Claim and Claim Adjustment Expense Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Schedule of liability for unpaid claims and claims adjustment expense | The table below reconciles the net liability for unpaid claim and claim adjustment expenses for the property and casualty segments to the amount presented in the Consolidated Balance Sheets. As of December 31 (In millions) 2017 Net liability for unpaid claim and claim adjustment expenses: Specialty $ 5,179 Commercial 7,964 International 1,432 Corporate & Other 205 Life & Group (1) 3,290 Total net claim and claim adjustment expenses 18,070 Reinsurance receivables: (2) Specialty 669 Commercial 621 International 204 Corporate & Other (3) 2,231 Life & Group 209 Total reinsurance receivables 3,934 Total gross liability for unpaid claim and claim adjustment expenses $ 22,004 (1) The Life & Group segment amount is primarily related to long term care claim reserves, but also includes amounts related to unfunded structured settlements arising from short duration contracts. Long term care policies are long duration contracts. (2) Reinsurance receivables presented do not include reinsurance receivables related to paid losses. (3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the Loss Portfolio Transfer. The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group segment. As of or for the years ended December 31 (In millions) 2017 2016 2015 Reserves, beginning of year: Gross $ 22,343 $ 22,663 $ 23,271 Ceded 4,094 4,087 4,344 Net reserves, beginning of year 18,249 18,576 18,927 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 5,201 5,025 4,934 Decrease in provision for insured events of prior years (381 ) (342 ) (255 ) Amortization of discount 179 175 166 Total net incurred (1) 4,999 4,858 4,845 Net payments attributable to: Current year events (975 ) (967 ) (856 ) Prior year events (4,366 ) (4,167 ) (4,089 ) Total net payments (5,341 ) (5,134 ) (4,945 ) Foreign currency translation adjustment and other 163 (51 ) (251 ) Net reserves, end of year 18,070 18,249 18,576 Ceded reserves, end of year 3,934 4,094 4,087 Gross reserves, end of year $ 22,004 $ 22,343 $ 22,663 (1) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables, and benefit expenses related to future policy benefits, which are not reflected in the table above. |
Gross and net carried claim and claim adjustment expense reserves | The following tables present the gross and net carried reserves. December 31, 2017 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,805 $ 4,364 $ 744 $ 3,386 $ 1,371 $ 11,670 Gross IBNR Reserves 4,043 4,221 892 113 1,065 10,334 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,848 $ 8,585 $ 1,636 $ 3,499 $ 2,436 $ 22,004 Net Case Reserves $ 1,656 $ 4,047 $ 640 $ 3,208 $ 94 $ 9,645 Net IBNR Reserves 3,523 3,917 792 82 111 8,425 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 5,179 $ 7,964 $ 1,432 $ 3,290 $ 205 $ 18,070 December 31, 2016 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,871 $ 4,661 $ 632 $ 3,172 $ 1,524 $ 11,860 Gross IBNR Reserves 4,278 4,233 696 186 1,090 10,483 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 6,149 $ 8,894 $ 1,328 $ 3,358 $ 2,614 $ 22,343 Net Case Reserves $ 1,681 $ 4,353 $ 548 $ 2,951 $ 94 $ 9,627 Net IBNR Reserves 3,723 3,952 653 158 136 8,622 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 5,404 $ 8,305 $ 1,201 $ 3,109 $ 230 $ 18,249 |
Net prior year development | Development Tables The loss reserve development tables presented herein illustrate the change over time of reserves established for claim and allocated claim adjustment expenses arising from short duration insurance contracts for certain lines of business within our property & casualty segments. Not all lines of business or segments are presented based on their context to the Company's overall loss reserves, calendar year reserve development, or calendar year net earned premiums. Insurance contracts are considered to be short duration contracts when the contracts are not expected to remain in force for an extended period of time. The Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative net incurred claim and allocated claim adjustment expenses relating to each accident year at the end of the stated calendar year. Changes in the cumulative amount across time are the result of the Company's expanded awareness of additional facts and circumstances that pertain to the unsettled claims. The Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative amount paid for claims in each accident year as of the end of the stated calendar year. The Net Strengthening or (Releases) of Prior Accident Year Reserves tables, reading across, show the net increase or decrease in the cumulative net incurred accident year claim and allocated claim adjustment expenses during each stated calendar year and indicates whether the reserves for that accident year were strengthened or released. The information in the tables is reported on a net basis after reinsurance and does not include the effects of discounting. The information contained in the years preceding calendar year 2016 is unaudited. Information contained in the tables pertaining to our International segment has been presented at the year-end 2017 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate changes between calendar years. The Company has presented development information for the Hardy business prospectively from the date of acquisition and is presented as a separate table within our International segment. To the extent the Company enters into a commutation, the transaction is reported on a prospective basis. To the extent that the Company enters into a disposition, the effects of the disposition are reported on a retrospective basis by removing the balances associated with the disposed of business. The amounts reported for the cumulative number of reported claims include direct and assumed open and closed claims by accident year at the claimant level. The number excludes claim counts for claims within a policy deductible where the insured is responsible for payment of losses in the deductible layer. Claim count data for certain assumed reinsurance contracts is unavailable. In the loss reserve development tables, IBNR includes reserves for incurred but not reported losses and expected development on case reserves. The Company does not establish case reserves for ALAE, therefore ALAE reserves are also included in the estimate of IBNR. Net Prior Year Development Changes in estimates of claim and claim adjustment expense reserves and premium accruals, net of reinsurance, for prior years are defined as net prior year development. These changes can be favorable or unfavorable. The following tables and discussion present the net prior year development recorded for Specialty, Commercial, International and Corporate & Other segments. December 31, 2017 (In millions) Specialty Commercial International Corporate & Other Total Pretax (favorable) unfavorable net prior year claim and claim adjustment expense reserve development $ (202 ) $ (87 ) $ (9 ) $ (10 ) $ (308 ) Pretax (favorable) unfavorable premium development (14 ) 28 (18 ) — (4 ) Total pretax (favorable) unfavorable net prior year development $ (216 ) $ (59 ) $ (27 ) $ (10 ) $ (312 ) December 31, 2016 (In millions) Specialty Commercial International Corporate & Other Total Pretax (favorable) unfavorable net prior year claim and claim adjustment expense reserve development $ (287 ) $ 55 $ (58 ) $ 2 $ (288 ) Pretax (favorable) unfavorable premium development (18 ) (2 ) (6 ) — (26 ) Total pretax (favorable) unfavorable net prior year development $ (305 ) $ 53 $ (64 ) $ 2 $ (314 ) December 31, 2015 (In millions) Specialty Commercial International Corporate & Other Total Pretax (favorable) unfavorable net prior year claim and claim adjustment expense reserve development $ (141 ) $ (15 ) $ (54 ) $ — $ (210 ) Pretax (favorable) unfavorable premium development (11 ) (15 ) 18 — (8 ) Total pretax (favorable) unfavorable net prior year development $ (152 ) $ (30 ) $ (36 ) $ — $ (218 ) |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below reconciles the net liability for unpaid claim and claim adjustment expenses for the property and casualty segments to the amount presented in the Consolidated Balance Sheets. As of December 31 (In millions) 2017 Net liability for unpaid claim and claim adjustment expenses: Specialty $ 5,179 Commercial 7,964 International 1,432 Corporate & Other 205 Life & Group (1) 3,290 Total net claim and claim adjustment expenses 18,070 Reinsurance receivables: (2) Specialty 669 Commercial 621 International 204 Corporate & Other (3) 2,231 Life & Group 209 Total reinsurance receivables 3,934 Total gross liability for unpaid claim and claim adjustment expenses $ 22,004 (1) The Life & Group segment amount is primarily related to long term care claim reserves, but also includes amounts related to unfunded structured settlements arising from short duration contracts. Long term care policies are long duration contracts. (2) Reinsurance receivables presented do not include reinsurance receivables related to paid losses. (3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the Loss Portfolio Transfer. |
Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the net prior year claim and claim adjustment expense reserve development (development) recorded for the Specialty segment. Years ended December 31 (In millions) 2017 2016 2015 Pretax (favorable) unfavorable development: Medical Professional Liability $ 5 $ (37 ) $ (43 ) Other Professional Liability and Management Liability (131 ) (130 ) — Surety (84 ) (63 ) (69 ) Warranty 4 4 (2 ) Other 4 (61 ) (27 ) Total pretax (favorable) unfavorable development $ (202 ) $ (287 ) $ (141 ) |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Specialty segment. As of December 31 (In millions) 2017 Net liability for unpaid claim and claim adjustment expenses: Medical Professional Liability $ 1,700 Other Professional Liability and Management Liability 2,912 Surety 368 Warranty 54 Other 145 Total net liability for unpaid claim and claim adjustment expenses $ 5,179 |
Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the development recorded for the Commercial segment. Years ended December 31 (In millions) 2017 2016 2015 Pretax (favorable) unfavorable development: Commercial Auto $ (38 ) $ (46 ) $ (22 ) General Liability — (28 ) (33 ) Workers' Compensation (65 ) 150 80 Property and Other 16 (21 ) (40 ) Total pretax (favorable) unfavorable development $ (87 ) $ 55 $ (15 ) |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Commercial segment. As of December 31 (In millions) 2017 Net Claim and claim adjustment expenses: Commercial Auto $ 389 General Liability 3,123 Workers' Compensation 4,012 Property and Other 440 Total net liability for claim and claim adjustment expenses $ 7,964 |
International | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the development recorded for the International segment. Years ended December 31 (In millions) 2017 2016 2015 Pretax (favorable) unfavorable development: Medical Professional Liability $ (4 ) $ (5 ) $ (9 ) Other Professional Liability (13 ) 12 (16 ) Liability 2 (30 ) (17 ) Property & Marine (15 ) (34 ) (29 ) Other 21 (1 ) 17 Total pretax (favorable) unfavorable development $ (9 ) $ (58 ) $ (54 ) |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the composition of the net liability for unpaid claim and claim adjustment expenses for the International segment. As of December 31 (In millions) 2017 Net Claim and claim adjustment expenses: International excluding Hardy $ 1,026 Hardy 406 Total net liability for claim and claim adjustment expenses $ 1,432 |
CNAF Consolidated | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Schedule of historical claims duration | The table below presents information about average historical claims duration as of December 31, 2017 and is presented as required supplementary information, which is unaudited. Average Annual Percentage Payout of Ultimate Net Incurred Claim and Allocated Claim Adjustment Expenses in Year: 1 2 3 4 5 6 7 8 9 10 Total Specialty Medical Professional Liability 3.3 % 18.9 % 23.5 % 19.8 % 12.7 % 7.2 % 4.5 % 3.3 % 3.6 % 0.7 % 97.5 % Other Professional Liability and Management Liability 5.9 % 21.0 % 21.1 % 17.3 % 9.9 % 6.0 % 5.6 % 4.0 % 2.6 % 1.5 % 94.9 % Surety (1) 21.4 % 38.4 % 17.7 % 7.5 % 3.4 % 2.0 % (2.3 )% (1.1 )% — % — % 87.0 % Commercial Commercial Auto 28.1 % 22.9 % 18.4 % 14.1 % 9.2 % 3.4 % 0.9 % 0.2 % 0.4 % 0.7 % 98.3 % General Liability 4.9 % 16.6 % 20.7 % 20.8 % 15.2 % 8.4 % 4.2 % 2.5 % 1.5 % 1.2 % 96.0 % Workers' Compensation 13.5 % 21.2 % 14.4 % 10.7 % 7.8 % 5.5 % 4.9 % 3.7 % 3.0 % 3.2 % 87.9 % International International - Excluding Hardy 19.6 % 25.6 % 12.2 % 6.8 % 5.9 % 4.7 % 5.1 % 3.1 % 5.8 % 0.4 % 89.2 % International - Hardy (2) 24.7 % 39.0 % 14.3 % 5.0 % 2.8 % 85.8 % (1) Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables. (2) Average historical claims duration for Hardy is presented prospectively beginning with the first full year subsequent to acquisition, 2013. |
Impact of loss portfolio transfer on the consolidated statement of operations | The following table presents the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations. Years ended December 31 (In millions) 2017 2016 2015 Net A&EP adverse development before consideration of LPT $ 60 $ 200 $ 150 Retroactive reinsurance benefit recognized (68 ) (107 ) (85 ) Pretax impact of A&EP reserve development and the LPT $ (8 ) $ 93 $ 65 |
Hardy | International | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2017 (In millions, except reported claims data) Net Claim and Allocated Claim Adjustment Expense Reserves at Acquisition Net Incurred Claim and Allocated Claim Adjustment Expenses in 2012 (1)(2) Total Acquired Net Claim and Allocated Claim Adjustment Expense Reserves and 2012 Incurreds 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 IBNR Cumulative Number of Claims Accident Year 2008 $ 18 $ (3 ) $ 15 $ 11 $ 13 $ 13 $ 12 $ 13 $ 1 4,237 2009 12 — 12 7 (4 ) 1 (2 ) (3 ) — 3,852 2010 49 (10 ) 39 48 53 47 53 52 (1 ) 4,524 2011 126 — 126 136 136 140 140 140 (2 ) 6,228 2012 34 71 105 106 113 121 114 115 (1 ) 6,863 2013 133 148 140 141 142 1 7,525 2014 187 185 179 172 (2 ) 7,954 2015 192 182 180 9 8,578 2016 232 251 53 8,443 2017 247 117 6,508 Total $ 1,309 $ 175 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2012 (1)(2) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Accident Year 2008 $ 3 $ 14 $ 10 $ 10 $ 11 $ 11 2009 2 (2 ) (4 ) (4 ) (4 ) (5 ) 2010 19 36 43 46 48 49 2011 31 84 124 129 133 134 2012 15 81 101 110 108 110 2013 39 103 123 129 133 2014 56 124 143 153 2015 30 99 131 2016 64 147 2017 53 Total $ 916 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 393 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 5 Liability for unallocated claim adjustment expenses for accident years presented 8 Total net liability for unpaid claim and claim adjustment expenses $ 406 |
Short-duration contracts reserve development | Net strengthening or (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1)(2) 2013 (1) 2014 (1) 2015 (1)(3) 2016 (1)(3) 2017 (3) Total (3) Accident Year 2008 $ (3 ) $ (4 ) $ 2 $ — $ (1 ) $ 1 $ (5 ) 2009 — (5 ) (11 ) 5 (3 ) (1 ) (15 ) 2010 (10 ) 9 5 (6 ) 6 (1 ) 3 2011 — 10 — 4 — — 14 2012 1 7 8 (7 ) 1 10 2013 15 (8 ) 1 1 9 2014 (2 ) (6 ) (7 ) (15 ) 2015 (10 ) (2 ) (12 ) 2016 19 19 (1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) Data presented for this calendar year is post-acquisition of Hardy. (3) The amounts included in the loss reserve development tables above are presented at the year-end 2017 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate fluctuations between calendar years. The amounts included within the table on page 101 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates. |
Medical Professional Liability | Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2017 (In millions, except reported claims data) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 IBNR Cumulative Number of Claims Accident Year 2008 $ 426 $ 451 $ 496 $ 480 $ 468 $ 468 $ 467 $ 455 $ 442 $ 438 $ 4 14,102 2009 462 469 494 506 480 471 463 432 422 3 15,594 2010 483 478 478 486 470 446 403 398 9 15,239 2011 486 492 507 533 501 491 491 16 17,481 2012 526 529 575 567 559 563 39 18,503 2013 534 540 560 567 573 44 19,777 2014 511 548 585 564 78 19,764 2015 480 539 543 164 17,690 2016 469 527 268 14,743 2017 452 370 11,137 Total $ 4,971 $ 995 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Accident Year 2008 $ 9 $ 90 $ 207 $ 282 $ 332 $ 377 $ 395 $ 409 $ 428 $ 431 2009 9 75 180 278 328 353 377 396 408 2010 11 93 186 273 338 361 371 380 2011 18 121 225 315 379 407 435 2012 15 121 236 359 428 475 2013 18 121 259 364 429 2014 25 149 274 374 2015 22 105 241 2016 18 126 2017 20 Total $ 3,319 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,652 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 20 Liability for unallocated claim adjustment expenses for accident years presented 28 Total net liability for unpaid claim and claim adjustment expenses $ 1,700 |
Short-duration contracts reserve development | Net strengthening or (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Total Accident Year 2008 $ 25 $ 45 $ (16 ) $ (12 ) $ — $ (1 ) $ (12 ) $ (13 ) $ (4 ) $ 12 2009 7 25 12 (26 ) (9 ) (8 ) (31 ) (10 ) (40 ) 2010 (5 ) — 8 (16 ) (24 ) (43 ) (5 ) (85 ) 2011 6 15 26 (32 ) (10 ) — 5 2012 3 46 (8 ) (8 ) 4 37 2013 6 20 7 6 39 2014 37 37 (21 ) 53 2015 59 4 63 2016 58 58 Total net development for the accident years presented above (27 ) (2 ) 32 Total net development for accident years prior to 2008 (16 ) (35 ) (19 ) Total unallocated claim adjustment expense development — — (8 ) Total $ (43 ) $ (37 ) $ 5 (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Other Professional Liability and Management Liability | Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2017 (In millions, except reported claims data) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 IBNR Cumulative Number of Claims Accident Year 2008 $ 916 $ 933 $ 954 $ 924 $ 915 $ 880 $ 850 $ 845 $ 827 $ 818 $ 26 16,331 2009 829 873 903 898 891 900 895 903 901 32 17,274 2010 825 827 850 848 846 836 823 826 31 17,805 2011 876 904 933 948 944 910 898 71 18,643 2012 907 894 876 870 833 832 73 18,262 2013 844 841 879 840 824 83 17,362 2014 841 859 854 798 158 16,984 2015 847 851 832 296 16,603 2016 859 859 426 17,004 2017 810 701 15,206 Total $ 8,398 $ 1,897 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Accident Year 2008 $ 39 $ 181 $ 376 $ 515 $ 600 $ 641 $ 678 $ 719 $ 741 $ 753 2009 37 195 358 550 638 719 769 798 821 2010 31 203 404 541 630 670 721 753 2011 71 313 502 604 682 726 781 2012 57 248 398 570 648 698 2013 51 240 426 583 667 2014 51 212 375 494 2015 48 209 377 2016 60 236 2017 52 Total $ 5,632 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,766 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 79 Liability for unallocated claim adjustment expenses for accident years presented 67 Total net liability for unpaid claim and claim adjustment expenses $ 2,912 |
Short-duration contracts reserve development | Net strengthening or (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Total Accident Year 2008 $ 17 $ 21 $ (30 ) $ (9 ) $ (35 ) $ (30 ) $ (5 ) $ (18 ) $ (9 ) $ (98 ) 2009 44 30 (5 ) (7 ) 9 (5 ) 8 (2 ) 72 2010 2 23 (2 ) (2 ) (10 ) (13 ) 3 1 2011 28 29 15 (4 ) (34 ) (12 ) 22 2012 (13 ) (18 ) (6 ) (37 ) (1 ) (75 ) 2013 (3 ) 38 (39 ) (16 ) (20 ) 2014 18 (5 ) (56 ) (43 ) 2015 4 (19 ) (15 ) 2016 — — Total net development for the accident years presented above 26 (134 ) (112 ) Total net development for accident years prior to 2008 (26 ) 4 (14 ) Total unallocated claim adjustment expense development — — (5 ) Total $ — $ (130 ) $ (131 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Surety | Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2017 (In millions, except reported claims data) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 IBNR Cumulative Number of Claims Accident Year 2008 $ 114 $ 114 $ 73 $ 68 $ 61 $ 52 $ 48 $ 45 $ 44 $ 44 $ — 7,199 2009 114 114 103 85 68 59 52 53 53 1 6,679 2010 112 112 111 84 76 66 63 59 7 5,962 2011 120 121 116 87 75 70 66 9 5,795 2012 120 122 98 70 52 45 9 5,519 2013 120 121 115 106 91 10 4,993 2014 123 124 94 69 25 4,938 2015 131 131 104 63 4,670 2016 124 124 84 4,707 2017 120 97 2,901 Total $ 775 $ 305 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Accident Year 2008 $ 9 $ 27 $ 35 $ 39 $ 42 $ 43 $ 43 $ 43 $ 43 $ 43 2009 13 24 34 41 43 45 46 47 47 2010 13 34 50 55 57 58 55 52 2011 19 42 55 58 60 60 56 2012 5 32 34 35 35 36 2013 16 40 69 78 78 2014 7 30 38 36 2015 7 26 38 2016 5 37 2017 23 Total $ 446 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 329 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 9 Liability for unallocated claim adjustment expenses for accident years presented 30 Total net liability for unpaid claim and claim adjustment expenses $ 368 |
Short-duration contracts reserve development | Net strengthening or (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Total Accident Year 2008 $ — $ (41 ) $ (5 ) $ (7 ) $ (9 ) $ (4 ) $ (3 ) $ (1 ) $ — $ (70 ) 2009 — (11 ) (18 ) (17 ) (9 ) (7 ) 1 — (61 ) 2010 — (1 ) (27 ) (8 ) (10 ) (3 ) (4 ) (53 ) 2011 1 (5 ) (29 ) (12 ) (5 ) (4 ) (54 ) 2012 2 (24 ) (28 ) (18 ) (7 ) (75 ) 2013 1 (6 ) (9 ) (15 ) (29 ) 2014 1 (30 ) (25 ) (54 ) 2015 — (27 ) (27 ) 2016 — — Total net development for the accident years presented above (65 ) (65 ) (82 ) Total net development for accident years prior to 2008 (4 ) 2 1 Total unallocated claim adjustment expense development — — (3 ) Total $ (69 ) $ (63 ) $ (84 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Commercial Auto | Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2017 (In millions, except reported claims data) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 IBNR Cumulative Number of Claims Accident Year 2008 $ 322 $ 323 $ 316 $ 306 $ 309 $ 305 $ 298 $ 298 $ 296 $ 297 $ — 56,424 2009 287 272 274 278 281 277 275 272 272 — 47,343 2010 262 274 279 283 291 286 281 280 1 46,335 2011 262 273 279 293 290 285 285 3 46,691 2012 270 282 292 296 300 292 7 45,288 2013 242 259 257 241 237 10 38,539 2014 231 221 210 204 19 33,029 2015 199 197 187 35 29,924 2016 196 183 53 29,745 2017 196 117 25,173 Total $ 2,433 $ 245 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Accident Year 2008 $ 83 $ 158 $ 210 $ 244 $ 274 $ 289 $ 291 $ 292 $ 293 $ 295 2009 72 128 188 229 257 269 270 270 271 2010 72 137 197 240 265 274 279 280 2011 78 141 193 241 264 275 277 2012 77 157 214 253 276 278 2013 73 132 164 195 219 2014 63 100 135 163 2015 52 95 128 2016 51 91 2017 58 Total $ 2,060 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 373 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 6 Liability for unallocated claim adjustment expenses for accident years presented 10 Total net liability for unpaid claim and claim adjustment expenses $ 389 |
Short-duration contracts reserve development | Net strengthening or (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Total Accident Year 2008 $ 1 $ (7 ) $ (10 ) $ 3 $ (4 ) $ (7 ) $ — $ (2 ) $ 1 $ (25 ) 2009 (15 ) 2 4 3 (4 ) (2 ) (3 ) — (15 ) 2010 12 5 4 8 (5 ) (5 ) (1 ) 18 2011 11 6 14 (3 ) (5 ) — 23 2012 12 10 4 4 (8 ) 22 2013 17 (2 ) (16 ) (4 ) (5 ) 2014 (10 ) (11 ) (6 ) (27 ) 2015 (2 ) (10 ) (12 ) 2016 (13 ) (13 ) Total net development for the accident years presented above (18 ) (40 ) (41 ) Total net development for accident years prior to 2008 (4 ) (6 ) 1 Total unallocated claim adjustment expense development — — 2 Total $ (22 ) $ (46 ) $ (38 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
General Liability | Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2017 (In millions, except reported claims data) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 IBNR Cumulative Number of Claims Accident Year 2008 $ 611 $ 604 $ 630 $ 647 $ 633 $ 632 $ 613 $ 600 $ 591 $ 592 $ 13 44,655 2009 591 637 634 633 629 623 619 622 627 18 44,038 2010 566 597 599 649 695 675 659 654 19 43,472 2011 537 534 564 610 611 621 615 29 38,216 2012 539 563 579 570 558 569 34 34,249 2013 615 645 634 643 604 62 33,255 2014 627 634 635 627 131 27,478 2015 573 574 585 208 23,082 2016 622 647 351 21,893 2017 627 547 15,375 Total $ 6,147 $ 1,412 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Accident Year 2008 $ 31 $ 129 $ 261 $ 390 $ 473 $ 528 $ 550 $ 560 $ 567 $ 574 2009 33 112 270 392 486 532 557 584 596 2010 27 139 267 414 530 577 608 618 2011 27 135 253 389 484 534 562 2012 27 127 233 340 417 473 2013 33 135 257 377 469 2014 29 115 245 379 2015 31 132 247 2016 34 163 2017 27 Total $ 4,108 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,039 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 1,026 Liability for unallocated claim adjustment expenses for accident years presented 58 Total net liability for unpaid claim and claim adjustment expenses $ 3,123 |
Short-duration contracts reserve development | Net strengthening or (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Total Accident Year 2008 $ (7 ) $ 26 $ 17 $ (14 ) $ (1 ) $ (19 ) $ (13 ) $ (9 ) $ 1 $ (19 ) 2009 46 (3 ) (1 ) (4 ) (6 ) (4 ) 3 5 36 2010 31 2 50 46 (20 ) (16 ) (5 ) 88 2011 (3 ) 30 46 1 10 (6 ) 78 2012 24 16 (9 ) (12 ) 11 30 2013 30 (11 ) 9 (39 ) (11 ) 2014 7 1 (8 ) — 2015 1 11 12 2016 25 25 Total net development for the accident years presented above (49 ) (13 ) (5 ) Total net development for accident years prior to 2008 16 (15 ) (2 ) Total unallocated claim adjustment expense development — — 7 Total $ (33 ) $ (28 ) $ — (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Workers' Compensation | Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2017 (In millions, except reported claims data) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 IBNR Cumulative Number of Claims Accident Year 2008 $ 558 $ 575 $ 593 $ 606 $ 608 $ 612 $ 622 $ 630 $ 638 $ 652 $ 34 59,911 2009 583 587 594 596 600 611 617 625 632 34 51,161 2010 576 619 641 663 683 697 717 721 33 48,144 2011 593 628 637 648 642 666 668 23 44,691 2012 589 616 648 661 671 667 63 41,756 2013 528 563 584 610 584 57 38,153 2014 459 474 474 448 106 33,072 2015 416 426 401 154 31,470 2016 421 399 200 31,310 2017 434 254 27,929 Total $ 5,606 $ 958 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Accident Year 2008 $ 92 $ 233 $ 323 $ 381 $ 425 $ 461 $ 489 $ 505 $ 520 $ 541 2009 88 223 315 381 435 468 495 516 539 2010 94 245 352 433 500 531 565 603 2011 97 245 353 432 471 515 557 2012 86 229 338 411 465 503 2013 79 211 297 366 413 2014 60 157 213 256 2015 50 130 179 2016 52 127 2017 62 Total $ 3,780 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,826 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 2,216 Other (2) (37 ) Liability for unallocated claim adjustment expenses for accident years presented 7 Total net liability for unpaid claim and claim adjustment expenses $ 4,012 |
Short-duration contracts reserve development | Net strengthening or (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Total Accident Year 2008 $ 17 $ 18 $ 13 $ 2 $ 4 $ 10 $ 8 $ 8 $ 14 $ 94 2009 4 7 2 4 11 6 8 7 49 2010 43 22 22 20 14 20 4 145 2011 35 9 11 (6 ) 24 2 75 2012 27 32 13 10 (4 ) 78 2013 35 21 26 (26 ) 56 2014 15 — (26 ) (11 ) 2015 10 (25 ) (15 ) 2016 (22 ) (22 ) Total net development for the accident years presented above 71 106 (76 ) Adjustment for development on a discounted basis (2 ) 1 (4 ) Total net development for accident years prior to 2008 11 43 14 Total unallocated claim adjustment expense development — — 1 Total $ 80 $ 150 $ (65 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) Other includes the effect of discounting lifetime claim reserves. |
Excluding Hardy | International | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2017 (In millions, except reported claims data) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 IBNR Cumulative Number of Claims Accident Year 2008 $ 243 $ 246 $ 234 $ 226 $ 226 $ 218 $ 227 $ 229 $ 225 $ 224 $ 7 25,185 2009 272 268 270 271 256 252 242 233 232 7 21,402 2010 247 244 239 232 222 215 208 202 13 22,943 2011 281 283 275 253 242 235 232 11 25,448 2012 282 289 273 266 267 259 28 25,450 2013 304 307 298 278 273 43 24,276 2014 292 308 308 296 68 25,343 2015 307 323 321 88 23,563 2016 301 320 120 17,166 2017 317 178 14,772 Total $ 2,676 $ 563 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 Accident Year 2008 $ 37 $ 92 $ 137 $ 148 $ 156 $ 164 $ 179 $ 187 $ 207 $ 208 2009 42 99 130 146 163 174 186 197 203 2010 50 103 126 143 157 167 176 178 2011 47 121 143 158 172 184 193 2012 46 118 153 175 191 204 2013 53 118 146 165 179 2014 55 128 157 174 2015 59 140 171 2016 69 139 2017 67 Total $ 1,716 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 960 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 42 Liability for unallocated claim adjustment expenses for accident years presented 24 Total net liability for unpaid claim and claim adjustment expenses $ 1,026 |
Short-duration contracts reserve development | Net strengthening or (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1)(2) 2016 (1)(2) 2017 (2) Total (2) Accident Year 2008 $ 3 $ (12 ) $ (8 ) $ — $ (8 ) $ 9 $ 2 $ (4 ) $ (1 ) $ (19 ) 2009 (4 ) 2 1 (15 ) (4 ) (10 ) (9 ) (1 ) (40 ) 2010 (3 ) (5 ) (7 ) (10 ) (7 ) (7 ) (6 ) (45 ) 2011 2 (8 ) (22 ) (11 ) (7 ) (3 ) (49 ) 2012 7 (16 ) (7 ) 1 (8 ) (23 ) 2013 3 (9 ) (20 ) (5 ) (31 ) 2014 16 — (12 ) 4 2015 16 (2 ) 14 2016 19 19 (1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) The amounts included in the loss reserve development tables above are presented at the year-end 2017 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate fluctuations between calendar years. The amounts included within the table on page 101 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates. |