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v3.22.1

Insurance | 3 Months Ended
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Mar. 31, 2022
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 three months of 2022 and 2021 (in millions):
| Three months ended March 31,
| 2022 |  | 2021
Balance at beginning of year | $ | 11,074 |  |  | $ | 10,392 |
Less reinsurance recoverables, net of allowance | 3,419 |  |  | 3,117 |
Net liability at beginning of year | 7,655 |  |  | 7,275 |
Provision for losses and LAE occurring in the current period | 781 |  |  | 726 |
Net decrease in the provision for claims of prior years | (88) |  |  | (59) |
Total losses and LAE incurred | 693 |  |  | 667 |
Payments for losses and LAE of: |  |  |
Current year | (67) |  |  | (52) |
Prior years | (647) |  |  | (622) |
Total payments | (714) |  |  | (674) |
Foreign currency translation and other | — |  |  | — |
Net liability at end of period | 7,634 |  |  | 7,268 |
Add back reinsurance recoverables, net of allowance | 3,352 |  |  | 3,116 |
Gross unpaid losses and LAE included in the balance sheet at end of period | $ | 10,986 |  |  | $ | 10,384 |
The net decrease in the provision for claims of prior years during the first three months of 2022 reflects (i) lower than anticipated losses in the crop business, lower than expected claim frequency in the trucking and ocean marine businesses and at the Singapore branch and lower than anticipated 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, lower than expected claim frequency in the executive liability business and lower than anticipated claim frequency and severity in the excess and surplus business (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency in the surety, trade credit and financial institutions businesses (within the Specialty financial sub-segment). This favorable development was partially offset by higher than anticipated claim severity in the targeted markets businesses (within the Specialty casualty sub-segment). The net decrease in the provision for claims of prior years during the first three 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 frequency in the aviation 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 and severity in the financial institutions business and lower than anticipated claim frequency in the surety business (within the Specialty financial sub-segment). This favorable development was partially offset by (i) higher than expected claim frequency and severity in equine business (within the Property and transportation sub-segment) and (ii) higher than anticipated claim severity in the targeted markets, professional liability and excess liability businesses (within the Specialty casualty sub-segment). Recoverables from Reinsurers and Premiums Receivable Progressions of the 2022 and 2021 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
| 2022 |  | 2021 |  | 2022 |  | 2021
Balance at January 1 | $ | 8 |  |  | $ | 6 |  |  | $ | 8 |  |  | $ | 10 |
Provision for expected credit losses | (1) |  |  | 1 |  |  | (1) |  |  | 1 |
Write-offs charged against the allowance | — |  |  | — |  |  | — |  |  | — |
Balance at March 31 | $ | 7 |  |  | $ | 7 |  |  | $ | 7 |  |  | $ | 11 |

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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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