v3.25.2
Loss and Loss Adjustment Expense Reserves
 6 Months Ended
Jun. 30, 2025
Loss and Loss Adjustment Expenses Reserves [Abstract]  
Loss and Loss Adjustment Expense Reserves LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES
Activity in the loss and loss adjustment expense reserves is summarized as follows:
June 30,
(millions)20252024
Balance at January 1$39,057 $34,389 
Less reinsurance recoverables on unpaid losses4,487 4,789 
Net balance at January 134,570 29,600 
Incurred related to:
Current year27,016 23,630 
Prior years(607)(63)
Total incurred26,409 23,567 
Paid related to:
Current year12,842 11,470 
Prior years10,883 9,607 
Total paid23,725 21,077 
Net balance at June 30
37,254 32,090 
Plus reinsurance recoverables on unpaid losses3,900 4,515 
Balance at June 30
$41,154 $36,605 
We experienced favorable reserve development of $607 million and $63 million during the first six months of 2025 and 2024, respectively, which is reflected as “incurred related to prior years” in the table above.
Year-to-date June 30, 2025
•The favorable prior year reserve development included approximately $400 million attributable to accident year 2024, $115 million to accident year 2023, and the remainder to accident years 2022 and prior.
•Our personal auto products incurred about $520 million of favorable loss and loss adjustment expense (LAE) reserve development, with the agency and direct auto businesses each contributing about half. The favorable development was primarily due to lower than anticipated loss severity and frequency in Florida and, to a lesser extent, lower than anticipated litigation defense costs across most states.
•Our personal property products experienced about $50 million of favorable development, primarily attributable to favorable development on 2024 catastrophe events.
•Our Commercial Lines business experienced about $45 million of favorable development, primarily attributable to lower than anticipated severity in our transportation network company business.
Year-to-date June 30, 2024
•The favorable prior year reserve development included approximately $60 million of favorable development attributable to accident year 2023 and $20 million to accident year 2022; partially offset by unfavorable development attributable to accident years 2021 and prior.
•Our personal auto products incurred about $235 million of favorable loss and LAE reserve development, with about 60% attributable to the agency auto business and the balance in the direct auto business. The favorable development was, in part, due to lower than anticipated frequency in Florida following tort reform that passed in the first quarter 2023 and lower than anticipated property damage severity across the majority of states.
•Our Commercial Lines and personal property businesses experienced about $140 million and $30 million, respectively, of unfavorable development, with the Commercial Lines development primarily driven by higher than anticipated severity in our commercial auto business for California and New York.