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Claim and Claim Adjustment Expense Reserves (Tables) | 3 Months Ended
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Mar. 31, 2021
Claim and Claim Adjustment Expense Reserves [Abstract] |
Reconciliation of Claim and Claim Adjustment Expense Reserves | The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of other insurance operations.
Three Months Ended March 31 |  | 2021 |  |  | 2020 |
(In millions) |  |  |  |  |  |
Reserves, beginning of year: |  |  |  |  |  |
Gross |  | $ | 22,706 |  |  | $ | 21,720 |
Ceded |  |  | 4,005 |  |  |  | 3,835 |
Net reserves, beginning of year |  |  | 18,701 |  |  |  | 17,885 |
Reduction of net reserves due to the excess workers’ compensation loss portfolio transfer |  |  | (632 | ) |  |  |  |
Net incurred claim and claim adjustment expenses: |  |  |  |  |  |  |  |
Provision for insured events of current year |  |  | 1,474 |  |  |  | 1,355 |
Increase (decrease) in provision for insured events of prior years |  |  | (54 | ) |  |  | (8 | )
Amortization of discount |  |  | 50 |  |  |  | 51 |
Total net incurred (a) |  |  | 1,470 |  |  |  | 1,398 |
Net payments attributable to: |  |  |  |  |  |  |  |
Current year events |  |  | (85 | ) |  |  | (72 | )
Prior year events |  |  | (1,067 | ) |  |  | (1,218 | )
Total net payments |  |  | (1,152 | ) |  |  | (1,290 | )
Foreign currency translation adjustment and other |  |  | (32 | ) |  |  | (88 | )
Net reserves, end of period |  |  | 18,355 |  |  |  | 17,905 |
Ceded reserves, end of period |  |  | 4,701 |  |  |  | 3,967 |
Gross reserves, end of period |  | $ | 23,056 |  |  | $ | 21,872 |
(a) | Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, the loss on the excess workers’ compensation loss portfolio transfer, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above.
Net Prior Year Loss Reserve Development in Property and Casualty Operations | The following table and discussion present details of the net prior year claim and claim adjustment expense reserve development in Property & Casualty Operations:
Three Months Ended March 31 |  | 2021 |  |  | 2020 |
(In millions) |  |  |  |  |  |
Medical professional liability |  | $ | 8 |  |  | $ | 10 |
Other professional liability and management liability |  |  |  |  |  |  | 3 |
Surety |  |  | (15 | ) |  |  | (30 | )
Commercial auto |  |  |  |  |  |  | 9 |
Workers’ compensation |  |  |  |  |  |  | (13 | )
Property and other |  |  | (8 | ) |  |  | 6 |
Total pretax (favorable) unfavorable development |  | $ | (15 | ) |  | $ | (15 | )

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- Definition Tabular disclosure of the reasons for the change in incurred claims and claim adjustment expenses recognized in the income statement attributable to insured events of prior fiscal years. Also includes disclosures of additional premiums or return premiums accrued as a result of changes in incurred claims and claim adjustment expenses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=116884095&loc=d3e14764-158437 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.W) -URI http://asc.fasb.org/extlink&oid=27015833&loc=d3e570705-122907 + Details
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- Definition Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=116884095&loc=d3e14764-158437 + Details
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