1
Form 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE
PROGRESSIVE CASUALTY INSURANCE COMPANY - CONSOLIDATED
SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES
Notes to Schedule P
(1) The Parts of Schedule P:
Part 1 - Detailed information on losses and loss expenses.
Part 2 - History of incurred losses and allocated expenses.
Part 3 - History of loss and allocated expense payments.
Part 4 - History of bulk and incurred but not reported reserves.
Schedule P Interrogatories
(2) Lines of business A through M and R are groupings of the lines of business
used on page 14, the state page.
(3) Reinsurance A, B, C, and D (lines N to Q) are:
Reinsurance A = nonproportional property (1988 and subsequent)
Reinsurance B = nonproportional liability (1988 and subsequent)
Reinsurance C = financial lines (1988 and subsequent)
Reinsurance D = old Schedule O line 30 (1987 and prior)
(4) The Instructions to Schedule P contain directions necessary for filling out
Schedule P.
SCHEDULE P-PART 1-SUMMARY
(000 omitted)
________________________________________________________________________________________________________________
1 | Premiums Earned | Loss and Loss Expense Payments |
|_________________________________________|_______________________________________________________|
Years In | 2 | 3 | 4 | Loss Payments | Allocated Loss |
Which | | | | | Expense Payments |
Premiums Were| | | |___________________________|___________________________|
Earned and | Direct | | Net | 5 | 6 | 7 | 8 |
Losses Were | and | Ceded | (2 - 3) | Direct | | Direct | |
Incurred | Assumed | | | and | Ceded | and | Ceded |
| | | | Assumed | | Assumed | |
_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
1. Prior...| X X X X | X X X X | X X X X | 166 | -- | -- | -- |
2. 1984....| 278,917 | 2,710 | 276,207 | 151,693 | 3,395 | 9,603 | 558 |
3. 1985....| 461,512 | 9,660 | 451,852 | 249,322 | 6,052 | 15,616 | 896 |
4. 1986....| 726,141 | 42,619 | 683,522 | 323,320 | 14,867 | 21,454 | 1,092 |
5. 1987....| 1,066,680 | 64,496 | 1,002,184 | 483,181 | 31,692 | 30,297 | 1,361 |
6. 1988....| 1,292,530 | 67,431 | 1,225,099 | 639,622 | 38,605 | 36,928 | 1,167 |
7. 1989....| 1,357,845 | 109,736 | 1,248,109 | 699,815 | 77,904 | 37,234 | 1,275 |
8. 1990....| 1,397,185 | 144,903 | 1,252,282 | 648,489 | 77,979 | 29,603 | 1,280 |
9. 1991....| 1,529,118 | 199,174 | 1,329,944 | 679,480 | 85,984 | 23,269 | 1,877 |
10. 1992....| 1,580,457 | 195,140 | 1,385,317 | 646,074 | 66,034 | 19,080 | 1,504 |
11. 1993....| 1,795,493 | 150,074 | 1,645,419 | 536,547 | 30,449 | 8,649 | 837 |
_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
12. Totals | X X X X | X X X X | X X X X | 5,057,709 | 432,961 | 231,733 | 11,847 |
- - - ----------------------------------------------------------------------------------------------------------------
_______________________________________________________________________
1 | Loss and Loss Expense Payments | |
|__________________________________________| |
Years In | 9 | 10 | 11 | 12 |
Which | | | | |
Premiums Were| Salvage | Unallocated | Total | Number of |
Earned and | and | Loss | Net Paid | Claims |
Losses Were | Subrogation | Expense | (5 - 6 + 7 | Reported- |
Incurred | Received | Payments | - 8 + 10) | Direct and |
| | | | Assumed |
_____________|_____________|_____________|______________|______________|
1. Prior...| -- | -- | 166 | X X X X |
2. 1984....| 8,426 | 16,448 | 173,791 | X X X X |
3. 1985....| 13,873 | 25,947 | 283,937 | X X X X |
4. 1986....| 16,668 | 40,855 | 369,670 | X X X X |
5. 1987....| 23,777 | 66,641 | 547,066 | X X X X |
6. 1988....| 33,442 | 93,709 | 730,487 | X X X X |
7. 1989....| 36,059 | 107,397 | 765,267 | X X X X |
8. 1990....| 31,514 | 118,799 | 717,632 | X X X X |
9. 1991....| 28,750 | 137,091 | 751,979 | X X X X |
10. 1992....| 28,585 | 104,152 | 701,768 | X X X X |
11. 1993....| 20,711 | 94,786 | 608,696 | X X X X |
_____________|_____________|_____________|______________|______________|
12. Totals | 241,806 | 805,825 | 5,650,459 | X X X X |
- - - -----------------------------------------------------------------------
<FN>
Note: For "prior," report amounts paid or received in current year only.
Report cumulative amounts paid or received for specific years.
Report loss payments net of salvage and subrogation received.
______________________________________________________________________________________________________________________________
| Losses Unpaid | Allocated Loss Expenses Unpaid |
Years In |_______________________________________________________|_______________________________________________________|
Which | Case Basis | Bulk + IBNR | Case Basis | Bulk + IBNR |
Premiums Were|___________________________|___________________________|___________________________|___________________________|
Earned and | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
Losses Were | Direct | | Direct | | Direct | | Direct | |
Incurred | and | Ceded | and | Ceded | and | Ceded | and | Ceded |
| Assumed | | Assumed | | Assumed | | Assumed | |
_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
1. Prior...| 8,397 | 4,121 | 1,263 | -- | -- | -- | -- | -- |
2. 1984....| -- | -- | -- | -- | -- | -- | -- | -- |
3. 1985....| 124 | -- | -- | -- | 26 | 1 | 5 | -- |
4. 1986....| 1,828 | 62 | -- | -- | 223 | 15 | 37 | 1 |
5. 1987....| 2,881 | 297 | 650 | -- | 477 | 118 | 172 | 8 |
6. 1988....| 21,758 | 2,801 | 5,553 | 82 | 2,173 | 476 | 1,242 | 50 |
7. 1989....| 33,238 | 9,264 | 14,991 | 3,088 | 4,817 | 719 | 2,290 | 97 |
8. 1990....| 60,527 | 21,457 | 22,044 | 7,216 | 9,128 | 1,604 | 3,194 | 447 |
9. 1991....| 113,194 | 48,817 | 38,732 | 13,185 | 19,497 | 2,703 | 5,070 | 685 |
10. 1992....| 228,582 | 75,792 | 67,768 | 20,490 | 32,435 | 4,082 | 8,403 | 970 |
11. 1993....| 406,935 | 79,218 | 162,258 | 42,556 | 44,602 | 4,814 | 13,646 | 1,098 |
_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
12. Totals | 877,464 | 241,829 | 313,259 | 86,617 | 113,378 | 14,532 | 34,059 | 3,356 |
- - - ------------------------------------------------------------------------------------------------------------------------------
_______________________________________________________________________
| | | | |
Years In | 21 | 22 | 23 | 24 |
Which | | | | |
Premiums Were| Salvage | Unallocated | Total | Number of |
Earned and | and | Loss | Net Losses | Claims |
Losses Were | Subrogation | Expenses | and Expenses |Outstanding-|
Incurred | Anticipated | Unpaid | Unpaid | Direct and |
| | | | Assumed |
_____________|_____________|______________|______________|____________|
1. Prior...| -- | -- | 5,539 | X X X X |
2. 1984....| -- | -- | -- | X X X X |
3. 1985....| -- | -- | 154 | X X X X |
4. 1986....| -- | 31 | 2,041 | X X X X |
5. 1987....| 179 | 81 | 3,838 | X X X X |
6. 1988....| 894 | 261 | 27,578 | X X X X |
7. 1989....| 1,422 | 723 | 42,891 | X X X X |
8. 1990....| 2,270 | 1,605 | 65,774 | X X X X |
9. 1991....| 4,231 | 3,753 | 114,856 | X X X X |
10. 1992....| 7,311 | 10,061 | 245,915 | X X X X |
11. 1993....| 7,108 | 35,166 | 534,921 | X X X X |
_____________|_____________|______________|______________|____________|
12. Totals | 23,415 | 51,681 | 1,043,507 | X X X X |
- - - -----------------------------------------------------------------------
______________________________________________________________________________________________________________________________
| | Loss and Loss Expense Percentage | Discount for Time |
Years In | Total Losses and Loss Expenses Incurred| (Incurred/Premiums Earned) | Value of Money |
Which |_________________________________________|_________________________________________|___________________________|
Premiums Were| | | | | | | | |
Earned and | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 |
Losses Were | Direct | | | Direct | | | | |
Incurred | and | Ceded | Net* | and | Ceded | Net | Loss | Loss |
| Assumed | | | Assumed | | | | Expense |
_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
1. Prior...| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | -- | -- |
2. 1984....| 177,744 | 3,953 | 173,791 | 63.7 | 145.9 | 62.9 | -- | -- |
3. 1985....| 291,040 | 6,949 | 284,091 | 63.1 | 71.9 | 62.9 | -- | -- |
4. 1986....| 387,748 | 16,037 | 371,711 | 53.4 | 37.6 | 54.4 | -- | -- |
5. 1987....| 584,380 | 33,476 | 550,904 | 54.8 | 51.9 | 55.0 | -- | -- |
6. 1988....| 801,246 | 43,181 | 758,065 | 62.0 | 64.0 | 61.9 | -- | -- |
7. 1989....| 900,505 | 92,347 | 808,158 | 66.3 | 84.2 | 64.8 | -- | -- |
8. 1990....| 893,389 | 109,983 | 783,406 | 63.9 | 75.9 | 62.6 | -- | -- |
9. 1991....| 1,020,086 | 153,251 | 866,835 | 66.7 | 76.9 | 65.2 | -- | -- |
10. 1992....| 1,116,555 | 168,872 | 947,683 | 70.6 | 86.5 | 68.4 | -- | -- |
11. 1993....| 1,302,589 | 158,972 | 1,143,617 | 72.5 | 105.9 | 69.5 | -- | -- |
_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|_____________|
12. Totals | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | | |
- - - ------------------------------------------------------------------------------------------------------------------------------
_________________________________________________________
| | Net Balance Sheet Reserves |
Years In | 33 | After Discount |
Which | |_____________________________|
Premiums Were| | | |
Earned and |Inter-Company| 34 | 35 |
Losses Were | Pooling | | Loss |
Incurred |Participation| Losses | Expenses |
| Percentage | Unpaid | Unpaid |
_____________|_____________|______________|______________|
1. Prior...| X X X X | 5,539 | -- |
2. 1984....| | -- | -- |
3. 1985....| | 124 | 30 |
4. 1986....| | 1,766 | 275 |
5. 1987....| | 3,234 | 604 |
6. 1988....| | 24,428 | 3,150 |
7. 1989....| | 35,877 | 7,014 |
8. 1990....| | 53,898 | 11,876 |
9. 1991....| | 89,924 | 24,932 |
10. 1992....| | 200,068 | 45,847 |
11. 1993....| | 447,419 | 87,502 |
_____________|_____________|______________|______________|
12. Totals | X X X X | 862,277 | 181,230 |
- - - ---------------------------------------------------------
<FN>
*Net = (25 - 26) = (11 + 23)
62
2
Form 2
ANNUAL STATEMENT FOR THE YEAR 1993 OF THE
PROGRESSIVE CASUALTY INSURANCE COMPANY - CONSOLIDATED
SCHEDULE P - PART 2 - SUMMARY
___________________________________________________________________________________________________________________________
1 | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED) |
|________________________________________________________________________________________________________|
| | | | | | | | |
Years | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
in Which | | | | | | | | |
Losses Were | | | | | | | | |
Incurred | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
| | | | | | | | |
| | | | | | | | |
_________________|_____________|____________|____________|____________|____________|____________|____________|____________|
| | | | | | | | |
1. Prior.......|* 65,434 | 69,540 | 69,142 | 65,204 | 59,965 | 59,312 | 59,171 | 60,014 |
2. 1984........| 165,858 | 159,649 | 160,978 | 159,295 | 158,162 | 157,463 | 156,825 | 156,992 |
3. 1985........| X X X X | 274,757 | 269,226 | 268,315 | 262,237 | 261,392 | 258,581 | 258,380 |
4. 1986........| X X X X | X X X X | 382,994 | 353,616 | 351,417 | 340,706 | 334,564 | 331,385 |
5. 1987........| X X X X | X X X X | X X X X | 555,993 | 524,333 | 504,689 | 492,954 | 490,684 |
6. 1988........| X X X X | X X X X | X X X X | X X X X | 719,839 | 684,469 | 663,722 | 666,604 |
7. 1989........| X X X X | X X X X | X X X X | X X X X | X X X X | 786,249 | 734,190 | 710,990 |
8. 1990........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 751,597 | 692,671 |
9. 1991........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 792,930 |
10. 1992........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
11. 1993........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
___________________________________________________________________________________________________________________________
_______________________________________________________________________
1 | (cont.) INCURRED LOSSES | DEVELOPMENT** |
|_________________________|___________________________|
| | | | |
Years | 10 | 11 | 12 | 13 |
in Which | | | | |
Losses Were | | | One | Two |
Incurred | 1992 | 1993 | Year | Year |
| | | | |
| | | | |
_________________|____________|____________|_____________|_____________|
| | | | |
1. Prior.......| 60,783 | 62,423 | 1,640 | 2,409 |
2. 1984........| 157,399 | 157,343 | (56)| 351 |
3. 1985........| 258,206 | 258,144 | (62)| (236)|
4. 1986........| 330,779 | 330,825 | 46 | (560)|
5. 1987........| 485,339 | 484,182 | (1,157)| (6,502)|
6. 1988........| 663,150 | 664,095 | 945 | (2,509)|
7. 1989........| 704,871 | 700,038 | (4,833)| (10,952)|
8. 1990........| 676,616 | 663,002 | (13,614)| (29,669)|
9. 1991........| 753,500 | 725,991 | (27,509)| (66,939)|
10. 1992........| 900,892 | 833,470 | (67,422)| X X X X |
11. 1993........| X X X X | 1,013,665 | X X X X | X X X X |
___________________________________________|_____________|_____________|
12. Totals | (112,022)| (114,607)|
-----------------------------
<FN>
*Reported reserves only. Subsequent development relates only to subsequent payments and reserves.
**Current year less first or second prior year, showing (redundant) or adverse.
SCHEDULE P - PART 3 - SUMMARY
___________________________________________________________________________________________________________________________
1 | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED) |
|________________________________________________________________________________________________________|
| | | | | | | | |
Years | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
in Which | | | | | | | | |
Losses Were | | | | | | | | |
Incurred | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
| | | | | | | | |
| | | | | | | | |
_________________|_____________|____________|____________|____________|____________|____________|____________|____________|
| | | | | | | | |
1. Prior.......| 000 | 25,067 | 40,710 | 49,780 | 53,380 | 53,955 | 54,843 | 55,936 |
2. 1984........| 81,358 | 122,069 | 137,889 | 147,816 | 151,498 | 154,009 | 155,729 | 156,060 |
3. 1985........| X X X X | 134,374 | 202,467 | 228,629 | 243,849 | 251,045 | 255,162 | 256,497 |
4. 1986........| X X X X | X X X X | 168,353 | 255,882 | 291,744 | 312,656 | 322,815 | 326,820 |
5. 1987........| X X X X | X X X X | X X X X | 240,199 | 360,939 | 420,316 | 447,789 | 467,599 |
6. 1988........| X X X X | X X X X | X X X X | X X X X | 318,747 | 482,587 | 545,480 | 582,880 |
7. 1989........| X X X X | X X X X | X X X X | X X X X | X X X X | 362,510 | 521,039 | 595,914 |
8. 1990........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 354,849 | 499,445 |
9. 1991........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 369,194 |
10. 1992........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
11. 1993........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
- - - ---------------------------------------------------------------------------------------------------------------------------
_______________________________________________________________________
1 | (cont.) CUMULATIVE PAID | | |
|_________________________| 12 | 13 |
| | | | |
Years | 10 | 11 | Number of | Number of |
in Which | | | Claims | Claims |
Losses Were | | | Closed | Closed |
Incurred | 1992 | 1993 | With Loss | Without |
| | | Payment | Loss |
| | | | Payment |
_________________|____________|____________|_____________|____________|
| | | | |
1. Prior.......| 56,718 | 56,884 | X X X X | X X X X |
2. 1984........| 157,239 | 157,343 | X X X X | X X X X |
3. 1985........| 257,708 | 257,991 | X X X X | X X X X |
4. 1986........| 328,152 | 328,815 | X X X X | X X X X |
5. 1987........| 476,252 | 480,425 | X X X X | X X X X |
6. 1988........| 617,027 | 636,778 | X X X X | X X X X |
7. 1989........| 636,386 | 657,870 | X X X X | X X X X |
8. 1990........| 569,700 | 598,833 | X X X X | X X X X |
9. 1991........| 533,684 | 614,888 | X X X X | X X X X |
10. 1992........| 415,371 | 597,616 | X X X X | X X X X |
11. 1993........| X X X X | 513,910 | X X X X | X X X X |
- - - -----------------------------------------------------------------------
<FN>
Note: Net of salvage and subrogation received.
SCHEDULE P - PART 4 - SUMMARY
___________________________________________________________________________________________________________________________
1 | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED) |
|________________________________________________________________________________________________________|
| | | | | | | | |
Years | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
in Which | | | | | | | | |
Losses Were | | | | | | | | |
Incurred | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
| | | | | | | | |
| | | | | | | | |
_________________|_____________|____________|____________|____________|____________|____________|____________|____________|
| | | | | | | | |
1. Prior.......| 21,330 | 15,292 | 10,493 | 7,382 | 1,830 | 1,798 | 1,671 | 1,667 |
2. 1984........| 30,587 | 12,165 | 7,458 | 4,856 | 2,267 | 1,633 | 57 | -- |
3. 1985........| X X X X | 52,241 | 23,471 | 15,767 | 7,600 | 4,247 | 117 | -- |
4. 1986........| X X X X | X X X X | 83,987 | 35,929 | 23,115 | 10,239 | 3,162 | -- |
5. 1987........| X X X X | X X X X | X X X X | 126,103 | 57,172 | 31,435 | 13,026 | 4,203 |
6. 1988........| X X X X | X X X X | X X X X | X X X X | 161,589 | 70,035 | 33,821 | 14,301 |
7. 1989........| X X X X | X X X X | X X X X | X X X X | X X X X | 179,116 | 62,544 | 27,935 |
8. 1990........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 146,165 | 57,375 |
9. 1991........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | 155,871 |
10. 1992........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
11. 1993........| X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X | X X X X |
- - - ---------------------------------------------------------------------------------------------------------------------------
_____________________________________________
1 | (cont.) BULK AND INCURRED|
|__________________________|
| | |
Years | 10 | 11 |
in Which | | |
Losses Were | | |
Incurred | 1992 | 1993 |
| | |
| | |
_________________|____________|_____________|
| | |
1. Prior.......| 1,614 | 1,263 |
2. 1984........| -- | -- |
3. 1985........| 2 | 5 |
4. 1986........| 63 | 36 |
5. 1987........| 178 | 814 |
6. 1988........| 2,013 | 6,663 |
7. 1989........| 15,702 | 14,096 |
8. 1990........| 28,293 | 17,575 |
9. 1991........| 51,534 | 29,932 |
10. 1992........| 151,702 | 54,711 |
11. 1993........| X X X X | 132,250 |
- - - ---------------------------------------------
63