| Claim, Claim Adjustment Expense and Future Policy Benefit Reserves | Note 8. Claim, Claim Adjustment Expense and Future Policy Benefit Reserves Property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (“IBNR”) claims as of the reporting date. Reserve projections are based primarily on detailed analysis of the facts in each case, experience with similar cases and various historical development patterns. Consideration is given to historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions and economic conditions including inflation and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves. Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for 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. 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. CNA’s commercial property and casualty insurance operations (“Property & Casualty Operations”) include its Specialty, Commercial and International lines of business. CNA’s Other Insurance Operations outside of Property & Casualty Operations include its long term care business that is in run-off, certain corporate expenses, including interest on CNA’s corporate debt, and certain property and casualty businesses in run-off, including CNA Re and A&EP. Liability for Unpaid Claim and Claim Adjustment Expenses The table below reconciles the net liability for unpaid claim and claim adjustment expenses to the amount presented on the Consolidated Balance Sheets.
December 31 2020
(In millions)
Net liability for unpaid claim and claim adjustment expenses:
Property & Casualty Operations $ 14,924
Other Insurance Operations (a) 3,777
Total net claim and claim adjustment expenses 18,701
Reinsurance receivables: (b)
Property & Casualty Operations 1,956
Other Insurance Operations (c) 2,049
Total reinsurance receivables 4,005
Total gross liability for unpaid claims and claims adjustment expenses $ 22,706
(a) Other Insurance Operations amounts are primarily related to long term care claim reserves, which are long duration insurance contracts, but also include amounts related to unfunded structured settlements arising from short duration insurance contracts.
(b) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses.
(c) The Other Insurance Operations reinsurance receivables are primarily related to A&EP claims covered under the loss portfolio transfer (“LPT”). The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of Other Insurance Operations.
Year Ended December 31 2020 2019 2018
(In millions)
Reserves, beginning of year:
Gross $ 21,720 $ 21,984 $ 22,004
Ceded 3,835 4,019 3,934
Net reserves, beginning of year 17,885 17,965 18,070
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year 5,793 5,356 5,358
Decrease in provision for insured events of prior years (119 ) (127 ) (179 )
Amortization of discount 183 184 176
Total net incurred (a) 5,857 5,413 5,355
Net payments attributable to:
Current year events (948 ) (992 ) (1,046 )
Prior year events (4,216 ) (4,584 ) (4,285 )
Total net payments (5,164 ) (5,576 ) (5,331 )
Foreign currency translation adjustment and other 123 83 (129 )
Net reserves, end of year 18,701 17,885 17,965
Ceded reserves, end of year 4,005 3,835 4,019
Gross reserves, end of year $ 22,706 $ 21,720 $ 21,984
(a) 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 benefit expenses related to future policy benefits, which are not reflected in the table above. Reserving Methodology In developing claim and claim adjustment expense (“loss” or “losses”) reserve estimates, CNA’s actuaries perform detailed reserve analyses that are staggered throughout the year. Every reserve group is reviewed at least once during the year, but most are reviewed more frequently. The analyses generally review losses gross of ceded reinsurance and apply the ceded reinsurance terms to the gross estimates to establish estimates net of reinsurance. Factors considered include, but are not limited to, the historical pattern and volatility of the actuarial indications, the sensitivity of the actuarial indications to changes in paid and incurred loss patterns, the consistency of claims handling processes, the consistency of case reserving practices, changes in CNA’s pricing and underwriting, pricing and underwriting trends in the insurance market and legal, judicial, social and economic trends. In addition to the detailed analyses, CNA reviews actual loss emergence for all products each quarter. In developing the loss reserve estimates for property and casualty contracts, CNA generally projects ultimate losses using several common actuarial methods as listed below. CNA reviews the various indications from the various methods and applies judgment to select an actuarial point estimate. The carried reserve may differ from the actuarial point estimate as a result of CNA’s consideration of the factors noted above as well as the potential volatility of the projections associated with the specific product being analyzed and other factors affecting claims costs that may not be quantifiable through traditional actuarial analysis. The indicated required reserve is the difference between the selected ultimate loss and the inception-to-date paid losses. The difference between the selected ultimate loss and the case incurred or reported loss is IBNR. IBNR includes a provision for development on known cases as well as a provision for late reported incurred claims. The most frequently utilized methods to project ultimate losses include the following:
• Paid development
• Incurred development
• Loss ratio
• Bornhuetter-Ferguson using premiums and paid loss
• Bornhuetter-Ferguson using premiums and incurred loss
• Frequency times severity
• Stochastic modeling For many exposures, especially those that are considered long-tail, a particular accident or policy year may not have a sufficient volume of paid losses to produce a statistically reliable estimate of ultimate losses. In such a case, CNA’s actuaries typically assign more weight to the incurred development method than to the paid development method. As claims continue to settle and the volume of paid loss increases, the actuaries may assign additional weight to the paid development method. For most of CNA’s products, even the incurred losses for accident or policy years that are early in the claim settlement process will not be of sufficient volume to produce a reliable estimate of ultimate losses. In these cases, CNA may not assign any weight to the paid and incurred development methods. CNA may use the loss ratio, Bornhuetter-Ferguson and frequency times severity methods. For short-tail exposures, the paid and incurred development methods can often be relied on sooner, primarily because CNA’s history includes a sufficient number of years to cover the entire period over which paid and incurred losses are expected to change. However, CNA may also use the loss ratio, Bornhuetter-Ferguson and frequency times severity methods for short-tail exposures. For other more complex reserve groups where the above methods may not produce reliable indications, CNA uses additional methods tailored to the characteristics of the specific situation . CNA’s reserving methodologies for mass tort and A&EP are similar as both are based on detailed reviews of large accounts with estimates of ultimate payments based on the facts in each case and CNA’s view of applicable law and coverage litigation. Gross and Net Carried Reserves The following tables present the gross and net carried reserves:
Property Other
and Casualty Insurance
December 31, 2020 Operations Operations Total
(In millions)
Gross Case Reserves $ 6,183 $ 4,511 $ 10,694
Gross IBNR Reserves 10,697 1,315 12,012
Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 16,880 $ 5,826 $ 22,706
Net Case Reserves $ 5,544 $ 3,386 $ 8,930
Net IBNR Reserves 9,380 391 9,771
Total Net Carried Claim and Claim Adjustment Expense Reserves $ 14,924 $ 3,777 $ 18,701
December 31, 2019
Gross Case Reserves $ 6,276 $ 4,713 $ 10,989
Gross IBNR Reserves 9,494 1,237 10,731
Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 15,770 $ 5,950 $ 21,720
Net Case Reserves $ 5,645 $ 3,533 $ 9,178
Net IBNR Reserves 8,508 199 8,707
Total Net Carried Claim and Claim Adjustment Expense Reserves $ 14,153 $ 3,732 $ 17,885 Net Prior Year Development Changes 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. The following table and discussion present details of the net prior year loss reserve development in Property & Casualty Operations:
Year Ended December 31 2020 2019 2018
(In millions)
Medical professional liability $ 35 $ 75 $ 47
Other professional liability and management liability (15 ) (69 ) (127 )
Surety (69 ) (92 ) (70 )
Commercial auto 33 (25 ) 1
General liability 65 54 32
Workers’ compensation (96 ) (13 ) (32 )
Property and other 27 (3 ) (32 )
Total pretax favorable development $ (20 ) $ (73 ) $ (181 ) Development Tables For CNA’s Property & Casualty Operations, the following tables present further detail and commentary on the development reflected in the financial statements for each of the periods presented. Also presented are loss reserve development tables that 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 CNA’s Property & Casualty Operations. Not all lines of business are presented based on their context to CNA’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 CNA’s expanded awareness of additional facts and circumstances that pertain to the unsettled claims. The Cumulative Net Paid Claim 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 calendar years 2019 and prior is unaudited. To the extent CNA enters into a commutation, the transaction is reported on a prospective basis. To the extent that CNA enters into a disposition, the effects of the disposition are reported on a retrospective basis by removing the balances associated with it. 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. CNA does not establish case reserves for allocated loss adjusted expenses (ALAE), therefore ALAE reserves are also included in the estimate of IBNR. 2020 Unfavorable development in medical professional liability was primarily due to higher than expected frequency of large losses in recent accident years and unfavorable outcomes on specific claims in older accident years. Favorable development in other professional liability and management liability was primarily due to lower than expected loss emergence in accident year 2017 and accident years prior to 2010. Favorable development in surety was due to lower than expected frequency and lack of systemic loss activity for accident years 2019 and prior. Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s middle market and construction business in recent accident years. Unfavorable development in general liability was driven by higher than expected emergence in mass tort exposures, primarily due to New York reviver statute-related claims from accident years prior to 2010, increased bodily injury severities in accident years 2012 through 2016 and higher than expected frequency and severity in CNA’s umbrella business in accident years 2015 through 2019. Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years. Unfavorable development in property and other was primarily due to higher than expected large loss activity in accident year 2019 in CNA’s middle market, national accounts and marine business units. 2019 Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident years 2016 through 2018 in CNA’s aging services business, higher than expected severity in accident year 2013 in the allied healthcare business, unfavorable outcomes on individual claims and higher than expected severity in accident year 2017 in the dentists business. Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency and favorable outcomes on individual claims in accident years 2017 and prior related to financial institutions, lower than expected large claim losses in recent accident years in CNA’s public company directors and officers liability business and lower than expected loss adjustment expenses across accident years 2010 through 2018. Favorable development in surety was due to lower than expected frequency for accident years 2018 and prior. Favorable development in commercial auto was primarily due to continued lower than expected severity across accident years 2015 and prior and a decline in bodily injury frequency in accident year 2018. Unfavorable development in general liability was primarily due to higher than expected emergence in mass tort exposures, primarily from accident years 2016, 2015 and prior to 2010. Favorable development in other coverages was due to lower than expected paid loss emergence on vehicle products in warranty, favorable medical trends driving lower than expected severity in accident years 2012 through 2018 in workers’ compensation, lower than expected claim severity related to catastrophe events in accident years 2017 and 2018 in property and other in Commercial and lower than expected large losses and claim severity in accident years 2018 and prior in Hardy, Europe and Canada in casualty. This was mostly offset by unfavorable development driven by higher than expected claims in Hardy on 2018 accident year Asian catastrophe events in property in International and potential design and construct exposures in professional indemnity within Europe financial lines in accident years 2017 and 2018. 2018 Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident years 2014 and 2017 in CNA’s hospitals business. In addition, there was higher than expected frequency and severity in aging services in accident years 2014 through 2017 combined, partially offset by lower than expected frequency in accident year 2015. Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency in recent accident years related to financial institutions and professional liability errors and omissions (“E&O”), favorable severity in accident years 2015 and prior related to professional liability E&O and favorable outcomes on individual claims in financial institutions in accident years 2013 and prior. Favorable development in surety was due to lower than expected loss emergence for accident years 2017 and prior. Unfavorable development in general liability was driven by higher than expected claim severity in unsupported umbrella in accident years 2013 through 2016. Favorable development in workers’ compensation was driven by lower frequency and severity experience and favorable impacts from California reforms. Favorable development in other coverages was driven by lower than expected claim severity in catastrophes in accident year 2017 for property in Commercial, better than expected frequency in the liability portion of the package business in Canada and general liability in Europe in casualty, and for accident years 2015 and prior in Europe in healthcare and technology for International. This was partially offset by unfavorable development primarily driven by increased loss severity in the accident year 2017 in Europe professional indemnity in specialty for International. Property & Casualty Operations – Line of Business Composition The table below presents the net liability for unpaid claim and claim adjustment expenses, by line of business for Property & Casualty Operations:
December 31 2020
(In millions)
Medical professional liability $ 1,520
Other professional liability and management liability 2,850
Surety 385
Commercial auto 502
General liability 3,305
Workers’ compensation 3,872
Property and other 2,490
Total net liability for unpaid claim and claim adjustment expenses $ 14,924 Medical Professional Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
December 31, 2020
Cumulative
December 31 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 IBNR Number of Claims
(In millions, except reported claims data)
Accident Year
2011 $ 429 $ 437 $ 443 $ 468 $ 439 $ 434 $ 437 $ 437 $ 439 $ 439 $ 4 $ 16,537
2012 464 469 508 498 493 484 493 499 497 5 17,739
2013 462 479 500 513 525 535 545 531 11 19,537
2014 450 489 537 530 535 529 527 11 19,770
2015 433 499 510 494 488 510 29 18,122
2016 427 487 485 499 508 27 15,998
2017 412 449 458 460 62 15,008
2018 404 429 431 98 14,531
2019 430 445 232 13,045
2020 _ 477 426 7,787
_ Total $ 4,825 $ 905 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
Accident Year
2011 $ 17 $ 109 $ 208 $ 295 $ 347 $ 375 $ 398 $ 409 $ 414 $ 432 - -
2012 14 117 221 323 388 427 457 479 482 - -
2013 17 119 255 355 414 462 495 508 - -
2014 23 136 258 359 417 472 489 - -
2015 22 101 230 313 384 420 - -
2016 18 121 246 339 401
2017 19 107 235 308 - -
2018 21 115 211 - -
2019 17 91 - -
2020 _ _ _ __ _ _ _ _ 11 - -
Total $ 3,353 - -
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,472 - -
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 19 - -
Liability for unallocated claim adjustment expenses for accident years presented 29 - -
Total net liability for unpaid claim and claim adjustment expenses $ 1,520 - - Net Strengthening (Releases) of Prior Accident Year Reserves
Years Ended _
December 31 Total
Accident Year
2011 - $ 8 $ 6 $ 25 $ (29 ) $ (5 ) $ 3 $ - $ 2 $ - $ 10 -
2012 5 39 (10 ) (5 ) (9 ) 9 6 (2 ) 33
2013 17 21 13 12 10 10 (14 ) 69
2014 39 48 (7 ) 5 (6 ) (2 ) 77
2015 66 11 (16 ) (6 ) 22 77
2016 60 (2 ) 14 9 81
2017 37 9 2 48
2018 25 2 27
2019 _ _ _ _ _ _ _ 15 15
Total net development for the accident years presented above 43 54 32
Total net development for accident years prior to 2011 5 19 3
Total unallocated claim adjustment expense development (1 ) 2 -
Total $ 47 $ 75 $ 35
(a) Data presented for these calendar years is required supplemental information, which is unaudited. Other Professional Liability and Management Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
December 31, 2020
Cumulative
December 31 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 IBNR Number of Claims
(In millions, except reported claims data)
Accident Year
2011 $ 880 $ 908 $ 934 $ 949 $ 944 $ 911 $ 899 $ 888 $ 885 $ 883 $ 17 $ 18,745
2012 923 909 887 878 840 846 833 831 850 25 18,504
2013 884 894 926 885 866 863 850 846 36 17,939
2014 878 898 885 831 835 854 845 57 17,568
2015 888 892 877 832 807 813 74 17,417
2016 901 900 900 904 907 120 17,946
2017 847 845 813 791 220 18,118
2018 850 864 869 276 19,789
2019 837 845 447 19,157
2020 _ 930 777 16,557
_ Total $ 8,579 $ 2,049 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
Accident Year
2011 $ 71 $ 314 $ 503 $ 605 $ 683 $ 726 $ 781 $ 796 $ 828 $ 851 - -
2012 56 248 400 573 651 711 755 792 812 - -
2013 54 249 447 618 702 754 771 779 - -
2014 51 223 392 515 647 707 743 - -
2015 60 234 404 542 612 677 - -
2016 64 248 466 625 701
2017 57 222 394 498 - -
2018 54 282 473 - -
2019 64 263 - -
2020 _ _ _ __ _ _ _ _ 67 - -
Total $ 5,864 - -
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,715 - -
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 79 - -
Liability for unallocated claim adjustment expenses for accident years presented 56 - -
Total net liability for unpaid claim and claim adjustment expenses $ 2,850 - - Net Strengthening (Releases) of Prior Accident Year Reserves
Years Ended _
December 31 Total
Accident Year
2011 - $ 28 $ 26 $ 15 $ (5 ) $ (33 ) $ (12 ) $ (11 ) $ (3 ) $ (2 ) $ 3 -
2012 (14 ) (22 ) (9 ) (38 ) 6 (13 ) (2 ) 19 (73 )
2013 10 32 (41 ) (19 ) (3 ) (13 ) (4 ) (38 )
2014 20 (13 ) (54 ) 4 19 (9 ) (33 )
2015 4 (15 ) (45 ) (25 ) 6 (75 )
2016 (1 ) - 4 3 6
2017 (2 ) (32 ) (22 ) (56 )
2018 14 5 19
2019 _ _ _ _ _ _ _ _ 8 8
Total net development for the accident years presented above (70 ) (38 ) 4
Total net development for accident years prior to 2011 (50 ) (17 ) (19 )
Total unallocated claim adjustment expense development (7 ) (14 ) -
Total $ (127 ) $ (69 ) $ (15 )
(a) Data presented for these calendar years is required supplemental information, which is unaudited. Surety Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
December 31, 2020
Cumulative
December 31 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 IBNR Number of Claims
(In millions, except reported claims data)
Accident Year
2011 $ 120 $ 121 $ 116 $ 87 $ 75 $ 70 $ 66 $ 62 $ 62 $ 62 $ 1 $ 5,828
2012 120 122 98 70 52 45 39 38 37 1 5,577
2013 120 121 115 106 91 87 83 82 1 5,078
2014 123 124 94 69 60 45 45 1 5,102
2015 131 131 104 79 63 58 6 5,026
2016 124 124 109 84 67 12 5,469
2017 120 115 103 84 31 5,706
2018 114 108 91 48 5,920
2019 119 112 67 5,344
2020 _ 128 122 2,527
_ Total $ 766 $ 290 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
Accident Year
2011 $ 19 $ 42 $ 55 $ 58 $ 60 $ 60 $ 56 $ 57 $ 57 $ 57 - -
2012 5 32 34 35 35 36 37 37 36 - -
2013 16 40 69 78 78 78 77 78 - -
2014 7 30 38 36 38 38 39 - -
2015 7 26 38 40 42 44 - -
2016 5 37 45 45 43
2017 23 37 41 46 - -
2018 5 25 34 - -
2019 12 34 - -
2020 _ _ _ __ _ _ _ _ 4 - -
Total $ 415 - -
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 351 - -
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 14 - -
Liability for unallocated claim adjustment expenses for accident years presented 20 - -
Total net liability for unpaid claim and claim adjustment expense $ 385 - - Net Strengthening (Releases) of Prior Accident Year Reserves
Years Ended _
December 31 Total
Accident Year
2011 - $ 1 $ (5 ) $ (29 ) $ (12 ) $ (5 ) $ (4 ) $ (4 ) $ - $ - $ (58 ) -
2012 2 (24 ) (28 ) (18 ) (7 ) (6 ) (1 ) (1 ) (83 )
2013 1 (6 ) (9 ) (15 ) (4 ) (4 ) (1 ) (38 )
2014 1 (30 ) (25 ) (9 ) (15 ) - (78 )
2015 - (27 ) (25 ) (16 ) (5 ) (73 )
2016 - (15 ) (25 ) (17 ) (57 )
2017 (5 ) (12 ) (19 ) (36 )
2018 (6 ) (17 ) (23 )
2019 _ _ _ _ _ _ _ (7 ) (7 )
Total net development for the accident years presented above (68 ) (79 ) (67 )
Total net development for accident years prior to 2011 (2 ) (3 ) (2 )
Total unallocated claim adjustment expense development - (10 ) -
Total $ (70 ) $ (92 ) $ (69 )
(a) Data presented for these calendar years is required supplemental information, which is unaudited. Commercial Auto Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
December 31, 2020
Cumulative
December 31 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 IBNR Number of Claims
(In millions, except reported claims data)
Accident Year
2011 $ 268 $ 281 $ 288 $ 302 $ 300 $ 294 $ 294 $ 294 $ 291 $ 292 $ - $ 47,907
2012 275 289 299 303 307 299 299 297 296 2 46,288
2013 246 265 265 249 245 245 241 241 2 39,429
2014 234 223 212 205 205 201 201 1 33,625
2015 201 199 190 190 183 181 3 30,426
2016 198 186 186 186 190 2 30,430
2017 199 198 200 221 7 30,913
2018 229 227 227 10 34,225
2019 257 266 48 36,779
2020 _ 310 187 24,427
_ Total $ 2,425 $ 262 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
Accident Year
2011 $ 79 $ 145 $ 199 $ 248 $ 274 $ 284 $ 287 $ 289 $ 289 $ 290 - -
2012 78 160 220 259 282 285 290 291 291 - -
2013 74 135 168 200 225 234 238 239 - -
2014 64 102 137 166 187 196 198 - -
2015 52 96 130 153 172 175 - -
2016 52 93 126 154 175 - -
2017 58 107 150 178 - -
2018 66 128 175 - -
2019 77 147 - -
2020 _ _ _ __ _ _ _ _ 71 - -
Total $ 1,939 - -
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 486 - -
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 2 - -
Liability for unallocated claim adjustment expenses for accident years presented 14 - -
Total net liability for unpaid claim and claim adjustment expenses $ 502 - - Net Strengthening (Releases) of Prior Accident Year Reserves
Years Ended _
December 31 Total
Accident Year
2011 - $ 13 $ 7 $ 14 $ (2 ) $ (6 ) $ - $ - $ (3 ) $ 1 $ 24 -
2012 14 10 4 4 (8 ) - (2 ) (1 ) 21
2013 19 - (16 ) (4 ) - (4 ) - (5 )
2014 (11 ) (11 ) (7 ) - (4 ) - (33 )
2015 (2 ) (9 ) - (7 ) (2 ) (20 )
2016 (12 ) - - 4 (8 )
2017 (1 ) 2 21 22
2018 (2 ) - (2 )
2019 _ _ _ _ _ _ _ 9 9
Total net development for the accident years presented above (1 ) (20 ) 32
Total net development for accident years prior to 2011 1 (4 ) 1
Total unallocated claim adjustment expense development 1 (1 ) -
Total $ 1 $ (25 ) $ 33
(a) Data presented for these calendar years is required supplemental information, which is unaudited. General Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
December 31, 2020
Cumulative
December 31 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 IBNR Number of Claims
(In millions, except reported claims data)
Accident Year
2011 $ 591 $ 589 $ 631 $ 677 $ 676 $ 681 $ 670 $ 669 $ 667 $ 667 $ 21 $ 39,405
2012 587 611 639 636 619 635 635 630 632 24 35,276
2013 650 655 650 655 613 623 620 623 27 33,649
2014 653 658 654 631 635 658 659 44 27,972
2015 581 576 574 589 600 602 38 24,005
2016 623 659 667 671 673 104 24,215
2017 632 632 632 634 136 21,781
2018 653 644 646 302 19,234
2019 680 682 453 17,294
2020 _ 723 640 9,593
_ Total $ 6,541 $ 1,789 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
Accident Year
2011 $ 28 $ 148 $ 273 $ 411 $ 517 $ 568 $ 602 $ 622 $ 638 $ 640 - -
2012 28 132 247 374 454 510 559 579 597 - -
2013 31 128 240 352 450 510 551 572 - -
2014 31 119 247 376 481 547 569 - -
2015 19 110 230 357 446 501 - -
2016 32 163 279 407 481 - -
2017 23 118 250 399 - -
2018 33 107 228 - -
2019 25 98 - -
2020 _ _ _ __ _ _ _ _ 23 - -
Total $ 4,108 - -
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,433 - -
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 812 - -
Liability for unallocated claim adjustment expenses for accident years presented 60 - -
Total net liability for unpaid claim and claim adjustment expenses $ 3,305 - - Net Strengthening (Releases) of Prior Accident Year Reserves
Years Ended _
December 31 Total
Accident Year
2011 - $ (2 ) $ 42 $ 46 $ (1 ) $ 5 $ (11 ) $ (1 ) $ (2 ) $ - $ 76 -
2012 24 28 (3 ) (17 ) 16 - (5 ) 2 45
2013 5 (5 ) 5 (42 ) 10 (3 ) 3 (27 )
2014 5 (4 ) (23 ) 4 23 1 6
2015 (5 ) (2 ) 15 11 2 21
2016 36 8 4 2 50
2017 - - 2 2
2018 (9 ) 2 (7 )
2019 _ _ _ _ _ _ _ 2 2
Total net development for the accident years presented above 36 19 16
Total net development for accident years prior to 2011 - 28 49
Total unallocated claim adjustment expense development (4 ) 7 -
Total $ 32 $ 54 $ 65
(a) Data presented for these calendar years is required supplemental information, which is unaudited. Workers’ Compensation Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses
December 31, 2020
Cumulative
December 31 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 IBNR Number of Claims
(In millions, except reported claims data)
Accident Year
2011 $ 607 $ 641 $ 647 $ 659 $ 651 $ 676 $ 676 $ 674 $ 688 $ 698 $ 42 $ 46,443
2012 601 627 659 669 678 673 671 668 663 62 42,685
2013 537 572 592 618 593 582 561 552 92 38,758
2014 467 480 479 452 450 446 439 97 33,488
2015 422 431 406 408 394 382 116 31,876
2016 426 405 396 382 366 121 31,967
2017 440 432 421 400 97 33,094
2018 450 440 428 129 34,800
2019 452 449 181 34,020
2020 _ 477 312 24,980
_ Total $ 4,854 $ 1,249 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses
Accident Year
2011 $ 99 $ 249 $ 358 $ 438 $ 478 $ 522 $ 564 $ 571 $ 581 $ 583 - -
2012 87 232 342 416 470 509 524 536 538 - -
2013 80 213 300 370 417 419 411 414 - -
2014 61 159 215 258 282 290 297 - -
2015 51 131 180 212 231 243 - -
2016 53 129 169 198 219 - -
2017 63 151 207 243 - -
2018 68 163 229 - -
2019 71 169 - -
2020 _ _ _ __ _ _ _ _ 65 - -
Total $ 3,000 - -
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,854 - -
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 1,984 - -
Other (b) (15 ) - -
Liability for unallocated claim adjustment expenses for accident years presented 49
Total net liability for unpaid claim and claim adjustment expenses $ 3,872 - - Net Strengthening (Releases) of Prior Accident Year Reserves
Years Ended _
December 31 Total
Accident Year
2011 - $ 34 $ 6 $ 12 $ (8 ) $ 25 $ - $ (2 ) $ 14 $ 10 $ 91 -
2012 26 32 10 9 (5 ) (2 ) (3 ) (5 ) 62
2013 35 20 26 (25 ) (11 ) (21 ) (9 ) 15
2014 13 (1 ) (27 ) (2 ) (4 ) (7 ) (28 )
2015 9 (25 ) 2 (14 ) (12 ) (40 )
2016 (21 ) (9 ) (14 ) (16 ) (60 )
2017 (8 ) (11 ) (21 ) (40 )
2018 (10 ) (12 ) (22 )
2019 _ _ _ _ _ _ _ |
