XML 34 R22.htm IDEA: XBRL DOCUMENT
v3.20.2

Insurance | 6 Months Ended
--- | ---
Jun. 30, 2020
Insurance [Abstract] |
Insurance | Insurance Property and Casualty Insurance Reserves The following table provides an analysis of changes in the liability for losses and loss adjustment expenses during the first six months of 2020 and 2019 (in millions):
| Six months ended June 30, |  |
| 2020 |  | 2019
Balance at beginning of year | $ | 10,232 |  |  | $ | 9,741 |
Less reinsurance recoverables, net of allowance | 3,024 |  |  | 2,942 |
Net liability at beginning of year | 7,208 |  |  | 6,799 |
Provision for losses and LAE occurring in the current period | 1,597 |  |  | 1,501 |
Net increase (decrease) in the provision for claims of prior years | (119) |  |  | (86) |
Total losses and LAE incurred (*) | 1,478 |  |  | 1,415 |
Payments for losses and LAE of: |  |  |
Current year | (284) |  |  | (291) |
Prior years | (1,068) |  |  | (1,079) |
Total payments | (1,352) |  |  | (1,370) |
Foreign currency translation and other | (20) |  |  | 1 |
Net liability at end of period | 7,314 |  |  | 6,845 |
Add back reinsurance recoverables, net of allowance | 3,007 |  |  | 2,732 |
Gross unpaid losses and LAE included in the balance sheet at end of period | $ | 10,321 |  |  | $ | 9,577 |
(*)Includes $106 million in losses and LAE incurred in the Neon exited lines in the first six months of 2020. The net decrease in the provision for claims of prior years during the first six months of 2020 reflects (i) lower than expected claim frequency and severity in the agricultural businesses and lower than anticipated claim frequency and severity in the transportation businesses (within the Property and transportation sub-segment), (ii) lower than anticipated claim frequency and severity in the workers’ compensation businesses and lower than anticipated claim frequency in the executive liability business (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency in the trade credit and surety businesses (within the Specialty financial sub-segment). This favorable development was partially offset by higher than expected claim frequency and severity in the excess and surplus businesses (within the Specialty casualty sub-segment). The net decrease in the provision for claims of prior years during the first six months of 2019 reflects (i) lower than expected losses in the crop business and lower than expected claim frequency and severity in the transportation businesses (all within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in the workers’ compensation businesses (within the Specialty casualty sub-segment), and (iii) lower than expected claim frequency and severity in the surety and financial institutions businesses and lower than anticipated claim severity in the fidelity business (all within the Specialty financial sub-segment). This favorable development was partially offset by higher than expected claim severity in the in the excess and surplus lines businesses and higher than expected losses at Neon (all within the Specialty casualty sub-segment). Recoverables from Reinsurers and Premiums Receivable See Note A — “Accounting Policies — Credit Losses on Financial Instruments,” for a discussion of new guidance effective January 1, 2020, which impacts the accounting for expected credit losses of recoverables from reinsurers and premiums receivable. Progressions of the 2020 allowance for expected credit losses are shown below (in millions):
| Recoverables from Reinsurers |  | Premiums Receivable
Balance at March 31 | $ | 13 |  |  | $ | 9 |
Provision for expected credit losses | — |  |  | 1 |
Write-offs charged against the allowance | — |  |  | — |
Balance at June 30 | $ | 13 |  |  | $ | 10 |
Balance at January 1 | $ | 18 |  |  | $ | 13 |
Impact of adoption of new accounting policy | (6) |  |  | (3) |
Provision (credit) for expected credit losses | 1 |  |  | — |
Write-offs charged against the allowance | — |  |  | — |
Balance at June 30 | $ | 13 |  |  | $ | 10 |

X
- References No definition available. + Details
Name: | us-gaap_InsuranceAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -URI http://asc.fasb.org/topic&trid=2303980 + Details
Name: | us-gaap_InsuranceDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration