Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 160

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 160
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 policies provide indemnification of losses and loss adjustment expenses of short-duration insurance contracts with respect to underlying loss events that occurred prior to the contract inception date. Exposures may include significant asbestos, environmental and other mass tort claims. Retroactive reinsurance contracts are generally subject to aggregate policy limits and thus, our exposure to such claims under these contracts is likewise limited. Reconciliations of the changes in estimated liabilities for retroactive reinsurance unpaid losses and loss adjustment expenses for each of the three years ended December 31, 2024 follow (in millions). 

        2024

        2023

        2022

        Balance at the beginning of the year
        $
        34,647

        $
        35,415

        $
        37,855

        Losses and loss adjustment expenses incurred
         
        247

        1,109

        86

        Losses and loss adjustment expenses paid
         
        (2,399
        )

        (1,934
        )

        (2,358
        )

        Foreign currency effect
         
        (52
        )

        57

        (168
        )

        Balance at December 31
        $
        32,443

        $
        34,647

        $
        35,415

        Losses and loss adjustment expenses incurred above
        $
        247

        $
        1,109

        $
        86

        Deferred charge adjustments
         
        698

        375

        769

        Losses and loss adjustment expenses incurred, including deferred charge      adjustments
        $
        945

        $
        1,484

        $
        855

       We classify incurred and paid losses and loss adjustment expenses based on the inception dates of the contracts, which reflect when our exposure to losses began. We believe that analysis of losses incurred and paid by the accident year of the underlying event is irrelevant given that our exposure to losses incepted when the contract incepted. We also believe that the classification of reported claims and case development liabilities has little or no practical analytical value. Substantially all of the losses and loss adjustment expenses incurred and paid related to contracts written in prior years. Losses and loss adjustment expenses incurred include changes in estimated ultimate liabilities and related adjustments to deferred charge assets arising from the changes in the estimated timing and amount of loss payments. In 2023, we increased