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Claim and Claim Adjustment Expense Reserves
 12 Months Ended
Dec. 31, 2024
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]  
Claim and Claim Adjustment Expense Reserves Claim and Claim Adjustment Expense Reserves
Claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (IBNR) claims as of the reporting date. The Company's reserve projections are based primarily on detailed analysis of the facts in each case, the Company's experience with similar cases and various historical development patterns. Consideration is given to historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, economic, medical and social inflation, and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves.
Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers' compensation, general liability and professional liability claims. Claim and claim adjustment expense reserves are also maintained for the Company's structured settlement obligations. In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, the Company's actuaries review mortality experience on an annual basis. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that the Company's ultimate cost for insurance losses will not exceed current estimates.
Liability for Unpaid Claim and Claim Adjustment Expenses
The table below reconciles the net liability for unpaid claim and claim adjustment expenses to the amount presented on the Consolidated Balance Sheets.
As of December 31
(In millions)2024
Net liability for unpaid claim and claim adjustment expenses:
Specialty$5,979 
Commercial9,939 
International2,416 
Life & Group (1)
541 
Corporate & Other388 
Total net claim and claim adjustment expenses19,263 
Reinsurance receivables: (2)
Specialty1,447 
Commercial1,397 
International504 
Life & Group81 
Corporate & Other (3)
2,284 
Total reinsurance receivables5,713 
Total gross liability for unpaid claim and claim adjustment expenses$24,976 
(1) The Life & Group segment amounts are related to unfunded structured settlements arising from short-duration contracts.
(2) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses.
(3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the A&EP Loss Portfolio Transfer (LPT).
The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.
As of or for the years ended December 31
(In millions)202420232022
Reserves, beginning of year:
Gross$23,304 $22,120 $21,269 
Ceded5,141 5,191 4,969 
Net reserves, beginning of year18,163 16,929 16,300 
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year6,330 5,667 5,181 
Increase (decrease) in provision for insured events of prior years42 48 (32)
Amortization of discount39 44 44 
Total net incurred (1)
6,411 5,759 5,193 
Net payments attributable to:
Current year events(1,093)(922)(821)
Prior year events(4,096)(3,679)(3,481)
Total net payments(5,189)(4,601)(4,302)
Foreign currency translation adjustment and other(122)76 (262)
Net reserves, end of year19,263 18,163 16,929 
Ceded reserves, end of year5,713 5,141 5,191 
Gross reserves, end of year$24,976 $23,304 $22,120 
(1) Total net incurred does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting and uncollectible reinsurance, which are not reflected in the table above.
Reserving Methodology
In developing claim and claim adjustment expense reserve estimates, the Company's actuaries perform detailed reserve analyses that are staggered throughout the year. The data is organized at a reserve group level. Every reserve group is reviewed at least once during the year, but most are reviewed more frequently. The analyses generally review losses gross of ceded reinsurance and apply the ceded reinsurance terms to the gross estimates to establish estimates net of reinsurance. Factors considered include, but are not limited to, the historical pattern and volatility of the actuarial indications, the sensitivity of the actuarial indications to changes in paid and incurred loss patterns, the consistency of claims handling processes, the consistency of case reserving practices, changes in the Company's pricing and underwriting, pricing and underwriting trends in the insurance market and legal, judicial, geopolitical, social and economic trends. In addition to the detailed analyses, the Company reviews actual loss emergence for all products each quarter.
In developing the loss reserve estimates for property and casualty contracts, the Company generally projects ultimate losses using several common actuarial methods as listed below. The Company reviews the indications from the various methods and applies judgment to select an actuarial point estimate. The carried reserve may differ from the actuarial point estimate as a result of the Company's consideration of the factors noted above as well as the potential volatility of the projections associated with the specific product being analyzed and other factors affecting claims costs that may not be quantifiable through traditional actuarial analysis. The indicated required reserve is the difference between the selected ultimate loss and the inception-to-date paid losses. The difference between the selected ultimate loss and the case incurred or reported loss is IBNR. IBNR includes a provision for development on known cases as well as a provision for late reported incurred claims.
The most frequently utilized methods to project ultimate losses include the following:
•Paid development: The paid development method estimates ultimate losses by reviewing paid loss patterns and applying them to accident years with further expected changes in paid loss.
•Incurred development: The incurred development method is similar to the paid development method, but it uses case incurred losses instead of paid losses.
•Loss ratio: The loss ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year.
•Bornhuetter-Ferguson paid loss: The Bornhuetter-Ferguson paid loss method is a combination of the paid development approach and the loss ratio approach. This method normally determines expected loss ratios similar to the approach used to estimate the expected loss ratio for the loss ratio method.
•Bornhuetter-Ferguson incurred loss: The Bornhuetter-Ferguson incurred loss method is similar to the Bornhuetter-Ferguson using premiums and paid loss method except that it uses case incurred losses.
•Frequency times severity: The frequency times severity method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident year to produce ultimate loss estimates.
•Stochastic modeling: The stochastic modeling method produces a range of possible outcomes based on varying assumptions related to the particular product being modeled.
For many exposures, especially those that can be considered long-tail, a particular accident or policy year may not have a sufficient volume of paid losses to produce a statistically reliable estimate of ultimate losses. In such a case, the Company's actuaries typically assign more weight to the incurred development method than to the paid development method. As claims continue to settle and the volume of paid loss increases, the actuaries may assign additional weight to the paid development method. For most of the Company's products, even the incurred losses for accident or policy years that are early in the claim settlement process will not be of sufficient volume to produce a reliable estimate of ultimate losses. In these cases, the Company may not assign much, if any weight to the paid and incurred development methods. The Company may use the loss ratio, Bornhuetter-Ferguson and/or frequency times severity methods. For short-tail exposures, the paid and incurred development methods can often be relied on sooner, primarily because the Company's history includes a sufficient number of years to cover the entire period over which paid and incurred losses are expected to change. However, the Company may also use the loss ratio, Bornhuetter-Ferguson and/or frequency times severity methods for short-
tail exposures. For other more complex reserve groups where the above methods may not produce reliable indications, the Company uses additional methods tailored to the characteristics of the specific situation.
The Company's reserving methodologies for mass tort and A&EP are similar as both are based on detailed reviews of large accounts with estimates of ultimate payments based on the facts in each case and the Company's view of applicable law and coverage litigation.
Gross and Net Carried Reserves
The following tables present the gross and net carried reserves.
December 31, 2024 Specialty CommercialInternationalLife & GroupCorporate & OtherTotal
(In millions)
Gross Case Reserves$2,023 $3,690 $876 $572 $1,241 $8,402 
Gross IBNR Reserves5,403 7,646 2,044 50 1,431 16,574 
Total Gross Carried Claim and Claim Adjustment Expense Reserves$7,426 $11,336 $2,920 $622 $2,672 $24,976 
Net Case Reserves$1,697 $3,135 $741 $514 $120 $6,207 
Net IBNR Reserves4,282 6,804 1,675 27 268 13,056 
Total Net Carried Claim and Claim Adjustment Expense Reserves$5,979 $9,939 $2,416 $541 $388 $19,263 
December 31, 2023 Specialty CommercialInternationalLife & GroupCorporate & OtherTotal
(In millions)
Gross Case Reserves$1,604 $3,291 $864 $626 $1,353 $7,738 
Gross IBNR Reserves5,527 6,812 1,845 49 1,333 15,566 
Total Gross Carried Claim and Claim Adjustment Expense Reserves$7,131 $10,103 $2,709 $675 $2,686 $23,304 
Net Case Reserves$1,392 $2,878 $708 $556 $129 $5,663 
Net IBNR Reserves4,524 6,143 1,568 26 239 12,500 
Total Net Carried Claim and Claim Adjustment Expense Reserves$5,916 $9,021 $2,276 $582 $368 $18,163 
Net Prior Year Development
Changes in estimates of claim and claim adjustment expense reserves, net of reinsurance, for prior years are defined as net prior year loss reserve development (development). These changes can be favorable or unfavorable. The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments.
Years ended December 31
(In millions)202420232022
Pretax (favorable) unfavorable development:
Specialty$(9)$(14)$(40)
Commercial(16)(22)(43)
International(6)13 (13)
Corporate & Other79 7164 
Total pretax (favorable) unfavorable development$48 $48 $(32)
Unfavorable development of $79 million, $71 million, and $64 million was recorded within the Corporate & Other segment for the years ended December 31, 2024, 2023, and 2022 largely associated with legacy mass tort abuse claims. The 2022 unfavorable development also included the Diocese of Rochester proposed settlement.
Segment Development Tables
For the Specialty, Commercial and International segments, the following tables present further detail and commentary on the development reflected in the financial statements for each of the periods presented. Also presented are loss reserve development tables that illustrate the change over time of reserves established for claim and allocated claim adjustment expenses arising from short-duration insurance contracts for certain lines of business within each of these segments. Not all lines of business or segments are presented based on their context to the Company's overall loss reserves, calendar year reserve development, or calendar year net earned premiums. Insurance contracts are considered to be short-duration contracts when the contracts are not expected to remain in force for an extended period of time.
The Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative net incurred claim and allocated claim adjustment expenses relating to each accident year at the end of the stated calendar year. Changes in the cumulative amount across time are the result of the Company's expanded awareness of additional facts and circumstances that pertain to the unsettled claims. The Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative amount paid for claims for each accident year as of the end of the stated calendar year. The Net Strengthening or (Releases) of Prior Accident Year Reserves tables, reading across, show the net increase or decrease in the cumulative net incurred accident year claim and allocated claim adjustment expenses during each stated calendar year and indicates whether the reserves for that accident year were strengthened or released.
The information in the tables is reported on a net basis after reinsurance and does not include the effects of discounting. The information contained in calendar years 2023 and prior is unaudited. Information contained in the tables pertaining to the Company's International segment has been presented at the year-end 2024 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate changes between calendar years. The Company has presented development information for the Hardy business, the Company's Lloyd's syndicate, prospectively from the date of acquisition and is presented as a separate table within the Company's International segment. To the extent the Company enters into a commutation, the transaction is reported on a prospective basis. To the extent that the Company enters into a disposition, the effects of the disposition are reported on a retrospective basis by removing the balances associated with the disposed of business.
The amounts reported for the cumulative number of reported claims include direct and assumed open and closed claims by accident year at the claimant level. The number excludes claim counts for claims within a policy deductible where the insured is responsible for payment of losses in the deductible layer. Claim count data for certain assumed reinsurance contracts is unavailable.
IBNR includes reserves for incurred but not reported losses and expected development on case reserves. The Company does not establish case reserves for allocated loss adjusted expenses (ALAE), therefore ALAE reserves are also included in the estimate of IBNR.
Specialty
The following table presents further detail of the development recorded for the Specialty segment.
Years ended December 31
(In millions)202420232022
Pretax (favorable) unfavorable development:
Medical Professional Liability$(8)$5 $18 
Other Professional Liability and Management Liability49 37 50 
Surety(68)(43)(83)
Warranty20 (11)(21)
Other(2)(2)(4)
Total pretax (favorable) unfavorable development$(9)$(14)$(40)
2024
Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in the Company's professional errors and omissions (E&O) and cyber businesses.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.
Unfavorable development in warranty was primarily due to higher than expected frequency and severity in a recent accident year.
2023
Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in the Company’s professional E&O businesses in multiple accident years.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.
Favorable development in warranty was due to lower than expected loss emergence in a recent accident year.
2022
Unfavorable development in medical professional liability was due to higher than expected large loss activity in multiple accident years.
Unfavorable development in other professional liability and management liability was due to higher than expected claim severity and frequency in the Company’s cyber and professional E&O businesses in multiple accident years.
Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years.
Favorable development in warranty was due to lower than expected loss emergence in a recent accident year.
Specialty - Line of Business Composition
The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Specialty segment.
As of December 31
(In millions)2024
Net liability for unpaid claim and claim adjustment expenses:
Medical Professional Liability$1,425 
Other Professional Liability and Management Liability3,967 
Surety493 
Warranty46 
Other48 
Total net liability for unpaid claim and claim adjustment expenses$5,979 
Specialty - Medical Professional Liability
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar YearAs of December 31, 2024
(In millions, except reported claims data)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024IBNRCumulative Number of Claims
Accident Year
2015$433 $499 $510 $494 $488 $510 $501 $498 $494 $494 $11 18,228 
2016427 487 485 499 508 510 508 514 513 16 16,195 
2017412 449 458 460 455 460 456 463 18 15,384 
2018404 429 431 448 470 495 499 28 15,331 
2019430 445 458 471 469 481 43 14,515 
2020477 476 455 447 419 100 11,289 
2021377 376 374 349 117 9,935 
2022329 329 333 143 9,965 
2023340 350 162 10,424 
2024343 278 8,561 
Total$4,244 $916 
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar Year
(In millions)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Accident Year
2015$22 $101 $230 $313 $384 $420 $444 $458 $463 $471 
201618 121 246 339 401 436 460 483 489 
201719 107 235 308 355 388 417 427 
201821 115 211 290 349 418 453 
201917 91 183 280 349 395 
202011 61 139 201 258 
202111 49 118 170 
202210 57 122 
202314 86 
202413 
Total$2,884 
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$1,360 
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 201533 
Liability for unallocated claim adjustment expenses for accident years presented32 
Total net liability for unpaid claim and claim adjustment expenses$1,425 
            
Net strengthening (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31Calendar Year
(In millions)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024Total
Accident Year
2015$66 $11 $(16)$(6)$22 $(9)$(3)$(4)$— $61 
201660 (2)14 9 2 (2)6 (1)86 
201737 9 2 (5)5 (4)7 51 
201825 2 17 22 25 4 95 
201915 13 13 (2)12 51 
2020(1)(21)(8)(28)(58)
2021(1)(2)(25)(28)
2022— 4 4 
202310 10 
Total net development for the accident years presented above13 11 (17)
Total net development for accident years prior to 2015— (6)9 
Total unallocated claim adjustment expense development5 — — 
Total$18 $5 $(8)
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
Specialty - Other Professional Liability and Management Liability
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar YearAs of December 31, 2024
(In millions, except reported claims data)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024IBNRCumulative Number of Claims
Accident Year
2015$888 $892 $877 $832 $807 $813 $836 $855 $858 $865 $21 17,457 
2016901 900 900 904 907 891 888 906 912 37 17,989 
2017847 845 813 791 775 758 746 752 51 18,215 
2018850 864 869 906 923 941 987 57 20,071 
2019837 845 856 876 939 970 96 19,548 
2020930 944 951 945 945 168 19,509 
20211,037 1,038 1,009 965 311 18,377 
20221,120 1,112 1,084 465 18,376 
20231,149 1,166 564 19,587 
20241,150 918 17,921 
Total$9,796 $2,688 
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar Year
(In millions)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Accident Year
2015$60 $234 $404 $542 $612 $677 $725 $794 $808 $813 
201664 248 466 625 701 736 784 826 856 
201757 222 394 498 557 596 630 672 
201854 282 473 599 706 779 847 
201964 263 422 567 699 801 
202067 248 400 523 660 
202158 217 356 502 
202264 225 453 
202364 302 
202477 
Total$5,983 
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$3,813 
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 201598 
Liability for unallocated claim adjustment expenses for accident years presented56 
Total net liability for unpaid claim and claim adjustment expenses$3,967 
Net strengthening (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31Calendar Year
(In millions)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024Total
Accident Year
2015$4 $(15)$(45)$(25)$6 $23 $19 $3 $7 $(23)
2016(1)— 4 3 (16)(3)18 6 11 
2017(2)(32)(22)(16)(17)(12)6 (95)
201814 5 37 17 18 46 137 
20198 11 20 63 31 133 
202014 7 (6)— 15 
20211 (29)(44)(72)
2022(8)(28)(36)
202317 17 
Total net development for the accident years presented above44 47 41 
Total net development for accident years prior to 20156 (10)3 
Total unallocated claim adjustment expense development— — 5 
Total$50 $37 $49 
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
Specialty - Surety
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar YearAs of December 31, 2024
(In millions, except reported claims data)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024IBNRCumulative Number of Claims
Accident Year
2015$131 $131 $104 $79 $63 $58 $53 $45 $45 $45 $2 5,103 
2016124 124 109 84 67 64 58 43 43 3 5,577 
2017120 115 103 84 71 66 67 67 3 5,909 
2018114 108 91 62 56 51 49 6 6,297 
2019119 112 98 87 82 82 8 6,229 
2020128 119 81 67 57 3 4,827 
2021137 129 110 91 45 4,884 
2022155 158 132 74 4,893 
2023175 169 138 4,378 
2024171 145 2,940 
Total$906 $427 
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar Year
(In millions)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Accident Year
2015$7 $26 $38 $40 $42 $44 $42 $42 $43 $43 
20165 37 45 45 43 43 41 40 40 
201723 37 41 46 49 62 62 63 
20185 25 34 39 40 41 41 
201912 34 44 59 70 74 
20204 20 28 33 44 
20215 20 35 42 
202212 35 52 
20238 27 
202420 
Total$446 
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$460 
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 201514 
Liability for unallocated claim adjustment expenses for accident years presented19 
Total net liability for unpaid claim and claim adjustment expenses$493 
Net strengthening (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31Calendar Year
(In millions)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024Total
Accident Year
2015$— $(27)$(25)$(16)$(5)$(5)$(8)$— $— $(86)
2016— (15)(25)(17)(3)(6)(15)— (81)
2017(5)(12)(19)(13)(5)1 — (53)
2018(6)(17)(29)(6)(5)(2)(65)
2019(7)(14)(11)(5)— (37)
2020(9)(38)(14)(10)(71)
2021(8)(19)(19)(46)
20223 (26)(23)
2023(6)(6)
Total net development for the accident years presented above(82)(54)(63)
Total net development for accident years prior to 2015(1)11 (5)
Total unallocated claim adjustment expense development— — — 
Total$(83)$(43)$(68)
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
Commercial
The following table presents further detail of the development recorded for the Commercial segment.
Years ended December 31
(In millions)202420232022
Pretax (favorable) unfavorable development:
Commercial Auto$107 $33 $49 
General Liability75 149 67 
Workers' Compensation(202)(203)(152)
Property and Other4 (1)(7)
Total pretax (favorable) unfavorable development$(16)$(22)$(43)
2024
Unfavorable development in commercial auto was due to higher than expected claim severity in recent accident years.
Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2015.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
2023
Unfavorable development in commercial auto was due to higher than expected claim severity in the Company’s construction business in a recent accident year.
Unfavorable development in general liability was due to higher than expected claim severity in the Company’s construction and middle market businesses across multiple accident years.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
2022
Unfavorable development in commercial auto and general liability was due to higher than expected claim severity across multiple accident years.
Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.
Commercial - Line of Business Composition
The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Commercial segment.
As of December 31
(In millions)2024
Net Claim and claim adjustment expenses:
Commercial Auto$1,247 
General Liability4,356 
Workers' Compensation3,543 
Property and Other793 
Total net liability for claim and claim adjustment expenses$9,939 
Commercial - Commercial Auto
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar YearAs of December 31, 2024
(In millions, except reported claims data)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024IBNRCumulative Number of Claims
Accident Year
2015$201 $199 $190 $190 $183 $181 $183 $182 $184 $184 $2 30,430 
2016198 186 186 186 190 195 200 197 195 1 30,457 
2017199 198 200 221 232 239 241 241 4 30,947 
2018229 227 227 245 254 255 260 2 34,333 
2019257 266 289 323 325 327 7 37,280 
2020310 303 304 298 303 14 29,182 
2021397 388 390 393 51 33,028 
2022437 465 496 90 37,230 
2023554 620 202 42,345 
2024726 447 40,718 
Total$3,745 $820 
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar Year
(In millions)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Accident Year
2015$52 $96 $130 $153 $172 $175 $178 $179 $180 $182 
201652 93 126 154 175 185 190 192 193 
201758 107 150 178 203 225 232 235 
201866 128 175 212 238 249 256 
201977 147 203 257 295 312 
202071 134 197 246 276 
202183 168 240 305 
2022112 236 334 
2023127 270 
2024153 
Total$2,516 
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$1,229 
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 20151 
Liability for unallocated claim adjustment expenses for accident years presented17 
Total net liability for unpaid claim and claim adjustment expenses$1,247 
Net strengthening (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31Calendar Year
(In millions)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024Total
Accident Year
2015$(2)$(9)$— $(7)$(2)$2 $(1)$2 $— $(17)
2016(12)— — 4 5 5 (3)(2)(3)
2017(1)2 21 11 7 2 — 42 
2018(2)— 18 9 1 5 31 
20199 23 34 2 2 70 
2020(7)1 (6)5 (7)
2021(9)2 3 (4)
202228 31 59 
202366 66 
Total net development for the accident years presented above46 28 110 
Total net development for accident years prior to 20153 2 (3)
Total unallocated claim adjustment expense development— 3 — 
Total$49 $33 $107 
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
Commercial - General Liability
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar YearAs of December 31, 2024
(In millions, except reported claims data)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024IBNRCumulative Number of Claims
Accident Year
2015$581 $576 $574 $589 $600 $602 $617 $625 $639 $656 $39 24,309 
2016623 659 667 671 673 683 684 704 712 27 24,901 
2017632 632 632 634 630 652 690 713 16 22,544 
2018653 644 646 639 650 679 665 83 20,553 
2019680 682 682 691 720 727 129 19,907 
2020723 722 726 736 702 237 14,964 
2021782 784 793 814 299 15,952 
2022929 928 930 515 17,527 
20231,071 1,106 726 17,037 
20241,271 1,144 14,632 
Total$8,296 $3,215 
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar Year
(In millions)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Accident Year
2015$19 $110 $230 $357 $446 $501 $530 $561 $573 $581 
201632 163 279 407 481 524 582 620 652 
201723 118 250 399 471 553 606 657 
201833 107 228 307 428 491 546 
201925 98 181 322 455 532 
202023 99 192 280 367 
202126 140 262 391 
202229 123 260 
202333 153 
202434 
Total$4,173 
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$4,123 
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2015171 
Liability for unallocated claim adjustment expenses for accident years presented62 
Total net liability for unpaid claim and claim adjustment expenses$4,356 
Net strengthening (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31Calendar Year
(In millions)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024Total
Accident Year
2015$(5)$(2)$15 $11 $2 $15 $8 $14 $17 $75 
201636 8 4 2 10 1 20 8 89 
2017— — 2 (4)22 38 23 81 
2018(9)2 (7)11 29 (14)12 
20192 — 9 29 7 47 
2020(1)4 10 (34)(21)
20212 9 21 32 
2022(1)2 1 
202335 35 
Total net development for the accident years presented above57 148 65 
Total net development for accident years prior to 201510 1 10 
Total unallocated claim adjustment expense development— — — 
Total$67 $149 $75 
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
Commercial - Workers' Compensation
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar YearAs of December 31, 2024
(In millions, except reported claims data)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024IBNRCumulative Number of Claims
Accident Year
2015$422 $431 $406 $408 $394 $382 $372 $353 $334 $324 $45 31,916 
2016426 405 396 382 366 355 331 308 293 45 32,000 
2017440 432 421 400 402 399 398 383 65 33,156 
2018450 440 428 415 415 404 399 65 34,914 
2019452 449 437 436 419 416 67 34,377 
2020477 466 446 414 393 107 29,481 
2021468 454 432 421 116 30,126 
2022497 489 478 148 33,428 
2023555 551 233 36,822 
2024574 325 34,332 
Total$4,232 $1,216 
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar Year
(In millions)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Accident Year
2015$51 $131 $180 $212 $231 $243 $251 $256 $259 $261 
201653 129 169 198 219 227 234 235 238 
201763 151 207 243 265 279 287 293 
201868 163 229 259 280 298 307 
201971 169 223 262 291 310 
202065 147 200 228 246 
202167 164 222 256 
202279 192 258 
202387 209 
2024111 
Total$2,489 
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$1,743 
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 20151,757 
Other (2)
(22)
Liability for unallocated claim adjustment expenses for accident years presented65 
Total net liability for unpaid claim and claim adjustment expenses$3,543 
Net strengthening (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31Calendar Year
(In millions)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024Total
Accident Year
2015$9 $(25)$2 $(14)$(12)$(10)$(19)$(19)$(10)$(98)
2016(21)(9)(14)(16)(11)(24)(23)(15)(133)
2017(8)(11)(21)2 (3)(1)(15)(57)
2018(10)(12)(13)— (11)(5)(51)
2019(3)(12)(1)(17)(3)(36)
2020(11)(20)(32)(21)(84)
2021(14)(22)(11)(47)
2022(8)(11)(19)
2023(4)(4)
Total net development for the accident years presented above(81)(133)(95)
Adjustment for development on a discounted basis(3)(2)(2)
Total net development for accident years prior to 2015(78)(74)(105)
Total unallocated claim adjustment expense development10 6 — 
Total$(152)$(203)$(202)
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
(2) Other includes the effect of discounting lifetime claim reserves.
International
The following table presents further detail of the development recorded for the International segment.
Years ended December 31
(In millions)202420232022
Pretax (favorable) unfavorable development:
Commercial$(12)$(18)$(10)
Specialty6 35 (4)
Other— (4)1 
Total pretax (favorable) unfavorable development $(6)$13 $(13)

2024
Favorable development in commercial was due to lower than expected loss emergence across multiple accident years in the Company's marine and property businesses.
2023
Favorable development in commercial was due to lower than expected loss emergence across multiple accident years.
Unfavorable development in specialty was due to higher than expected large loss emergence in the Company’s medical treatment and professional liability businesses in multiple accident years.
2022
Favorable development in commercial was due to lower than expected loss emergence across multiple accident years.
International - Line of Business Composition
The table below provides the composition of the net liability for unpaid claim and claim adjustment expenses for the International segment.
As of December 31
(In millions)2024
Net Claim and claim adjustment expenses:
International excluding Hardy$1,754 
Hardy662 
Total net liability for claim and claim adjustment expenses$2,416 
International, Excluding Hardy
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar YearAs of December 31, 2024
(In millions, except reported claims data)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024IBNRCumulative Number of Claims
Accident Year
2015$275 $289 $288 $272 $267 $270 $272 $271 $267 $266 $10 22,957 
2016269 287 273 271 262 275 277 293 289 24 15,731 
2017285 346 367 360 356 344 377 385 44 16,571 
2018347 364 369 368 380 390 397 38 21,371 
2019324 337 333 340 343 347 57 19,122 
2020360 352 343 328 328 81 15,920 
2021386 375 355 347 121 15,665 
2022406 416 409 178 13,324 
2023454 452 266 11,289 
2024481 351 8,017 
Total$3,701 $1,170 
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar Year
(In millions)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Accident Year
2015$53 $125 $154 $173 $195 $209 $219 $226 $234 $240 
201662 124 149 171 182 203 214 224 238 
201761 139 177 205 226 252 308 316 
201883 156 200 228 252 292 324 
201969 155 190 213 235 246 
202056 121 154 169 190 
202153 118 146 165 
202244 131 164 
202343 119 
202456 
Total$2,058 
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$1,643 
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 201570 
Liability for unallocated claim adjustment expenses for accident years presented41 
Total net liability for unpaid claim and claim adjustment expenses$1,754 
Net strengthening (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31Calendar Year
(In millions)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Total (2)
Accident Year
2015$14 $(1)$(16)$(5)$3 $2 $(1)$(4)$(1)$(9)
201618 (14)(2)(9)13 2 16 (4)20 
201761 21 (7)(4)(12)33 8 100 
201817 5 (1)12 10 7 50 
201913 (4)7 3 4 23 
2020(8)(9)(15)— (32)
2021(11)(20)(8)(39)
202210 (7)3 
2023(2)(2)
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
(2) The amounts included in the loss reserve development tables above are presented at the year-end 2024 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate fluctuations between calendar years. The amounts included within the table on page 105 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates.
International - Hardy
Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar YearAs of December 31, 2024
(In millions, except reported claims data)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024IBNRCumulative Number of Claims
Accident Year
2015$185 $174 $172 $172 $171 $173 $173 $175 $174 $176 $1 9,754 
2016223 240 230 219 220 214 215 219 220 6 10,940 
2017240 249 240 241 249 248 237 248 1 13,373 
2018264 293 297 302 301 319 319 23 15,513 
2019216 219 214 221 217 219 14 11,868 
2020206 198 192 189 188 40 7,250 
2021174 164 151 142 43 4,098 
2022187 184 189 58 2,785 
2023197 188 104 2,558 
2024221 165 1,495 
Total$2,110 $455 
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31Calendar Year
(In millions)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Accident Year
2015$29 $95 $126 $141 $151 $159 $161 $170 $169 $160 
201662 142 168 177 189 201 201 205 205 
201752 149 181 203 211 222 227 234 
201854 167 196 228 245 266 279 
201943 101 138 155 165 187 
202027 76 102 117 130 
202113 43 66 84 
202223 57 103 
202317 54 
202416 
Total$1,452 
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented$658 
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2015(5)
Liability for unallocated claim adjustment expenses for accident years presented9 
Total net liability for unpaid claim and claim adjustment expenses$662 
Net strengthening (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31Calendar Year
(In millions)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
Total(2)
Accident Year
2015$(11)$(2)$— $(1)$2 $— $2 $(1)$2 $(9)
201617 (10)(11)1 (6)1 4 1 (3)
20179 (9)1 8 (1)(11)11 8 
201829 4 5 (1)18 — 55 
20193 (5)7 (4)2 3 
2020(8)(6)(3)(1)(18)
2021(10)(13)(9)(32)
2022(3)5 2 
2023(9)(9)
(1) Data presented for these calendar years is required supplemental information, which is unaudited.
(2) The amounts included in the loss reserve development tables above are presented at the year-end 2024 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate fluctuations between calendar years. The amounts included within the table on page 105 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates.
The table below presents information about average historical claims duration as of December 31, 2024 and is presented as required supplementary information, which is unaudited.
Average Annual Percentage Payout of Ultimate Net Incurred Claim and Allocated Claim Adjustment Expenses in Year:
12345678910
Specialty
Medical Professional Liability3.6 %16.3 %21.8 %16.6 %12.7 %8.9 %5.7 %3.2 %1.1 %1.6 %
Other Professional Liability and Management Liability6.5 %19.6 %19.2 %14.7 %10.5 %6.9 %5.6 %6.1 %2.5 %0.6 %
Surety (1)
17.3 %41.0 %16.4 %8.1 %3.9 %6.2 %(2.3)%(0.3)%1.1 %— %
Commercial
Commercial Auto23.7 %22.3 %18.4 %14.6 %10.5 %5.1 %2.4 %0.9 %0.5 %1.1 %
General Liability3.4 %12.5 %15.7 %16.8 %13.8 %9.2 %7.1 %5.7 %3.2 %1.2 %
Workers' Compensation16.8 %23.4 %14.2 %8.8 %5.9 %3.8 %2.3 %1.2 %1.0 %0.6 %
International
International - Excluding Hardy16.2 %21.0 %9.6 %6.5 %6.1 %6.5 %7.5 %2.7 %3.9 %2.3 %
International - Hardy15.4 %28.9 %15.3 %8.6 %5.2 %6.2 %1.8 %3.3 %(0.3)%(5.1)%
(1) Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables.
A&EP Reserves
In 2010, Continental Casualty Company (CCC) together with several of the Company’s insurance subsidiaries completed a transaction with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., under which substantially all of the Company’s legacy A&EP liabilities were ceded to NICO through a LPT. At the effective date of the transaction, the Company ceded approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $4 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third-party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third-party reinsurance related to these liabilities. The Company paid NICO a reinsurance premium of $2 billion and transferred to NICO billed third-party reinsurance receivables related to A&EP claims with a net book value of $215 million, resulting in total consideration of $2.2 billion.
In years subsequent to the effective date of the LPT, the Company recognized adverse prior year development on its A&EP reserves resulting in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT have exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which the Company recognizes a change in the estimate of A&EP reserves that increases or decreases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is affected and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders' benefits in the Consolidated Statements of Operations.
The following table presents the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations.
Years ended December 31
(In millions)202420232022
Additional amounts ceded under LPT:
Net A&EP adverse development before consideration of LPT$103 $86 $92 
Provision for uncollectible third-party reinsurance on A&EP— — (5)
Total additional amounts ceded under LPT103 86 87 
Retroactive reinsurance benefit recognized(95)(94)(91)
Pretax impact of deferred retroactive reinsurance$8 $(8)$(4)
Net unfavorable prior year development of $103 million, $86 million and $92 million was recognized before consideration of cessions to the LPT for the years ended December 31, 2024, 2023 and 2022. The unfavorable development in 2024, 2023 and 2022 was primarily driven by higher than anticipated defense and indemnity costs on known direct asbestos and environmental accounts. Additionally, in 2022, the Company released $5 million of its provision for uncollectible third-party reinsurance. The Company did not release any of its provision for uncollectible third-party reinsurance in 2024 or 2023.
As of December 31, 2024 and 2023, the cumulative amounts ceded under the LPT were $3.7 billion and $3.6 billion. The unrecognized deferred retroactive reinsurance benefit was $425 million and $417 million as of December 31, 2024 and 2023 and is included within Other liabilities on the Consolidated Balance Sheets.
NICO established a collateral trust account as security for its obligations to the Company. The fair value of the collateral trust account was $2.3 billion as of December 31, 2024. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to the majority of the Company’s A&EP claims.
Excess Workers' Compensation LPT
On February 5, 2021, CCC completed a transaction with Cavello Bay Reinsurance Limited (Cavello), a subsidiary of Enstar Group Limited, under which certain legacy excess workers' compensation (EWC) liabilities were ceded to Cavello. Under the terms of the transaction, based on reserves in place as of January 1, 2020, the Company ceded approximately $690 million of net EWC claim and allocated claim adjustment expense reserves to Cavello under an LPT with an aggregate limit of $1 billion. The Company paid Cavello a reinsurance premium of $697 million, less claims paid between January 1, 2020 and the closing date of the agreement of $64 million. After transaction costs, the Company recognized an after-tax loss of approximately $12 million in the Corporate & Other segment in the first quarter of 2021 related to the EWC LPT.
As of December 31, 2024, the cumulative amount ceded under the EWC LPT was $690 million.
Cavello established a collateral trust as security for its obligations to the Company. The fair value of the collateral trust was $298 million as of December 31, 2024.