Claim, Claim Adjustment Expense and Future Policy Benefit Reserves | Note 8. Claim, Claim Adjustment Expense and Future Policy Benefit 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. 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, run-off, 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 o December 31 2019 (In millions) Net liability for unpaid claim and claim adjustment expenses: Property & Casualty Operations $ 14,153 Other Insurance Operations (a) 3,732 Total net claim and claim adjustment expenses 17,885 Reinsurance receivables: (b) Property & Casualty Operations 1,617 Other Insurance Operations (c) 2,218 Total reinsurance receivables 3,835 Total gross liability for unpaid claims and claims adjustment expenses $ 21,720 (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 2019 2018 2017 (In millions) Reserves, beginning of year: Gross $ 21,984 $ 22,004 $ 22,343 Ceded 4,019 3,934 4,094 Net reserves, beginning of year 17,965 18,070 18,249 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 5,356 5,358 5,201 Decrease in provision for insured events of prior years (127 ) (179 ) (381 ) Amortization of discount 184 176 179 Total net incurred (a) 5,413 5,355 4,999 Net payments attributable to: Current year events (992 ) (1,046 ) (975 ) Prior year events (4,584 ) (4,285 ) (4,366 ) Total net payments (5,576 ) (5,331 ) (5,341 ) Foreign currency translation adjustment and other 83 (129 ) 163 Net reserves, end of year 17,885 17,965 18,070 Ceded reserves, end of year 3,835 4,019 3,934 Gross reserves, end of year $ 21,720 $ 21,984 $ 22,004 (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 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 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, 2019 Operations Operations Total (In millions) 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 December 31, 2018 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 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 2019 2018 2017 (In millions) Medical professional liability $ 75 $ 47 $ 30 Other professional liability and management liability (69) (127) (126) Surety (92) (70) (84) Commercial auto (25) 1 (35) General liability 54 32 (24) Workers’ compensation (13) (32) (63) Other (3) (32) (6) Total pretax favorable development $ (73) $ (181) $ (308) 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 2018 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. 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 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. 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 2019 (In millions) Medical professional liability $ 1,429 Other professional liability and management liability 2,739 Surety 369 Commercial auto 404 General liability 3,176 Workers’ compensation 3,932 Other 2,104 Total net liability for unpaid claim and claim adjustment expenses $ 14,153 Medical Professional Liability December 31, 2019 Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses Cumulative Number of December 31 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 IBNR Claims (In millions, except reported claims data) Accident Year 2010 $ 402 $ 412 $ 423 $ 426 $ 415 $ 395 $ 365 $ 360 $ 356 $ 369 $ 1 14,624 2011 429 437 443 468 439 434 437 437 439 2 16,526 2012 464 469 508 498 493 484 493 499 8 17,724 2013 462 479 500 513 525 535 545 27 19,510 2014 450 489 537 530 535 529 16 19,723 2015 433 499 510 494 488 29 18,029 2016 427 487 485 499 63 15,823 2017 412 449 458 127 14,636 2018 404 429 216 13,760 2019 430 364 10,467 Total $ 4,685 $ 853 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses Accident Year 2010 $ 10 $ 86 $ 173 $ 257 $ 306 $ 326 $ 337 $ 346 $ 350 $ 353 2011 17 109 208 295 347 375 398 409 414 2012 14 117 221 323 388 427 457 479 2013 17 119 255 355 414 462 495 2014 23 136 258 359 417 472 2015 22 101 230 313 384 2016 18 121 246 339 2017 19 107 235 2018 21 115 2019 17 Total $ 3,303 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,382 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 22 Liability for unallocated claim adjustment expenses for accident years presented 25 Total net liability for unpaid claim and claim adjustment expenses $ 1,429 Net Strengthening (Releases) of Prior Accident Year Reserves Years Ended December 31 Total Accident Year 2010 $ 10 $ 11 $ 3 $ (11 ) $ (20 ) $ (30 ) $ (5 ) $ (4 ) $ 13 $ (33 ) 2011 8 6 25 (29 ) (5 ) 3 - 2 10 2012 5 39 (10 ) (5 ) (9 ) 9 6 35 2013 17 21 13 12 10 10 83 2014 39 48 (7 ) 5 (6 ) 79 2015 66 11 (16 ) (6 ) 55 2016 60 (2 ) 14 72 2017 37 9 46 2018 25 25 Total net development for the accident years presented above 65 39 67 Total net development for accident years prior to 2010 (28 ) 9 6 Total unallocated claim adjustment expense development (7 ) (1 ) 2 Total $ 30 $ 47 $ 75 (a) Data presented for these calendar years is required supplemental information, which is unaudited. Other Professional Liability and Management Liability December 31, 2019 Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses Cumulative Number of December 31 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 IBNR Claims (In millions, except reported claims data) Accident Year 2010 $ 828 $ 828 $ 848 $ 848 $ 847 $ 837 $ 824 $ 827 $ 821 $ 821 $ 9 17,891 2011 880 908 934 949 944 911 899 888 885 21 18,738 2012 923 909 887 878 840 846 833 831 18 18,499 2013 884 894 926 885 866 863 850 45 17,928 2014 878 898 885 831 835 854 74 17,553 2015 888 892 877 832 807 120 17,390 2016 901 900 900 904 188 17,890 2017 847 845 813 308 18,015 2018 850 864 460 19,468 2019 837 714 16,722 Total $ 8,466 $ 1,957 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses Accident Year 2010 $ 31 $ 204 $ 405 $ 541 $ 630 $ 670 $ 721 $ 752 $ 784 $ 790 2011 71 314 503 605 683 726 781 796 828 2012 56 248 400 573 651 711 755 792 2013 54 249 447 618 702 754 771 2014 51 223 392 515 647 707 2015 60 234 404 542 612 2016 64 248 466 625 2017 57 222 394 2018 54 282 2019 64 Total $ 5,865 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,601 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 88 Liability for unallocated claim adjustment expenses for accident years presented 50 Total net liability for unpaid claim and claim adjustment expenses $ 2,739 Net Strengthening (Releases) of Prior Accident Year Reserves Years Ended December 31 Total Accident Year 2010 $ - $ 20 $ - $ (1 ) $ (10 ) $ (13 ) $ 3 $ (6 ) $ - $ (7 ) 2011 28 26 15 (5 ) (33 ) (12 ) (11 ) (3 ) 5 2012 (14 ) (22 ) (9 ) (38 ) 6 (13 ) (2 ) (92 ) 2013 10 32 (41 ) (19 ) (3 ) (13 ) (34 ) 2014 20 (13 ) (54 ) 4 19 (24 ) 2015 4 (15 ) (45 ) (25 ) (81 ) 2016 (1 ) - 4 3 2017 (2 ) (32 ) (34 ) 2018 14 14 Total net development for the accident years presented above (92 ) (76 ) (38 ) Total net development for accident years prior to 2010 (27 ) (44 ) (17 ) Total unallocated claim adjustment expense development (7 ) (7 ) (14 ) Total $ (126 ) $ (127 ) $ (69 ) (a) Data presented for these calendar years is required supplemental information, which is unaudited. Surety December 31, 2019 Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses Cumulative Number of December 31 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 IBNR Claims (In millions, except reported claims data) Accident Year 2010 $ 112 $ 112 $ 111 $ 84 $ 76 $ 66 $ 63 $ 59 $ 61 $ 61 $ - 5,982 2011 120 121 116 87 75 70 66 62 62 2 5,813 2012 120 122 98 70 52 45 39 38 1 5,568 2013 120 121 115 106 91 87 83 3 5,062 2014 123 124 94 69 60 45 4 5,078 2015 131 131 104 79 63 11 4,976 2016 124 124 109 84 36 5,379 2017 120 115 103 54 5,496 2018 114 108 76 5,451 2019 119 102 3,549 Total $ 766 $ 289 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses Accident Year 2010 $ 13 $ 34 $ 50 $ 55 $ 57 $ 58 $ 55 $ 52 $ 52 $ 53 2011 19 42 55 58 60 60 56 57 57 2012 5 32 34 35 35 36 37 37 2013 16 40 69 78 78 78 77 2014 7 30 38 36 38 38 2015 7 26 38 40 42 2016 5 37 45 45 2017 23 37 41 2018 5 25 2019 12 Total $ 427 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 339 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 10 Liability for unallocated claim adjustment expenses for accident years presented 20 Total net liability for unpaid claim and claim adjustment expenses $ 369 Net Strengthening (Releases) of Prior Accident Year Reserves Years Ended December 31 Total Accident Year 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 ) (1 ) (82 ) 2013 1 (6 ) (9 ) (15 ) (4 ) (4 ) (37 ) 2014 1 (30 ) (25 ) (9 ) (15 ) (78 ) 2015 - (27 ) (25 ) (16 ) (68 ) 2016 - (15 ) (25 ) (40 ) 2017 (5 ) (12 ) (17 ) 2018 (6 ) (6 ) Total net development for the accident years presented above (82 ) (66 ) (79 ) Total net development for accident years prior to 2010 1 (4 ) (3 ) Total unallocated claim adjustment expense development (3 ) - (10 ) Total $ (84 ) $ (70 ) $ (92 ) (a) Data presented for these calendar years is required supplemental information, which is unaudited. Commercial Auto December 31, 2019 Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses Cumulative Number of December 31 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 IBNR Claims (In millions, except reported claims data) Accident Year 2010 $ 267 $ 283 $ 287 $ 291 $ 298 $ 293 $ 289 $ 288 $ 288 $ 288 $ 1 48,035 2011 268 281 288 302 300 294 294 294 291 - 47,909 2012 275 289 299 303 307 299 299 297 3 46,288 2013 246 265 265 249 245 245 241 2 39,429 2014 234 223 212 205 205 201 3 33,622 2015 201 199 190 190 183 7 30,418 2016 198 186 186 186 7 30,414 2017 199 198 200 9 30,850 2018 229 227 47 33,959 2019 257 128 31,455 Total $ 2,371 $ 207 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses Accident Year 2010 $ 74 $ 141 $ 203 $ 246 $ 271 $ 281 $ 286 $ 287 $ 287 $ 287 2011 79 145 199 248 274 284 287 289 289 2012 78 160 220 259 282 285 290 291 2013 74 135 168 200 225 234 238 2014 64 102 137 166 187 196 2015 52 96 130 153 172 2016 52 93 126 154 2017 58 107 150 2018 66 128 2019 77 Total $ 1,982 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 389 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 1 Liability for unallocated claim adjustment expenses for accident years presented 14 Total net liability for unpaid claim and claim adjustment expenses $ 404 Net Strengthening (Releases) of Prior Accident Year Reserves Years Ended December 31 Total Accident Year 2010 $ 16 $ 4 $ 4 $ 7 $ (5 ) $ (4 ) $ (1 ) $ - $ - $ 21 2011 13 7 14 (2 ) (6 ) - - (3 ) 23 2012 14 10 4 4 (8 ) - (2 ) 22 2013 19 - (16 ) (4 ) - (4 ) (5 ) 2014 (11 ) (11 ) (7 ) - (4 ) (33 ) 2015 (2 ) (9 ) - (7 ) (18 ) 2016 (12 ) - - (12 ) 2017 (1 ) 2 1 2018 (2 ) (2 ) Total net development for the accident years presented above (41 ) (1 ) (20 ) Total net development for accident years prior to 2010 4 1 (4 ) Total unallocated claim adjustment expense development 2 1 (1 ) Total $ (35 ) $ 1 $ (25 ) (a) Data presented for these calendar years is required supplemental information, which is unaudited. General Liability December 31, 2019 Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses Cumulative Number of December 31 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 IBNR Claims (In millions, except reported claims data) Accident Year 2010 $ 646 $ 664 $ 658 $ 709 $ 750 $ 726 $ 697 $ 691 $ 691 $ 690 $ 19 44,229 2011 591 589 631 677 676 681 670 669 667 20 39,361 2012 587 611 639 636 619 635 635 630 31 35,219 2013 650 655 650 655 613 623 620 27 33,570 2014 653 658 654 631 635 658 57 27,877 2015 581 576 574 589 600 73 23,834 2016 623 659 667 671 166 23,817 2017 632 632 632 226 21,114 2018 653 644 408 17,889 2019 680 602 12,916 Total $ 6,492 $ 1,629 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses Accident Year 2010 $ 27 $ 145 $ 280 $ 429 $ 561 $ 611 $ 642 $ 652 $ 656 $ 667 2011 28 148 273 411 517 568 602 622 638 2012 28 132 247 374 454 510 559 579 2013 31 128 240 352 450 510 551 2014 31 119 247 376 481 547 2015 19 110 230 357 446 2016 32 163 279 407 2017 23 118 250 2018 33 107 2019 25 Total $ 4,217 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,275 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 836 Liability for unallocated claim adjustment expenses for accident years presented 65 Total net liability for unpaid claim and claim adjustment expenses $ 3,176 Net Strengthening (Releases) of Prior Accident Year Reserves Years Ended December 31 Total Accident Year 2010 $ 18 $ (6 ) $ 51 $ 41 $ (24 ) $ (29 ) $ (6 ) $ - $ (1 ) $ 44 2011 (2 ) 42 46 (1 ) 5 (11 ) (1 ) (2 ) 76 2012 24 28 (3 ) (17 ) 16 - (5 ) 43 2013 5 (5 ) 5 (42 ) 10 (3 ) (30 ) 2014 5 (4 ) (23 ) 4 23 5 2015 (5 ) (2 ) 15 11 19 2016 36 8 4 48 2017 - - - 2018 (9 ) (9 ) Total net development for the accident years presented above (32 ) 36 18 Total net development for accident years prior to 2010 - - 29 Total unallocated claim adjustment expense development 8 (4 ) 7 Total $ (24 ) $ 32 $ 54 (a) Data presented for these calendar years is required supplemental information, which is unaudited. Workers’ Compensation December 31, 2019 Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses Cumulative Number of December 31 2010 (a) 2011 (a) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 IBNR Claims (In millions, except reported claims data) Accident Year 2010 $ 583 $ 632 $ 654 $ 676 $ 698 $ 710 $ 730 $ 733 $ 732 $ 735 $ 55 49,333 2011 607 641 647 659 651 676 676 674 688 40 45,959 2012 601 627 659 669 678 673 671 668 67 42,586 2013 537 572 592 618 593 582 561 93 38,688 2014 467 480 479 452 450 446 99 33,480 2015 422 431 406 408 394 130 31,861 2016 426 405 396 382 144 31,945 2017 440 432 421 138 33,029 2018 450 440 185 34,647 2019 452 257 29,795 Total $ 5,187 $ 1,208 Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses Accident Year 2010 $ 97 $ 251 $ 359 $ 442 $ 510 $ 542 $ 577 $ 615 $ 625 $ 631 2011 99 249 358 438 478 522 564 571 581 2012 87 232 342 416 470 509 524 536 2013 80 213 300 370 417 419 411 2014 61 159 215 258 282 290 2015 51 131 180 212 231 2016 53 129 169 198 2017 63 151 207 2018 68 163 2019 71 Total $ 3,319 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,868 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 2,061 Other (b) (22 ) Liability for unallocated claim adjustment expenses for accident years presented 25 Total net liability for unpaid claim and claim adjustment expenses $ 3,932 Net Strengthening (Releases) of Prior Accident Year Reserves Years Ended December 31 Total Accident Year 2010 $ 49 $ 22 $ 22 $ 22 $ 12 $ 20 $ 3 $ (1 ) $ 3 $ 152 2011 34 6 12 (8 ) 25 - (2 ) 14 81 2012 26 32 10 9 (5 ) (2 ) (3 ) 67 2013 35 20 26 (25 ) (1 |