Company: L
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000060086-25-000091
Chunk: 92

Company: LOEWS CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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:Current year events(80)(113)Prior year events(1,212)(1,168)Total net payments(1,292)(1,281) Foreign currency translation adjustment and other53 (41) Net reserves, end of period19,764 18,347 Ceded reserves, end of period5,817 5,241 Gross reserves, end of period$25,581 $23,588 (a)Total net incurred does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance, benefit expenses related to future policy benefits and policyholders’ dividends, which are not reflected in the table above.Net Prior Year DevelopmentChanges in estimates of claim and claim adjustment expense reserves, net of reinsurance, for prior years are defined as net prior year loss reserve development. These changes can be favorable or unfavorable.Unfavorable net prior year loss reserve development of $61 million and favorable net prior year loss reserve development of $7 million for the three months ended March 31, 2025 and 2024 was recorded for CNA’s commercial property and casualty operations (“Property & Casualty Operations”). Unfavorable net prior year loss reserve development of $22 million and no net prior year loss reserve development for the three months ended March 31, 2025 and 2024 was recorded for CNA’s operations outside of Property & Casualty Operations (“Other Insurance Operations”). 

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The following table and discussion present details of the net prior year loss reserve development in Property & Casualty Operations and Other Insurance Operations:Three Months Ended March 3120252024(In millions)     Surety$(18)Warranty$10 13 Commercial auto50 Workers’ compensation1 (2)Other insurance operations22 Total pretax (favorable) unfavorable development$83 $(7)2025Unfavorable development in warranty was primarily due to higher than expected frequency and severity in the most recent accident year for auto warranty.Unfavorable development in commercial auto was due to higher than expected claim severity, largely in CNA’s construction business in the most recent accident year.Unfavorable development in Other insurance operations was associated with legacy mass tort abuse claims.2024Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.Unfavorable development in warranty was primarily due to higher than