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Property Casualty Loss and Loss Expenses | 9 Months Ended
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Sep. 30, 2025
Premiums Written, Net [Abstract] |
Property Casualty Loss And Loss Expenses | Property Casualty Loss and Loss Expenses This table summarizes activity for our consolidated property casualty loss and loss expense reserves:
(Dollars in millions) |  | Three months ended September 30, |  | Nine months ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Gross loss and loss expense reserves, beginning of period |  | $ | 11,001 |  |  | $ | 9,494 |  |  | $ | 9,937 |  |  | $ | 8,975 |
Less reinsurance recoverable |  | 504 |  |  | 303 |  |  | 269 |  |  | 362 |
Net loss and loss expense reserves, beginning of period |  | 10,497 |  |  | 9,191 |  |  | 9,668 |  |  | 8,613 |
Net incurred loss and loss expenses related to: |  |  |  |  |  |  |  |
Current accident year |  | 1,486 |  |  | 1,570 |  |  | 5,114 |  |  | 4,392 |
Prior accident years |  | (22) |  |  | (71) |  |  | (176) |  |  | (211) |
Total incurred |  | 1,464 |  |  | 1,499 |  |  | 4,938 |  |  | 4,181 |
Net paid loss and loss expenses related to: |  |  |  |  |  |  |  |
Current accident year |  | 616 |  |  | 574 |  |  | 1,800 |  |  | 1,262 |
Prior accident years |  | 601 |  |  | 540 |  |  | 2,062 |  |  | 1,956 |
Total paid |  | 1,217 |  |  | 1,114 |  |  | 3,862 |  |  | 3,218 |
Net loss and loss expense reserves, end of period |  | 10,744 |  |  | 9,576 |  |  | 10,744 |  |  | 9,576 |
Plus reinsurance recoverable |  | 451 |  |  | 290 |  |  | 451 |  |  | 290 |
Gross loss and loss expense reserves, end of period |  | $ | 11,195 |  |  | $ | 9,866 |  |  | $ | 11,195 |  |  | $ | 9,866 |
We use actuarial methods, models 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 incurred but not reported (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 accounting 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. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $65 million and $62 million at September 30, 2025, and 2024, respectively, for certain life and health loss and loss expense reserves. We experienced $22 million of favorable development on prior accident years, including $18 million of favorable development in commercial lines, $14 million of unfavorable development in personal lines and $4 million of favorable development in excess and surplus lines for the three months ended September 30, 2025. Within commercial lines, we recognized favorable reserve development of $38 million for the commercial property line and $17 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. This was partially offset by unfavorable reserve development of $24 million for the commercial casualty line and $10 million for the commercial auto line. We experienced $176 million of favorable development on prior accident years, including $103 million of favorable development in commercial lines, $24 million of favorable development in personal lines and $18 million of favorable development in excess and surplus lines for the nine months ended September 30, 2025. Within commercial lines, we recognized favorable reserve development of $113 million for the commercial property line and $45 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. This was partially offset by unfavorable reserve development of $35 million for the commercial auto line and $21 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $47 million for the homeowner line. We experienced $71 million of favorable development on prior accident years, including $50 million of favorable development in commercial lines, less than $1 million of unfavorable development in personal lines and $5 million of unfavorable development in excess and surplus lines for the three months ended September 30, 2024. Within commercial lines, we recognized favorable reserve development of $33 million for the commercial property line and $16 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. We experienced $211 million of favorable development on prior accident years, including $117 million of favorable development in commercial lines, $27 million of favorable development in personal lines and $5 million of unfavorable development in excess and surplus lines for the nine months ended September 30, 2024. Within commercial lines, we recognized favorable reserve development of $76 million for the commercial property line, $56 million for the workers' compensation line and $10 million for the commercial auto line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. This was partially offset by unfavorable reserve development of $27 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $37 million for the homeowner line.

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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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