Reserves for Loss and Loss Expenses (Tables)

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Reserve Balances

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

	September 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)	2,998,687			2,838,777
Decrease in estimates for claims occurring in prior years (2) (3)	(7,648		)	(23,518		)
Loss reserve discount accretion	34,436			37,080
Total	3,025,475			2,852,339
Net payments for claims:
Current year	628,078			612,615
Prior year	1,996,977			1,931,454
Total	2,625,055			2,544,069
Foreign currency translation	57,789			(6,266		)
Net reserves at end of period	10,048,474			9,546,876
Ceded reserve at end of period	1,605,872			1,550,954
Gross reserves at end of period	$	11,654,346		$	11,097,830

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(1) Claims occurring during the current year are net of loss reserve discounts of $16,787,000 and $12,085,000 for the nine months ended September 30, 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 $30,609,000 and $45,813,000 for the nine months ended September 30, 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 $31 million and $42 million for the nine months ended September 30, 2017 and 2016, respectively.