Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 155

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 155
---
”). In this discussion, “claim-tail” refers to the period between the claim occurrence date and claim settlement or payment date. A reconciliation of the disaggregated net unpaid losses and allocated loss adjustment expenses (the latter referred to as “ALAE”) to our consolidated claim liabilities as of December 31, 2024 follows (in millions).  

        GEICO

        BH Primary

        BHRG

        PhysicalDamage

        AutoLiability

        MedicalProfessionalLiability

        Workers’Compensation/OtherCasualty

        Property

        Casualty

        Total

        Unpaid losses and ALAE, net
        $
        885

        $
        20,818

        $
        9,432

        $
        24,335

        $
        15,851

        $
        33,350

        $
        104,671

        Reinsurance recoverable
         
        3

        884

        29

        1,473

        634

        1,369

        4,392

        Unallocated loss adjustment   expenses

        2,414

        Other losses and loss adjustment   expenses

        3,674

        Unpaid losses and loss adjustment   expenses

        $
        115,151

       GEICOGEICO’s claim liabilities predominantly relate to various types of private passenger auto liability and physical damage claims. For such claims, we establish and evaluate unpaid claim liabilities using standard actuarial loss development methods and techniques. The actuarial methods utilize historical claims data, adjusted when deemed appropriate to reflect perceived changes in loss patterns. Claim liabilities include average, case, case development and IBNR estimates. Average liabilities are based on expected severities for newly reported physical damage and liability claims prior to establishing individual case reserves when insufficient time or information is available for specific claim estimates and for large volumes of minor physical damage claims that are quickly settled. Case loss estimates for liability claims, including estimates for loss adjustment expenses, are based on the facts and merits of the claim. Claim estimates for liability coverages normally reflect greater uncertainty than for physical damage coverages, primarily due to the longer claim-tails, the greater chance of litigation and the time needed to evaluate facts at the time the case estimate is first established. Consequently, additional case development liabilities are established, which are usually percentages of the case liabilities. For unreported claims, IBNR claim liabilities are estimated by projecting the ultimate number