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Insurance | 6 Months Ended
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Jun. 30, 2021
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 2021 and 2020 (in millions):
| Six months ended June 30,
| 2021 |  | 2020
Balance at beginning of year | $ | 10,392 |  |  | $ | 10,232 |
Less reinsurance recoverables, net of allowance | 3,117 |  |  | 3,024 |
Net liability at beginning of year | 7,275 |  |  | 7,208 |
Provision for losses and LAE occurring in the current period | 1,507 |  |  | 1,597 |
Net decrease in the provision for claims of prior years | (126) |  |  | (119) |
Total losses and LAE incurred | 1,381 |  |  | 1,478 |
Payments for losses and LAE of: |  |  |
Current year | (258) |  |  | (284) |
Prior years | (1,083) |  |  | (1,068) |
Total payments | (1,341) |  |  | (1,352) |
Foreign currency translation and other | 1 |  |  | (20) |
Net liability at end of period | 7,316 |  |  | 7,314 |
Add back reinsurance recoverables, net of allowance | 3,182 |  |  | 3,007 |
Gross unpaid losses and LAE included in the balance sheet at end of period | $ | 10,498 |  |  | $ | 10,321 |
The net decrease in the provision for claims of prior years during the first six months of 2021 reflects (i) lower than anticipated claim frequency and severity in the transportation businesses, lower than expected losses in the crop business and lower than expected claim severity in the property and inland marine business (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 anticipated claim frequency in the surety business and lower than expected claim frequency and severity in the financial institutions business (within the Specialty financial sub-segment). This favorable development was partially offset by (i) higher than expected claim frequency and severity in the equine business (within the Property and transportation sub-segment) and (ii) higher than anticipated claim severity in the general liability, targeted markets and professional liability businesses (within the Specialty casualty sub-segment). 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 and 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 lines businesses (within the Specialty casualty sub-segment) and higher than expected losses at Neon. Recoverables from Reinsurers and Premiums Receivable Progressions of the 2021 and 2020 allowance for expected credit losses on recoverables from reinsurers and premiums receivable related to continuing operations are shown below (in millions):
| Recoverables from Reinsurers |  | Premiums Receivable
| 2021 |  | 2020 |  | 2021 |  | 2020
Balance at March 31 | $ | 7 |  |  | $ | 7 |  |  | $ | 11 |  |  | $ | 9 |
Provision (credit) for expected credit losses | 1 |  |  | — |  |  | (2) |  |  | 1 |
Write-offs charged against the allowance | — |  |  | — |  |  | — |  |  | — |
Balance at June 30 | $ | 8 |  |  | $ | 7 |  |  | $ | 9 |  |  | $ | 10 |
Balance at January 1 | $ | 6 |  |  | $ | 18 |  |  | $ | 10 |  |  | $ | 13 |
Impact of adoption of new accounting policy | — |  |  | (11) |  |  | — |  |  | (3) |
Provision (credit) for expected credit losses | 2 |  |  | — |  |  | (1) |  |  | — |
Write-offs charged against the allowance | — |  |  | — |  |  | — |  |  | — |
Balance at June 30 | $ | 8 |  |  | $ | 7 |  |  | $ | 9 |  |  | $ | 10 |

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- 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
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