Insurance

3 Months Ended

Mar. 31, 2026

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 2026 and 2025 (in millions):


	Three months ended March 31,
	2026		2025
Balance at beginning of year	$	15,094	$	14,179
Less reinsurance recoverables, net of allowance	5,306		4,957
Net liability at beginning of year	9,788		9,222
Provision for losses and LAE occurring in the current period	976		985


Net decrease in the provision for claims of prior years	(70)		(20)
Total losses and LAE incurred	906		965
Payments for losses and LAE of:
Current year	(92)		(104)
Prior years	(796)		(863)
Total payments	(888)		(967)
Foreign currency translation and other	(2)		(2)
Net liability at end of period	9,804		9,218
Add back reinsurance recoverables, net of allowance	5,110		4,752
Gross unpaid losses and LAE included in the balance sheet at end of period	$	14,914	$	13,970

The net decrease in the provision for claims of prior years during the first three months of 2026 reflects (i) lower than anticipated losses in the crop business and lower than expected claim severity in the ocean marine and commercial auto

businesses (within the Property and transportation sub-segment) and (ii) lower than anticipated claim frequency in the fidelity and crime business and lower than expected claim severity in the surety business (within the Specialty financial sub-segment). In the Specialty casualty sub-segment, lower than anticipated claim severity in the workers’ compensation businesses was offset by higher than anticipated severity in certain social inflation exposed businesses.

The net decrease in the provision for claims of prior years during the first three months of 2025 reflects (i) lower than anticipated losses in the crop business and lower than anticipated claim frequency and severity in the trucking 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 (within the Specialty financial sub-segment). This favorable development was partially offset by higher than anticipated claim severity in the excess liability businesses (within the Specialty casualty sub-segment).

Recoverables from Reinsurers and Premiums Receivable Progressions of the 2026 and 2025 allowance for expected credit losses on recoverables from reinsurers and premiums receivable are shown below (in millions):


	Recoverables from Reinsurers				Premiums Receivable
	2026		2025		2026		2025





Balance at December 31	$	10	$	11	$	20	$	19
Provision (credit) for expected credit losses	(1)		(1)		(1)		(1)
Write-offs charged against the allowance	—		—		—		—
Balance at March 31	$	9	$	10	$	19	$	18

- 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.

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