| 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
incurred but not reported (“IBNR”) claims 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 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 CNA’s ultimate cost for insurance losses will
not exceed current estimates. 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
in the Consolidated Balance Sheets.
December 31
2018
(In millions)
Net liability for unpaid claim and claim adjustment
expenses:
Property & Casualty Operations $
14,353
Other Insurance Operations (a)
3,612
Total net claim and claim adjustment expenses
17,965
Reinsurance receivables: (b)
Property & Casualty Operations
1,605
Other Insurance Operations (c)
2,414
Total reinsurance receivables
4,019
Total gross liability for unpaid claims and claims
adjustment expenses $
21,984
(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 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.
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
2018
2017
2016
(In millions)
Reserves, beginning of year:
Gross $
22,004 $
22,343 $
22,663
Ceded
3,934
4,094
4,087
Net reserves, beginning of year
18,070
18,249
18,576
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year 5,358 5,201 5,025
Decrease in provision for insured events of prior years (179 ) (381 ) (342
)
Amortization of discount
176
179
175
Total net incurred (a)
5,355
4,999
4,858
Net payments attributable to:
Current year events (1,046 ) (975 ) (967 )
Prior year events
(4,285 )
(4,366 )
(4,167 )
Total net payments
(5,331 )
(5,341 )
(5,134 )
Foreign currency translation adjustment and other
(129 )
163
(51 )
Net reserves, end of year 17,965 18,070 18,249
Ceded reserves, end of year
4,019
3,934
4,094
Gross reserves, end of year
$ 21,984
$ 22,004
$ 22,343
(a)
Total net incurred above does not agree to
Insurance claims and policyholders’ benefits as reflected on
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, 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 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. 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. Certain claim liabilities are more difficult to
estimate or have differing methodologies and considerations which
are described below. Mass Tort and A&EP Reserves 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. Other Insurance Operations Other Insurance Operations includes CNA’s
run-off CNA maintains both claim and claim adjustment
expense reserves as well as future policy benefit reserves for
policyholder benefits for CNA’s Other Insurance Operations.
Claim and claim adjustment expense reserves consist of estimated
reserves for long term care policyholders that are currently
receiving benefits, including claims that have been incurred but
are not yet reported. In developing the claim and claim adjustment
expense reserve estimates for the long term care policies,
CNA’s actuaries perform a detailed claim experience study on
an annual basis. The study reviews the sufficiency of existing
reserves for policyholders currently on claim and includes an
evaluation of expected benefit utilization and claim duration.
CNA’s recorded claim and claim adjustment expense reserves
reflect management’s best estimate after incorporating the
results of the most recent study. In addition, claim and claim
adjustment expense reserves are also maintained for the structured
settlement obligations. Both elements of the Other Insurance
Operations reserves are discounted as discussed in Note 1. Gross and Net Carried Reserves The following tables present the gross and net
carried reserves:
Property Other
and Casualty
Insurance
December 31, 2018
Operations
Operations
Total
(In millions)
Gross Case Reserves $ 6,671 $
4,724 $
11,395
Gross IBNR Reserves
9,287
1,302
10,589
Total Gross Carried Claim and
Claim Adjustment Expense Reserves
$ 15,958
$ 6,026
$ 21,984
Net Case Reserves $ 6,063 $ 3,460 $
9,523
Net IBNR Reserves
8,290
152
8,442
Total Net Carried Claim and Claim
Adjustment Expense Reserves
$ 14,353
$ 3,612
$ 17,965
December 31, 2017
(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
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
(“development”). These changes can be favorable or
unfavorable.
The following table and discussion presents detail
of the development in CNA’s Property & Casualty
Operations:
Year Ended December 31
2018
2017
2016
(In millions)
Medical professional liability $
47 $
30 $
9
Other professional liability and management
liability (127 ) (126 ) (14 0)
Surety (70 ) (84 ) (6 3)
Commercial auto 1 (35 ) (4 7)
General liability 32 (24 ) (6 5)
Workers’ compensation (32 ) (63 ) 14 5
Other
(32 )
(6 )
(12 7)
Total pretax (favorable) unfavorable
development
$ (181 )
$ (308 )
$ (28 8)
Favorable net prior year loss reserve development
of $19 million, $72 million and $46 million was
recorded for Other Insurance Operations for the years ended
December 31, 2018, 2017 and 2016. The favorable net prior year
loss reserve development for the year ended December 31, 2018
was driven by lower than expected claim severity. 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 commercial property and casualty
insurance operations (“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 2017 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. 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 better than
expected large loss frequency in the energy book in accident year
2017, as well as a reduction in incurred losses within the Europe
marine discontinued portfolio in energy and marine and lower than
expected frequency in accident years 2015 and prior in Europe in
healthcare and technology for International. This was partially
offset by unfavorable development primarily driven by higher than
expected severity in Canada and higher than expected frequency in
Hardy, both in accident year 2017 in property and increased loss
severity in the accident year 2017 in Europe professional indemnity
in specialty for International. 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 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 in 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 in general liability was due
to lower than expected severity in life sciences. Favorable development in 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 earned
premium from a prior exposure year. Unfavorable development for other coverages was
primarily due to higher than expected severity in accident year
2015 arising from the management liability business, partially
offset by favorable development in accident years 2014 and prior.
Additional unfavorable development was related to adverse large
claims experience in the CNA Hardy political risks portfolio,
relating largely to accident year 2016. This was partially offset
by favorable development related to better than expected frequency
in accident years 2014 through 2016 in property and in energy and
marine.
2016 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 in 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 in general liability was
primarily due to better than expected claim settlements in accident
years 2012 through 2014, better than expected severity on umbrella
claims in accident years 2010 through 2013 and better than expected
severity in medical products liability in accident years 2010
through 2015. 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 in 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 in 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 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
2018
(In millions)
Medical professional liability $ 1,457
Other professional liability and management
liability 2,849
Surety 379
Commercial auto 412
General liability 3,195
Workers’ compensation 3,968
Other
2,093
Total net liability for unpaid claim and claim
adjustment expenses
$ 14,353
Medical Professional
Liability
December 31, 2018
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses Cumulative
Number of
December 31
2009 (a)
2010 (a)
2011 (a)
2012 (a)
2013 (a)
2014 (a)
2015 (a)
2016 (a)
2017 (a)
2018
IBNR Claims
(In millions, except reported claims data)
Accident Year
2009 $ 389 $ 390 $ 392 $ 392 $ 366 $ 346 $ 336 $ 309 $ 302 $ 310 $ - 14,716
2010 402 412 423 426 415 395 365 360 356 - 14,615
2011 429 437 443 468 439 434 437 437 8 16,505
2012 464 469 508 498 493 484 493 10 17,691
2013 462 479 500 513 525 535 28 19,442
2014 450 489 537 530 535 30 19,602
2015 433 499 510 494 78 17,835
2016 427 487 485 120 15,427
2017 412 449 217 13,777
2018 404 333 11,205
Total $ 4,498 $ 824
Cumulative Net Paid Claim and Allocated Claim
Adjustment Expenses
Accident Year
2009 $ 9 $ 63 $ 143 $ 211 $ 247 $ 269 $ 280 $ 288 $ 291 $ 300
2010 10 86 173 257 306 326 337 346 350
2011 17 109 208 295 347 375 398 409
2012 14 117 221 323 388 427 457
2013 17 119 255 355 414 462
2014 23 136 258 359 417
2015 22 101 230 313
2016 18 121 246
2017 19 107
2018 21
Total $ 3,082
Net liability for unpaid claim and allocated claim
adjustment expenses for the accident years presented
$ 1,416
Net liability for unpaid claim and claim adjustment
expenses for accident years prior to 2009
18
Liability for unallocated claim adjustment expenses
for accident years presented
23
Total net liability for unpaid claim and claim
adjustment expenses
$ 1,457
Net Strengthening or (Releases)
of Prior Accident Year Reserves
Years Ended
December 31
Total
Accident Year
2009 $ 1 $ 2 $ - $ (26 ) $ (20 ) $ (10 ) $ (27 ) $ (7 ) $ 8 $ (79 )
2010 10 11 3 (11 ) (20 ) (30 ) (5 ) (4 ) (46 )
2011 8 6 25 (29 ) (5 ) 3 - 8
2012 5 39 (10 ) (5 ) (9 ) 9 29
2013 17 21 13 12 10 73
2014 39 48 (7 ) 5 85
2015 66 11 (16 ) 61
2016 60 (2 ) 58
2017 37 37
Total net development for the accident years
presented above
60 58 47
Total net development for accident years prior to
2009
(51 ) (21 ) 1
Total unallocated claim adjustment expense
development
- (7 ) (1 )
Total
$ 9 $ 30 $ 47
(a)
Data presented for these calendar years is required
supplemental information, which is unaudited.
Other Professional Liability
and Management Liability
December 31, 2018
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses Cumulative
Number of
December 31
2009 (a)
2010 (a)
2011 (a)
2012 (a)
2013 (a)
2014 (a)
2015 (a)
2016 (a)
2017 (a)
2018
IBNR Claims
(In millions, except reported claims data)
Accident Year
2009 $ 831 $ 875 $ 908 $ 903 $ 893 $ 903 $ 897 $ 906 $ 904 $ 892 $ 18 17,374
2010 828 828 848 848 847 837 824 827 821 19 17,888
2011 880 908 934 949 944 911 899 888 39 18,728
2012 923 909 887 878 840 846 833 41 18,491
2013 884 894 926 885 866 863 65 17,918
2014 878 898 885 831 835 88 17,515
2015 888 892 877 832 194 17,333
2016 901 900 900 279 17,787
2017 847 845 479 17,780
2018 850 726 16,564
Total $ 8,559 $ 1,948
Cumulative Net Paid Claim and Allocated Claim
Adjustment Expenses
Accident Year
2009 $ 37 $ 195 $ 361 $ 553 $ 641 $ 722 $ 772 $ 801 $ 825 $ 844
2010 31 204 405 541 630 670 721 752 784
2011 71 314 503 605 683 726 781 796
2012 56 248 400 573 651 711 755
2013 54 249 447 618 702 754
2014 51 223 392 515 647
2015 60 234 404 542
2016 64 248 466
2017 57 222
2018 54
Total $ 5,864
Net liability for unpaid claim and allocated claim
adjustment expenses for the accident years presented
$ 2,695
Net liability for unpaid claim and claim adjustment
expenses for accident years prior to 2009
90
Liability for unallocated claim adjustment expenses
for accident years presented
64
Total net liability for unpaid claim and claim
adjustment expenses
$ 2,849
Net Strengthening or (Releases)
of Prior Accident Year Reserves
Years Ended
December 31
Total
Accident Year
2009 $ 44 $ 33 $ (5 ) $ (10 ) $ 10 $ (6 ) $ 9 $ (2 ) $ (12 ) $ 61
2010 - 20 - (1 ) (10 ) (13 ) 3 (6 ) (7 )
2011 28 26 15 (5 ) (33 ) (12 ) (11 ) 8
2012 (14 ) (22 ) (9 ) (38 ) 6 (13 ) (90 )
2013 10 32 (41 ) (19 ) (3 ) (21 )
2014 20 (13 ) (54 ) 4 (43 )
2015 4 (15 ) (45 ) (56 )
2016 (1 ) - (1 )
2017 (2 ) (2 )
Total net development for the accident years
presented above
(125 ) (94 ) (88 )
Total net development for accident years prior to
2009
(15 ) (25 ) (32 )
Total unallocated claim adjustment expense
development
- (7 ) (7 )
Total
$ (140 ) $ (126 ) $ (127 )
(a)
Data presented for these calendar years is required
supplemental information, which is unaudited.
Surety
December 31, 2018
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses Cumulative
Number of
December 31
2009 (a)
2010 (a)
2011 (a)
2012 (a)
2013 (a)
2014 (a)
2015 (a)
2016 (a)
2017 (a)
2018
IBNR Claims
(In millions, except reported claims data)
Accident Year
2009 $ 114 $ 114 $ 103 $ 85 $ 68 $ 59 $ 52 $ 53 $ 53 $ 52 $ 1 6,688
2010 112 112 111 84 76 66 63 59 61 1 5,971
2011 120 121 116 87 75 70 66 62 1 5,808
2012 120 122 98 70 52 45 39 2 5,559
2013 120 121 115 106 91 87 6 5,039
2014 123 124 94 69 60 19 5,036
2015 131 131 104 79 36 4,887
2016 124 124 109 60 5,185
2017 120 115 78 4,936
2018 114 101 3,105
Total $ 778 $ 305
Cumulative Net Paid Claim and Allocated Claim
Adjustment Expenses
Accident Year
2009 $ 13 $ 24 $ 34 $ 41 $ 43 $ 45 $ 46 $ 47 $ 47 $ 47
2010 13 34 50 55 57 58 55 52 52
2011 19 42 55 58 60 60 56 57
2012 5 32 34 35 35 36 37
2013 16 40 69 78 78 78
2014 7 30 38 36 38
2015 7 26 38 40
2016 5 37 45
2017 23 37
2018 5
Total $ 436
Net liability for unpaid claim and allocated claim
adjustment expenses for the accident years presented
$ 342
Net liability for unpaid claim and claim adjustment
expenses for accident years prior to 2009
7
Liability for unallocated claim adjustment expenses
for accident years presented
30
Total net liability for unpaid claim and claim
adjustment expenses
$ 379
Net Strengthening or (Releases)
of Prior Accident Year Reserves
Years Ended
December 31
Total
Accident Year
2009 $ - $ (11 ) $ (18 ) $ (17 ) $ (9 ) $ (7 ) $ 1 $ - $ (1 ) $ (62 )
2010 - (1 ) (27 ) (8 ) (10 ) (3 ) (4 ) 2 (51 )
2011 1 (5 ) (29 ) (12 ) (5 ) (4 ) (4 ) (58 )
2012 2 (24 ) (28 ) (18 ) (7 ) (6 ) (81 )
2013 1 (6 ) (9 ) (15 ) (4 ) (33 )
2014 1 (30 ) (25 ) (9 ) (63 )
2015 - (27 ) (25 ) (52 )
2016 - (15 ) (15 )
2017 (5 ) (5 )
Total net development for the accident years
presented above
(64 ) (82 ) (67 )
Total net development for accident years prior to
2009
1 1 (3 )
Total unallocated claim adjustment expense
development
- (3 ) -
Total
$ (63 ) $ (84 ) $ (70 )
(a)
Data presented for these calendar years is required
supplemental information, which is unaudited.
Commercial Auto
December 31, 2018
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses Cumulative
Number of
December 31
2009 (a)
2010 (a)
2011 (a)
2012 (a)
2013 (a)
2014 (a)
2015 (a)
2016 (a)
2017 (a)
2018
IBNR
Claims
(In millions, except reported claims data)
Accident Year
2009 $ 291
$ 276
$ 280
$ 282
$ 285
$ 281
$ 278
$ 276
$ 276
$
277
$ - 48,499
2010 267 283 287 291 298 293 289 288 288 1 48,030
2011 268 281 288 302 300 294 294 294 4 47,905
2012 275 289 299 303 307 299 299 6 46,288
2013 246 265 265 249 245 245 7 39,429
2014 234 223 212 205 205 9 33,609
2015 201 199 190 190 22 30,388
2016 198 186 186 27 30,342
2017 199 198 45 30,580
2018 229 118 28,602
Total $ 2,411 $ 239
Cumulative Net Paid Claim and Allocated Claim
Adjustment Expenses
Accident Year
2009 $ 73 $ 130 $ 191 $ 233 $ 261 $ 272 $ 274 $ 274 $ 275
$ 277
2010 74 141 203 246 271 281 286 287 287
2011 79 145 199 248 274 284 287 289
2012 78 160 220 259 282 285 290
2013 74 135 168 200 225 234
2014 64 102 137 166 187
2015 52 96 130 153
2016 52 93 126
2017 58 107
2018 66
Total $ 2,016
Net liability for unpaid claim and allocated claim
adjustment expenses for the accident years presented
$ 395
Net liability for unpaid claim and claim adjustment
expenses for accident years prior to 2009
6
Liability for unallocated claim adjustment expenses
for accident years presented
11
Total net liability for unpaid claim and claim
adjustment expenses
$ 412
Net Strengthening or (Releases)
of Prior Accident Year Reserves
Years Ended
December 31
Total
Accident Year
2009 $ (15 ) $ 4 $ 2 $ 3 $ (4 ) $ (3 ) $ (2 ) $ - $ 1 $ (14 )
2010 16 4 4 7 (5 ) (4 ) (1 ) - 21
2011 13 7 14 (2 ) (6 ) - - 26
2012 14 10 4 4 (8 ) - 24
2013 19 - (16 ) (4 ) - (1 )
2014 (11 ) (11 ) (7 ) - (29 )
2015 (2 ) (9 ) - (11 )
2016 (12 ) - (12 )
2017 (1 ) (1 )
Total net development for the accident years
presented above
(37 ) (41 ) -
Total net development for accident years prior to
2009
(10 ) 4 -
Total unallocated claim adjustment expense
development
- 2 1
Total
$ (47 ) $ (35 ) $ 1
(a) Data presented for these calendar years
is required supplemental information, which is unaudited.
General
Liability
December 31, 2018
Cumulative Net Incurred Claim
and Allocated Claim Adjustment Expenses Cumulative
Number of
December 31
2009 (a)
2010 (a)
2011 (a)
2012 (a)
2013 (a)
2014 (a)
2015 (a)
2016 (a)
2017 (a)
2018
IBNR
Claims
(In millions, except reported claims data)
Accident Year
2009 $ 662
$ 716
$ 733
$ 755
$ 752
$ 756
$ 755
$ 754
$ 755
$ 755
$ 16 44,934
2010 646 664 658 709 750 726 697 691 691 24 44,144
2011 591 589 631 677 676 681 670 669 26 39,283
2012 587 611 639 636 619 635 635 46 35,083
2013 650 655 650 655 613 623 51 33,420
2014 653 658 654 631 635 71 27,736
2015 581 576 574 589 122 23,471
2016 623 659 667 265 23,078
2017 632 632 412 19,716
2018 653 553 13,336
Total $ 6,549 $ 1,586
Cumulative Net Paid Claim and Allocated Claim
Adjustment Expenses
Accident Year
2009 $ 33 $ 124 $ 305 $ 468 $ 576 $ 625 $ 663 $ 701 $ 721 $
727
2010 27 145 280 429 561 611 642 652 656
2011 28 148 273 411 517 568 602 622
2012 28 132 247 374 454 510 559
2013 31 128 240 352 450 510
2014 31 119 247 376 481
2015 19 110 230 357
2016 32 163 279
2017 23 118
2018 33
Total $ 4,342
Net liability for unpaid claim and allocated claim
adjustment expenses for the accident years presented
$ 2,207
Net liability for unpaid claim and claim adjustment
expenses for accident years prior to 2009
927
Liability for unallocated claim adjustment expenses
for accident years presented
61
Total net liability for unpaid claim and claim
adjustment expenses
$ 3,195
Net Strengthening or (Releases)
of Prior Accident Year Reserves
Years Ended
December 31
Total
Accident Year
2009 $ 54 $ 17 $ 22 $ (3 ) $ 4 $ (1 ) $ (1 ) $ 1 $ - $ 93
2010 18 (6 ) 51 41 (24 ) (29 ) (6 ) - 45
2011 (2 ) 42 46 (1 ) 5 (11 ) (1 ) 78
2012 24 28 (3 ) (17 ) 16 - 48
2013 5 (5 ) 5 (42 ) 10 (27 )
2014 5 (4 ) (23 ) 4 (18 )
2015 (5 ) (2 ) 15 8
2016 36 8 44
2017 - -
Total net development for the accident years
presented above
(46 ) (31 ) 36
Total net development for accident years prior to
2009
(19 ) (1 ) -
Total unallocated claim adjustment expense
development
- 8 (4 )
Total $ (65 ) $ (24 ) $ 32
(a) Data presented for these calendar years
is required supplemental information, which is una |
