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Property Casualty Loss And Loss Expenses | 12 Months Ended
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Dec. 31, 2023
Insurance [Abstract] |
Property Casualty Loss And Loss Expenses | Property Casualty Loss and Loss Expenses We use actuarial methods, models, assumptions and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including IBNR claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and finance management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. Our reserving process takes into account known facts and interpretations of circumstances and factors including the type of claim, policy provisions pertaining to each claim, potential subrogation or salvage recoverable, large loss activity and trends, new business activity, judicial decisions, economic conditions, changes in law and regulation and product and underwriting changes. There have been no significant changes in methodologies and assumptions used in calculating loss and loss expense reserves for all years presented. There were no material additional premiums or return premiums accrued for as a result of prior-year effects. Our claims representatives establish case reserves when claims are reported to provide for our unpaid loss and loss expense obligation associated with individual claims. For events designated as natural catastrophes resulting in losses incurred related to direct premiums, we calculate IBNR reserves directly as a result of an estimated claim counts and estimated average dollar amount per claim for each event. Once individual case reserves are established for a catastrophe event, we reduce the IBNR reserves. Our actuarial staff uses generally accepted actuarial methods and models to derive ultimate loss and IBNR reserve estimates. The time interval between a claims occurrence and its settlement is one of the crucial attributes when estimating ultimate losses and IBNR reserves. Due to the uncertainties inherent with loss reserves, our ultimate loss experience could prove better or worse than what our carried reserves reflect. To the extent that reserves are inadequate and are required to be increased, the amount of the increase is a charge in that period, raising our loss and loss expense ratio and reducing earnings. To the extent that reserves are redundant and are required to be released, the amount of the release is a credit in that period, reducing our loss and loss expense ratio and increasing earnings. This table summarizes activity for our consolidated property casualty loss and loss expense reserves:
(Dollars in millions) |  | Years ended December 31,
|  | 2023 |  | 2022 |  | 2021
Gross loss and loss expense reserves, January 1 |  | $ | 8,336 |  |  | $ | 7,229 |  |  | $ | 6,677 |
Less reinsurance recoverable |  | 405 |  |  | 327 |  |  | 277 |
Net loss and loss expense reserves, January 1 |  | 7,931 |  |  | 6,902 |  |  | 6,400 |
Net incurred loss and loss expenses related to: |  |  |  |  |  |
Current accident year |  | 5,173 |  |  | 4,875 |  |  | 4,024 |
Prior accident years |  | (215) |  |  | (159) |  |  | (428) |
Total incurred |  | 4,958 |  |  | 4,716 |  |  | 3,596 |
Net paid loss and loss expenses related to: |  |  |  |  |  |
Current accident year |  | 1,875 |  |  | 1,592 |  |  | 1,379 |
Prior accident years |  | 2,401 |  |  | 2,095 |  |  | 1,715 |
Total paid |  | 4,276 |  |  | 3,687 |  |  | 3,094 |
Net loss and loss expense reserves, December 31 |  | 8,613 |  |  | 7,931 |  |  | 6,902 |
Plus reinsurance recoverable |  | 362 |  |  | 405 |  |  | 327 |
Gross loss and loss expense reserves, December 31 |  | $ | 8,975 |  |  | $ | 8,336 |  |  | $ | 7,229 |
The reserve for loss and loss expense in the consolidated balance sheets also included $75 million, $64 million and $76 million, at December 31, 2023, 2022 and 2021, respectively, for certain life and health loss and loss expense reserves. Additional disclosures for reserves related to these health claims are not material and therefore not provided. We experienced $215 million of favorable development on prior accident years including $123 million of favorable development in commercial lines, $64 million of favorable development in personal lines and $11 million of favorable development in excess and surplus lines during 2023. Within commercial lines, we recognized favorable development of $66 million for the workers' compensation line and $55 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $15 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $53 million for the homeowner line of business and $15 million in personal auto. We experienced $159 million of favorable development on prior accident years including $76 million of favorable development in commercial lines, $61 million of favorable development in personal lines and $9 million of favorable development in excess and surplus lines during 2022. Within commercial lines, we recognized favorable development of $63 million for the workers' compensation line and $44 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $25 million for the commercial casualty line and $23 million for the commercial auto line. Within personal lines, we recognized favorable reserve development of $54 million for the homeowner line of business. We experienced $428 million of favorable development on prior accident years including $353 million of favorable development in commercial lines, $50 million of favorable development in personal lines and $7 million of unfavorable development in excess and surplus lines during 2021. Within commercial lines, we recognized favorable development of $120 million for the commercial casualty line, $97 million for the commercial property line, $66 million for the workers' compensation line and $43 million or the commercial auto line due to reduced uncertainty of prior accident year loss and loss expense for these lines. Within personal lines, we recognized favorable reserve development of $31 million in personal auto and $14 million for the homeowner line of business. Included in our lines of business are asbestos and environmental claims. We carried $98 million and $92 million of net loss and loss expense reserves for asbestos and environmental claims at December 31, 2023 and 2022, respectively. The asbestos and environmental claims amounts for each respective year constituted less than 2.0% of total net loss and loss expense reserves at these year-end dates. We believe our exposure to asbestos and environmental claims is limited, largely because our reinsurance retention was $500,000 or below prior to 1987. We also were predominantly a personal lines company in the 1960s and 1970s. During the 1980s and early 1990s, commercial lines grew as a percentage of our overall business and our exposure to asbestos and environmental claims grew accordingly. Over that period, we included an asbestos and environmental exclusion in almost all policies or endorsed the exclusion to the policies. We have no exposure to asbestos and environmental claims related to our acquisition of Cincinnati Global. We continue to monitor our claims for evidence of material exposure to other mass tort classes but have found no such credible evidence to date. The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2023.
(Dollars in millions) |  | Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance |  | Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance |  | Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance |  | Total liabilities for loss and ALAE, net of reinsurance |  | Reinsurance recoverable on unpaid losses |  | Total liabilities for gross loss and loss expense reserves
Commercial casualty |  | $ | 6,497 |  |  | $ | 3,680 |  |  | $ | 91 |  |  | $ | 2,908 |  |  | $ | 19 |  |  | $ | 2,927 |
Workers' compensation |  | 1,826 |  |  | 1,160 |  |  | 316 |  |  | 982 |  |  | 54 |  |  | 1,036 |
Commercial auto |  | 2,432 |  |  | 1,657 |  |  | 32 |  |  | 807 |  |  | 4 |  |  | 811 |
Commercial property |  | 3,496 |  |  | 3,033 |  |  | 12 |  |  | 475 |  |  | 50 |  |  | 525 |
Personal auto |  | 1,884 |  |  | 1,594 |  |  | 12 |  |  | 302 |  |  | 25 |  |  | 327 |
Homeowner |  | 2,576 |  |  | 2,231 |  |  | 6 |  |  | 351 |  |  | (3) |  |  | 348 |
Excess and surplus |  | 1,545 |  |  | 707 |  |  | 4 |  |  | 842 |  |  | 33 |  |  | 875 |
Other lines |  | 1,686 |
Total liabilities for loss and ALAE reserves |  | 8,535 |
Unallocated loss adjustment expense reserves |  | 440 |
Gross loss and loss expense reserves |  | $ | 8,975 |
For all lines of business, the claim counts reported are primarily measured by insurance coverages that are triggered when a loss occurs and a reserve is established. For this purpose, coverages are defined as unique combinations of certain attributes such as line of business and cause of loss. Claims that are opened and closed without payment are included in the reported claim counts. Claim counts are presented on a direct basis only and do not reflect any assumed or ceded reinsurance. In the following tables, commercial casualty, workers' compensation and excess and surplus lines each disclose 10 accident years of loss and ALAE reserves and the cumulative number of reported claims. Commercial auto, commercial property, personal auto and homeowner each disclose five accident years of loss and ALAE reserves and the cumulative number of reported claims consistent with the number of years for which claims incurred typically remain outstanding. Commercial Casualty The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) | As of December 31, 2023
Incurred losses and ALAE, net of reinsurance for the years ended December 31, |  |  |  |  |  | Total of incurred but not reported liabilities plus expected development on reported losses |  | Cumulative number of reported claims
Accident |  | Unaudited |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2014 |  | $ | 503 |  |  | $ | 496 |  |  | $ | 479 |  |  | $ | 476 |  |  | $ | 479 |  |  | $ | 465 |  |  | $ | 469 |  |  | $ | 466 |  |  | $ | 462 |  |  | $ | 464 |  |  | $ | 10 |  |  | 21 |
2015 |  |  |  | 533 |  |  | 526 |  |  | 529 |  |  | 516 |  |  | 508 |  |  | 502 |  |  | 504 |  |  | 496 |  |  | 513 |  |  | 14 |  |  | 22 |
2016 |  |  |  |  |  | 563 |  |  | 574 |  |  | 557 |  |  | 555 |  |  | 554 |  |  | 538 |  |  | 531 |  |  | 525 |  |  | 19 |  |  | 22 |
2017 |  |  |  |  |  |  |  | 610 |  |  | 597 |  |  | 577 |  |  | 571 |  |  | 555 |  |  | 554 |  |  | 553 |  |  | 29 |  |  | 21 |
2018 |  |  |  |  |  |  |  |  |  | 650 |  |  | 641 |  |  | 622 |  |  | 588 |  |  | 612 |  |  | 618 |  |  | 55 |  |  | 22 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 672 |  |  | 643 |  |  | 607 |  |  | 669 |  |  | 682 |  |  | 80 |  |  | 21 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 674 |  |  | 629 |  |  | 606 |  |  | 593 |  |  | 112 |  |  | 15 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 714 |  |  | 697 |  |  | 697 |  |  | 265 |  |  | 14 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 924 |  |  | 902 |  |  | 453 |  |  | 13 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 950 |  |  | 729 |  |  | 8 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 6,497 |  |  |  |  |
Cumulative paid losses and ALAE, net of reinsurance
2014 |  | $ | 34 |  |  | $ | 97 |  |  | $ | 172 |  |  | $ | 287 |  |  | $ | 338 |  |  | $ | 390 |  |  | $ | 409 |  |  | $ | 421 |  |  | $ | 437 |  |  | $ | 447 |  |  |  |  |
2015 |  |  |  | 38 |  |  | 108 |  |  | 200 |  |  | 287 |  |  | 362 |  |  | 404 |  |  | 424 |  |  | 453 |  |  | 471 |  |  |  |  |
2016 |  |  |  |  |  | 46 |  |  | 126 |  |  | 228 |  |  | 331 |  |  | 395 |  |  | 434 |  |  | 466 |  |  | 485 |  |  |  |  |
2017 |  |  |  |  |  |  |  | 48 |  |  | 122 |  |  | 234 |  |  | 320 |  |  | 392 |  |  | 437 |  |  | 486 |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  | 44 |  |  | 148 |  |  | 253 |  |  | 345 |  |  | 441 |  |  | 505 |  |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 39 |  |  | 134 |  |  | 259 |  |  | 394 |  |  | 503 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 33 |  |  | 102 |  |  | 242 |  |  | 345 |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 31 |  |  | 123 |  |  | 251 |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 37 |  |  | 141 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 46 |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,680 |  |  |  |  |
All outstanding liabilities before 2014, net of reinsurance |  | 91 |  |  |  |  |
Liabilities for loss and ALAE, net of reinsurance |  | $ | 2,908 |  |  |  |  |
The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business:
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
Average annual percentage payout |  | 6.4% |  | 13.7% |  | 18.9% |  | 18.4% |  | 13.8% |  | 9.1% |  | 5.7% |  | 4.0% |  | 3.5% |  | 2.1%
Workers’ Compensation The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) | As of December 31, 2023
Incurred losses and ALAE, net of reinsurance for the years ended December 31, |  |  |  |  |  | Total of incurred but not reported liabilities plus expected development on reported losses |  | Cumulative number of reported claims
Accident |  | Unaudited |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2014 |  | $ | 261 |  |  | $ | 233 |  |  | $ | 214 |  |  | $ | 203 |  |  | $ | 201 |  |  | $ | 198 |  |  | $ | 197 |  |  | $ | 202 |  |  | $ | 202 |  |  | $ | 203 |  |  | $ | 15 |  |  | 19 |
2015 |  |  |  | 246 |  |  | 220 |  |  | 208 |  |  | 195 |  |  | 179 |  |  | 173 |  |  | 173 |  |  | 171 |  |  | 167 |  |  | 20 |  |  | 17 |
2016 |  |  |  |  |  | 230 |  |  | 218 |  |  | 206 |  |  | 188 |  |  | 183 |  |  | 183 |  |  | 183 |  |  | 181 |  |  | 22 |  |  | 16 |
2017 |  |  |  |  |  |  |  | 218 |  |  | 208 |  |  | 190 |  |  | 183 |  |  | 172 |  |  | 167 |  |  | 160 |  |  | 21 |  |  | 15 |
2018 |  |  |  |  |  |  |  |  |  | 222 |  |  | 207 |  |  | 199 |  |  | 186 |  |  | 179 |  |  | 175 |  |  | 26 |  |  | 15 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 224 |  |  | 215 |  |  | 202 |  |  | 188 |  |  | 178 |  |  | 31 |  |  | 14 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 204 |  |  | 190 |  |  | 172 |  |  | 153 |  |  | 39 |  |  | 11 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 202 |  |  | 190 |  |  | 183 |  |  | 42 |  |  | 11 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 209 |  |  | 205 |  |  | 65 |  |  | 11 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 221 |  |  | 106 |  |  | 9 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,826 |  |  |  |  |
Cumulative paid losses and ALAE, net of reinsurance
2014 |  | $ | 56 |  |  | $ | 110 |  |  | $ | 134 |  |  | $ | 148 |  |  | $ | 157 |  |  | $ | 162 |  |  | $ | 165 |  |  | $ | 168 |  |  | $ | 171 |  |  | $ | 172 |  |  |  |  |
2015 |  |  |  | 47 |  |  | 93 |  |  | 115 |  |  | 129 |  |  | 134 |  |  | 137 |  |  | 139 |  |  | 139 |  |  | 140 |  |  |  |  |
2016 |  |  |  |  |  | 46 |  |  | 97 |  |  | 119 |  |  | 131 |  |  | 141 |  |  | 146 |  |  | 148 |  |  | 150 |  |  |  |  |
2017 |  |  |  |  |  |  |  | 45 |  |  | 88 |  |  | 106 |  |  | 114 |  |  | 119 |  |  | 122 |  |  | 126 |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  | 48 |  |  | 95 |  |  | 115 |  |  | 127 |  |  | 133 |  |  | 135 |  |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 49 |  |  | 94 |  |  | 115 |  |  | 122 |  |  | 129 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 37 |  |  | 68 |  |  | 82 |  |  | 96 |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 37 |  |  | 82 |  |  | 100 |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 37 |  |  | 76 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 36 |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,160 |  |  |  |  |
All outstanding liabilities before 2014, net of reinsurance |  | 316 |  |  |  |  |
Liabilities for loss and ALAE, net of reinsurance |  | $ | 982 |  |  |  |  |
The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business:
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
Average annual percentage payout |  | 24.3% |  | 25.2% |  | 11.3% |  | 6.6% |  | 3.9% |  | 2.1% |  | 1.6% |  | 0.8% |  | 0.8% |  | 0.9%
Commercial Auto The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) | As of December 31, 2023
Incurred losses and ALAE, net of reinsurance for the years ended December 31, |  |  | Total of incurred but not reported liabilities plus expected development on reported losses |  | Cumulative number of reported claims
Accident |  | Unaudited |  |  |  |
Year |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2019 |  | $ | 452 |  |  | $ | 451 |  |  | $ | 453 |  |  | $ | 469 |  |  | $ | 471 |  |  | $ | 7 |  |  | 46 |
2020 |  |  |  | 424 |  |  | 391 |  |  | 384 |  |  | 377 |  |  | 16 |  |  | 36 |
2021 |  |  |  |  |  | 470 |  |  | 477 |  |  | 465 |  |  | 51 |  |  | 39 |
2022 |  |  |  |  |  |  |  | 558 |  |  | 569 |  |  | 105 |  |  | 41 |
2023 |  |  |  |  |  |  |  |  |  | 550 |  |  | 203 |  |  | 34 |
Total |  |  |  |  |  |  |  |  |  | $ | 2,432 |  |  |  |  |
Cumulative paid losses and ALAE, net of reinsurance |  |  |  |  |  |
2019 |  | $ | 183 |  |  | $ | 268 |  |  | $ | 333 |  |  | $ | 395 |  |  | $ | 435 |  |  |  |  |
2020 |  |  |  | 154 |  |  | 214 |  |  | 280 |  |  | 328 |  |  |  |  |
2021 |  |  |  |  |  | 179 |  |  | 278 |  |  | 346 |  |  |  |  |
2022 |  |  |  |  |  |  |  | 217 |  |  | 332 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  | 216 |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  | 1,657 |  |  |  |  |
All outstanding liabilities before 2019, net of reinsurance |  | 32 |  |  |  |  |
Liabilities for loss and ALAE, net of reinsurance |  | $ | 807 |  |  |  |  |
The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses.
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5
Average annual percentage payout |  | 39.1% |  | 18.9% |  | 15.3% |  | 12.8% |  | 8.6%
Commercial Property The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) | As of December 31, 2023
Incurred losses and ALAE, net of reinsurance for the years ended December 31, |  |  |  | Total of incurred but not reported liabilities plus expected development on reported losses |  | Cumulative number of reported claims
Accident |  | Unaudited |  |  |  |
Year |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2019 |  | $ | 621 |  |  | $ | 606 |  |  | $ | 600 |  |  | $ | 598 |  |  | $ | 592 |  |  | $ | 3 |  |  | 17 |
2020 |  |  |  | 855 |  |  | 742 |  |  | 719 |  |  | 716 |  |  | 22 |  |  | 24 |
2021 |  |  |  |  |  | 607 |  |  | 586 |  |  | 576 |  |  | 5 |  |  | 14 |
2022 |  |  |  |  |  |  |  | 813 |  |  | 779 |  |  | 24 |  |  | 16 |
2023 |  |  |  |  |  |  |  |  |  | 833 |  |  | 92 |  |  | 12 |
Total |  |  |  |  |  |  |  |  |  | $ | 3,496 |  |  |  |  |
Cumulative paid losses and ALAE, net of reinsurance |  |  |  |  |  |
2019 |  | $ | 413 |  |  | $ | 561 |  |  | $ | 579 |  |  | $ | 590 |  |  | $ | 591 |  |  |  |  |
2020 |  |  |  | 489 |  |  | 637 |  |  | 672 |  |  | 687 |  |  |  |  |
2021 |  |  |  |  |  | 326 |  |  | 527 |  |  | 558 |  |  |  |  |
2022 |  |  |  |  |  |  |  | 393 |  |  | 691 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  | 506 |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  | 3,033 |  |  |  |  |
All outstanding liabilities before 2019, net of reinsurance |  | 12 |  |  |  |  |
Liabilities for loss and ALAE, net of reinsurance |  | $ | 475 |  |  |  |  |
The following table shows the average annual percentage payout of incurred losses for the commercial property line of business:
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5
Average annual percentage payout |  | 61.1% |  | 29.7% |  | 4.5% |  | 2.0% |  | —%
Personal Auto The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) | As of December 31, 2023
Incurred losses and ALAE, net of reinsurance for the years ended December 31, |  |  | Total of incurred but not reported liabilities plus expected development on reported losses |  | Cumulative number of reported claims
Accident |  | Unaudited |  |  |  |
Year |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2019 |  | $ | 399 |  |  | $ | 383 |  |  | $ | 380 |  |  | $ | 383 |  |  | $ | 381 |  |  | $ | 2 |  |  | 102 |
2020 |  |  |  | 305 |  |  | 281 |  |  | 277 |  |  | 277 |  |  | 3 |  |  | 71 |
2021 |  |  |  |  |  | 350 |  |  | 343 |  |  | 342 |  |  | 6 |  |  | 80 |
2022 |  |  |  |  |  |  |  | 427 |  |  | 418 |  |  | 15 |  |  | 86 |
2023 |  |  |  |  |  |  |  |  |  | 466 |  |  | 72 |  |  | 86 |
Total |  |  |  |  |  |  |  |  |  | $ | 1,884 |  |  |  |  |
Cumulative paid losses and ALAE, net of reinsurance |  |  |  |  |  |
2019 |  | $ | 250 |  |  | $ | 314 |  |  | $ | 346 |  |  | $ | 363 |  |  | $ | 373 |  |  |  |  |
2020 |  |  |  | 186 |  |  | 225 |  |  | 248 |  |  | 264 |  |  |  |  |
2021 |  |  |  |  |  | 219 |  |  | 278 |  |  | 304 |  |  |  |  |
2022 |  |  |  |  |  |  |  | 277 |  |  | 349 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  | 304 |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  | 1,594 |  |  |  |  |
All outstanding liabilities before 2019, net of reinsurance |  | 12 |  |  |  |  |
Liabilities for loss and ALAE, net of reinsurance |  | $ | 302 |  |  |  |  |
The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses.
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5
Average annual percentage payout |  | 65.6% |  | 16.4% |  | 8.2% |  | 5.0% |  | 2.4%
Homeowner The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) | As of December 31, 2023
Incurred losses and ALAE, net of reinsurance for the years ended December 31, |  |  | Total of incurred but not reported liabilities plus expected development on reported losses |  | Cumulative number of reported claims
Accident |  | Unaudited |  |  |  |
Year |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2019 |  | $ | 432 |  |  | $ | 421 |  |  | $ | 422 |  |  | $ | 418 |  |  | $ | 418 |  |  | $ | 2 |  |  | 22 |
2020 |  |  |  | 497 |  |  | 475 |  |  | 470 |  |  | 471 |  |  | 3 |  |  | 23 |
2021 |  |  |  |  |  | 495 |  |  | 449 |  |  | 440 |  |  | 4 |  |  | 19 |
2022 |  |  |  |  |  |  |  | 552 |  |  | 505 |  |  | 21 |  |  | 20 |
2023 |  |  |  |  |  |  |  |  |  | 742 |  |  | 116 |  |  | 21 |
Total |  |  |  |  |  |  |  |  |  | $ | 2,576 |  |  |  |  |
Cumulative paid losses and ALAE, net of reinsurance |  |  |  |  |  |
2019 |  | $ | 303 |  |  | $ | 391 |  |  | $ | 407 |  |  | $ | 411 |  |  | $ | 414 |  |  |  |  |
2020 |  |  |  | 326 |  |  | 434 |  |  | 453 |  |  | 464 |  |  |  |  |
2021 |  |  |  |  |  | 285 |  |  | 405 |  |  | 424 |  |  |  |  |
2022 |  |  |  |  |  |  |  | 299 |  |  | 461 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  | 468 |  |  |  |  |
Total |  | 2,231 |  |  |  |  |
All outstanding liabilities before 2019, net of reinsurance |  | 6 |  |  |  |  |
Liabilities for loss and ALAE, net of reinsurance |  | $ | 351 |  |  |  |  |
The following table shows the average annual percentage payout of incurred losses for the homeowner line of business:
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5
Average annual percentage payout |  | 65.8% |  | 25.8% |  | 4.1% |  | 1.6% |  | 0.6%
Excess and Surplus Lines The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:
(Dollars in millions, reported claims in thousands) | As of December 31, 2023
Incurred losses and ALAE, net of reinsurance for the years ended December 31, |  |  |  |  |  | Total of incurred but not reported liabilities plus expected development on reported losses |  | Cumulative number of reported claims
Accident |  | Unaudited |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2014 |  | $ | 95 |  |  | $ | 82 |  |  | $ | 75 |  |  | $ | 64 |  |  | $ | 60 |  |  | $ | 59 |  |  | $ | 59 |  |  | $ | 58 |  |  | $ | 56 |  |  | $ | 57 |  |  | $ | — |  |  | 2 |
2015 |  |  |  | 96 |  |  | 81 |  |  | 73 |  |  | 67 |  |  | 65 |  |  | 66 |  |  | 65 |  |  | 61 |  |  | 65 |  |  | — |  |  | 2 |
2016 |  |  |  |  |  | 93 |  |  | 87 |  |  | 84 |  |  | 82 |  |  | 90 |  |  | 91 |  |  | 88 |  |  | 89 |  |  | 2 |  |  | 3 |
2017 |  |  |  |  |  |  |  | 104 |  |  | 95 |  |  | 95 |  |  | 94 |  |  | 94 |  |  | 91 |  |  | 94 |  |  | 4 |  |  | 3 |
2018 |  |  |  |  |  |  |  |  |  | 116 |  |  | 109 |  |  | 110 |  |  | 108 |  |  | 107 |  |  | 105 |  |  | 6 |  |  | 3 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 137 |  |  | 135 |  |  | 141 |  |  | 139 |  |  | 142 |  |  | 16 |  |  | 3 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 172 |  |  | 172 |  |  | 160 |  |  | 152 |  |  | 26 |  |  | 4 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 217 |  |  | 235 |  |  | 233 |  |  | 66 |  |  | 4 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 294 |  |  | 280 |  |  | 134 |  |  | 3 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 328 |  |  | 251 |  |  | 2 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,545 |  |  |  |  |
Cumulative paid losses and ALAE, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |
2014 |  | $ | 9 |  |  | $ | 17 |  |  | $ | 27 |  |  | $ | 37 |  |  | $ | 43 |  |  | $ | 48 |  |  | $ | 51 |  |  | $ | 53 |  |  | $ | 55 |  |  | $ | 55 |  |  |  |  |
2015 |  |  |  | 8 |  |  | 19 |  |  | 29 |  |  | 41 |  |  | 51 |  |  | 54 |  |  | 56 |  |  | 58 |  |  | 62 |  |  |  |  |
2016 |  |  |  |  |  | 10 |  |  | 21 |  |  | 39 |  |  | 51 |  |  | 62 |  |  | 75 |  |  | 81 |  |  | 83 |  |  |  |  |
2017 |  |  |  |  |  |  |  | 11 |  |  | 23 |  |  | 41 |  |  | 57 |  |  | 68 |  |  | 77 |  |  | 88 |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  | 11 |  |  | 26 |  |  | 50 |  |  | 62 |  |  | 75 |  |  | 88 |  |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 13 |  |  | 34 |  |  | 55 |  |  | 79 |  |  | 102 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 16 |  |  | 37 |  |  | 56 |  |  | 86 |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 17 |  |  | 45 |  |  | 82 |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 21 |  |  | 46 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15 |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  | 707 |  |  |  |  |
All outstanding liabilities before 2014, net of reinsurance |  |  |  |  |  |  |  |  |  | 4 |  |  |  |  |
Liabilities for loss and ALAE, net of reinsurance |  |  |  |  |  |  |  | $ | 842 |  |  |  |  |
The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses.
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) |  |  |  |  |  |  |  |
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
Average annual percentage payout |  | 10.1% |  | 13.2% |  | 17.4% |  | 16.2% |  | 13.1% |  | 10.4% |  | 6.3% |  | 2.7% |  | 4.3% |  | 1.1%

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- References No definition available. + Details
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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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