v3.24.0.1
Insurance Liabilities
 12 Months Ended
Dec. 31, 2023
Insurance [Abstract]  
Insurance Liabilities
13. Insurance Liabilities
LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES (LOSS RESERVES)
Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses, less applicable discount. We regularly review and update the methods used to determine loss reserve estimates. Any adjustments resulting from this review are reflected currently in pre-tax income, except to the extent such adjustment impacts a deferred gain under a retroactive reinsurance agreement, in which case the ceded portion would be amortized into pre-tax income in subsequent periods. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development or reserve releases.
Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $12.1 billion at both December 31, 2023 and 2022, respectively. These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective programs, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S. Commercial casualty business. With respect to the deductible portion of the claim, we manage and pay the entire claim on behalf of the insured and are reimbursed by the insured for the deductible portion of the claim. Thus, these recoverable amounts represent a credit exposure to us. At December 31, 2023 and 2022 we held collateral of approximately $8.7 billion and $8.6 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. Allowance for credit losses for the unsecured portion of these recoverable amounts was $14 million at both December 31, 2023 and 2022.
The following table presents the rollforward of activity in loss reserves:
Years Ended December 31,
(in millions)202320222021
Liability for unpaid loss and loss adjustment expenses, beginning of year$75,167 $79,026 $77,720 
Reinsurance recoverable(32,102)(35,213)(34,431)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year43,065 43,813 43,289 
Losses and loss adjustment expenses incurred:
Current year15,100 16,434 16,434 
Prior years, excluding discount and amortization of deferred gain(392)(530)(171)
Prior years, discount charge (benefit)307 (605)(131)
Prior years, amortization of deferred gain on retroactive reinsurance(a)
(81)(252)(190)
Total losses and loss adjustment expenses incurred14,934 15,047 15,942 
Losses and loss adjustment expenses paid:
Current year(3,836)(4,011)(3,868)
Prior years(11,868)(11,066)(11,503)
Total losses and loss adjustment expenses paid(15,704)(15,077)(15,371)
Other changes:
Foreign exchange effect606 (1,463)(593)
Losses and loss adjustment expenses recognized within gain on divestitures569 — — 
Retroactive reinsurance adjustment (net of discount)(b)
158 745 546 
Dispositions(c)
(3,505)— — 
Reclassified to held for sale, net of reinsurance recoverables(19)— — 
Total other changes(2,191)(718)(47)
Liability for unpaid loss and loss adjustment expenses, end of year:
Net liability for unpaid losses and loss adjustment expenses40,104 43,065 43,813 
Reinsurance recoverable
30,289 32,102 35,213 
Total$70,393 $75,167 $79,026 
(a)Includes $33 million, $63 million and $53 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the years ended December 31, 2023, 2022 and 2021, respectively.
(b)Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $150 million, $(301) million and $(42) million for the years ended December 31, 2023, 2022 and 2021, respectively.
(c)Includes amounts related to the sale of Validus Re through the date of disposition.
The following table presents the reconciliation of the net liability for unpaid losses and loss adjustment expenses in the following tables to Loss Reserves in the Consolidated Balance Sheets for the year ended December 31, 2023:
(in millions)Net liability for unpaid
losses and loss adjustment
expenses as presented in the
disaggregated tables below		Reinsurance recoverable on
unpaid losses and loss
adjustment expenses included in
the disaggregated tables below		Gross liability
for unpaid
losses and loss
adjustment expenses
U.S. Workers' Compensation (before discount)$3,888$5,203$9,091
U.S. Excess Casualty3,3213,2726,593
U.S. Other Casualty4,1123,6767,788
U.S. Financial Lines5,6721,6227,294
U.S. Property and Special Risks4,4031,4945,897
U.S. Personal Insurance7672,1632,930
UK/Europe Casualty and Financial lines7,4471,9519,398
UK/Europe Property and Special Risks2,9131,6654,578
UK/Europe and Japan Personal Insurance1,4836712,154
Total$34,006$21,717$55,723
Reconciling Items
Discount on workers' compensation lines(2,337)
Other product lines*14,739
Unallocated loss adjustment expenses2,268
Total Loss Reserves$70,393
*Reinsurance recoverable for other product lines of $8.7 billion resulted in a net liability for unpaid losses and loss adjustment expenses of $6.0 billion for the year ended December 31, 2023.
Prior Year Development
In the sections below, we provide details by coverage group regarding incurred losses, reserve balances and prior year development. The first table below shows prior year development by coverage group, the first two columns of which will again be presented in the coverage group sections that follow. After this table we describe historical drivers of prior year development as well as actuarial methods and relevant terminology. The following coverage group sections present the undiscounted incurred losses and allocated loss adjustment expenses by accident year on a net basis after reinsurance, with separate presentation of the adverse development cover where applicable, excluding related amortization of the deferred gain. Each section also contains a description of the business included in that section. Finally, we show a table of claims payout patterns by coverage.
In 2017, we entered into adverse development reinsurance agreement (ADC) cessions with NICO under which we transferred to NICO 80 percent of the reserve risk on substantially all of our U.S. Commercial long-tail exposures for accident years 2015 and prior.
The following table presents the reconciliation of net prior year development before the ADC cessions from the tables below to the net prior year development after ADC cessions and amortization of deferred gain for the year ended December 31, 2023:
(in millions)Prior Year
Development
Net of External
Reinsurance
Before ADC
Cessions
Prior Year
Development
Net of External
Reinsurance
After ADC
Cessions(a)
Re-Attribution
of ADC
Recovery(b)
Amortization
of Deferred
Gain at
Inception		Prior Year
Development
After
Amortization
and
Re-attribution
U.S. Workers' Compensation$(267)$(114)$(24)$(52)$(190)
U.S. Excess Casualty(32)18 (27)(39)(48)
U.S. Other Casualty(133)(133)36 (37)(134)
U.S. Financial Lines94 50 13 (26)37 
U.S. Property and Special Risks(10)— 2 (9)(7)
U.S. Personal Insurance(64)(65)— (1)(66)
UK/Europe Casualty and Financial lines165 165 — — 165 
UK/Europe Property and Special Risks81 81 — — 81 
UK/Europe and Japan Personal Insurance(57)(57)— — (57)
Other Operations Run-Off(7)(7)— — (7)
Other product lines(162)(172)— — (172)
Subtotal, adjusted pre-tax basis$(392)$(234)$— $(164)$(398)
Remove impact of Retroactive Reinsurance
Amortization of deferred gain at inception164 
Prior year development ceded under the Asbestos LPT— 
Prior year development ceded under the ADC(158)
Total, prior years, excluding discount and amortization of deferred gain$(392)
(a)Change in net ultimate loss and loss adjustment expenses excludes the portion of prior year development we have ceded under the Asbestos Loss Portfolio Transfer (LPT) and the ADC, both of which are provided by NICO and are considered retroactive reinsurance under U.S. GAAP.
(b)Reattribution of the ADC recovery takes place annually as we model the future payments on the subject reserves covered by the ADC to determine when the aggregate payments will exceed the attachment. ADC recoverables are then reallocated by line based on payments expected to be made after attachment point is exceeded.
During 2023, we recognized favorable prior year loss reserve development of $392 million excluding discount and amortization of deferred gain. The development was primarily driven by:
•Favorable development on U.S. Workers’ Compensation of $267 million, net of external reinsurance but before ADC cessions due to a continuation of favorable loss cost trends in guaranteed cost and excess segments across most accident years;
•Favorable development on U.S. Excess Casualty of $32 million, net of external reinsurance but before ADC cessions, driven by favorable development on the Excess Construction Runoff Portfolio;
•Favorable development on U.S Other Casualty of $133 million, net of external reinsurance but before ADC cessions, largely driven by favorable experience in construction defect and construction wraps as well as guaranteed cost auto and general liability;
•Unfavorable development in U.S. Financial Lines of $94 million, net of external reinsurance but before ADC cessions, due to unfavorable development on High Attaching Excess D&O, M&A, Primary National D&O, Cyber data privacy claims, and Architects & Engineers, partially offset by favorable development on Primary Private Not for Profit D&O and Financial Institutions D&O;
•Favorable development on U.S Property and Special Risks of $10 million, net of external reinsurance but before ADC cessions, reflecting favorable development on prior year catastrophes in the 2017-2021 accident years, offset by adverse development on prior year catastrophes in the 2022 accident year;
•Favorable development in U.S. Personal Insurance of $64 million driven by favorable development on prior year catastrophes across several events primarily in the 2017-2020 accident years;
•Unfavorable development in UK/Europe Casualty and Financial Lines of $165 million due to unfavorable development in auto liability in Europe and UK and in UK D&O and Commercial Professional Indemnity business, partially offset by favorable development in Financial Institutions Professional Indemnity and D&O in Europe and UK and Cyber and Commercial Professional Indemnity in Europe;
•Unfavorable development on UK/Europe Property and Special Risks of $81 million driven by unfavorable development on prior year catastrophes;
•Favorable development on UK/Europe and Japan Personal Insurance of $57 million driven by favorable development in Japan personal auto and A&H business; and
•Favorable development of $162 million in total on other product lines, net of external reinsurance but before ADC cessions, driven by favorable development in global specialty and financial lines in Canada and other International regions.
During 2022, we recognized favorable prior year loss reserve development of $530 million excluding discount and amortization of deferred gain. The development was primarily driven by:
•Favorable development on U.S. Workers’ Compensation of $644 million, net of external reinsurance but before ADC cessions due to continued favorable frequency and severity trends across most accident years particularly for excess and guaranteed cost US Workers Compensation segments;
•Favorable development on U.S. Excess Casualty of $116 million, net of external reinsurance but before ADC cessions, driven by lead and mid-excess Retail Excess Casualty;
•Favorable development on U.S Other Casualty of $149 million, net of external reinsurance but before ADC cessions, largely driven by favorable experience in Commercial Auto, General Liability and Construction Wraps;
•Unfavorable development in U.S. Financial Lines of $939 million, net of external reinsurance but before ADC cessions, due to higher severity trends particularly in Excess & Primary D&O and Excess & Financial Institutions E&O. This was partially offset by favorable development in EPLI;
•Favorable development in U.S. Property and Special Risks of $81 million driven by more favorable crop experience than anticipated;
•Unfavorable development in UK/Europe Casualty and Financial Lines of $82 million due to unfavorable experience in UK Financial Lines in M&A, Commercial PI and Commercial D&O as well as unfavorable Casualty experience due to large loss activity in the UK, European Excess Casualty, and French Auto experience;
•Favorable development on UK/Europe Property and Special Risks of $153 million driven by Global Specialty, primarily from accident years 2020 and 2021. This favorable experience was seen in each product line and in every region;
•Favorable development on UK/Europe and Japan Personal Insurance of $111 million driven by Japan Auto and A&H business with additional favorable experience in UK and Europe; and
•Favorable development of $264 million in total on other product lines, net of external reinsurance but before ADC cessions, driven by runoff construction business and favorable results from our Canadian business across most products.
During 2021, we recognized favorable prior year loss reserve development of $171 million excluding discount and amortization of deferred gain. The development was primarily driven by:
•Favorable development on U.S. Workers’ Compensation of $617 million, net of external reinsurance but before ADC cessions due to continued favorable frequency and severity trends seen across the diagonals for many subsets of U.S. Workers Compensation especially for recent accident years;
•Favorable development in U.S. Personal Lines of $412 million, net of external reinsurance but before ADC cessions, mainly due to favorable development and subrogation recoveries from the 2017 and 2018 catastrophe years;
•Favorable development on UK/Europe and Japan Personal Insurance of $173 million due to favorable loss trends in personal auto in Japan and Europe and accident and health in all three regions;
•Favorable development on UK/Europe Property and Special Risks of $118 million driven by favorable emergence across several Specialty classes;
•Unfavorable development in U.S. Financial Lines of $649 million, net of external reinsurance but before ADC cessions, due to adverse experience in D&O, Cyber and EPLI. This includes adverse experience in Fiduciary from emergence of Excessive Fee claims and Cyber ransomware losses;
•Unfavorable development on UK/Europe Casualty and Financial Lines of $210 million driven by recognition of large loss activity in Financial PI in the UK and Commercial D&O in Europe; and
•Unfavorable development in U.S. Property and Special Risks of $172 million driven largely by the impact of reductions in reinsurance recoveries driven by changes in catastrophe loss estimates.
Our analyses and conclusions about prior year reserves also help inform our judgments about the current accident year loss and loss adjustment expense ratios we selected.
Loss Development Information
The following is information about incurred and paid loss developments as of December 31, 2023, net of reinsurance. The cumulative number of reported claims, the total of IBNR liabilities and expected development on reported loss included within the net incurred loss amounts are presented in the following section.
Reserving Methodology
We use a combination of methods to project ultimate losses for both long-tail and short-tail exposures, which include:
•Paid Development method: The Paid Development method estimates ultimate losses by reviewing paid loss patterns and selecting paid ultimate loss development factors. These factors are then applied to paid losses by applying them to accident years, with further expected changes in paid loss. Since the method does not rely on case reserves, it is not directly influenced by changes in the adequacy of case reserves.
•Incurred Development method: The Incurred Development method is similar to the Paid Development method, but it uses case incurred losses instead of paid losses. Since this method uses more data (case reserves in addition to paid losses) than the Paid Development method, the incurred development patterns may be less variable than paid development patterns.
•Expected Loss Ratio method: The Expected Loss Ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. This method may be useful if loss development patterns are inconsistent, losses emerge very slowly, or there is relatively little loss history from which to estimate future losses. Expected loss ratio methods for business written in excess of a deductible may be given significant weight in the most recent five accident years. The expected loss ratios used for recent accident years are based on the projected ultimate loss ratios for older years adjusted for rate changes, loss trend including inflation, and where appropriate, changing market conditions.
•Bornhuetter-Ferguson method: The Bornhuetter-Ferguson method using premiums and paid losses is a combination of the Paid Development method and the Expected Loss Ratio method where the weight given to each method is the reciprocal of the loss development factor. This method normally determines expected loss ratios similar to the method used for the Expected Loss Ratio method. The Bornhuetter-Ferguson method using premiums and incurred losses is similar to the Bornhuetter-Ferguson method using premiums and paid losses except that it uses case-incurred losses.
•Cape Cod method: The Cape Cod method is mechanically similar to the Bornhuetter-Ferguson method with the difference being that the Expected Loss Ratio estimates are determined based on a weighting of the loss estimates that come from the Paid/Incurred Development Methods. This method may be more responsive to recent loss trends than the Bornhuetter-Ferguson method.
•Average Loss method: The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate severity average loss for each accident year to produce ultimate loss estimates. Since projections of the ultimate number of claims are often less variable than projections of ultimate loss, this method can provide more reliable results for reserve categories where loss development patterns are inconsistent or too variable to be relied on exclusively.
In updating our loss reserve estimates, we consider and evaluate inputs from many sources, including actual claims data, the performance of prior reserve estimates, observed industry trends, our internal peer review processes, including challenges and recommendations from our Enterprise Risk Management group, as well as the views of third-party actuarial firms. We use these inputs to improve our evaluation techniques, and to analyze and assess the change in estimated ultimate loss for each accident year by product line. Our analyses produce a range of indications from various methods, from which we select our best estimate.
In determining the actual carried loss reserves, we consider both the internal actuarial best estimate and numerous other internal and external factors, including:
•an assessment of economic conditions, including real GDP growth, inflation, employment rates or unemployment duration, stock market volatility and changes in corporate bond spreads;
•changes in the legal, regulatory, judicial and social environment, including changes in road safety, public health and cleanup standards;
•changes in medical cost trends (inflation, intensity and utilization of medical services) and wage inflation trends;
•underlying policy pricing, terms and conditions including attachment points and policy limits;
•change in claims handling philosophy, operating model, processes, and related ongoing enhancements;
•third-party claims reviews that are periodically performed for key classes of claims such as toxic tort, environmental and other complex casualty claims;
•third-party actuarial reviews that are periodically performed for key classes of business;
•input from underwriters on pricing, terms, and conditions and market trends; and
•changes in our reinsurance program, pricing and commutations.
Where appropriate and identifiable, adjustments have been made to standard projection techniques. Changes in Claims organization management, differing referral and review criteria and other factors may also be expected to alter loss emergence.
The following factors are relevant to the loss development information included in the tables below:
•Table organization: The tables are organized by accident year and include policies written on an occurrence and claims- made basis. We note that for certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Financial Lines business is primarily written on a claims-made basis, while the majority of the workers’ compensation, excess casualty, other casualty, and run-off property and casualty lines of business are written on an occurrence basis. Primarily, all short-tail lines in Property and Special Risks and Personal Insurance are written on an occurrence basis.
•Groupings: We believe our groupings have homogenous risk characteristics with similar development patterns and would generally be subject to similar trends and reflect our reportable segments. The incurred losses and loss adjustment expenses and paid losses in the following tables for the current reporting year are allocated to the line of business and accident years based on how the business is coded by profit center and line of business.
•Reinsurance: Our reinsurance program varies by exposure type. Historically we have leveraged facultative and treaty reinsurance, both on a pro-rata and excess of loss basis. Our reinsurance program may change from year to year, which may affect the comparability of the data presented in our tables.
•Adverse development reinsurance agreement: We have provided the impact of the ADC in an additional table below our Incurred Losses and Allocated Loss Adjustment Expenses tables. The impact of the ADC is shown beginning in 2016 given the retroactive date of the contract and coincides with the effective date of the contract. For the lines of business covered by the agreement (U.S. Workers' Compensation, U.S. Excess Casualty, U.S. Other Casualty, U.S. Financial Lines, U.S. Property and Special Risks and U.S. Personal Insurance or collectively, the Covered Lines), an attribution of the loss recoveries to the line of business by calendar year and accident year is performed based on the underlying distribution of the losses subject to the agreement. Specifically, the future claim payments for all subject incurred losses were projected into future years based on the same actuarial assumptions underlying the related reserves. The additional table presented after discussion of prior year development by line of business reconciles the changes in net ultimates to our overall prior year development and provides the reattribution of loss recoveries for the Covered Lines. The reinsurance terms of the ADC were then used to identify the future claims payments for which 80% will be reimbursed by NICO. At each reporting period, the attribution of the ADC recoveries is performed. The factors that could cause the attribution to lines of business and accident year to change include changes in underlying actuarial assumptions as to timing and amount of future claim payments.
•Incurred but not reported liabilities (IBNR): We include development from past reported losses in IBNR.
•Data excluded from tables: Information with respect to accident years older than ten years is excluded from the development tables. Unallocated loss adjustment expenses are also excluded.
•Foreign exchange: The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rate at December 31, 2023. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends.
•Acquisitions: We include acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired businesses were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the aggregated historical results shown in the triangles.
•Dispositions: We exclude dispositions from all accident years presented in the tables.
•Claim counts: We consider a reported claim to be one claim for each claimant or feature for each loss occurrence. Claims relating to losses that are 100 percent reinsured are excluded from the reported claims in the tables below. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims.
There are limitations that should be considered on the reported claim count data in the tables below, including:
–Claim counts are presented only on a reported (not an ultimate) basis;
–The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies;
–Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and
–Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity.
Supplemental Information: The information about incurred and paid loss development for all periods preceding the year ended December 31, 2023 and the related historical claims payout percentage disclosure is unaudited and is presented as supplementary information.
The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance, with a separate presentation of the ADC excluding the related amortization of the deferred gain:
U.S. Workers' Compensation
U.S. Workers’ Compensation is an extremely long-tail line of business, with loss emergence extending for decades. We generally use a combination of loss development, frequency/severity and expected loss ratio methods for workers’ compensation.
Many of our workers compensation policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time. We group guaranteed cost and excess of deductible business separately and then further by state and industry subset to the extent that meaningful differences are determined to exist. We also separately analyze certain subsets of the portfolio that have unique characteristics (e.g., U.S. government sub-contractor accounts and construction wrap-up business). For excess of deductible business, we also segment by size of deductible and whether the claim is handled by AIG or an outside third-party administrator. The proportion of large deductible business has increased over time, which has slowed the reporting pattern of claims.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance
Years Ended December 31, (in millions)
December 31, 2023
Accident
Year		20142015201620172018201920202021202220232023
Prior Year
Development
Excluding
the Impact
of ADC		Total of IBNR
Liabilities
Plus Expected
Development
on Reported
Losses		Cumulative
Number of
Reported
Claims		Incurred
Impact
of ADC		IBNR
Impact
of ADC		2023
(Net of
Impact
of ADC)		Total of
IBNR
Liabilities
Net of
Impact
of ADC
Unaudited
2014$1,729 $1,764 $1,866 $1,862 $1,794 $1,709 $1,679 $1,637 $1,614 $1,589 $(25)$172 41,529 $(349)$(143)$1,240 $29 
20151,708 1,864 1,866 1,814 1,722 1,675 1,634 1,612 1,592 (20)355 37,109 (438)(228)1,154 127 
20161,299 1,346 1,318 1,140 1,090 1,075 1,036 1,025 (11)224 31,868 — — 1,025 224 
2017789 850 776 763 731 712 705 (7)218 27,695 — — 705 218 
2018998 1,021 961 911 896 875 (21)385 22,222 — — 875 385 
2019887 873 812 801 788 (13)285 17,000 — — 788 285 
2020597 573 521 477 (44)106 13,839 — — 477 106 
2021597 570 545 (25)274 10,982 — — 545 274 
2022523 493 (30)296 9,339 — — 493 296 
2023500 397 7,359 — — 500 397 
Total$8,589 $(196)$(787)$7,802 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(4,727)— 118 (4,609)
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance4,327 (65)(3,632)695 
Unallocated loss adjustment expense prior year development(6)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$8,189 $(267)$(4,301)$3,888 
Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$1,311$1,310$1,309$1,329$1,223$1,171$1,243$1,240 $(3)
20151,2791,2791,3181,1341,1051,0411,0921,154 62 
20161,2991,3461,3181,1401,0901,0751,0361,025 (11)
2017789850776763731712705 (7)
20189981,021961911896875 (21)
2019887873812801788 (13)
2020597573521477 (44)
2021597570545 (25)
2022523493 (30)
2023500 
Total$3,889 $4,724 $5,793 $6,287 $6,612 $6,911 $7,394 $7,802 $(92)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(4,609)
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance695 (48)
Unallocated loss adjustment expense prior year adjustment26 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$3,888 $(114)
The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$(555)$(552)$(485)$(380)$(456)$(466)$(371)$(349)$22 
2015(585)(587)(496)(588)(570)(593)(520)(438)82 
2016— — — — — — — — — 
2017— — — — — — — — — 
2018— — — — — — — — — 
2019— — — — — — — — — 
2020— — — — — — — — — 
2021— — — — — — — — — 
2022— — — — — — — — — 
2023— — — — — — — — — 
Total$(1,140)$(1,139)$(981)$(968)$(1,026)$(1,059)$(891)$(787)$104 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below118 
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance(3,632)17 
Unallocated loss adjustment expense prior year development32 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$(4,301)$153 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Years Ended December 31, (in millions)
Paid Impact
of ADC
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$231 $558 $786 $930 $1,030 $1,096 $1,137 $1,180 $1,207 $1,226 $(64)
2015234 524 725 854 925 979 1,013 1,038 1,058 (54)
2016147 378 521 584 630 662 686 694 — 
201793 224 294 333 367 389 395 — 
201885 215 296 359 388 409 — 
201993 219 301 347 389 — 
202064 159 205 245 — 
202160 128 171 — 
202245 102 — 
202338 — 
Total$4,727 $(118)
U.S. Excess Casualty
U.S. Excess Casualty policies tend to attach at a high layer above underlying policies, which causes the loss development pattern to lag significantly. Many of the claims notified to the excess layers are closed without payment because the claims never reach our layer as a result of high deductibles and other underlying coverages, while the claims that reach our layer can have large case reserves or settlements and be highly variable in terms of reported timing and amount. For a portion of this business, the underlying primary policies are issued by other insurance companies, which can limit our access to relevant information to help inform our judgments as the loss events evolve and mature. Furthermore, this coverage is often significantly impacted by the underwriting cycle and external judicial trends.
Recent accident years reflect a strategy towards having higher attachment points on the portfolio through changing participations in various layers within an insured’s program.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance
Years Ended December 31, (in millions)
December 31, 2023
Accident
Year		20142015201620172018201920202021202220232023
Prior Year
Development
Excluding
the Impact
of ADC		Total of IBNR
Liabilities
Plus Expected
Development
on Reported
Losses		Cumulative
Number of
Reported
Claims		Incurred
Impact
of ADC		IBNR
Impact
of ADC		2023
(Net of
Impact
of ADC)		Total of
IBNR
Liabilities
Net of
Impact
of ADC
Unaudited
2014$938 $1,069 $1,275 $1,260 $1,339 $1,283 $1,248 $1,269 $1,259 $1,245 $(14)$277 2,985 $(384)$(144)$861 $133 
2015989 1,463 1,440 1,603 1,656 1,694 1,721 1,686 1,658 (28)258 3,142 (462)(116)1,196 142 
2016898 1,146 1,162 1,171 1,274 1,250 1,263 1,276 13 314 2,813 — — 1,276 314 
2017856 1,002 1,097 1,153 1,157 1,200 1,182 (18)264 2,079 — — 1,182 264 
2018648 646 721 769 769 779 10 155 1,461 — — 779 155 
2019577 583 597 612 600 (12)301 1,347 — — 600 301 
2020406 413 410 420 10 238 1,284 — — 420 238 
2021278 277 274 (3)100 855 — — 274 100 
2022305 305 — 189 490 — — 305 189 
2023345 326 303 — — 345 326 
Total$8,084 $(42)$(846)$7,238 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(4,724)— 251 (4,473)
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance2,044 (75)(1,488)556 
Unallocated loss adjustment expense prior year development85 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$5,404 $(32)$(2,083)$3,321 
Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$902$905$915$844$912$949$869$861 $(8)
20151,0271,0151,1391,1631,2111,2311,1741,196 22 
20168981,1461,1621,1711,2741,2501,2631,276 13 
20178561,0021,0971,1531,1571,2001,182 (18)
2018648646721769769779 10 
2019577583597612600 (12)
2020406413410420 10 
2021278277274 (3)
2022305305 — 
2023345 
Total$2,827 $3,922 $4,866 $5,498 $6,260 $6,644 $6,879 $7,238 $14 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(4,473)
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance556 (111)
Unallocated loss adjustment expense prior year adjustment115 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$3,321 $18 
The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$(373)$(355)$(424)$(439)$(336)$(320)$(390)$(384)$6 
2015(436)(425)(464)(493)(483)(490)(512)(462)50 
2016— — — — — — — — — 
2017— — — — — — — — — 
2018— — — — — — — — — 
2019— — — — — — — — — 
2020— — — — — — — — — 
2021— — — — — — — — — 
2022— — — — — — — — — 
2023— — — — — — — — — 
Total$(809)$(780)$(888)$(932)$(819)$(810)$(902)$(846)$56 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below251 
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance(1,488)(36)
Unallocated loss adjustment expense prior year development30 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$(2,083)$50 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Years Ended December 31, (in millions)
Paid Impact
of ADC
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$3 $77 $240 $444 $590 $703 $815 $839 $878 $902 $(80)
20159 210 391 718 935 1,061 1,124 1,253 1,291 (171)
201628 80 204 388 502 566 670 798 — 
20171 45 156 505 585 676 781 — 
20181 125 227 315 414 494 — 
20197 43 79 157 216 — 
20204 15 33 128 — 
20214 43 62 — 
202214 51 — 
20231 — 
Total$4,724 $(251)
U.S. Other Casualty
U.S. Other Casualty includes general liability, automobile liability, environmental, medical malpractice, and other casualty lines of business. These lines of business are all long-tail in nature and while somewhat diverse in terms of exposures, these lines are often subject to similar trends. These lines are often significantly impacted by the underwriting cycle and external judicial trends. Many of our policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance
Years Ended December 31, (in millions)
December 31, 2023
Accident
Year		20142015201620172018201920202021202220232023
Prior Year
Development
Excluding
the Impact
of ADC		Total of IBNR
Liabilities
Plus Expected
Development
on Reported
Losses		Cumulative
Number of
Reported
Claims		Incurred
Impact
of ADC		IBNR
Impact
of ADC		2023
(Net of
Impact
of ADC)		Total of
IBNR
Liabilities
Net of
Impact
of ADC
Unaudited
2014$1,751 $1,721 $1,963 $2,009 $1,910 $1,916 $1,946 $1,935 $1,944 $1,905 $(39)$46 38,546 $(214)$(29)$1,691 $17 
20151,329 1,762 1,829 1,736 1,794 1,834 1,824 1,815 1,796 (19)23 35,754 (282)(8)1,514 15 
20161,339 1,343 1,321 1,391 1,340 1,323 1,293 1,297 4 162 29,191 — — 1,297 162 
2017602 629 738 674 668 643 654 11 21 21,266 — — 654 21 
2018802 845 837 870 824 810 (14)148 16,967 — — 810 148 
20191,059 1,058 1,053 1,062 1,039 (23)526 21,036 — — 1,039 526 
2020524 576 538 540 2 277 11,318 — — 540 277 
2021795 793 790 (3)519 10,572 — — 790 519 
2022793 819 26 617 12,457 — — 819 617 
2023933 848 10,401 — — 933 848 
Total$10,583 $(55)$(496)$10,087 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(6,668)— 298 (6,370)
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance1,448 (67)(1,053)395 
Unallocated loss adjustment expense prior year development(11)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$5,363 $(133)$(1,251)$4,112 
Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$1,667$1,678$1,634$1,694$1,701$1,722$1,718$1,691 $(27)
20151,3611,3731,4231,4931,5531,5621,5631,514 (49)
20161,3391,3431,3211,3911,3401,3231,2931,297 4 
2017602629738674668643654 11 
2018802845837870824810 (14)
20191,0591,0581,0531,0621,039 (23)
2020524576538540 2 
2021795793790 (3)
2022793819 26 
2023933 
Total$4,367 $4,996 $5,809 $7,220 $7,687 $8,569 $9,227 $10,087 $(73)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(6,370)
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance395 (73)
Unallocated loss adjustment expense prior year adjustment13 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$4,112 $(133)
The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$(296)$(331)$(276)$(222)$(245)$(213)$(226)$(214)$12 
2015(401)(456)(313)(301)(281)(262)(252)(282)(30)
2016— — — — — — — — — 
2017— — — — — — — — — 
2018— — — — — — — — — 
2019— — — — — — — — — 
2020— — — — — — — — — 
2021— — — — — — — — — 
2022— — — — — — — — — 
2023— — — — — — — — — 
Total$(697)$(787)$(589)$(523)$(526)$(475)$(478)$(496)$(18)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below298 
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance(1,053)(6)
Unallocated loss adjustment expense prior year development24 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$(1,251)$— 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Years Ended December 31, (in millions)
Paid Impact
of ADC
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$210 $620 $868 $1,150 $1,392 $1,572 $1,653 $1,719 $1,795 $1,805 $(122)
2015105 309 769 1,087 1,351 1,485 1,603 1,680 1,707 (176)
201677 298 489 703 846 938 1,018 1,074 — 
201751 111 216 314 455 527 592 — 
201843 122 227 360 470 565 — 
201953 138 226 321 410 — 
202026 73 139 198 — 
202132 87 169 — 
202238 112 — 
202336 — 
Total$6,668 $(298)
U.S. Financial Lines
U.S. Financial Lines business includes D&O, E&O, EPLI policies and various professional liability subsets of business, as well as the fidelity book of business. This includes cyber coverage and mergers and acquisitions coverage, which have been a growing and evolving portion of this portfolio. These product lines are predominantly claims-made in nature, losses are characterized by low frequency and high severity, and results are often significantly impacted by external economic conditions.
Our analysis is segmented by major coverages, such as D&O, E&O, etc. and then further segmented by major industry groups (e.g. corporate accounts, national accounts, financial institutions, private/not-for-profit, etc.). We also separately review primary business from excess business for certain product lines.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance
Years Ended December 31, (in millions)
December 31, 2023
Accident
Year		20142015201620172018201920202021202220232023
Prior Year
Development
Excluding
the Impact
of ADC		Total of IBNR
Liabilities
Plus Expected
Development
on Reported
Losses		Cumulative
Number of
Reported
Claims		Incurred
Impact
of ADC		IBNR
Impact
of ADC		2023
(Net of
Impact
of ADC)		Total of
IBNR
Liabilities
Net of
Impact
of ADC
Unaudited
2014$1,812 $1,777 $1,892 $1,927 $1,960 $1,981 $2,000 $2,057 $2,014 $2,017 $3 $91 17,650 $(297)$(68)$1,720 $23 
20151,737 1,762 1,743 1,788 1,830 1,874 1,959 2,044 2,048 4 78 16,253 (495)(63)1,553 15 
20161,605 1,855 1,993 2,064 2,139 2,281 2,325 2,308 (17)133 16,127 — — 2,308 133 
20171,564 1,675 1,756 1,846 1,898 1,987 1,957 (30)130 15,269 — — 1,957 130 
20181,640 1,766 1,882 2,063 2,225 2,322 97 498 14,833 — — 2,322 498 
20191,503 1,536 1,627 1,926 1,912 (14)513 13,319 — — 1,912 513 
20201,213 1,252 1,408 1,457 49 331 10,390 — — 1,457 331 
20211,430 1,408 1,388 (20)894 7,117 — — 1,388 894 
20221,130 1,108 (22)948 5,809 — — 1,108 948 
20231,043 950 6,467 — — 1,043 950 
Total$17,560 $50 $(792)$16,768 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(11,645)— 501 (11,144)
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance271 27 (223)48 
Unallocated loss adjustment expense prior year development17 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$6,186 $94 $(514)$5,672 
Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$1,733$1,729$1,753$1,741$1,759$1,761$1,738$1,720 $(18)
20151,4291,4301,4621,5521,5501,5951,6051,553 (52)
20161,6051,8551,9932,0642,1392,2812,3252,308 (17)
20171,5641,6751,7561,8461,8981,9871,957 (30)
20181,6401,7661,8822,0632,2252,322 97 
20191,5031,5361,6271,9261,912 (14)
20201,2131,2521,4081,457 49 
20211,4301,4081,388 (20)
20221,1301,108 (22)
20231,043 
Total$4,767 $6,578 $8,523 $10,382 $11,925 $13,907 $15,752 $16,768 $(27)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(11,144)
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance48 56 
Unallocated loss adjustment expense prior year adjustment21 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$5,672 $50 
The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$(159)$(198)$(207)$(240)$(241)$(296)$(276)$(297)$(21)
2015(333)(313)(326)(278)(324)(364)(439)(495)(56)
2016— — — — — — — — — 
2017— — — — — — — — — 
2018— — — — — — — — — 
2019— — — — — — — — — 
2020— — — — — — — — — 
2021— — — — — — — — — 
2022— — — — — — — — — 
2023— — — — — — — — — 
Total$(492)$(511)$(533)$(518)$(565)$(660)$(715)$(792)$(77)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below501 
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance(223)29 
Unallocated loss adjustment expense prior year development4 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$(514)$(44)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Years Ended December 31, (in millions)
Paid Impact
of ADC
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$66 $366 $849 $1,158 $1,387 $1,573 $1,658 $1,758 $1,820 $1,849 $(147)
201563 390 791 1,055 1,282 1,488 1,686 1,818 1,914 (354)
201673 499 1,002 1,358 1,659 1,826 1,903 2,039 — 
201764 391 761 1,118 1,396 1,515 1,653 — 
201886 486 835 1,126 1,415 1,601 — 
201994 367 642 953 1,204 — 
202084 356 648 915 — 
202143 151 315 — 
202230 109 — 
202346 — 
Total$11,645 $(501)
U.S. Property and Special Risks
U.S. Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to manmade and natural disasters, including business interruption. U.S. Special Risk products include aerospace, environmental, political risk, trade credit, surety and marine insurance, and program business for various small and medium sized enterprises insurance lines. The program segments include both property and casualty exposures. Recent years have seen an increasing proportion of non-admitted coverages which has altered the underlying customer profile to be less severe in the aggregate.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance
Years Ended December 31, (in millions)
December 31, 2023
Accident
Year		20142015201620172018201920202021202220232023
Prior Year
Development
Excluding
the Impact
of ADC		Total of IBNR
Liabilities
Plus Expected
Development
on Reported
Losses		Cumulative
Number of
Reported
Claims		Incurred
Impact
of ADC		IBNR
Impact
of ADC		2023
(Net of
Impact
of ADC)		Total of
IBNR
Liabilities
Net of
Impact
of ADC
Unaudited
2014$2,600 $2,396 $2,490 $2,480 $2,494 $2,477 $2,460 $2,446 $2,440 $2,437 $(3)$4 60,766 $(52)$(2)$2,385 $2 
20152,567 2,506 2,489 2,492 2,466 2,471 2,479 2,490 2,493 3 4 59,513 (100)(1)2,393 3 
20162,674 2,748 2,690 2,697 2,707 2,694 2,700 2,713 13 8 54,821 — — 2,713 8 
20174,673 4,239 4,127 4,153 4,173 4,212 4,175 (37)15 79,764 — — 4,175 15 
20182,978 2,993 2,992 3,229 3,201 3,210 9 112 69,922 — — 3,210 112 
20192,177 2,146 2,211 2,222 2,177 (45)25 78,848 — — 2,177 25 
20203,391 3,320 3,280 3,238 (42)761 68,644 — — 3,238 761 
20212,339 2,213 2,160 (53)101 81,795 — — 2,160 101 
20223,171 3,281 110 690 85,477 — — 3,281 690 
20232,528 777 88,129 — — 2,528 777 
Total$28,412 $(45)$(152)$28,260 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(24,207)— 87 (24,120)
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance409 39 (146)263 
Unallocated loss adjustment expense prior year development(4)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$4,614 $(10)$(211)$4,403 
Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$2,423$2,419$2,430$2,401$2,382$2,376$2,364$2,385 $21 
20152,3652,3912,4052,3722,3722,3722,3752,393 18 
20162,6742,7482,6902,6972,7072,6942,7002,713 13 
20174,6734,2394,1274,1534,1734,2124,175 (37)
20182,9782,9932,9923,2293,2013,210 9 
20192,1772,1462,2112,2222,177 (45)
20203,3913,3203,2803,238 (42)
20212,3392,2132,160 (53)
20223,1713,281 110 
20232,528 
Total$7,462 $12,231 $14,742 $16,767 $20,143 $22,714 $25,738 $28,260 $(6)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(24,120)
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance263 9 
Unallocated loss adjustment expense prior year adjustment(3)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$4,403 $— 
The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$(67)$(61)$(64)$(76)$(78)$(70)$(76)$(52)$24 
2015(141)(98)(87)(94)(99)(107)(115)(100)15 
2016— — — — — — — — — 
2017— — — — — — — — — 
2018— — — — — — — — — 
2019— — — — — — — — — 
2020— — — — — — — — — 
2021— — — — — — — — — 
2022— — — — — — — — — 
2023— — — — — — — — — 
Total$(208)$(159)$(151)$(170)$(177)$(177)$(191)$(152)$39 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below87 
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance(146)(30)
Unallocated loss adjustment expense prior year development1 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$(211)$10 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Years Ended December 31, (in millions)
Paid Impact
of ADC
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$795 $1,545 $1,869 $2,073 $2,207 $2,293 $2,329 $2,352 $2,362 $2,418 $(20)
2015844 1,572 1,878 2,121 2,240 2,308 2,344 2,391 2,457 (67)
2016821 1,747 2,076 2,296 2,464 2,539 2,616 2,647 — 
20171,137 2,625 3,281 3,638 3,897 3,999 4,055 — 
2018977 2,162 2,509 2,715 2,863 2,994 — 
20191,039 1,673 1,906 2,037 2,083 — 
2020844 1,613 1,874 2,190 — 
2021878 1,743 1,983 — 
20221,208 2,207 — 
20231,173 — 
Total$24,207 $(87)
U.S. Personal Insurance
U.S. Personal Insurance consists of accident and health and personal lines. Accident and health products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations as well as a broad range of travel insurance products and services for leisure and business travelers. Personal lines include automobile and homeowners’ insurance, extended warranty, and consumer specialty products, such as identity theft and credit card protection. Personal lines also provides insurance for high net worth individuals offered through AIG Private Client Group, including auto, homeowners, umbrella, yacht, fine art and collections insurance. Personal lines are generally short-tail in nature and can reflect significant salvage and subrogation recoveries.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance
Years Ended December 31, (in millions)
December 31, 2023
Accident
Year		20142015201620172018201920202021202220232023
Prior Year
Development
Excluding
the Impact
of ADC		Total of IBNR
Liabilities
Plus Expected
Development
on Reported
Losses		Cumulative
Number of
Reported
Claims		Incurred
Impact
of ADC		IBNR
Impact
of ADC		2023
(Net of
Impact
of ADC)		Total of
IBNR
Liabilities
Net of
Impact
of ADC
Unaudited
2014$1,552 $1,562 $1,572 $1,572 $1,583 $1,584 $1,588 $1,587 $1,592 $1,592 $— $5 275,132 $(8)$— $1,584 $5 
20151,511 1,498 1,494 1,483 1,482 1,485 1,487 1,488 1,487 (1)8 261,176 (8)— 1,479 8 
20161,536 1,533 1,533 1,540 1,542 1,544 1,544 1,541 (3)12 247,479 — — 1,541 12 
20171,878 2,137 2,011 2,057 1,924 1,916 1,896 (20)15 220,038 — — 1,896 15 
20182,188 2,193 2,154 1,937 1,936 1,920 (16)33 102,256 — — 1,920 33 
20191,593 1,664 1,646 1,596 1,578 (18)43 93,428 — — 1,578 43 
2020954 906 913 894 (19)51 55,101 — — 894 51 
2021748 765 762 (3)70 56,234 — — 762 70 
2022517 529 12 93 51,983 — — 529 93 
2023677 248 32,022 — — 677 248 
Total$12,876 $(68)$(16)$12,860 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(12,060)— 16 (12,044)
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance(48)4 (1)(49)
Unallocated loss adjustment expense prior year development— 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$768 $(64)$(1)$767 
Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$1,564$1,564$1,571$1,580$1,584$1,582$1,584$1,584 $— 
20151,4761,4751,4721,4761,4801,4821,4811,479 (2)
20161,5361,5331,5331,5401,5421,5441,5441,541 (3)
20171,8782,1372,0112,0571,9241,9161,896 (20)
20182,1882,1932,1541,9371,9361,920 (16)
20191,5931,6641,6461,5961,578 (18)
2020954906913894 (19)
2021748765762 (3)
2022517529 12 
2023677 
Total$4,576 $6,450 $8,901 $10,393 $11,435 $11,769 $12,252 $12,860 $(69)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(12,044)
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance(49)4 
Unallocated loss adjustment expense prior year adjustment— 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$767 $(65)
The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):
Calendar Years Ended December 31, (in millions)
Accident
Year		20162017201820192020202120222023Prior Year
Development
Unaudited
2014$(8)$(8)$(12)$(4)$(4)$(5)$(8)$(8)$— 
2015(22)(19)(11)(6)(5)(5)(7)(8)(1)
2016— — — — — — — — — 
2017— — — — — — — — — 
2018— — — — — — — — — 
2019— — — — — — — — — 
2020— — — — — — — — — 
2021— — — — — — — — — 
2022— — — — — — — — — 
2023— — — — — — — — — 
Total$(30)$(27)$(23)$(10)$(9)$(10)$(15)$(16)$(1)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below16 
Liabilities for losses and allocated loss adjustment expenses and prior year development before 2014, net of reinsurance(1)— 
Unallocated loss adjustment expense prior year development— 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$(1)$(1)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
Years Ended December 31, (in millions)
Paid Impact
of ADC
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$959 $1,380 $1,463 $1,507 $1,536 $1,555 $1,568 $1,572 $1,579 $1,584 $(8)
2015931 1,320 1,411 1,439 1,455 1,461 1,463 1,468 1,471 (8)
2016857 1,344 1,422 1,460 1,501 1,512 1,518 1,521 — 
2017941 1,672 1,896 1,789 1,826 1,852 1,861 — 
20181,227 1,939 1,973 1,789 1,832 1,849 — 
2019884 1,295 1,379 1,416 1,491 — 
2020667 679 725 824 — 
2021488 650 658 — 
2022372 401 — 
2023400 — 
Total$12,060 $(16)
UK/Europe Casualty and Financial Lines
UK/Europe is our largest non-U.S. region for Liability and Financial Lines. UK/Europe Casualty and Financial Lines is composed of third-party coverages including general liability, auto liability, D&O, professional liability and various other coverages throughout both the UK and Continental Europe. These areas are all long-tail in nature and while somewhat diverse in terms of exposures, these lines are often subject to similar trends. These lines are impacted by the underwriting cycle and external judicial trends. The largest share of business is in the UK, but significant business is also written in other European countries such as Germany, France, and Italy.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*
Years Ended December 31, (in millions)
December 31, 2023
Accident Year20142015201620172018201920202021202220232023
Prior Year
Development		Total of IBNR
Liabilities
Plus Expected
Development on
Reported Losses		Cumulative
Number of
Reported
Claims
Unaudited
2014$1,036 $1,009 $1,032 $1,039 $1,034 $1,122 $1,064 $1,106 $1,111 $1,117 $6 $75 102,063 
20151,092 1,233 1,262 1,170 1,244 1,234 1,238 1,258 1,266 8 74 113,865 
20161,314 1,453 1,497 1,498 1,601 1,597 1,610 1,613 3 100 142,721 
20171,343 1,323 1,252 1,321 1,381 1,366 1,408 42 177 149,665 
20181,343 1,415 1,482 1,521 1,619 1,664 45 245 151,467 
20191,005 1,262 1,334 1,351 1,345 (6)292 142,426 
20201,219 1,271 1,216 1,202 (14)474 85,762 
20211,375 1,335 1,347 12 723 76,503 
20221,300 1,261 (39)894 71,630 
20231,472 1,100 57,306 
Total$13,695 $57 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(7,109)— 
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance861 108 
Unallocated loss adjustment expense prior year development— 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$7,447 $165 
*The losses reported in the table are not covered by the ADC.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*
Years Ended December 31, (in millions)
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$72 $258 $409 $529 $629 $695 $757 $818 $859 $883 
201571 240 433 568 683 859 949 994 1,041 
2016119 379 586 775 930 1,059 1,168 1,260 
201796 280 447 602 753 896 964 
2018113 374 572 742 903 1,128 
201998 310 478 658 760 
202060 228 367 507 
202151 233 345 
202257 185 
202336 
Total$7,109 
*The losses reported in the table are not covered by the ADC.
UK/Europe Property and Special Risks
UK/Europe Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to manmade and natural disasters, including business interruption. UK/Europe Special Risk products include aerospace, environmental, political risk, trade credit, surety and marine insurance, and various small and medium sized enterprises insurance lines.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*
Years Ended December 31, (in millions)
December 31, 2023
Accident Year20142015201620172018201920202021202220232023
Prior Year
Development		Total of IBNR
Liabilities
Plus Expected
Development on
Reported Losses		Cumulative
Number of
Reported
Claims
Unaudited
2014$1,439 $1,470 $1,431 $1,460 $1,450 $1,426 $1,387 $1,382 $1,360 $1,349 $(11)$(2)48,030 
20151,552 1,469 1,531 1,463 1,444 1,434 1,421 1,455 1,442 (13)7 54,639 
20161,536 1,685 1,678 1,682 1,678 1,674 1,609 1,604 (5)10 57,287 
20171,649 1,614 1,609 1,616 1,600 1,566 1,565 (1)12 53,411 
20181,505 1,555 1,533 1,520 1,468 1,463 (5)8 44,183 
20191,138 1,100 1,101 1,090 1,086 (4)39 33,637 
20201,301 1,241 1,200 1,218 18 136 25,822 
20211,019 982 932 (50)64 22,306 
20221,123 1,288 165 220 23,295 
20231,359 539 15,946 
Total$13,306 $94 
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(10,479)— 
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance86 (13)
Unallocated loss adjustment expense prior year development— 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$2,913 $81 
*The losses reported in the table are not covered by the ADC.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*
Years Ended December 31, (in millions)
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$311 $912 $1,187 $1,255 $1,293 $1,320 $1,329 $1,342 $1,350 $1,354 
2015346 920 1,193 1,295 1,331 1,354 1,362 1,363 1,362 
2016456 1,114 1,367 1,500 1,545 1,574 1,591 1,585 
2017353 940 1,222 1,364 1,420 1,459 1,472 
2018316 978 1,161 1,289 1,303 1,339 
2019264 649 820 907 944 
2020249 668 819 912 
2021189 504 691 
2022194 661 
2023159 
Total$10,479 
*The losses reported in the table are not covered by the ADC.
UK/Europe and Japan Personal Insurance
UK/Europe and Japan Personal Insurance lines consist of accident and health and personal lines. Accident and health products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations as well as a broad range of travel insurance products and services for leisure and business travelers. Personal lines include automobile and homeowners’ insurance, extended warranty, and consumer specialty products, such as identity theft and credit card protection. Personal lines are generally short-tail in nature.
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*
Years Ended December 31, (in millions)
December 31, 2023
Accident Year20142015201620172018201920202021202220232023
Prior Year
Development		Total of IBNR
Liabilities
Plus Expected
Development on
Reported Losses		Cumulative
Number of
Reported
Claims
Unaudited
2014$2,210 $2,220 $2,207 $2,204 $2,197 $2,197 $2,199 $2,197 $2,220 $2,224 $4 $2 1,799,271 
20152,284 2,264 2,265 2,257 2,255 2,255 2,256 2,254 2,257 3 — 1,777,699 
20162,241 2,240 2,226 2,221 2,219 2,216 2,209 2,212 3 1 1,794,987 
20172,196 2,118 2,103 2,099 2,115 2,100 2,108 8 — 1,718,502 
20182,555 2,461 2,458 2,431 2,450 2,448 (2)4 1,915,683 
20192,085 2,050 2,015 2,000 2,002 2 3 1,673,976 
20201,909 1,771 1,713 1,701 (12)19 1,389,704 
20211,776 1,719 1,689 (30)32 1,387,230 
20221,889 1,854 (35)89 2,050,657 
20231,698 256 1,275,686 
Total$20,193 $(59)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below(18,747)— 
Liabilities for losses and loss adjustment expenses and prior year development before accident year 2014, net of reinsurance37 2 
Unallocated loss adjustment expense prior year development— 
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance$1,483 $(57)
*The losses reported in the table are not covered by the ADC.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*
Years Ended December 31, (in millions)
Accident Year2014201520162017201820192020202120222023
Unaudited
2014$1,198 $1,817 $1,999 $2,090 $2,137 $2,158 $2,170 $2,179 $2,184 $2,189 
20151,228 1,861 2,046 2,146 2,183 2,209 2,226 2,234 2,244 
20161,225 1,830 2,013 2,102 2,147 2,173 2,187 2,195 
20171,200 1,791 1,950 2,020 2,056 2,078 2,077 
20181,520 2,063 2,225 2,309 2,352 2,404 
20191,219 1,726 1,854 1,916 1,950 
20201,020 1,470 1,576 1,619 
20211,003 1,423 1,533 
20221,100 1,572 
2023964 
Total$18,747 
*The losses reported in the table are not covered by the ADC.
Claims Payout Patterns
The following table presents the historical average annual percentage claims payout on an accident year basis at the same level of disaggregation as presented in the claims development table.
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year1 2 3 4 5 6 7 8 9 10 
U.S. Workers' compensation11.9 %17.2 %11.0 %7.2 %4.8 %3.2 %2.0 %1.7 %1.5 %1.2 %
U.S. Excess casualty1.2 8.5 9.2 18.1 10.5 7.9 7.4 6.6 2.7 1.9 
U.S. Other casualty5.8 11.3 14.2 14.4 13.7 9.4 6.7 4.0 2.8 0.5 
U.S. Financial Lines3.7 14.6 18.2 15.6 12.5 8.1 6.1 5.8 3.9 1.4 
U.S. Property and Special Risks35.2 32.2 11.8 8.1 4.9 3.1 1.8 1.3 1.5 2.3 
U.S. Personal Insurance61.6 23.8 5.2 0.8 2.4 0.9 0.5 0.3 0.3 0.3 
UK/Europe Casualty and Financial Lines5.6 14.3 12.2 11.3 9.3 10.3 6.1 4.9 3.7 2.1 
UK/Europe Property and Special Risks21.1 38.7 16.7 7.7 2.7 2.1 0.8 0.2 0.3 0.3 
UK/Europe and Japan Personal Insurance57.9 26.2 7.2 3.6 1.8 1.3 0.5 0.4 0.3 0.2 
DISCOUNTING OF LOSS RESERVES
At December 31, 2023 and 2022, the loss reserves reflect a net loss reserve discount of $1.2 billion and $1.3 billion, respectively, including tabular and non-tabular calculations based upon the following assumptions:
•The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York, Pennsylvania and Delaware, and follows the statutory regulations (prescribed or permitted) for each state.
–For New York companies, the discount is based on a 5 percent interest rate and the companies’ own payout patterns.
–The Pennsylvania and Delaware regulators approved use of a consistent benchmark discount rate and spread (U.S. Treasury rate plus a liquidity premium) to all of our workers’ compensation reserves in our Pennsylvania domiciled and Delaware domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. In 2020, the regulators also approved that the discount rate will be updated on an annual basis.
•The tabular workers’ compensation discount is calculated based on the mortality rate used in the 2007 U.S. Life table and interest rates prescribed or permitted by each state (i.e. New York is based on 5 percent interest rate and Pennsylvania and Delaware are based on U.S. Treasury rate plus a liquidity premium). In the case that applying this tabular discount factor to our nominal reserves produces a tabular discount that is greater than the indemnity portion of our case reserves, the tabular discount is capped at our estimate of the indemnity portion of our cases reserves (45 percent).
The discount for asbestos reserves has been fully accreted.
At December 31, 2023 and 2022, the discount consists of $294 million and $314 million of tabular discount, respectively, and $939 million and $964 million of non-tabular discount for workers’ compensation, respectively. During the years ended December 31, 2023, 2022 and 2021, the benefit / (charge) from changes in discount of $(195) million, $703 million and $193 million, respectively, were recorded as part of the policyholder benefits and losses incurred in the Consolidated Statements of Income (Loss).
The following table presents the components of the loss reserve discount discussed above:
(in millions)December 31, 2023December 31, 2022
U.S. workers' compensation$2,337 $2,532 
Retroactive reinsurance(1,104)(1,254)
Total reserve discount(a)(b)
$1,233 $1,278 
(a)Excludes $196 million and $135 million of discount related to certain long-tail liabilities in the UK at December 31, 2023 and 2022, respectively.
(b)Includes gross discount of $687 million and $763 million, which was 100 percent ceded to Fortitude Re at December 31, 2023 and 2022, respectively.
The following table presents the net loss reserve discount benefit (charge):
Years Ended December 31,
(in millions)202320222021
Current accident year$112 $98 $62 
Accretion and other adjustments to prior year discount(264)(239)(88)
Effect of interest rate changes(43)844 219 
Net reserve discount benefit (charge)(195)703 193 
Change in discount on loss reserves ceded under retroactive reinsurance150 (301)(42)
Net change in total reserve discount*$(45)$402 $151 
*Excludes $61 million, $19 million and $(35) million of discount related to certain long-tail liabilities in the UK for the years ended December 31, 2023, 2022 and 2021, respectively.
During 2023, net change in total reserve discount was impacted by updates to payout patterns, along with decreases in discount rates due to an increase in U.S. Treasury rates offset by a decrease in the discount spread.
During 2022 and 2021, effective interest rates increased due to an increase in the forward yield curve component of the discount rates reflecting an increase in U.S. Treasury rates along with changes in payout pattern assumptions.
Amortization of Deferred Gain on Retroactive Reinsurance
Amortization of the deferred gain on retroactive reinsurance includes $48 million, $189 million and $137 million related to the adverse development reinsurance cover with NICO for the years ended December 31, 2023, 2022 and 2021, respectively.
Amounts recognized reflect the amortization of the initial deferred gain at inception, as amended for subsequent changes in the deferred gain due to changes in subject reserves.
FUTURE POLICY BENEFITS
Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant receives life contingent payments over their lifetime. Also included are pension risk transfer arrangements whereby an upfront premium is received in exchange for guaranteed retirement benefits. All payments under these arrangements are fixed and determinable with respect to their amounts and dates. Structured settlement or other annuitization elections (e.g., certain single premium immediate annuities) that do not involve life contingent payments, but rather payments for a stated period are included in Policyholder contract deposits.
For traditional and limited pay long-duration products, benefit reserves are accrued and benefit expense is recognized using a NPR methodology for each annual cohort of business. This NPR method incorporates periodic retrospective revisions to the NPR to reflect updated actuarial assumptions and variances in actual versus expected experience. The Future policy benefit liability is accrued by multiplying the gross premium recognized in each period by the net premium ratio. The net premium is equal to the portion of the gross premium required to provide for all benefits and certain expenses and may not exceed 100 percent. Benefits in excess of premiums are expensed immediately through Policyholder benefits. In addition, periodic revisions to the NPR below 100 percent may result in reclassification between the benefit reserves and deferred profit liability for limited pay contracts.
Insurance contracts are aggregated into annual cohorts for the purposes of determining the liability for future policy benefits (LFPB), but are not aggregated across segments. These annual cohorts may be further segregated based on product characteristics, or to distinguish business reinsured from non-reinsured business or products issued in different functional currencies. The assumptions used to calculate the future policy benefits include discount rates, persistency and recognized morbidity and mortality tables modified to reflect the Company's experience.
The current discount rate assumption for the liability for future policy benefits is derived from market observable yields on upper-medium-grade fixed income instruments. The Company uses an external index as the source of the yields on these instruments for the first 30 years. For years 30 to 50, the yield is derived using market observable yields. Yields for years 50 to 100 are extrapolated using a flat forward approach, maintaining a constant forward spread through the period. The current discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change in the discount rate reflected in OCI.
The method for constructing and applying the locked-in discount rate assumptions on newly issued business is determined based on factors such as product characteristics and the expected timing of cash flows. This discount rate assumption is derived from market observable yields on upper-medium-grade fixed income instruments. Similar to the current discount rate assumption, the Company may employ conversion and interpolation methodologies when necessary. The applicable interest accretion is reflected in Policyholder benefits and losses incurred in the Consolidated Statements of Income (Loss).
The following table presents the transition rollforward of the liability for future policy benefits for nonparticipating contracts(a):
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(b)
Total
(in millions)
Pre-adoption December 31, 2020 liability for future policy benefits balance$1,309 $282 $11,129 $11,029 $22,206 $45,955 
Adjustments for the reclassification to the deferred profit liability(65)(8)— (766)(859)(1,698)
Change in cash flow assumptions and effect of net premiums exceeding gross premiums(14)2 15 4 55 62 
Effect of the remeasurement of the liability at a current single A rate156 63 2,977 1,655 7,611 12,462 
Adjustment for the removal of loss recognition balances related to unrealized gain or loss on securities(64)(60)4 (292)— (412)
Post-adoption January 1, 2021 liability for future policy benefits balance$1,322 $279 $14,125 $11,630 $29,013 $56,369 
(a)Excludes future policy benefits for participating contracts, DPL, additional liabilities, Accident and Health, Group Benefits and Other Operations representing $11.0 billion of liability for future policy benefits. See transition tables below for DPL and additional liabilities.
(b)Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
Adjustments for the reclassification between the liability for future policy benefits and deferred profit liability represent changes in the net premium ratios that are less than 100 percent at transition for certain limited pay cohorts, resulting in a reclassification between the two liabilities, with no impact on Retained earnings.
Adjustments for change in cash flow assumptions represents revised net premium ratios in excess of 100 percent for certain cohorts at transition, with an offset to Retained earnings.
The effect of the remeasurement at the current single A rate is reported at the Transition Date and each subsequent balance sheet date, with an offset in AOCI.
Prior to adoption, loss recognition for traditional products was adjusted for the effect of unrealized gains on fixed maturity securities available for sale. At the Transition Date, these adjustments were removed with a corresponding offset in AOCI.
The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Consolidated Balance Sheets:
Year Ended December 31, 2023General
Insurance		Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(f)
Total
(in millions, except for liability durations)
Present value of expected net premiums
Balance, beginning of year$1,929 $— $— $11,654 $— $991 $14,574 
Effect of changes in discount rate assumptions (AOCI)262 — — 1,872 — 66 2,200 
Beginning balance at original discount rate2,191 — — 13,526 — 1,057 16,774 
Effect of changes in cash flow assumptions(2)— — 34 — 21 53 
Effect of actual variances from expected experience(16)— — 62 — 20 66 
Adjusted beginning of year balance2,173 — — 13,622 — 1,098 16,893 
Issuances122 — — 1,277 — — 1,399 
Interest accrual43 — — 437 — 46 526 
Net premium collected(283)— — (1,464)— (118)(1,865)
Foreign exchange impact(14)— — 265 — — 251 
Other— — — 11 — (9)2 
Ending balance at original discount rate2,041 — — 14,148 — 1,017 17,206 
Effect of changes in discount rate assumptions (AOCI)(339)— — (1,482)— (44)(1,865)
Reclassified to Liabilities held for sale— — — (4,287)— — (4,287)
Balance, end of year$1,702 $— $— $8,379 $— $973 $11,054 
Present value of expected future policy benefits
Balance, beginning of year$2,380 $1,223 $211 $21,179 $12,464 $20,429 $57,886 
Effect of changes in discount rate assumptions (AOCI)362 167 2 3,424 2,634 1,083 7,672 
Beginning balance at original discount rate2,742 1,390 213 24,603 15,098 21,512 65,558 
Effect of changes in cash flow assumptions(a)
(13)— — 62 — 76 125 
Effect of actual variances from expected experience(a)
(18)(5)(2)122 15 — 112 
Adjusted beginning of year balance2,711 1,385 211 24,787 15,113 21,588 65,795 
Issuances130 173 18 1,266 5,339 4 6,930 
Interest accrual52 55 11 908 664 1,026 2,716 
Benefit payments(276)(128)(26)(1,921)(1,087)(1,503)(4,941)
Foreign exchange impact(27)— — 345 359 — 677 
Other— — — 10 — (24)(14)
Ending balance at original discount rate2,590 1,485 214 25,395 20,388 21,091 71,163 
Effect of changes in discount rate assumptions (AOCI)(441)(132)3 (2,745)(1,906)(437)(5,658)
Reclassified to Liabilities held for sale— — — (5,119)— — (5,119)
Balance, end of year$2,149 $1,353 $217 $17,531 $18,482 $20,654 $60,386 
Net liability for future policy benefits, end of year$447 $1,353 $217 $9,152 $18,482 $19,681 $49,332 
Liability for future policy benefits for certain participating contracts1,313 
Liability for universal life policies with secondary guarantees and similar features(b)
3,786 
Deferred profit liability2,512 
Other reconciling items(c)
1,633 
Future policy benefits for life and accident and health insurance contracts
58,576 
Less: Reinsurance recoverable(23,571)
Net liability for future policy benefits after reinsurance recoverable$35,005 
Weighted average liability duration of the liability for future policy benefits(d)(e)
9.37.86.812.812.111.5
Year Ended December 31, 2022Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(f)
Total
(in millions, except for liability durations)
Present value of expected net premiums
Balance, beginning of year$— $— $14,369 $— $1,274 $15,643 
Effect of changes in discount rate assumptions (AOCI)— — (706)— (150)(856)
Beginning balance at original discount rate— — 13,663 — 1,124 14,787 
Effect of changes in cash flow assumptions— — 123 — — 123 
Effect of actual variances from expected experience— — (79)— 7 (72)
Adjusted beginning of year balance— — 13,707 — 1,131 14,838 
Issuances— — 1,358 — — 1,358 
Interest accrual— — 397 — 48 445 
Net premium collected— — (1,418)— (123)(1,541)
Foreign exchange impact— — (517)— — (517)
Other— — (1)— 1 — 
Ending balance at original discount rate— — 13,526 — 1,057 14,583 
Effect of changes in discount rate assumptions (AOCI)— — (1,872)— (66)(1,938)
Balance, end of year$— $— $11,654 $— $991 $12,645 
Present value of expected future policy benefits
Balance, beginning of year$1,373 $264 $27,442 $13,890 $27,674 $70,643 
Effect of changes in discount rate assumptions (AOCI)(95)(46)(2,717)(870)(5,673)(9,401)
Beginning balance at original discount rate1,278 218 24,725 13,020 22,001 61,242 
Effect of changes in cash flow assumptions(a)
— — 140 (6)— 134 
Effect of actual variances from expected experience(a)
(30)(2)(94)3 1 (122)
Adjusted beginning of year balance1,248 216 24,771 13,017 22,002 61,254 
Issuances216 12 1,374 2,782 9 4,393 
Interest accrual42 10 876 459 1,233 2,620 
Benefit payments(116)(26)(1,757)(821)(1,483)(4,203)
Foreign exchange impact— — (657)(339)— (996)
Other— 1 (4)— (249)(252)
Ending balance at original discount rate1,390 213 24,603 15,098 21,512 62,816 
Effect of changes in discount rate assumptions (AOCI)(167)(2)(3,424)(2,634)(1,083)(7,310)
Balance, end of year$1,223 $211 $21,179 $12,464 $20,429 $55,506 
Net liability for future policy benefits, end of year$1,223 $211 $9,525 $12,464 $19,438 $42,861 
Liability for future policy benefits for certain participating contracts1,352 
Liability for universal life policies with secondary guarantees and similar features(b)
3,355 
Deferred profit liability2,303 
Other reconciling items(c)
2,043 
Future policy benefits for life and accident and health insurance contracts51,914 
Less: Reinsurance recoverable(24,078)
Net liability for future policy benefits after reinsurance recoverable$27,836 
Weighted average liability duration of the liability for future policy benefits(d)
7.66.912.210.811.4
Year Ended December 31, 2021Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(f)
Total
(in millions, except for liability durations)
Present value of expected net premiums
Balance, beginning of year$— $— $13,793 $— $1,506 $15,299 
Effect of changes in discount rate assumptions (AOCI)— — (1,374)— (249)(1,623)
Beginning balance at original discount rate— — 12,419 — 1,257 13,676 
Effect of changes in cash flow assumptions— — 164 — (72)92 
Effect of actual variances from expected experience— — 371 — 14 385 
Adjusted beginning of year balance— — 12,954 — 1,199 14,153 
Issuances— — 1,727 — — 1,727 
Interest accrual— — 392 — 54 446 
Net premium collected— — (1,364)— (129)(1,493)
Foreign exchange impact— — (46)— — (46)
Other— — — — — — 
Ending balance at original discount rate— — 13,663 — 1,124 14,787 
Effect of changes in discount rate assumptions (AOCI)— — 706 — 150 856 
Balance, end of year$— $— $14,369 $— $1,274 $15,643 
Present value of expected future policy benefits
Balance, beginning of year$1,322 $279 $27,918 $11,630 $30,519 $71,668 
Effect of changes in discount rate assumptions (AOCI)(156)(63)(4,351)(1,654)(7,862)(14,086)
Beginning balance at original discount rate1,166 216 23,567 9,976 22,657 57,582 
Effect of changes in cash flow assumptions(a)
— — 193 — (83)110 
Effect of actual variances from expected experience(a)
1 (1)413 (3)(121)289 
Adjusted beginning of year balance1,167 215 24,173 9,973 22,453 57,981 
Issuances172 21 1,713 3,366 15 5,287 
Interest accrual41 11 876 380 1,085 2,393 
Benefit payments(101)(28)(1,981)(696)(1,530)(4,336)
Foreign exchange impact— — (60)(3)— (63)
Other(1)(1)4 — (22)(20)
Ending balance at original discount rate1,278 218 24,725 13,020 22,001 61,242 
Effect of changes in discount rate assumptions (AOCI)95 46 2,717 870 5,673 9,401 
Balance, end of year$1,373 $264 $27,442 $13,890 $27,674 $70,643 
Net liability for future policy benefits, end of year$1,373 $264 $13,073 $13,890 $26,400 $55,000 
Liability for future policy benefits for certain participating contracts1,397 
Liability for universal life policies with secondary guarantees and similar features(b)
5,007 
Deferred profit liability2,236 
Other reconciling items(c)
2,759 
Future policy benefits for life and accident and health insurance contracts66,399 
Less: Reinsurance recoverable(32,586)
Net liability for future policy benefits after reinsurance recoverable$33,813 
Weighted average liability duration of the liability for future policy benefits(d)
8.67.814.413.013.7
(a)Effect of changes in cash flow assumptions and variances from actual experience are partially offset by changes in the deferred profit liability.
(b)Additional details can be found in the table that presents the balances and changes in the liability for universal life policies with secondary guarantees and similar features.
(c)Other reconciling items primarily include the Accident and Health as well as Group Benefits (short-duration) contracts.
(d)The weighted average liability durations are calculated as the modified duration using projected future net liability cash flows that are aggregated at the segment level, utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.
(e)Includes balances that were reclassified to Liabilities held for sale in the Consolidated Balance sheets. For additional information, see Note 4.
(f)Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
For the years ended December 31, 2023, 2022 and 2021 in the traditional and term life insurance block, capping of net premium ratios at 100 percent caused a (credit)/charge to net income of $(1) million, $26 million and $15 million, respectively. The discount rate was updated based on market observable information. Relative to the prior period, the increase in upper-medium-grade fixed income yields resulted in a decrease in the liability for future policy benefits.
The following table presents the amount of undiscounted expected future benefit payments and undiscounted and discounted expected gross premiums for future policy benefits for nonparticipating contracts:
Years Ended December 31,
(in millions)202320222021
General Insurance(a)
Undiscounted expected future benefits and expense$3,194 $3,325 $3,677 
Undiscounted expected future gross premiums4,403 4,558 4,899 
Individual RetirementUndiscounted expected future benefits and expense$2,131 $1,959 $1,747 
Undiscounted expected future gross premiums— — — 
Group RetirementUndiscounted expected future benefits and expense$313 $321 $328 
Undiscounted expected future gross premiums— — — 
Life Insurance(b)
Undiscounted expected future benefits and expense$40,489 $38,909 $38,869 
Undiscounted expected future gross premiums30,458 29,035 29,272 
Institutional MarketsUndiscounted expected future benefits and expense$38,253 $25,066 $20,839 
Undiscounted expected future gross premiums— — — 
Other(c)
Undiscounted expected future benefits and expense$43,071 $44,530 $46,038 
Undiscounted expected future gross premiums2,146 2,262 2,437 
(a)General Insurance discounted expected future gross premiums (at current discount rate) for 2023 were $3.0 billion.
(b)Includes balances reclassified to Liabilities held for sale at December 31, 2023. Life Insurance discounted expected future gross premiums (at current discount rate) for 2023 were $20.2 billion.
(c)Represents Life and Retirement legacy insurance lines ceded to Fortitude Re. Other discounted expected future gross premiums (at current discount rate) for 2023 were $1.4 billion.
The following table presents the amount of revenue and interest recognized in the Consolidated Statements of Income (Loss) for future policy benefits for nonparticipating contracts:
Years Ended December 31,Gross PremiumsInterest Accretion
(in millions)202320222021202320222021
General Insurance$477 $487 $547 $9 $8 $7 
Individual Retirement202 224 186 55 42 41 
Group Retirement19 19 21 11 10 11 
Life Insurance2,393 2,342 2,319 471 479 484 
Institutional Markets5,638 2,940 3,818 664 459 380 
Other*215 224 236 980 1,185 1,031 
Total$8,944 $6,236 $7,127 $2,190 $2,183 $1,954 
*Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:
Year Ended December 31, 2023General
Insurance		Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(b)
Weighted-average interest rate, original discount rate(a)
1.82 %3.75 %5.15 %4.10 %4.14 %4.86 %
Weighted-average interest rate, current discount rate(a)
3.78 %5.04 %5.02 %5.04 %4.96 %5.08 %
Year Ended December 31, 2022
Weighted-average interest rate, original discount rate1.77 %3.58 %5.17 %4.08 %3.56 %4.88 %
Weighted-average interest rate, current discount rate3.21 %5.32 %5.30 %5.33 %5.30 %5.36 %
Year Ended December 31, 2021
Weighted-average interest rate, original discount rate1.61 %3.23 %4.96 %4.11 %3.22 %4.83 %
Weighted-average interest rate, current discount rate3.27 %2.75 %2.68 %2.85 %2.71 %3.08 %
(a)Weighted-average interest rates for Life Insurance include balances that have been reclassified to Liabilities held-for-sale at December 31, 2023.
(b)Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.
Actuarial Assumption Updates for Liability for Future Policy Benefits
In 2023, the life insurance companies recognized an unfavorable impact to net income due to other refinements on life products offset in part by mortality assumption updates. In 2022, the life insurance companies recognized a favorable impact to net income (mostly offset by corresponding DPL adjustment) due to updates to mortality and retirement assumptions on certain pension risk transfer products. In 2021, the life insurance companies recognized an unfavorable impact to net income mainly due to updated mortality on traditional life products.
Deferred Profit Liability: The Company issues certain annuity and life insurance contracts where premiums are paid up-front or for a shorter period than benefits will be paid (i.e., limited pay contracts). A DPL is required to be established to avoid recognition of gains when these contracts are issued. DPLs are amortized over the life of the contracts to align the revenue recognized with the related benefit expenses. The DPL is amortized in a constant relationship to the amount of discounted insurance in force for life insurance or expected future benefit payments for annuity contracts over the term of the contract.
The difference between the gross premium received and recorded as revenue and the net premium is deferred and recognized in policyholder benefits in a constant relationship to insurance in-force, or for annuities, the amount of expected future policy benefits. This deferred profit liability accretes interest and is recorded in the Consolidated Balance Sheets in Future policy benefits. Cash flow assumptions included in the measurement of the DPL are the same as those utilized in the respective LFPBs and are reviewed at least annually. The cash flow estimates for DPLs are updated on a retrospective catch-up basis at the same time as the cash flow estimates for the related LFPBs. The updated LFPB cash flows are used to recalculate the DPL at the inception of the applicable related LFPB cohort. The difference between the recalculated DPL at the beginning of the current reporting period and the carrying amount of the DPL at the current reporting period is recognized as a gain or loss in Policyholder benefits and losses incurred in the Consolidated Statements of Income (Loss).
The following table presents the transition rollforward for deferred profit liability for long-duration contracts*:
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets		Other*Total
(in millions)
Pre-adoption December 31, 2020 deferred profit liability balance$2 $— $5 $64 $— $71 
Adjustments for the reclassification from/(to) the liability for the future policy benefits65 8 — 766 859 1,698 
Post-adoption January 1, 2021 deferred profit liability balance$67 $8 $5 $830 $859 $1,769 
*Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
Adjustments for the reclassification between the liability for future policy benefits and deferred profit liability represent changes in the net premium ratios that are less than 100 percent at transition for certain limited pay cohorts, resulting in a reclassification between the two liabilities, with no impact on Retained earnings.
Additional Liabilities: For universal-life type products, insurance benefits in excess of the account balance are generally recognized as expenses in the period incurred unless the design of the product is such that future charges are insufficient to cover the benefits, in which case an “additional liability” is accrued over the life of the contract. These additional liabilities are included in Future policy benefits for life and accident and health insurance contracts in the Consolidated Balance Sheets. Prior to the adoption of the standard, our additional liabilities consisted primarily of guaranteed minimum death benefits (GMDBs) on annuities, as well as universal-life contracts with secondary guarantees. Subsequent to the adoption of this standard, the GMDBs have been reclassified and reported as MRBs, while the universal-life contracts with secondary guarantees continue to be reported as additional liabilities.
The following table presents the transition rollforward of the additional liabilities:
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(c)
Total
(in millions)
Pre-adoption December 31, 2020 additional liabilities$1,423 $221 $5,117 $— $55 $6,816 
Adjustment for the reclassification of additional liabilities from Future policy benefits to Market risk benefits(a)
(907)(132)— — — (1,039)
Adjustment for removal of related balances in Accumulated other comprehensive income (loss) originating from unrealized gains (losses)(b)
(516)(89)— — — (605)
Post-adoption January 1, 2021 additional liabilities$— $— $5,117 $— $55 $5,172 
(a)Adjustments for the reclassification of additional liabilities from Future policy benefits to MRBs represent contract guarantees (e.g., GMDBs) that were previously classified as insurance liabilities within Future policy benefits, but have been reclassified as MRBs as of January 1, 2021. For additional information on the transition impacts associated with LDTI, see Note 15.
(b)Adjustments for the removal of related balances in Accumulated other comprehensive income (loss) originating from unrealized gains (losses) relate to the additional liabilities reclassified from Future policy benefits in the line above.
(c)Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
Our additional liabilities primarily consist of universal life policies with secondary guarantees and these additional liabilities are recognized in addition to the Policyholder account balances. For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish a liability, in addition to policyholder account balances, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances are reported within Policyholder contract deposits, while these additional liabilities are reported within the liability for future policy benefits in the Consolidated Balance Sheets. These additional liabilities are also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale on accumulated assessments, with related changes recognized through OCI. The policyholder behavior assumptions for these liabilities include mortality, lapses and premium persistency. The capital market assumptions used for the liability for universal life secondary guarantees include discount rates and net earned rates.
The following table presents the balances and changes in the liability for universal life policies with secondary guarantees and similar features:
Years Ended December 31,202320222021
(in millions, except duration of liability)Life
Insurance
Other(b)
TotalLife
Insurance
Other(b)
TotalLife
Insurance
Other(b)
Total
Balance, beginning of year$3,300 $55 $3,355 $4,952 $55 $5,007 $5,117 $55 $5,172 
Effect of changes in assumptions(41)— (41)(24)— (24)(116)— (116)
Effect of changes in experience319 (4)315 303 (4)299 331 (4)327 
Adjusted beginning balance3,578 51 3,629 5,231 51 5,282 5,332 51 5,383 
Assessments671 2 673 687 2 689 669 2 671 
Excess benefits paid(943)— (943)(909)— (909)(859)— (859)
Interest accrual132 2 134 126 2 128 136 2 138 
Other(9)— (9)(11)— (11)24 — 24 
Changes related to unrealized appreciation (depreciation) of investments302 — 302 (1,824)— (1,824)(350)— (350)
Balance, end of year3,731 55 3,786 3,300 55 3,355 4,952 55 5,007 
Less: Reinsurance recoverable(164)— (164)(191)— (191)(200)— (200)
Balance, end of year, net of Reinsurance recoverable$3,567 $55 $3,622 $3,109 $55 $3,164 $4,752 $55 $4,807 
Weighted average duration of liability(a)
25.49.226.39.527.19.8
(a)The weighted average duration of liabilities is calculated as the modified duration using projected future net liability cash flows that are aggregated at the segment level, utilizing the segment level weighted average interest rates, which can be found in the table below.
(b)Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
The following table presents the amount of revenue and interest recognized in the Consolidated Statements of Income (Loss) for the liability for universal life policies with secondary guarantees and similar features:
Years Ended December 31,Gross AssessmentsInterest Accretion
(in millions)202320222021202320222021
Life Insurance$1,109 $1,193 $1,187 $132 $126 $136 
Other*37 39 39 2 2 2 
Total$1,146 $1,232 $1,226 $134 $128 $138 
*Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
The following table presents the calculation of weighted average interest rate for the liability for universal life policies with secondary guarantees and similar features:
Years Ended December 31,202320222021
Life InsuranceOther*Life InsuranceOther*Life InsuranceOther*
Weighted-average interest rate3.92 %4.20 %3.76 %4.24 %3.74 %4.21 %
*Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.
The following table presents details concerning our universal life policies with secondary guarantees and similar features:
Years Ended December 31,
(dollars in millions)20232022
Account value$3,721 $3,514 
Net amount at risk$72,422 $69,335 
Average attained age of contract holders5353
Actuarial Assumption Updates for Liability for Universal Life Policies With Secondary Guarantees And Similar Features
In 2023, the life insurance companies recognized a favorable impact to net income due to updates to the portfolio yield assumption and refinements to the modeling for universal life with secondary guarantees and similar features, partially offset by updated premium assumptions. In 2022, the life insurance companies recognized a favorable impact to net income due to modeling refinements to reflect actual versus expected asset data related to calls and capital gains. In 2021, the life insurance companies recognized a favorable impact to net income primarily due to the update in the reserving methodology, partially offset by assumption updates to mortality.
POLICYHOLDER CONTRACT DEPOSITS
The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues. They are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included as Policy fees in revenues.
In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (i) index features accounted for as embedded derivatives at fair value, (ii) annuities issued in a structured settlement arrangement with no life contingency and (iii) certain contracts we have elected to account for at fair value. Changes in the fair value of the embedded derivatives related to policy index features and the fair value of derivatives hedging these liabilities are recognized in realized gains and losses.
For additional information on index credits accounted for as embedded derivatives, see Note 5.
Under a funding agreement-backed notes issuance program, an unaffiliated, non-consolidated statutory trust issues medium-term notes to investors, which are secured by funding agreements issued to the trust by one of our Life and Retirement companies through our Institutional Markets business.
The following table presents the transition rollforward of Policyholder contract deposits account balances(a):
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(b)
Total
(in millions)
Pre-adoption December 31, 2020 Policyholder contract deposits$84,874 $43,805 $10,286 $11,559 $4,145 $154,669 
Adjustment for the reclassification of the embedded derivative liability to market risk benefits, net of the host adjustment(s)(5,671)(576)— — — (6,247)
Post-adoption January 1, 2021 Policyholder contract deposits$79,203 $43,229 $10,286 $11,559 $4,145 $148,422 
(a)Excludes Other Operations of $(199) million.
(b)Represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
The following table presents the balances and changes in Policyholder contract deposits account balances(a):
Year Ended December 31, 2023Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(d)
Total
(in millions, except for average crediting rate)
Policyholder contract deposits account balance, beginning of year$89,554 $43,395 $10,224 $11,734 $3,587 $158,494 
Deposits18,188 5,352 1,632 3,813 44 29,029 
Policy charges(840)(477)(1,524)(67)(64)(2,972)
Surrenders and withdrawals(14,025)(8,310)(256)(722)(93)(23,406)
Benefit payments(3,770)(2,518)(281)(2,405)(300)(9,274)
Net transfers from (to) separate account3,617 2,705 3 792 — 7,117 
Interest credited2,188 1,141 413 507 168 4,417 
Other(16)11 20 (3)(9)3 
Policyholder contract deposits account balance, end of year94,896 41,299 10,231 13,649 3,333 163,408 
Other reconciling items(b)
(1,429)(230)208 93 (71)(1,429)
Policyholder contract deposits$93,467 $41,069 $10,439 $13,742 $3,262 $161,979 
Weighted average crediting rate2.68 %2.91 %4.41 %4.08 %4.99 %
Cash surrender value(c)
$88,685 $40,210 $9,026 $2,583 $1,712 $142,216 
Year Ended December 31, 2022Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(d)
Total
(in millions, except for average crediting rate)
Policyholder contract deposits account balance, beginning of year$84,097 $43,902 $10,183 $10,804 $3,823 $152,809 
Deposits15,186 4,946 1,674 1,494 48 23,348 
Policy charges(870)(462)(1,570)(69)(65)(3,036)
Surrenders and withdrawals(8,921)(5,712)(211)(134)(64)(15,042)
Benefit payments(3,798)(2,528)(216)(775)(349)(7,666)
Net transfers from (to) separate account2,248 2,149 (5)144 — 4,536 
Interest credited1,608 1,100 377 301 178 3,564 
Other4 — (8)(31)16 (19)
Policyholder contract deposits account balance, end of year89,554 43,395 10,224 11,734 3,587 158,494 
Other reconciling items(b)
(2,136)(319)34 (16)(73)(2,510)
Policyholder contract deposits$87,418 $43,076 $10,258 $11,718 $3,514 $155,984 
Weighted average crediting rate2.43 %2.77 %4.29 %2.71 %4.91 %
Cash surrender value(c)
$83,278 $41,831 $8,866 $2,537 $1,808 $138,320 
Year Ended December 31, 2021Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Other(d)
Total
(in millions, except for average crediting rate)
Policyholder contract deposits account balance, beginning of year$80,012 $43,406 $10,012 $11,351 $4,143 $148,924 
Deposits13,774 5,146 1,702 1,272 53 21,947 
Policy charges(781)(523)(1,567)(65)(69)(3,005)
Surrenders and withdrawals(8,863)(5,795)(212)(91)(76)(15,037)
Benefit payments(4,031)(2,329)(245)(1,948)(374)(8,927)
Net transfers from (to) separate account1,531 2,750 (2)61 — 4,340 
Interest credited2,444 1,249 447 263 191 4,594 
Other11 (2)48 (39)(45)(27)
Policyholder contract deposits account balance, end of year84,097 43,902 10,183 10,804 3,823 152,809 
Other reconciling items(b)
(1,289)(259)117 165 (157)(1,423)
Policyholder contract deposits$82,808 $43,643 $10,300 $10,969 $3,666 $151,386 
Weighted average crediting rate2.42 2.79 4.28 2.41 4.92 
Cash surrender value(c)
$79,787 $43,359 $8,826 $2,520 $1,880 $136,372 
(a)Transactions between the general account and the separate account are presented in this table on a gross basis (e.g., a policyholder's funds are initially deposited into the general account and then simultaneously transferred to the separate account), thus, did not impact the ending balance of policyholder contract deposits.
(b)Includes MRBs that are bifurcated and reported separately, net of embedded derivatives recorded in Policyholder contract deposits. Other also includes amounts related to Other Operations of $(71) million, $(75) million and $(158) million at December 31, 2023, 2022 and 2021, respectively.
(c)Cash surrender value is related to the portion of policyholder contract deposits that have a defined cash surrender value (e.g. GICs, do not have a cash surrender value).
(d)Primarily represents Life and Retirement legacy insurance lines ceded to Fortitude Re.
For information related to net amount at risk, see Note 14.
The following table presents Policyholder contract deposits account balance by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:
December 31, 2023At
Guaranteed
Minimum		1 Basis Point -
50 Basis Points
Above		More than 50
Basis Points Above
Minimum Guarantee		Total
(in millions, except percentage of total)
Individual RetirementRange of Guaranteed Minimum Credited Rate
<=1%$6,498 $2,078 $26,873 $35,449 
> 1% - 2%3,749 22 1,771 5,542 
> 2% - 3%8,046 11 972 9,029 
> 3% - 4%6,610 37 5 6,652 
> 4% - 5%426 — 4 430 
> 5%32 — 3 35 
Total$25,361 $2,148 $29,628 $57,137 
Group RetirementRange of Guaranteed Minimum Credited Rate
<=1%$2,185 $2,344 $6,830 $11,359 
> 1% - 2%3,731 1,242 671 5,644 
> 2% - 3%12,073 211 110 12,394 
> 3% - 4%615 — — 615 
> 4% - 5%6,635 — — 6,635 
> 5%144 — — 144 
Total$25,383 $3,797 $7,611 $36,791 
Life InsuranceRange of Guaranteed Minimum Credited Rate
<=1%$— $— $— $— 
> 1% - 2%— 132 346 478 
> 2% - 3%9 855 1,082 1,946 
> 3% - 4%1,170 496 26 1,692 
> 4% - 5%2,851 — — 2,851 
> 5%216 — — 216 
Total$4,246 $1,483 $1,454 $7,183 
Total*$54,990 $7,428 $38,693 $101,111 
Percentage of total55%7%38%100%
December 31, 2022At
Guaranteed
Minimum		1 Basis Point -
50 Basis Points
Above		More than 50
Basis Points Above
Minimum Guarantee		Total
(in millions, except percentage of total)
Individual RetirementRange of Guaranteed Minimum Credited Rate
<=1%$8,766 $2,161 $21,702 $32,629 
> 1% - 2%4,208 24 2,195 6,427 
> 2% - 3%9,502 — 17 9,519 
> 3% - 4%7,630 40 6 7,676 
> 4% - 5%456 — 5 461 
> 5%33 — 4 37 
Total$30,595 $2,225 $23,929 $56,749 
Group RetirementRange of Guaranteed Minimum Credited Rate
<=1%$3,611 $1,427 $5,609 $10,647 
> 1% - 2%5,628 727 150 6,505 
> 2% - 3%13,968 3 — 13,971 
> 3% - 4%666 — — 666 
> 4% - 5%6,843 — — 6,843 
> 5%154 — — 154 
Total$30,870 $2,157 $5,759 $38,786 
Life InsuranceRange of Guaranteed Minimum Credited Rate
<=1%$— $— $— $— 
> 1% - 2%1 129 352 482 
> 2% - 3%32 831 1,116 1,979 
> 3% - 4%1,369 180 195 1,744 
> 4% - 5%2,974 — — 2,974 
> 5%223 — — 223 
Total$4,599 $1,140 $1,663 $7,402 
Total*$66,064 $5,522 $31,351 $102,937 
Percentage of total65 %5 %30 %100 %
*Excludes policyholder contract deposits account balances that are not subject to guaranteed minimum crediting rates.
Funding Agreements
Under a funding agreement-backed notes issuance program, an unaffiliated, non-consolidated statutory trust issues medium-term notes to investors, which are secured by funding agreements issued to the trust by one of our Life and Retirement companies.
The United States Life Insurance Company in the City of New York is a member of the FHLB of New York, while The Variable Annuity Life Insurance Company and American General Life Insurance Company are members of the FHLB of Dallas. Membership with both FHLBs provides us with collateralized borrowing opportunities, primarily as an additional source of liquidity or for other uses deemed appropriate by management, e.g., earning a spread on deposits. Our ownership in the FHLB stock is reported in Other invested assets within the Consolidated Balance Sheets. Pursuant to the membership terms, our Life and Retirement companies elected to pledge such stock to the FHLB as collateral for our obligations under agreements with the FHLB.
Our Life and Retirement companies' net borrowing capacity under such facilities with FHLB of Dallas and FHLB of New York as of December 31, 2023 is $3.7 billion. As of December 31, 2023, we pledged $8.7 billion as collateral to the FHLB, including assets backing funding agreements.
The life insurance companies issued the following funding agreements to the FHLB of Dallas and FHLB of New York; these obligations are reported in Policyholder contract deposits in the Consolidated Balance Sheets:
The following table presents details concerning our funding agreements as of December 31, 2023:
December 31, 2023Payments due by period
(in millions)Gross Amounts20242025-20262027-2028ThereafterStated Interest rates
FHLB Facility
FHLB of Dallas$3,357$52$254$3,051$—
DNA Auction* + 22 to 30 bps
FHLB of Dallas2,027——1,506521
3.53% to 4.77%
FHLB of New York24194147——
1.52% to 2.70%
$5,625$146$401$4,557$521
*Discount Note Advance (DNA) Auction is based on either a 4-Week or 3-Month tenor, depending on contractual terms of each borrowing.
OTHER POLICYHOLDER FUNDS
Other policyholder funds include URR, consisting of front-end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. Amortization of URR is recorded in Policy fees.
URR for investment-oriented contracts are generally deferred and amortized into income using the same assumptions and factors used to amortize DAC (i.e., on a constant level basis). Changes in future assumptions are applied by adjusting the amortization rate prospectively. The Company has elected to implicitly account for actual experience, whether favorable or unfavorable, in its amortization of URR (i.e., policy fees) each period.
Other policyholder funds also include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Participating life business represented approximately 0.5 percent and 0.7 percent of gross insurance in force at December 31, 2023 and December 31, 2022, respectively and 0.9 percent, 1.3 percent and 1.7 percent of gross premiums and other considerations in 2023, 2022 and 2021 respectively. The amount of annual dividends to be paid is approved locally by the Corebridge Boards of Directors. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior net income and of current unrealized appreciation of investments that can inure to our benefit are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force.
Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue with the unearned portions of the premiums recorded as liabilities in Other policyholder funds. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance.
The following table presents the transition rollforward of URR:
Life
Insurance		Institutional
Markets		Other*Total
(in millions)
Pre-adoption December 31, 2020 URR balance$1,413 $2 $132 $1,547 
Adjustment for the removal of related balances in Accumulated other comprehensive income (loss) originating from unrealized gains (losses)248 — — 248 
Post-adoption January 1, 2021 URR balance$1,661 $2 $132 $1,795 
*Represents Life and Retirement legacy insurance lines ceded to Fortitude Re. Other policyholder funds, excluding URR, totaled $2.0 billion.
Prior to the adoption of LDTI, URR for investment-oriented products included the effect of unrealized gains or losses on fixed maturity securities classified as available for sale. At the Transition Date, these adjustments were removed with a corresponding offset in AOCI. As the available for sale portfolio was in an unrealized gain position as of the Transition Date, the adjustment for removal of related balances in AOCI originating from unrealized gains (losses) balances reduced URR.
The following table presents a rollforward of URR:
Life
Insurance		Institutional
Markets		Other*Total
(in millions)
Year Ended December 31, 2023
Balance, beginning of year$1,727 $2 $105 $1,834 
Revenue deferred153 — — 153 
Amortization(110)(1)(11)(122)
Balance, end of year$1,770 $1 $94 $1,865 
Year Ended December 31, 2022
Balance, beginning of year$1,693 $2 $116 $1,811 
Revenue deferred143 — — 143 
Amortization(109)— (11)(120)
Balance, end of year$1,727 $2 $105 $1,834 
Year Ended December 31, 2021
Balance, beginning of year$1,661 $2 $132 $1,795 
Revenue deferred140 — — 140 
Amortization(108)— (15)(123)
Other, including foreign exchange— — (1)(1)
Balance, end of year$1,693 $2 $116 $1,811 
*Represents Life and Retirement legacy insurance lines ceded to Fortitude Re. At December 31, 2023, 2022 and 2021, Other policyholder funds, excluding URR, totaled $1.5 billion, $1.6 billion and $1.7 billion, respectively.