| Claim and Claim Adjustment Expense Reserves | CNA’s property and casualty insurance claim
and claim adjustment expense reserves represent the estimated
amounts necessary to resolve all outstanding claims, including
claims that are incurred but not reported (“IBNR”)
as of the reporting date. CNA’s reserve projections are based
primarily on detailed analysis of the facts in each case,
CNA’s experience with similar cases and various historical
development patterns. Consideration is given to such historical
patterns as claim reserving trends and settlement practices, loss
payments, pending levels of unpaid claims and product mix, as well
as court decisions, 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 CNA’s ultimate cost for insurance losses will
not exceed current estimates. Catastrophes are an inherent risk of the property
and casualty insurance business and have contributed to material
period-to-period
Liability for Unpaid Claim and Claim Adjustment Expenses 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
2017
2016
2015
(In millions)
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 (a) 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
(a)
Total net incurred above does not agree to
Insurance claims and policyholders’ benefits as reflected in
the Consolidated Statements of Income 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.
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. 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. 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 indicated required reserve is the difference
between the selected ultimate loss and the inception-to-date
•
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 can be
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.
Future Policy Benefit Reserves Reserves for policyholder benefits for Other
Insurance Operations, which primarily includes long term care, are
based on actuarial assumptions which include estimates of
morbidity, persistency, inclusive of mortality, discount rates,
future premium rate increases and expenses over the life of the
contracts. Under GAAP, the best estimates of the actuarial
assumptions at the date the contract was issued are locked-in locked-in Certain claim liabilities are more difficult to
estimate and have differing methodologies and considerations which
are described below.
Mass Tort and A&EP Reserves CNA’s mass tort and A&EP reserving
methodologies are similar as both are based on detailed account
reviews of large accounts with estimates based on ultimate payments
considering the applicable law and coverage litigation. These
reserves are subject to greater inherent variability than is
typical of the remainder of CNA’s reserves due to, among
other things, a general lack of sufficiently detailed data,
expansion of the population being held responsible for these
exposures and significant unresolved legal issues such as the
existence of coverage and the definition of an occurrence.
Property and Casualty Reserve Reviews CNA’s actuarial reserve analyses result in
point estimates. Each quarter, the results of detailed reserve
reviews are summarized and discussed with CNA’s senior
management to determine management’s best estimate of
reserves. CNA’s senior management considers many factors in
making this decision. The factors 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. CNA’s recorded reserves reflect its best
estimate as of a particular point in time based upon known facts,
consideration of the factors cited above and its judgment. The
carried reserve differs from the actuarial point estimate as the
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.
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
CNA’s Property and 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 the years preceding
calendar year 2016 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. The following tables present the gross and net
carried reserves:
December 31, 2017
Property
Other
Total
(In millions)
Gross Case Reserves $ 6,913 $ 4,757 $
11,670
Gross IBNR Reserves 9,156 1,178
10,334
Total Gross Carried Claim and
Claim Adjustment Expense Reserves $ 16,069 $ 5,935 $
22,004
Net Case Reserves $ 6,343 $ 3,302 $
9,645
Net IBNR Reserves 8,232 193
8,425
Total Net Carried Claim and Claim
Adjustment Expense Reserves $ 14,575 $ 3,495 $
18,070
December 31, 2016
(In millions)
Gross Case Reserves $ 7,164 $ 4,696 $
11,860
Gross IBNR Reserves 9,207 1,276
10,483
Total Gross Carried Claim and
Claim Adjustment Expense Reserves $ 16,371 $ 5,972 $
22,343
Net Case Reserves $ 6,582 $ 3,045 $
9,627
Net IBNR Reserves 8,328 294
8,622
Total Net Carried Claim and Claim
Adjustment Expense Reserves $ 14,910 $ 3,339 $
18,249
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. Favorable net prior year
development of $302 million, $316 million and
$218 million was recorded for Property and Casualty Operations
for the years ended December 31, 2017, 2016 and 2015.
Favorable net prior year development of
$89 million, $43 million and $50 million was
recorded for Other Insurance Operations for the years ended
December 31, 2017, 2016 and 2015. The favorable net prior year
development for the year ended December 31, 2017 was driven by
lower than expected claim severity. Premium development can occur in the Property and
Casualty Operations when there is a change in exposure on auditable
policies or when premium accruals differ from processed premium.
Audits on policies usually occur in a period after the expiration
date of the policy. The following table and discussion presents detail
of the net prior year claim and claim adjustment expense reserve
development in CNA’s Property and Casualty Operations:
Year Ended December 31 2017 2016 2015
(In millions)
Medical professional liability $ 5 $ (37 ) $ (43)
Other professional liability and management liability (131 ) (130 )
Surety (84 ) (63 ) (69)
Commercial auto (38 ) (46 ) (22)
General liability (28 ) (33)
Workers’ compensation (65 ) 150
80
Other 5 (134 )
(123)
Total pretax (favorable) unfavorable development $
(308 ) $ (288 ) $
(210)
2017 Unfavorable development in medical professional
liability was primarily due to continued higher than expected
frequency in aging services and higher than expected severity for
hospitals in recent accident years. This was partially offset by
favorable development in life sciences and hospitals in prior
accident years as well as favorable development related to
unallocated claim adjustment expenses. Favorable development in other professional
liability and management liability was primarily due to favorable
settlements on closed claims and a lower frequency of large losses
for accident years 2011 through 2015 for professional and
management liability, lower than expected claim frequency in
accident years 2012 through 2015 for professional liability and
lower than expected severity in accident years 2014 through 2015
for professional liability. Favorable development in surety coverages was
primarily due to lower than expected frequency of large losses in
accident years 2015 and prior. Favorable development for commercial auto was
primarily due to lower than expected severity in accident years
2013 through 2016, as well as a large favorable recovery on a claim
in accident year 2012. Favorable development for workers’
compensation was primarily related to decreases in frequency and
severity in recent accident years, partially attributable to
California reforms impacting medical costs. This was partially
offset by unfavorable development related to an adverse arbitration
ruling on reinsurance recoverables from older accident years as
well as the recognition of loss estimates associated with favorable
premium development. Unfavorable development for other coverages was
primarily due to higher than expected severity in accident year
2016 and higher than expected large claim frequency in the Hardy
Political Risks portfolio relating largely to accident year 2016.
This unfavorable development was largely offset by favorable
development due to better than expected frequency in accident years
2014 through 2015, better than expected emergence in Canadian
run-off
2016 Favorable development for medical professional
liability was primarily due to lower than expected severities for
individual health care professionals, allied facilities and
hospitals in accident years 2011 and prior and better than expected
severity in medical products liability in accident years 2010
through 2015. This was partially offset by unfavorable development
in accident years 2012 and 2013 related to higher than expected
large loss emergence in hospitals and higher than expected
frequency and severity in accident years 2014 and 2015 in the aging
services business. Favorable development in other professional
liability and management liability was primarily due to favorable
settlements on closed claims and lower than expected frequency of
claims in accident years 2010 through 2014 related to professional
services and financial institutions. This was partially offset by
unfavorable development related to a specific financial
institutions claim in accident year 2014, higher management
liability severities in accident year 2015 and deterioration on
credit crises-related claims in accident year 2009. Favorable development in surety coverages was
primarily due to lower than expected frequency of large losses in
accident years 2014 and prior. Favorable development for commercial auto was
primarily due to favorable settlements on claims in accident years
2010 through 2014 and lower than expected severities in accident
years 2012 through 2015. Favorable development for general liability was
primarily due to better than expected claim settlements in accident
years 2012 through 2014 and better than expected severity on
umbrella claims in accident years 2010 through 2013. This was
partially offset by unfavorable development related to an increase
in reported claims prior to the closing of the three year window
set forth by the Minnesota Child Victims Act in accident years 2006
and prior. Unfavorable development for workers’
compensation was primarily due to higher than expected severity for
Defense Base Act contractors that largely resulted from a reduction
of expected future recoveries from the U.S. Department of Labor
under the War Hazard Act. Further unfavorable development was due
to the impact of recent Florida court rulings for accident years
2008 through 2015. These were partially offset by favorable
development related to lower than expected frequencies related to
the ongoing Middle Market and Small Business results for accident
years 2009 through 2014. Favorable development for other coverages was due
to better than expected claim frequency and claim severity in
accident years 2010 through 2015, better than expected loss
frequency in accident years 2013 through 2015, better than expected
severity on the December 2015 United Kingdom floods, better than
expected attritional losses and large loss experience on accident
years 2013 through 2015 for Hardy business and favorable
settlements on claims in accident years 2013 and prior related to
CNA’s Canadian package business. Additional favorable
development was due to a commutation of exposures in marine
run-off
2015 Overall, favorable development for medical
professional liability was related to lower than expected severity
in accident years 2012 and prior. Unfavorable development was
recorded related to increased claim frequency and severity in the
aging services business in accident years 2013 and 2014. Favorable development in other professional
liability and management liability related to better than expected
large loss emergence in financial institutions primarily in
accident years 2011 through 2014. Additional favorable development
related to lower than expected severity for professional services
in accident years 2011 and prior. Unfavorable development was
recorded related to increased frequency of large claims on public
company management liability in accident years 2012 through
2014.
Favorable development for surety coverages was
primarily due to lower than expected frequency of large losses in
accident years 2013 and prior. Favorable development for commercial auto was
primarily due to lower than expected severity in accident years
2009 through 2014. Favorable development for general liability was
primarily due to favorable settlements on claims in accident years
2010 through 2013. Unfavorable development for workers’
compensation was primarily due to higher than expected severity
related to Defense Base Act contractors in accident years 2008
through 2014. Favorable development for other coverages was due
to better than expected claim frequency in accident year 2014,
better than expected claim emergence from 2012 and 2014 catastrophe
events, better than expected large loss emergence in accident years
2012 and prior and better than expected individual large loss
emergence and favorable settlements on large claims in accident
years 2013 and 2014. This was partially offset by unfavorable
development due to higher than expected large losses in financial
institutions and political risk, primarily in accident year
2014. Property and 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 and Casualty Operations:
December 31
2017
(In millions)
Medical professional liability $ 1,700
Other professional liability and management liability 2,912
Surety 368
Commercial auto 389
General liability 3,123
Workers’ compensation 4,012
Other 2,071
Total net liability for unpaid claim and claim adjustment
expenses $ 14,575
Medical Professional
Liability
December 31, 2017
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses
Cumulative
Number
of
December 31 2008 (a) 2009 (a) 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017
IBNR Claims
(In millions, except reported
claims data)
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
Cumulative Net Paid Claim and Allocated Claim
Adjustment Expenses
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
Net Strengthening or (Releases) of Prior Accident Year
Reserves
Years Ended
December 31 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
(a) Data presented for these calendar
years is required supplemental information, which is
unaudited.
Other Professional Liability
and Management Liability
December 31, 2017
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses
Cumulative
Number
of
December 31 2008 (a) 2009 (a) 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017
IBNR Claims
(In millions, except reported
claims data)
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
Cumulative Net Paid Claim and Allocated Claim Adjustment
Expenses
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
Net Strengthening or (Releases) of Prior Accident Year
Reserves
Years Ended
December 31 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)
(a) Data presented for these calendar
years is required supplemental information, which is
unaudited.
Surety
December 31, 2017
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses
Cumulative
Number
of
December 31 2008 (a) 2009 (a) 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 IBNR Claims
(In millions, except reported
claims data)
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
Cumulative Net Paid Claim and
Allocated Claim Adjustment Expenses
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
Net Strengthening or (Releases) of Prior Accident Year
Reserves
Years Ended
December 31 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)
(a) Data presented for these calendar
years is required supplemental information, which is
unaudited.
Commercial Auto
December 31, 2017
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses
Cumulative
Number
of
December 31 2008 (a) 2009 (a) 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017
IBNR Claims
(In millions, except reported claims data)
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
Cumulative Net Paid Claim and
Allocated Claim Adjustment Expenses
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
Net Strengthening or (Releases) of Prior Accident Year
Reserves
Years Ended
December 31
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)
(a) Data presented for these calendar
years is required supplemental information, which is
unaudited.
General
Liability
December 31, 2017
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses
Cumulative
Number
of
December 31 2008 (a) 2009 (a) 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017
IBNR Claims
(In millions, except reported
claims data)
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
Cumulative Net Paid Claim and Allocated Claim Adjustment
Expenses
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
Net Strengthening or (Releases) of Prior Accident Year
Reserves
Years Ended
December 31 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) $
-
(a) Data presented for these calendar
years is required supplemental information, which is
unaudited.
Workers’
Compensation
December 31,
2017
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses
Cumulative
Number of
December 31 2008 (a) 2009 (a) 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017
IBNR Claims
(In millions, except reported
claims data)
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
Cumulative Net Paid Claim and
Allocated Claim Adjustment Expenses
Accident Year
2008 $
92 $
233 $
323 $
381 $
425 $
461 $
489 $
505 $
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