Company: L
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000060086-25-000091
Chunk: 15

Company: LOEWS CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 1
Chunk 15
---
 catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers’ compensation, general liability and professional liability claims. Claim and claim adjustment expense reserves are also maintained for structured settlement obligations. In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, actuaries review mortality experience on an annual basis. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that the ultimate cost for insurance losses will not exceed current estimates.Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in the Company’s results of operations and/or equity. Catastrophe losses, net of reinsurance, of $97 million and $88 million were recorded for the three months ended March 31, 2025 and 2024, driven by severe weather related events, including $53 million for the California wildfires in 2025.

18

Liability for Unpaid Claim and Claim Adjustment ExpensesThe following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.Three Months Ended March 3120252024(In millions)     Reserves, beginning of year:  Gross$24,976 $23,304 Ceded5,713 5,141 Net reserves, beginning of year19,263 18,163  Net incurred claim and claim adjustment expenses:Provision for insured events of current year1,650 1,502 Increase (decrease) in provision for insured events of prior years80 (6)Amortization of discount10 10 Total net incurred (a)1,740 1,506  Net payments attributable to:Current year events(80)(113)Prior year events(1,212)(1,168)Total net payments(1,292)(1,281) Foreign