904 |  | 1,870 |  | 1,836 |  | 1,798 |  | 464 |  | 120,076 |
2019 |  |  |  |  | 1,937 |  | 1,935 |  | 1,934 |  | 1,934 |  | 1,899 |  | 1,864 |  | 528 |  | 121,158 |
2020 |  |  |  |  |  | 1,865 |  | 1,864 |  | 1,849 |  | 1,808 |  | 1,712 |  | 601 |  | 92,347 |
2021 |  |  |  |  |  |  | 1,831 |  | 1,832 |  | 1,831 |  | 1,831 |  | 675 |  | 103,229 |
2022 |  |  |  |  |  |  |  | 2,000 |  | 2,001 |  | 2,001 |  | 819 |  | 114,189 |
2023 |  |  |  |  |  |  |  |  | 2,166 |  | 2,166 |  | 1,171 |  | 117,297 |
2024 |  |  |  |  |  |  |  |  |  | 2,174 |  | 1,536 |  | 109,521 |
Total |  |  |  |  |  |  |  |  |  | $ | 18,389 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 261 |  | $ | 576 |  | $ | 778 |  | $ | 909 |  | $ | 1,004 |  | $ | 1,068 |  | $ | 1,117 |  | $ | 1,151 |  | $ | 1,179 |  | $ | 1,200 |
2016 |  | 255 |  | 579 |  | 779 |  | 908 |  | 1,003 |  | 1,064 |  | 1,110 |  | 1,145 |  | 1,173 |
2017 |  |  | 261 |  | 575 |  | 778 |  | 900 |  | 977 |  | 1,035 |  | 1,087 |  | 1,118 |
2018 |  |  |  | 283 |  | 624 |  | 837 |  | 983 |  | 1,090 |  | 1,170 |  | 1,215 |
2019 |  |  |  |  | 291 |  | 637 |  | 856 |  | 1,007 |  | 1,129 |  | 1,204 |
2020 |  |  |  |  |  | 223 |  | 507 |  | 695 |  | 850 |  | 939 |
2021 |  |  |  |  |  |  | 254 |  | 562 |  | 780 |  | 920 |
2022 |  |  |  |  |  |  |  | 293 |  | 649 |  | 910 |
2023 |  |  |  |  |  |  |  |  | 286 |  | 677 |
2024 |  |  |  |  |  |  |  |  |  | 309 |
Total |  |  |  |  |  |  |  |  |  | $ | 9,665 |
General Liability
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 556 |  | $ | 560 |  | $ | 554 |  | $ | 594 |  | $ | 633 |  | $ | 647 |  | $ | 637 |  | $ | 647 |  | $ | 641 |  | $ | 656 |  | $ | 60 |  | 16,903 |
2016 |  | 613 |  | 583 |  | 607 |  | 632 |  | 632 |  | 620 |  | 636 |  | 670 |  | 692 |  | 68 |  | 17,989 |
2017 |  |  | 626 |  | 614 |  | 613 |  | 615 |  | 613 |  | 615 |  | 657 |  | 690 |  | 82 |  | 17,581 |
2018 |  |  |  | 692 |  | 669 |  | 697 |  | 703 |  | 728 |  | 751 |  | 816 |  | 167 |  | 19,019 |
2019 |  |  |  |  | 822 |  | 826 |  | 821 |  | 839 |  | 859 |  | 876 |  | 190 |  | 18,871 |
2020 |  |  |  |  |  | 938 |  | 922 |  | 922 |  | 873 |  | 857 |  | 363 |  | 14,574 |
2021 |  |  |  |  |  |  | 1,002 |  | 991 |  | 983 |  | 1,000 |  | 493 |  | 12,839 |
2022 |  |  |  |  |  |  |  | 1,116 |  | 1,110 |  | 1,167 |  | 746 |  | 12,673 |
2023 |  |  |  |  |  |  |  |  | 1,219 |  | 1,230 |  | 989 |  | 10,854 |
2024 |  |  |  |  |  |  |  |  |  | 1,432 |  | 1,366 |  | 7,290 |
Total |  |  |  |  |  |  |  |  |  | $ | 9,416 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 10 |  | $ | 55 |  | $ | 156 |  | $ | 278 |  | $ | 409 |  | $ | 477 |  | $ | 524 |  | $ | 547 |  | $ | 564 |  | $ | 569 |
2016 |  | 12 |  | 52 |  | 131 |  | 283 |  | 368 |  | 446 |  | 513 |  | 564 |  | 596 |
2017 |  |  | 15 |  | 67 |  | 156 |  | 255 |  | 344 |  | 441 |  | 506 |  | 553 |
2018 |  |  |  | 21 |  | 83 |  | 177 |  | 288 |  | 409 |  | 512 |  | 595 |
2019 |  |  |  |  | 29 |  | 100 |  | 192 |  | 339 |  | 501 |  | 613 |
2020 |  |  |  |  |  | 45 |  | 110 |  | 202 |  | 308 |  | 432 |
2021 |  |  |  |  |  |  | 34 |  | 115 |  | 209 |  | 394 |
2022 |  |  |  |  |  |  |  | 26 |  | 134 |  | 281 |
2023 |  |  |  |  |  |  |  |  | 17 |  | 128 |
2024 |  |  |  |  |  |  |  |  |  | 16 |
Total |  |  |  |  |  |  |  |  |  | $ | 4,177 |
Marine
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves [1] | Claims Reported
2015 | $ | 158 |  | $ | 146 |  | $ | 146 |  | $ | 148 |  | $ | 133 |  | $ | 138 |  | $ | 139 |  | $ | 142 |  | $ | 140 |  | $ | 139 |  | $ | 1 |  | 10,559 |
2016 |  | 139 |  | 142 |  | 137 |  | 147 |  | 149 |  | 146 |  | 148 |  | 158 |  | 157 |  | — |  | 13,811 |
2017 |  |  | 153 |  | 173 |  | 160 |  | 159 |  | 165 |  | 167 |  | 174 |  | 172 |  | — |  | 16,235 |
2018 |  |  |  | 131 |  | 146 |  | 141 |  | 146 |  | 152 |  | 156 |  | 155 |  | (5) |  | 10,812 |
2019 |  |  |  |  | 139 |  | 135 |  | 134 |  | 129 |  | 127 |  | 127 |  | (3) |  | 7,261 |
2020 |  |  |  |  |  | 145 |  | 137 |  | 134 |  | 137 |  | 142 |  | 7 |  | 5,261 |
2021 |  |  |  |  |  |  | 127 |  | 127 |  | 119 |  | 127 |  | 15 |  | 5,357 |
2022 |  |  |  |  |  |  |  | 140 |  | 132 |  | 130 |  | 22 |  | 5,306 |
2023 |  |  |  |  |  |  |  |  | 134 |  | 129 |  | 39 |  | 4,674 |
2024 |  |  |  |  |  |  |  |  |  | 149 |  | 83 |  | 3,735 |
Total |  |  |  |  |  |  |  |  |  | $ | 1,427 |  |  |
[1]Contributing to the negative IBNR reserves for some accident years is a lag in the timing of expected reinsurance recoveries under the Navigators ADC with NICO.
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 40 |  | $ | 85 |  | $ | 116 |  | $ | 125 |  | $ | 133 |  | $ | 139 |  | $ | 140 |  | $ | 142 |  | $ | 142 |  | $ | 141 |
2016 |  | 35 |  | 80 |  | 105 |  | 122 |  | 131 |  | 140 |  | 143 |  | 146 |  | 141 |
2017 |  |  | 47 |  | 106 |  | 133 |  | 143 |  | 150 |  | 161 |  | 170 |  | 167 |
2018 |  |  |  | 33 |  | 94 |  | 126 |  | 135 |  | 142 |  | 159 |  | 151 |
2019 |  |  |  |  | 34 |  | 80 |  | 96 |  | 105 |  | 115 |  | 120 |
2020 |  |  |  |  |  | 31 |  | 68 |  | 90 |  | 99 |  | 114 |
2021 |  |  |  |  |  |  | 25 |  | 63 |  | 87 |  | 101 |
2022 |  |  |  |  |  |  |  | 27 |  | 72 |  | 89 |
2023 |  |  |  |  |  |  |  |  | 22 |  | 58 |
2024 |  |  |  |  |  |  |  |  |  | 32 |
Total |  |  |  |  |  |  |  |  |  | $ | 1,114 |
Package Business
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 582 |  | $ | 588 |  | $ | 585 |  | $ | 583 |  | $ | 588 |  | $ | 581 |  | $ | 567 |  | $ | 564 |  | $ | 564 |  | $ | 570 |  | $ | 17 |  | 42,479 |
2016 |  | 655 |  | 638 |  | 632 |  | 625 |  | 611 |  | 595 |  | 591 |  | 590 |  | 582 |  | 24 |  | 44,381 |
2017 |  |  | 695 |  | 702 |  | 692 |  | 657 |  | 644 |  | 637 |  | 640 |  | 638 |  | 33 |  | 46,958 |
2018 |  |  |  | 719 |  | 724 |  | 688 |  | 667 |  | 655 |  | 654 |  | 671 |  | 46 |  | 45,361 |
2019 |  |  |  |  | 813 |  | 769 |  | 749 |  | 744 |  | 747 |  | 761 |  | 72 |  | 43,955 |
2020 |  |  |  |  |  | 915 |  | 893 |  | 877 |  | 837 |  | 828 |  | 101 |  | 62,964 |
2021 |  |  |  |  |  |  | 946 |  | 954 |  | 958 |  | 958 |  | 150 |  | 47,755 |
2022 |  |  |  |  |  |  |  | 1,038 |  | 1,039 |  | 1,043 |  | 215 |  | 47,134 |
2023 |  |  |  |  |  |  |  |  | 1,250 |  | 1,223 |  | 378 |  | 46,364 |
2024 |  |  |  |  |  |  |  |  |  | 1,356 |  | 750 |  | 42,172 |
Total |  |  |  |  |  |  |  |  |  | $ | 8,630 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 212 |  | $ | 332 |  | $ | 383 |  | $ | 445 |  | $ | 486 |  | $ | 505 |  | $ | 513 |  | $ | 530 |  | $ | 542 |  | $ | 549 |
2016 |  | 225 |  | 353 |  | 410 |  | 465 |  | 500 |  | 521 |  | 540 |  | 545 |  | 549 |
2017 |  |  | 235 |  | 372 |  | 447 |  | 496 |  | 534 |  | 561 |  | 578 |  | 593 |
2018 |  |  |  | 237 |  | 402 |  | 451 |  | 498 |  | 537 |  | 571 |  | 609 |
2019 |  |  |  |  | 254 |  | 413 |  | 488 |  | 571 |  | 626 |  | 666 |
2020 |  |  |  |  |  | 326 |  | 493 |  | 573 |  | 648 |  | 699 |
2021 |  |  |  |  |  |  | 368 |  | 556 |  | 650 |  | 746 |
2022 |  |  |  |  |  |  |  | 319 |  | 633 |  | 728 |
2023 |  |  |  |  |  |  |  |  | 453 |  | 725 |
2024 |  |  |  |  |  |  |  |  |  | 415 |
Total |  |  |  |  |  |  |  |  |  | $ | 6,279 |
Commercial Property
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 298 |  | $ | 301 |  | $ | 302 |  | $ | 301 |  | $ | 305 |  | $ | 304 |  | $ | 301 |  | $ | 301 |  | $ | 301 |  | $ | 299 |  | $ | — |  | 20,977 |
2016 |  | 405 |  | 419 |  | 399 |  | 406 |  | 408 |  | 408 |  | 405 |  | 405 |  | 405 |  | — |  | 23,927 |
2017 |  |  | 577 |  | 516 |  | 456 |  | 438 |  | 440 |  | 438 |  | 439 |  | 438 |  | 2 |  | 24,627 |
2018 |  |  |  | 450 |  | 436 |  | 423 |  | 403 |  | 400 |  | 393 |  | 393 |  | 2 |  | 21,821 |
2019 |  |  |  |  | 480 |  | 439 |  | 418 |  | 420 |  | 421 |  | 420 |  | (1) |  | 20,981 |
2020 |  |  |  |  |  | 501 |  | 469 |  | 440 |  | 438 |  | 437 |  | 49 |  | 20,529 |
2021 |  |  |  |  |  |  | 531 |  | 500 |  | 463 |  | 434 |  | 15 |  | 18,283 |
2022 |  |  |  |  |  |  |  | 497 |  | 481 |  | 475 |  | 48 |  | 17,446 |
2023 |  |  |  |  |  |  |  |  | 448 |  | 424 |  | 86 |  | 17,003 |
2024 |  |  |  |  |  |  |  |  |  | 519 |  | 164 |  | 15,209 |
Total |  |  |  |  |  |  |  |  |  | $ | 4,244 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 179 |  | $ | 257 |  | $ | 284 |  | $ | 296 |  | $ | 301 |  | $ | 303 |  | $ | 302 |  | $ | 302 |  | $ | 301 |  | $ | 300 |
2016 |  | 215 |  | 342 |  | 378 |  | 395 |  | 401 |  | 406 |  | 406 |  | 407 |  | 406 |
2017 |  |  | 229 |  | 378 |  | 411 |  | 427 |  | 432 |  | 438 |  | 440 |  | 441 |
2018 |  |  |  | 188 |  | 344 |  | 378 |  | 385 |  | 394 |  | 394 |  | 394 |
2019 |  |  |  |  | 215 |  | 351 |  | 383 |  | 405 |  | 407 |  | 410 |
2020 |  |  |  |  |  | 221 |  | 336 |  | 355 |  | 367 |  | 373 |
2021 |  |  |  |  |  |  | 241 |  | 383 |  | 403 |  | 412 |
2022 |  |  |  |  |  |  |  | 180 |  | 369 |  | 412 |
2023 |  |  |  |  |  |  |  |  | 199 |  | 300 |
2024 |  |  |  |  |  |  |  |  |  | 228 |
Total |  |  |  |  |  |  |  |  |  | $ | 3,676 |
Commercial Automobile Liability
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 308 |  | $ | 358 |  | $ | 372 |  | $ | 356 |  | $ | 356 |  | $ | 359 |  | $ | 360 |  | $ | 358 |  | $ | 360 |  | $ | 358 |  | $ | 5 |  | 28,750 |
2016 |  | 385 |  | 393 |  | 390 |  | 391 |  | 391 |  | 395 |  | 395 |  | 396 |  | 395 |  | 5 |  | 29,266 |
2017 |  |  | 372 |  | 383 |  | 379 |  | 383 |  | 381 |  | 394 |  | 398 |  | 398 |  | 2 |  | 26,420 |
2018 |  |  |  | 349 |  | 396 |  | 405 |  | 406 |  | 424 |  | 433 |  | 435 |  | 18 |  | 24,816 |
2019 |  |  |  |  | 425 |  | 439 |  | 450 |  | 460 |  | 471 |  | 479 |  | 20 |  | 28,627 |
2020 |  |  |  |  |  | 428 |  | 424 |  | 419 |  | 397 |  | 388 |  | 44 |  | 22,272 |
2021 |  |  |  |  |  |  | 440 |  | 443 |  | 429 |  | 410 |  | 86 |  | 20,222 |
2022 |  |  |  |  |  |  |  | 468 |  | 500 |  | 547 |  | 158 |  | 20,891 |
2023 |  |  |  |  |  |  |  |  | 527 |  | 555 |  | 279 |  | 20,649 |
2024 |  |  |  |  |  |  |  |  |  | 641 |  | 501 |  | 19,954 |
Total |  |  |  |  |  |  |  |  |  | $ | 4,606 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance
| For the years ended December 31
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 62 |  | $ | 142 |  | $ | 207 |  | $ | 267 |  | $ | 314 |  | $ | 335 |  | $ | 344 |  | $ | 348 |  | $ | 350 |  | $ | 351 |
2016 |  | 65 |  | 147 |  | 232 |  | 303 |  | 339 |  | 357 |  | 379 |  | 385 |  | 388 |
2017 |  |  | 60 |  | 134 |  | 211 |  | 285 |  | 328 |  | 368 |  | 386 |  | 389 |
2018 |  |  |  | 62 |  | 153 |  | 238 |  | 305 |  | 360 |  | 387 |  | 406 |
2019 |  |  |  |  | 67 |  | 160 |  | 247 |  | 327 |  | 393 |  | 428 |
2020 |  |  |  |  |  | 55 |  | 119 |  | 200 |  | 264 |  | 317 |
2021 |  |  |  |  |  |  | 55 |  | 127 |  | 212 |  | 282 |
2022 |  |  |  |  |  |  |  | 64 |  | 171 |  | 294 |
2023 |  |  |  |  |  |  |  |  | 69 |  | 174 |
2024 |  |  |  |  |  |  |  |  |  | 77 |
Total |  |  |  |  |  |  |  |  |  | $ | 3,106 |
Commercial Automobile Physical Damage
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
|  |  |  |  |  |  |  | For the years ended December 31, |  |
|  |  |  |  |  |  |  | (Unaudited) |  |  |
Accident Year |  |  |  |  |  |  |  | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2022 |  |  |  |  |  |  |  | $ | 70 |  | $ | 74 |  | $ | 74 |  | $ | 2 |  | 16,771 |
2023 |  |  |  |  |  |  |  |  | 80 |  | 81 |  | 6 |  | 16,832 |
2024 |  |  |  |  |  |  |  |  |  | 84 |  | 8 |  | 15,533 |
Total |  |  |  |  |  |  |  |  |  | $ | 239 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
|  |  |  |  |  |  |  | For the years ended December 31,
|  |  |  |  |  |  |  | (Unaudited) |
Accident Year |  |  |  |  |  |  |  | 2022 | 2023 | 2024
2022 |  |  |  |  |  |  |  | $ | 59 |  | $ | 73 |  | $ | 72 |
2023 |  |  |  |  |  |  |  |  | 61 |  | 74 |
2024 |  |  |  |  |  |  |  |  |  | 67 |
Total |  |  |  |  |  |  |  |  |  | $ | 213 |
Professional Liability
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Claims Made Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 164 |  | $ | 174 |  | $ | 179 |  | $ | 190 |  | $ | 213 |  | $ | 206 |  | $ | 198 |  | $ | 196 |  | $ | 197 |  | $ | 192 |  | $ | 1 |  | 7,279 |
2016 |  | 183 |  | 176 |  | 203 |  | 196 |  | 194 |  | 195 |  | 193 |  | 191 |  | 202 |  | 20 |  | 8,462 |
2017 |  |  | 205 |  | 203 |  | 231 |  | 225 |  | 239 |  | 242 |  | 217 |  | 227 |  | 14 |  | 9,555 |
2018 |  |  |  | 243 |  | 274 |  | 270 |  | 271 |  | 265 |  | 324 |  | 312 |  | 18 |  | 9,910 |
2019 |  |  |  |  | 295 |  | 313 |  | 330 |  | 347 |  | 354 |  | 385 |  | 81 |  | 9,972 |
2020 |  |  |  |  |  | 369 |  | 363 |  | 336 |  | 324 |  | 298 |  | 106 |  | 8,034 |
2021 |  |  |  |  |  |  | 339 |  | 343 |  | 327 |  | 306 |  | 149 |  | 6,761 |
2022 |  |  |  |  |  |  |  | 349 |  | 355 |  | 338 |  | 214 |  | 7,177 |
2023 |  |  |  |  |  |  |  |  | 384 |  | 388 |  | 260 |  | 8,049 |
2024 |  |  |  |  |  |  |  |  |  | 394 |  | 337 |  | 7,546 |
Total |  |  |  |  |  |  |  |  |  | $ | 3,042 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Claims Made Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 9 |  | $ | 40 |  | $ | 85 |  | $ | 107 |  | $ | 124 |  | $ | 140 |  | $ | 163 |  | $ | 175 |  | $ | 185 |  | $ | 181 |
2016 |  | 8 |  | 51 |  | 88 |  | 111 |  | 124 |  | 147 |  | 166 |  | 176 |  | 175 |
2017 |  |  | 11 |  | 48 |  | 87 |  | 121 |  | 149 |  | 179 |  | 190 |  | 189 |
2018 |  |  |  | 15 |  | 71 |  | 127 |  | 161 |  | 194 |  | 232 |  | 260 |
2019 |  |  |  |  | 21 |  | 77 |  | 147 |  | 197 |  | 241 |  | 265 |
2020 |  |  |  |  |  | 19 |  | 71 |  | 117 |  | 147 |  | 171 |
2021 |  |  |  |  |  |  | 15 |  | 55 |  | 95 |  | 127 |
2022 |  |  |  |  |  |  |  | 18 |  | 64 |  | 95 |
2023 |  |  |  |  |  |  |  |  | 20 |  | 76 |
2024 |  |  |  |  |  |  |  |  |  | 28 |
Total |  |  |  |  |  |  |  |  |  | $ | 1,567 |
Bond
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 67 |  | $ | 67 |  | $ | 63 |  | $ | 60 |  | $ | 54 |  | $ | 48 |  | $ | 47 |  | $ | 42 |  | $ | 37 |  | $ | 29 |  | $ | 4 |  | 1,413 |
2016 |  | 61 |  | 61 |  | 61 |  | 55 |  | 51 |  | 45 |  | 37 |  | 34 |  | 28 |  | 8 |  | 1,348 |
2017 |  |  | 63 |  | 90 |  | 101 |  | 94 |  | 79 |  | 70 |  | 68 |  | 65 |  | 22 |  | 1,799 |
2018 |  |  |  | 68 |  | 68 |  | 72 |  | 71 |  | 70 |  | 63 |  | 54 |  | 24 |  | 1,750 |
2019 |  |  |  |  | 72 |  | 73 |  | 74 |  | 73 |  | 70 |  | 61 |  | 44 |  | 1,925 |
2020 |  |  |  |  |  | 83 |  | 84 |  | 79 |  | 83 |  | 80 |  | 51 |  | 2,294 |
2021 |  |  |  |  |  |  | 85 |  | 85 |  | 88 |  | 84 |  | 55 |  | 2,989 |
2022 |  |  |  |  |  |  |  | 85 |  | 93 |  | 93 |  | 29 |  | 2,571 |
2023 |  |  |  |  |  |  |  |  | 81 |  | 83 |  | 63 |  | 1,647 |
2024 |  |  |  |  |  |  |  |  |  | 90 |  | 78 |  | 975 |
Total |  |  |  |  |  |  |  |  |  | $ | 667 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 9 |  | $ | 20 |  | $ | 24 |  | $ | 31 |  | $ | 34 |  | $ | 32 |  | $ | 30 |  | $ | 25 |  | $ | 25 |  | $ | 25 |
2016 |  | 2 |  | 12 |  | 15 |  | 20 |  | 22 |  | 22 |  | 22 |  | 20 |  | 20 |
2017 |  |  | 5 |  | 46 |  | 55 |  | 54 |  | 42 |  | 43 |  | 43 |  | 43 |
2018 |  |  |  | 6 |  | 16 |  | 23 |  | 24 |  | 29 |  | 30 |  | 29 |
2019 |  |  |  |  | 3 |  | 13 |  | 15 |  | 16 |  | 16 |  | 17 |
2020 |  |  |  |  |  | 4 |  | 12 |  | 21 |  | 26 |  | 27 |
2021 |  |  |  |  |  |  | 8 |  | 21 |  | 23 |  | 29 |
2022 |  |  |  |  |  |  |  | 11 |  | 42 |  | 59 |
2023 |  |  |  |  |  |  |  |  | 8 |  | 17 |
2024 |  |  |  |  |  |  |  |  |  | 10 |
Total |  |  |  |  |  |  |  |  |  | $ | 276 |
Assumed Reinsurance
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves [1] | Claims Reported
2015 | $ | 102 |  | $ | 92 |  | $ | 94 |  | $ | 94 |  | $ | 95 |  | $ | 96 |  | $ | 96 |  | $ | 96 |  | $ | 96 |  | $ | 96 |  | $ | — |  | 1,737 |
2016 |  | 88 |  | 91 |  | 98 |  | 100 |  | 102 |  | 101 |  | 102 |  | 104 |  | 104 |  | (1) |  | 1,996 |
2017 |  |  | 129 |  | 153 |  | 161 |  | 157 |  | 153 |  | 155 |  | 155 |  | 155 |  | — |  | 2,596 |
2018 |  |  |  | 128 |  | 127 |  | 129 |  | 134 |  | 135 |  | 132 |  | 132 |  | (6) |  | 3,078 |
2019 |  |  |  |  | 181 |  | 189 |  | 186 |  | 190 |  | 208 |  | 208 |  | 11 |  | 3,843 |
2020 |  |  |  |  |  | 183 |  | 180 |  | 186 |  | 178 |  | 181 |  | 11 |  | 3,374 |
2021 |  |  |  |  |  |  | 191 |  | 195 |  | 203 |  | 204 |  | 22 |  | 2,698 |
2022 |  |  |  |  |  |  |  | 266 |  | 274 |  | 290 |  | 84 |  | 2,501 |
2023 |  |  |  |  |  |  |  |  | 329 |  | 327 |  | 112 |  | 2,354 |
2024 |  |  |  |  |  |  |  |  |  | 410 |  | 297 |  | 1,049 |
Total |  |  |  |  |  |  |  |  |  | $ | 2,107 |  |  |
[1]Contributing to the negative IBNR reserves for some accident years is a lag in the timing of expected reinsurance recoveries under the Navigators ADC with NICO.
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 42 |  | $ | 64 |  | $ | 77 |  | $ | 83 |  | $ | 91 |  | $ | 94 |  | $ | 95 |  | $ | 95 |  | $ | 96 |  | $ | 96 |
2016 |  | 36 |  | 66 |  | 84 |  | 90 |  | 95 |  | 97 |  | 99 |  | 101 |  | 101 |
2017 |  |  | 44 |  | 116 |  | 135 |  | 145 |  | 147 |  | 149 |  | 151 |  | 150 |
2018 |  |  |  | 25 |  | 111 |  | 133 |  | 139 |  | 141 |  | 144 |  | 133 |
2019 |  |  |  |  | 62 |  | 132 |  | 153 |  | 159 |  | 176 |  | 185 |
2020 |  |  |  |  |  | 49 |  | 89 |  | 113 |  | 132 |  | 151 |
2021 |  |  |  |  |  |  | 46 |  | 102 |  | 132 |  | 157 |
2022 |  |  |  |  |  |  |  | 60 |  | 128 |  | 173 |
2023 |  |  |  |  |  |  |  |  | 63 |  | 149 |
2024 |  |  |  |  |  |  |  |  |  | 61 |
Total |  |  |  |  |  |  |  |  |  | $ | 1,356 |
Personal Automobile Liability
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 1,195 |  | $ | 1,340 |  | $ | 1,338 |  | $ | 1,330 |  | $ | 1,331 |  | $ | 1,328 |  | $ | 1,324 |  | $ | 1,320 |  | $ | 1,319 |  | $ | 1,319 |  | $ | 2 |  | 216,911 |
2016 |  | 1,407 |  | 1,402 |  | 1,393 |  | 1,397 |  | 1,395 |  | 1,386 |  | 1,384 |  | 1,384 |  | 1,388 |  | 6 |  | 215,877 |
2017 |  |  | 1,277 |  | 1,275 |  | 1,228 |  | 1,214 |  | 1,200 |  | 1,198 |  | 1,197 |  | 1,198 |  | 6 |  | 187,564 |
2018 |  |  |  | 1,108 |  | 1,104 |  | 1,072 |  | 1,058 |  | 1,056 |  | 1,055 |  | 1,054 |  | 18 |  | 156,295 |
2019 |  |  |  |  | 1,018 |  | 1,010 |  | 991 |  | 986 |  | 971 |  | 967 |  | 10 |  | 139,762 |
2020 |  |  |  |  |  | 805 |  | 782 |  | 775 |  | 741 |  | 740 |  | 23 |  | 96,731 |
2021 |  |  |  |  |  |  | 881 |  | 886 |  | 852 |  | 846 |  | 57 |  | 102,129 |
2022 |  |  |  |  |  |  |  | 928 |  | 1,018 |  | 1,009 |  | 132 |  | 107,911 |
2023 |  |  |  |  |  |  |  |  | 1,138 |  | 1,129 |  | 270 |  | 107,253 |
2024 |  |  |  |  |  |  |  |  |  | 1,212 |  | 622 |  | 94,233 |
Total |  |  |  |  |  |  |  |  |  | $ | 10,862 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 475 |  | $ | 935 |  | $ | 1,142 |  | $ | 1,243 |  | $ | 1,292 |  | $ | 1,304 |  | $ | 1,310 |  | $ | 1,313 |  | $ | 1,314 |  | $ | 1,315 |
2016 |  | 505 |  | 968 |  | 1,188 |  | 1,308 |  | 1,345 |  | 1,363 |  | 1,373 |  | 1,377 |  | 1,380 |
2017 |  |  | 441 |  | 836 |  | 1,033 |  | 1,123 |  | 1,161 |  | 1,180 |  | 1,187 |  | 1,189 |
2018 |  |  |  | 359 |  | 710 |  | 888 |  | 965 |  | 1,011 |  | 1,028 |  | 1,033 |
2019 |  |  |  |  | 323 |  | 654 |  | 816 |  | 897 |  | 933 |  | 949 |
2020 |  |  |  |  |  | 238 |  | 486 |  | 615 |  | 679 |  | 709 |
2021 |  |  |  |  |  |  | 247 |  | 553 |  | 691 |  | 760 |
2022 |  |  |  |  |  |  |  | 301 |  | 662 |  | 813 |
2023 |  |  |  |  |  |  |  |  | 329 |  | 731 |
2024 |  |  |  |  |  |  |  |  |  | 361 |
Total |  |  |  |  |  |  |  |  |  | $ | 9,240 |
Personal Automobile Physical Damage
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
|  |  |  |  |  |  |  | For the years ended December 31, |  |
|  |  |  |  |  |  |  | (Unaudited) |  |  |
Accident Year |  |  |  |  |  |  |  | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2022 |  |  |  |  |  |  |  | $ | 533 |  | $ | 549 |  | $ | 539 |  | $ | 3 |  | 239,634 |
2023 |  |  |  |  |  |  |  |  | 574 |  | 544 |  | 3 |  | 234,247 |
2024 |  |  |  |  |  |  |  |  |  | 557 |  | 28 |  | 199,915 |
Total |  |  |  |  |  |  |  |  |  | $ | 1,640 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
|  |  |  |  |  |  |  | For the years ended December 31,
|  |  |  |  |  |  |  | (Unaudited) |
Accident Year |  |  |  |  |  |  |  | 2022 | 2023 | 2024
2022 |  |  |  |  |  |  |  | $ | 498 |  | $ | 538 |  | $ | 536 |
2023 |  |  |  |  |  |  |  |  | 513 |  | 541 |
2024 |  |  |  |  |  |  |  |  |  | 497 |
Total |  |  |  |  |  |  |  |  |  | $ | 1,574 |
Homeowners
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 690 |  | $ | 703 |  | $ | 690 |  | $ | 684 |  | $ | 684 |  | $ | 684 |  | $ | 684 |  | $ | 684 |  | $ | 682 |  | $ | 682 |  | $ | — |  | 120,023 |
2016 |  | 669 |  | 673 |  | 663 |  | 658 |  | 658 |  | 658 |  | 658 |  | 658 |  | 658 |  | — |  | 119,818 |
2017 |  |  | 866 |  | 889 |  | 884 |  | 783 |  | 775 |  | 774 |  | 771 |  | 769 |  | 4 |  | 124,780 |
2018 |  |  |  | 903 |  | 910 |  | 673 |  | 642 |  | 639 |  | 645 |  | 642 |  | 8 |  | 102,924 |
2019 |  |  |  |  | 501 |  | 475 |  | 470 |  | 468 |  | 467 |  | 465 |  | 1 |  | 84,810 |
2020 |  |  |  |  |  | 525 |  | 512 |  | 513 |  | 505 |  | 499 |  | 5 |  | 88,546 |
2021 |  |  |  |  |  |  | 502 |  | 501 |  | 491 |  | 485 |  | 5 |  | 77,320 |
2022 |  |  |  |  |  |  |  | 499 |  | 507 |  | 498 |  | 9 |  | 64,118 |
2023 |  |  |  |  |  |  |  |  | 584 |  | 573 |  | 28 |  | 68,405 |
2024 |  |  |  |  |  |  |  |  |  | 605 |  | 158 |  | 58,223 |
Total |  |  |  |  |  |  |  |  |  | $ | 5,876 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Accident Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 487 |  | $ | 645 |  | $ | 665 |  | $ | 674 |  | $ | 680 |  | $ | 681 |  | $ | 681 |  | $ | 682 |  | $ | 682 |  | $ | 682 |
2016 |  | 481 |  | 621 |  | 640 |  | 649 |  | 653 |  | 655 |  | 656 |  | 657 |  | 658 |
2017 |  |  | 538 |  | 747 |  | 795 |  | 757 |  | 761 |  | 762 |  | 761 |  | 763 |
2018 |  |  |  | 484 |  | 712 |  | 616 |  | 619 |  | 627 |  | 626 |  | 628 |
2019 |  |  |  |  | 318 |  | 425 |  | 445 |  | 458 |  | 460 |  | 463 |
2020 |  |  |  |  |  | 335 |  | 454 |  | 478 |  | 486 |  | 490 |
2021 |  |  |  |  |  |  | 305 |  | 440 |  | 464 |  | 473 |
2022 |  |  |  |  |  |  |  | 298 |  | 453 |  | 476 |
2023 |  |  |  |  |  |  |  |  | 390 |  | 521 |
2024 |  |  |  |  |  |  |  |  |  | 367 |
Total |  |  |  |  |  |  |  |  |  | $ | 5,521 |
Property and casualty reserves, including IBNR The Company estimates ultimate losses and allocated loss adjustment expenses ("ALAE") by accident year. IBNR represents the excess of estimated ultimate loss reserves over case reserves. The process to estimate ultimate losses and loss adjustment expenses is an integral part of the Company's reserve setting. Reserves for ALAE and ULAE are generally established separate from the reserves for losses. Reserves for losses are set by line of business within the reportable segments. Case reserves are established by a claims handler on each individual claim and are adjusted as new information becomes known during the course of handling the claim. Lines of business for which reported losses emerge over a long period of time are referred to as long-tail lines of business. Lines of business for which reported losses emerge more quickly are referred to as short-tail lines of business. The Company’s shortest tail lines of business are homeowners, commercial property and automobile physical damage. The longest tail lines of business include workers’ compensation, general liability and professional liability. For short-tail lines of business, emergence of paid loss and case reserves is credible and likely indicative of ultimate losses. For long-tail lines of business, emergence of paid losses and case reserves is less credible in the early periods after a given accident year and, accordingly, may not be indicative of ultimate losses. The Company’s reserving actuaries regularly review reserves for both current and prior accident years using the most current claim data. A variety of actuarial methods and judgments are used for most lines of business to arrive at selections of estimated ultimate losses and loss adjustment expenses. The reserve selections incorporate input, as appropriate, from claims personnel, pricing actuaries and operating management about reported loss cost trends and other factors that could affect the reserve estimates. For both short-tail and long-tail lines of business, an expected loss ratio ("ELR") is used to record initial reserves. This ELR is determined by starting with the average loss ratio of recent prior accident years and adjusting that ratio for the effect of expected changes to earned pricing, loss frequency and severity, mix of business, ceded reinsurance and other factors. For short-tail lines, IBNR for the current accident year ("CAY") gives weight to both the initial ELR multiplied by earned premium approach as well as a loss development approach, given early reported losses are more credible than in long-tailed lines. For long-tailed lines, IBNR reserves for the current accident year are initially recorded as the product of the ELR for the period and the earned premium for the period, less reported losses for the period. For certain short-tailed lines of business, including commercial property, homeowners, and automobile physical damage, IBNR amounts in the above loss development triangles are negative in certain accident years due to anticipated salvage and subrogation recoveries on paid losses. As losses for a given accident year emerge or develop in subsequent periods, reserving actuaries use other methods to estimate ultimate unpaid losses in addition to the ELR method. These primarily include paid and reported loss development methods, frequency/severity techniques and the Bornhuetter-Ferguson method (a combination of the ELR and paid development or reported development method). Within any one line of business, the methods that are given more weight vary based primarily on the maturity of the accident year, the mix of business and the particular internal and external influences impacting the claims experience or the methods. The output of the reserve reviews are reserve estimates that are referred to as actuarial indications. Paid development and reported development techniques are used for most lines of business though more weight is given to the reported development method for some of the long-tailed lines like general liability. In addition, for long-tailed lines of business, the Company relies on the ELR method for immature accident years. Frequency/severity techniques are used predominantly for professional liability and are also used for automobile liability. The Berquist-Sherman technique is also used for automobile liability, marine and assumed reinsurance. For most lines, reserves for ALAE, or those expenses related to specific claims, are analyzed using paid development techniques and an analysis of the relationship between ALAE and loss payments. For most of the lines acquired through the Navigators Group book of business, loss and ALAE are reviewed on a combined basis. Reserves for ULAE are determined using the expected cost per claim year and the anticipated claim closure pattern as well as the ratio of paid ULAE to paid losses. The recorded reserve for losses and loss adjustment expenses represents the Company's best estimate of the ultimate settlement amount of unpaid losses and loss adjustment expenses. In applying judgment, the best estimate is selected after considering the estimates derived from a number of actuarial methods, giving more weight to those methods deemed more predictive of ultimate unpaid losses and loss adjustment expenses. The Company does not produce a statistical range or confidence interval of reserve estimates and, since reserving methods with more credibility are given greater weight, the selected best estimate may differ from the mid-point of the various estimates produced by the actuarial methods used. Cumulative number of reported claims For most property and casualty lines, claim counts represent the number of claim features on a reported claim where a claim feature is each separate coverage for each claimant affected by the claim event. For example, one car accident that results in two bodily injury claims and one automobile damage liability claim would be counted as three claims within the personal automobile liability triangle. Similarly, a fire that impacts one commercial building may result in multiple claim features due to the potential for claims related to business interruption, structural damage, and loss of the physical contents of the building. Claim features that result in no paid losses are included in the reported claim counts. For some property and casualty lines, such as marine and assumed reinsurance, a claim count represents each reported claim regardless of the number of features. For assumed bordereau business and business written on binders, one claim count is posted for each bordereau received, which could account for multiple claims.
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [1]
| (Unaudited) |
Reserve Line | 1st Year | 2nd Year | 3rd Year | 4th Year | 5th Year | 6th Year | 7th Year | 8th Year | 9th Year | 10th Year
Workers' compensation | 14.8 | % | 18.4 | % | 12.1 | % | 8.1 | % | 5.7 | % | 4.0 | % | 2.9 | % | 2.1 | % | 1.7 | % | 1.3 | %
General liability | 2.5 | % | 7.8 | % | 11.8 | % | 16.6 | % | 15.5 | % | 12.3 | % | 9.1 | % | 5.9 | % | 3.7 | % | 0.6 | %
Marine | 22.8 | % | 32.0 | % | 16.8 | % | 7.5 | % | 6.7 | % | 6.2 | % | 0.8 | % | 0.4 | % | (1.5 | %) | (0.7 | %)
Package business | 35.8 | % | 22.4 | % | 9.6 | % | 9.3 | % | 6.4 | % | 4.3 | % | 3.3 | % | 2.1 | % | 1.4 | % | 1.2 | %
Commercial property | 49.9 | % | 31.9 | % | 7.5 | % | 3.3 | % | 1.5 | % | 0.8 | % | — | % | 0.2 | % | (0.2 | %) | (0.5 | %)
Commercial automobile liability | 14.1 | % | 19.4 | % | 20.1 | % | 17.0 | % | 12.2 | % | 6.8 | % | 4.2 | % | 1.2 | % | 0.7 | % | — | %
Commercial automobile physical damage | 78.2 | % | 17.3 | % | (0.2 | %) |  |  |  |  |  |  |
Professional liability | 5.3 | % | 16.1 | % | 16.5 | % | 11.8 | % | 9.6 | % | 10.3 | % | 8.9 | % | 3.4 | % | 2.4 | % | (1.9 | %)
Bond | 11.1 | % | 26.4 | % | 11.0 | % | 8.6 | % | 1.2 | % | (1.1 | %) | (1.6 | %) | (7.8 | %) | (0.3 | %) | (0.3 | %)
Assumed Reinsurance | 26.1 | % | 33.0 | % | 14.2 | % | 6.8 | % | 5.9 | % | 2.4 | % | (1.0 | %) | 0.8 | % | 0.1 | % | (0.4 | %)
Personal automobile liability | 32.7 | % | 34.4 | % | 16.3 | % | 8.0 | % | 3.6 | % | 1.4 | % | 0.6 | % | 0.2 | % | 0.2 | % | 0.1 | %
Personal automobile physical damage | 91.9 | % | 6.3 | % | (0.4 | %) |  |  |  |  |  |  |
Homeowners | 67.7 | % | 26.2 | % | 2.0 | % | 0.6 | % | 0.8 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | — | %
[1]Negative percentages are generally due to salvage, subrogation or other recoveries. Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses
| For the years ended December 31,
| 2024 | 2023 | 2022
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ | 8,274 |  | $ | 8,160 |  | $ | 8,210 |
Reinsurance recoverables | 254 |  | 245 |  | 245 |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 8,020 |  | 7,915 |  | 7,965 |
Provision for unpaid losses and loss adjustment expenses |  |  |
Current incurral year | 5,195 |  | 5,145 |  | 4,853 |
Prior year's discount accretion | 194 |  | 193 |  | 202 |
Prior incurral year development [1] | (561) |  | (502) |  | (381) |
Total provision for unpaid losses and loss adjustment expenses [2] | 4,828 |  | 4,836 |  | 4,674 |
Payments |  |  |
Current incurral year | (2,735) |  | (2,575) |  | (2,456) |
Prior incurral years | (2,189) |  | (2,156) |  | (2,268) |
Total payments | (4,924) |  | (4,731) |  | (4,724) |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 7,924 |  | 8,020 |  | 7,915 |
Reinsurance recoverables | 282 |  | 254 |  | 245 |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | $ | 8,206 |  | $ | 8,274 |  | $ | 8,160 |
[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 of $175, $182 and $185 for the years ended December 31, 2024, 2023 and 2022, respectively, that are recorded in insurance operating costs and other expenses in the Consolidated Statements of Operations. Group Life, Disability and Accident Products Reserves, Net of Reinsurance, that are Discounted
| For the years ended December 31,
| 2024 | 2023 | 2022
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | $ | 8,111 |  | $ | 8,150 |  | $ | 8,124 |
Amount of discount | (1,196) |  | (1,166) |  | (1,205) |
Carrying value of liability for unpaid losses and loss adjustment expenses | $ | 6,915 |  | $ | 6,984 |  | $ | 6,919 |
Weighted average discount rate | 3.3 | % | 3.2 | % | 3.2 | %
Range of discount rate | 2.1 | % | - | 8.0 | % | 2.1 | % | - | 8.0 | % | 2.1 | % | - | 8.0 | %
Reserves are discounted at rates in effect at the time claims were incurred, ranging from 2.1% for life and disability reserves acquired from Aetna based on interest rates in effect at the acquisition date of November 1, 2017, to 8.0% f or the Company’s pre-acquisition reserves for incurral year 1990, and vary by product. Prior year's discount accretion has been calculated as the average reserve balance of discounted reserves for the year times the weighted average discount rate. 2024 re-estimates of prior incurral year reserves Group disability- Prior period reserve estimates decreased by approximately $483 largely driven by long-term disability claim incidence lower than prior assumptions and favorable recoveries on prior incurral year claims, as well as a favorable change in the recovery rate assumption. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $80 largely driven by favorable mortality emergence and continued low incidence in group life premium waiver. 2023 re-estimates of prior incurral year reserves Group disability- Prior period reserve estimates decreased by approximately $457 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 $36 largely driven by continued low incidence in group life premium waiver. Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $9 driven by lower than previously expected claim incidence. 2022 re-estimates of prior incurral year reserves Group disability- Prior period reserve estimates decreased by approximately $325 largely driven by group long-term disability claim incidence lower than prior assumptions, strong recoveries on prior incurral year claims and higher estimated claim termination rates. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $50 largely driven by continued low incidence in group life premium waiver as well as a reduction in the estimation of high level of mortality losses incurred in fourth quarter 2021. Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $6 driven by lower than previously expected claim incidence. Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses as of December 31, 2024
| Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance |  |  | Subtotal |  |
Reserve Line | Cumulative Incurred for Incurral Years Displayed in Triangles | Cumulative Paid for Incurral Years Displayed in Triangles | Unpaid for Incurral Years not Displayed in Triangles | Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | Discount | Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | Reinsurance and Other Recoverables | Liability for Unpaid Losses and Loss Adjustment Expenses
Group long-term disability | $ | 14,365 |  | $ | (8,243) |  | $ | 1,400 |  | $ | 193 |  | $ | (1,121) |  | $ | 6,594 |  | $ | 270 |  | $ | 6,864 |
Group life and accident, excluding premium waiver | 6,213 |  | (5,669) |  | 145 |  | 5 |  | (12) |  | 682 |  | 4 |  | 686 |
Group short-term disability |  |  | 173 |  | 10 |  | — |  | 183 |  | — |  | 183 |
Group life premium waiver |  |  | 485 |  | 9 |  | (63) |  | 431 |  | 3 |  | 434 |
Group supplemental health |  |  | 34 |  | — |  | — |  | 34 |  | 5 |  | 39 |
Total Employee Benefits | $ | 20,578 |  | $ | (13,912) |  | $ | 2,237 |  | $ | 217 |  | $ | (1,196) |  | $ | 7,924 |  | $ | 282 |  | $ | 8,206 |
The following loss triangles present historical loss development for incurred and paid claims by the year the insured claim occurred, referred to as the incurral year. Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. Changes in reserve development evident in the incurred loss triangles differ from prior accident year development recorded by the Company as shown in the reserve rollforward above as the triangles are presented on an undiscounted basis and exclude ULAE. Group Long-Term Disability
Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
|  | For the years ended December 31, |  |
|  | (Unaudited) |  |  |
Incurral Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2015 | $ | 1,595 |  | $ | 1,442 |  | $ | 1,422 |  | $ | 1,420 |  | $ | 1,401 |  | $ | 1,385 |  | $ | 1,380 |  | $ | 1,380 |  | $ | 1,380 |  | $ | 1,385 |  | $ | — |  | 32,589 |
2016 |  | 1,651 |  | 1,481 |  | 1,468 |  | 1,437 |  | 1,417 |  | 1,409 |  | 1,401 |  | 1,400 |  | 1,407 |  | — |  | 33,307 |
2017 |  |  | 1,597 |  | 1,413 |  | 1,358 |  | 1,316 |  | 1,304 |  | 1,296 |  | 1,289 |  | 1,294 |  | — |  | 30,929 |
2018 |  |  |  | 1,647 |  | 1,387 |  | 1,309 |  | 1,277 |  | 1,276 |  | 1,271 |  | 1,279 |  | — |  | 28,428 |
2019 |  |  |  |  | 1,650 |  | 1,424 |  | 1,327 |  | 1,284 |  | 1,287 |  | 1,277 |  | — |  | 27,467 |
2020 |  |  |  |  |  | 1,686 |  | 1,407 |  | 1,323 |  | 1,282 |  | 1,260 |  | — |  | 25,862 |
2021 |  |  |  |  |  |  | 1,768 |  | 1,521 |  | 1,417 |  | 1,351 |  | 1 |  | 27,156 |
2022 |  |  |  |  |  |  |  | 1,842 |  | 1,566 |  | 1,452 |  | 6 |  | 25,952 |
2023 |  |  |  |  |  |  |  |  | 1,988 |  | 1,700 |  | 44 |  | 28,026 |
2024 |  |  |  |  |  |  |  |  |  | 1,960 |  | 970 |  | 18,035 |
Total |  |  |  |  |  |  |  |  |  | $ | 14,365 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
|  | For the years ended December 31,
|  | (Unaudited) |
Incurral Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024
2015 | $ | 108 |  | $ | 460 |  | $ | 687 |  | $ | 806 |  | $ | 891 |  | $ | 962 |  | $ | 1,025 |  | $ | 1,078 |  | $ | 1,125 |  | $ | 1,164 |
2016 |  | 112 |  | 479 |  | 705 |  | 819 |  | 907 |  | 981 |  | 1,043 |  | 1,100 |  | 1,144 |
2017 |  |  | 109 |  | 452 |  | 658 |  | 757 |  | 842 |  | 911 |  | 970 |  | 1,017 |
2018 |  |  |  | 105 |  | 447 |  | 639 |  | 743 |  | 827 |  | 897 |  | 954 |
2019 |  |  |  |  | 101 |  | 454 |  | 650 |  | 751 |  | 832 |  | 895 |
2020 |  |  |  |  |  | 100 |  | 458 |  | 663 |  | 767 |  | 839 |
2021 |  |  |  |  |  |  | 101 |  | 493 |  | 720 |  | 820 |
2022 |  |  |  |  |  |  |  | 101 |  | 496 |  | 719 |
2023 |  |  |  |  |  |  |  |  | 116 |  | 562 |
2024 |  |  |  |  |  |  |  |  |  | 129 |
Total |  |  |  |  |  |  |  |  |  | $ | 8,243 |
Group Life and Accident, excluding Premium Waiver
Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31, |  |
| (Unaudited) |  |  |
Incurral Year | 2022 | 2023 | 2024 | IBNR Reserves | Claims Reported
2022 | $ | 2,061 |  | $ | 2,053 |  | $ | 2,056 |  | $ | 12 |  | 72,225 |
2023 |  | 2,108 |  | 2,092 |  | 25 |  | 74,958 |
2024 |  |  | 2,065 |  | 380 |  | 59,084 |
Total |  |  | $ | 6,213 |  |  |
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance
| For the years ended December 31,
| (Unaudited) |
Incurral Year | 2022 | 2023 | 2024
2022 | $ | 1,562 |  | $ | 2,018 |  | $ | 2,040 |
2023 |  | 1,572 |  | 2,053 |
2024 |  |  | 1,576 |
Total |  |  | $ | 5,669 |
Group life, disability and accident reserves, including IBNR The majority of Employee Benefits’ reserves are for LTD claimants who are known to be disabled and are currently receiving benefits. A Disabled Life Reserve ("DLR") is calculated for each LTD claim. The DLR for each claim is the expected present value of all estimated future benefit payments and includes estimates of claim recovery, investment yield, and offsets from other income, including offsets from Social Security benefits and workers’ compensation. Estimated future benefit payments represent the monthly income benefit that is paid until recovery, death or expiration of benefits. Claim recoveries are estimated based on claim characteristics such as age and diagnosis and represent an estimate of benefits that will terminate, generally as a result of the claimant returning to work or being deemed able to return to work. The DLR also includes a liability for payments to claimants who have not yet been approved for LTD. In these cases, the present value of future benefits is reduced for the likelihood of claim denial based on Company experience. For claims recently closed due to recovery, a portion of the DLR is retained for the possibility that the claim reopens upon further evidence of disability. In addition, a reserve for estimated unpaid claim expenses is included in the DLR. For incurral years with IBNR claims, estimates of ultimate losses are made by applying completion factors to the dollar amount of claims reported or expected depending on the market segment. IBNR represents estimated ultimate losses less both DLR and cumulative paid amounts for all reported claims. Completion factors are derived using standard actuarial techniques using triangles that display historical claim count emergence by incurral month. These estimates are reviewed for reasonableness and are adjusted for current trends and other factors expected to cause a change in claim emergence. The IBNR includes an estimate of unpaid claim expenses, including a provision for the cost of initial set-up of the claim once reported. For all products, including LTD, there is a period generally ranging from two to twelve months, depending on the product and market segment, where emerged claim information for an incurral year is not yet credible enough to be a basis for an IBNR projection. In these cases, the ultimate losses and allocated loss adjustment expenses are estimated using earned premium multiplied by an expected loss ratio. The Company also records reserves for future death benefits under group term life policies that provide for premiums to be waived in the event the insured is unable to work due to disability and has satisfied an elimination period, which is typically nine months (premium waiver reserves). The death benefit reserve for these group life premium waiver claims is estimated for a known disabled claimant equal to the present value of expected future cash outflows (typically a lump sum face amount payable at death plus claim expenses) with separate estimates for claimant recovery (when no death benefit is payable) and for death before recovery or benefit expiry (when death benefit is payable). The IBNR for premium waiver death benefits is estimated with standard actuarial development methods. In addition, the Company also records reserves for group term life, accidental loss of life and severe injury, short-term disability, and other group products that have short claim payout periods. For these products, reserves are determined using paid or reported actuarial development methods. The resulting claim triangles produce a completion pattern and estimate of ultimate loss. IBNR for these lines of business equals the estimated ultimate losses and loss adjustment expenses less the amount of paid or reported claims depending on whether the paid or reported development method was used. Estimates are reviewed for reasonableness and are adjusted for current trends or other factors that affect the development pattern. Cumulative number of reported claims For group life, disability and accident coverages, claim counts include claims that are approved, pending approval and terminated and exclude denied claims. Due to the nature of the claims, one claimant represents one event.
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance |
| (Unaudited) |
| 1st Year | 2nd Year | 3rd Year | 4th Year | 5th Year | 6th Year | 7th Year | 8th Year | 9th Year | 10th Year |
Group long-term disability | 7.6 | % | 27.0 | % | 15.9 | % | 8.0 | % | 6.3 | % | 5.2 | % | 4.5 | % | 3.8 | % | 3.3 | % | 2.8 | % |
Group life and accident, excluding premium waiver | 75.8 | % | 22.6 | % | 1.1 | % |  |  |  |  |  |  |  |
11. RESERVE FOR FUTURE POLICY BENEFITS
Rollforward of Reserve for Future Policy Benefits |  |  |
| For the year ended December 31, |  |  |
| 2024 |  | 2023 |  | 2022 |  |  |
| Payout Annuities | Life Conversions | Paid-up Life |  | 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 |  | $ | 49 |  |  |  |  | $ | 47 |  |  |  |  | $ | 58 |  |  |  |  |
Balance, ending of the period |  | $ | 45 |  |  |  |  | $ | 49 |  |  |  |  | $ | 47 |  |  |  |  |
Present Value of Expected Future Policy Benefits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance at single-A rate | $ | 137 |  | $ | 113 |  | $ | 185 |  |  | $ | 140 |  | $ | 112 |  | $ | 192 |  |  | $ | 188 |  | $ | 152 |  | $ | 262 |  |  |  |
Beginning adjustment for changes in single-A rate | 7 |  | (11) |  | (32) |  |  | 4 |  | (14) |  | (39) |  |  | 47 |  | 19 |  | 14 |  |  |  |
Beginning balance at original discount rate | 130 |  | 124 |  | 217 |  |  | 136 |  | 126 |  | 231 |  |  | 141 |  | 133 |  | 248 |  |  |  |
Effect of changes in cash flow assumptions | 2 |  | 2 |  | — |  |  | (2) |  | — |  | — |  |  | — |  | — |  | — |  |  |  |
Effect of actual variances from expected experience | 1 |  | 3 |  | (1) |  |  | 1 |  | 7 |  | (1) |  |  | — |  | 5 |  | — |  |  |  |
Adjusted beginning balance | 133 |  | 129 |  | 216 |  |  | 135 |  | 133 |  | 230 |  |  | 141 |  | 138 |  | 248 |  |  |  |
Interest accrual and other | 7 |  | 20 |  | 7 |  |  | 7 |  | 20 |  | 8 |  |  | 8 |  | 17 |  | 7 |  |  |  |
Benefit Payments | (12) |  | (28) |  | (22) |  |  | (12) |  | (29) |  | (21) |  |  | (13) |  | (29) |  | (24) |  |  |  |
Ending balance at original discount rate | 128 |  | 121 |  | 201 |  |  | 130 |  | 124 |  | 217 |  |  | 136 |  | 126 |  | 231 |  |  |  |
Ending adjustment for changes in single-A rate | — |  | (15) |  | (33) |  |  | 7 |  | (11) |  | (32) |  |  | 4 |  | (14) |  | (39) |  |  |  |
Ending balance at single-A rate | $ | 128 |  | $ | 106 |  | $ | 168 |  |  | $ | 137 |  | $ | 113 |  | $ | 185 |  |  | $ | 140 |  | $ | 112 |  | $ | 192 |  |  |  |
Net reserve for future policy benefits | $ | 128 |  | $ | 61 |  | $ | 168 |  |  | $ | 137 |  | $ | 64 |  | $ | 185 |  |  | $ | 140 |  | $ | 65 |  | $ | 192 |  |  |  |
Weighted-average duration of the reserve for future policy benefits (years) | 9.2 | 11.0 | 6.3 |  | 9.0 | 12.2 | 6.4 |  | 9.2 | 11.4 | 6.4 |  |  |
Net Reserve for Future Policy Benefits
| As of December 31, |
| 2024 | 2023 | 2022 |
Payout Annuities | $ | 128 |  | $ | 137 |  | $ | 140 |  |
Life Conversions | 61 |  | 64 |  | 65 |  |
Paid-up Life | 168 |  | 185 |  | 192 |  |
Deferred Profit Liability | 17 |  | 20 |  | 19 |  |
Other | 74 |  | 78 |  | 86 |  |
Total | $ | 448 |  | $ | 484 |  | $ | 502 |  |
Undiscounted Expected Future Gross Premiums and Benefit Payments
| As of December 31,
| 2024 | 2023 | 2022
Payout Annuities [1] |  |  |
Expected future benefit payments | $ | 256 |  | $ | 257 |  | $ | 272 |
Life Conversions |  |  |
Expected future gross premiums | $ | 106 |  | $ | 114 |  | $ | 120 |
Expected future benefit payments | $ | 198 |  | $ | 204 |  | $ | 212 |
Paid-up Life [1] |  |  |
Expected future benefit payments | $ | 260 |  | $ | 281 |  | $ | 300 |
[1]Payout Annuities and Paid-up Life have no expected future gross premiums.
Weighted-Average Interest Rates
| As of December 31,
| 2024 | 2023 | 2022
Payout Annuities |  |  |
Interest accretion rate | 5.6 | % | 5.6 | % | 5.6 | %
Current discount rate | 5.5 | % | 5.0 | % | 5.3 | %
Life Conversions |  |  |
Interest accretion rate | 4.3 | % | 4.2 | % | 4.1 | %
Current discount rate | 5.6 | % | 5.1 | % | 5.3 | %
Paid-up Life |  |  |
Interest accretion rate | 2.9 | % | 2.9 | % | 2.9 | %
Current discount rate | 5.3 | % | 5.0 | % | 5.2 | %
The Company completed a review of cash flow assumptions in the third quarter 2024 and 2023, resulting in immaterial changes to the reserve for future policy benefits. For payout annuities, the net effect of updating cash flow assumptions was offset by a corresponding impact to the deferred profit liability. Gross premiums and interest accretion recognized on long-duration insurance policies for the years ended December 31, 2024, 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 -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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