Unpaid losses and loss adjustment expenses (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of liability for unpaid claims and claims adjustment expense

A reconciliation of the changes in liabilities for unpaid losses and loss adjustment expenses of our property/casualty insurance subsidiaries for each of the three years ending December 31, 2015 is as follows (in millions).


	2015			2014			2013
Unpaid losses and loss adjustment expenses:
Gross liabilities at beginning of year	$	71,477		$	64,866		$	64,160
Ceded losses and deferred charges at beginning of year		(10,888	)		(7,414	)		(6,944	)

Net balance at beginning of year		60,589			57,452			57,216

Incurred losses recorded during the year:
Current year loss events		27,829			27,771			23,027
Prior years’ loss events		(1,302	)		(1,365	)		(1,752	)

Total incurred losses		26,527			26,406			21,275

Payments during the year with respect to:
Current year loss events		(13,070	)		(11,289	)		(10,154	)
Prior years’ loss events		(11,419	)		(11,381	)		(10,978	)

Total payments		(24,489	)		(22,670	)		(21,132	)

Foreign currency translation adjustment		(545	)		(666	)		93
Business acquisitions		68			67			—

Unpaid losses and loss adjustment expenses:
Net balance at end of year		62,150			60,589			57,452
Ceded losses and deferred charges at end of year		10,994			10,888			7,414

Gross liabilities at end of year	$	73,144		$	71,477		$	64,866

Schedule of incurred losses for prior years

A summary of the impact of deferred charges and liability discounts on incurred losses recorded during the year with respect to prior years’ loss events follows (in millions):


	2015			2014			2013
Incurred losses before the effects of deferred charges and liability discounts	$	(1,545	)	$	(1,493	)	$	(1,938	)
Incurred losses from changes in deferred charges and liability discounts		243			128			186

Incurred losses prior years	$	(1,302	)	$	(1,365	)	$	(1,752	)