v3.26.1
Loss and Loss Adjustment Expense Reserves
 3 Months Ended
Mar. 31, 2026
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:
March 31,
(millions)20262025
Balance at January 1$43,310 $39,057 
Less reinsurance recoverables on unpaid losses3,807 4,487 
Net balance at January 139,503 34,570 
Incurred related to:
Current year14,278 13,082 
Prior years(451)(278)
Total incurred13,827 12,804 
Paid related to:
Current year5,356 4,881 
Prior years7,345 6,804 
Total paid12,701 11,685 
Net balance at March 31
40,629 35,689 
Plus reinsurance recoverables on unpaid losses3,748 4,133 
Balance at March 31
$44,377 $39,822 
We experienced favorable reserve development of $451 million and $278 million during the first three months of 2026 and 2025, respectively, which is reflected as “incurred related to prior years” in the table above.
First Quarter 2026
•The favorable prior year reserve development included approximately $320 million attributable to accident year 2025, $115 million to accident year 2024, and the remainder to accident years 2023 and prior.
•Our personal auto products incurred about $445 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 bodily injury severity, more subrogation and salvage recoveries than anticipated, and lower than anticipated payments on previously closed but reopened property damage claims.
First Quarter 2025
•The favorable prior year reserve development included approximately $180 million attributable to accident year 2024, $90 million to accident year 2023, and the remainder to accident years 2022 and prior.
•Our personal auto products incurred about $260 million of favorable loss and 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.
•Our personal property products experienced about $30 million of favorable development, primarily attributable to favorable development on 2024 catastrophe events.