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Insurance | 6 Months Ended
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Jun. 30, 2024
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 2024 and 2023 (in millions):
| Six months ended June 30,
| 2024 |  | 2023
Balance at beginning of year | $ | 13,087 |  |  | $ | 11,974 |
Less reinsurance recoverables, net of allowance | 4,288 |  |  | 3,767 |
Net liability at beginning of year | 8,799 |  |  | 8,207 |
Provision for losses and LAE occurring in the current period | 1,934 |  |  | 1,850 |
Net decrease in the provision for claims of prior years | (85) |  |  | (125) |
Total losses and LAE incurred | 1,849 |  |  | 1,725 |
Payments for losses and LAE of: |  |  |
Current year | (425) |  |  | (338) |
Prior years | (1,533) |  |  | (1,345) |
Total payments | (1,958) |  |  | (1,683) |
Foreign currency translation and other | (1) |  |  | — |
Net liability at end of period | 8,689 |  |  | 8,249 |
Add back reinsurance recoverables, net of allowance | 3,918 |  |  | 3,676 |
Gross unpaid losses and LAE included in the balance sheet at end of period | $ | 12,607 |  |  | $ | 11,925 |
The net decrease in the provision for claims of prior years during the first six months of 2024 reflects (i) lower than anticipated 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 and lower than expected claim frequency in the executive liability business (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency in the fidelity and trade credit businesses 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 anticipated claim severity in the excess liability business and higher than expected claim frequency and severity in the social services business (within the Specialty casualty sub-segment), (ii) higher than anticipated claim severity in the innovative markets and surety businesses (within the Specialty financial sub-segment) and (iii) net adverse development associated with AFG’s internal reinsurance program (within Other specialty). The net decrease in the provision for claims of prior years during the first six months of 2023 reflects (i) lower than anticipated losses in the crop business, lower than expected claim frequency and severity in the trucking business and lower than anticipated claim frequency 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 and environmental businesses and favorable reserve development related to COVID-19 losses across several businesses (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency in the trade credit and financial institutions businesses and lower than expected claim frequency and severity in the surety business (within the Specialty financial sub-segment). This favorable development was partially offset by higher than anticipated claim severity in the public sector and excess liability businesses (within the Specialty casualty sub-segment). Recoverables from Reinsurers and Premiums Receivable Progressions of the 2024 and 2023 allowance for expected credit losses on recoverables from reinsurers and premiums receivable are shown below (in millions):
| Recoverables from Reinsurers |  | Premiums Receivable
| 2024 |  | 2023 |  | 2024 |  | 2023
Balance at March 31 | $ | 10 |  |  | $ | 9 |  |  | $ | 15 |  |  | $ | 8 |
Provision (credit) for expected credit losses | — |  |  | — |  |  | 4 |  |  | 1 |
Write-offs charged against the allowance | — |  |  | — |  |  | (1) |  |  | — |
Balance at June 30 | $ | 10 |  |  | $ | 9 |  |  | $ | 18 |  |  | $ | 9 |
Balance at December 31 | $ | 10 |  |  | $ | 8 |  |  | $ | 15 |  |  | $ | 8 |
Provision (credit) for expected credit losses | — |  |  | 1 |  |  | 4 |  |  | 1 |
Write-offs charged against the allowance | — |  |  | — |  |  | (1) |  |  | — |
Balance at June 30 | $ | 10 |  |  | $ | 9 |  |  | $ | 18 |  |  | $ | 9 |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479838/944-20-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 310 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c)(4)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477363/944-310-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 310 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c)(4)(iv) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477363/944-310-50-3 + Details
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