Reserves for Loss and Loss Expenses (Tables)

6 Months Ended

Jun. 30, 2017

Insurance [Abstract]

Reserve Balances

The table below provides a reconciliation of the beginning and ending reserve balances:

	June 30,
(In thousands)	2017			2016
Net reserves at beginning of year	$	9,590,265		$	9,244,872
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	1,926,394			1,878,458
Decrease in estimates for claims occurring in prior years (2) (3)	(6,458		)	(15,511		)
Loss reserve discount accretion	24,366			23,536
Total	1,944,302			1,886,483
Net payments for claims:
Current year	315,437			480,601
Prior year	1,432,828			1,188,704
Total	1,748,265			1,669,305
Foreign currency translation	37,097			(19,768		)
Net reserves at end of period	9,823,399			9,442,282
Ceded reserve at end of period	1,500,868			1,455,594
Gross reserves at end of period	$	11,324,267		$	10,897,876

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(1) Claims occurring during the current year are net of loss reserve discounts of $11,349,000 and $9,402,000 in 2017 and 2016, respectively.

(2) The decrease in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years decreased by $14,873,000 and $21,696,000 in 2017 and 2016, respectively.

(3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $24 million and $29 million as of June 30, 2017 and 2016, respectively.