Reserves For Losses And Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2017

Insurance [Abstract]

Loss and loss expenses incurred, net of reinsurance, and cumulative paid claims and claim adjustment expenses, net of reinsurance

The following tables present undiscounted incurred and paid claims development as of December 31, 2017, net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities (IBNR). The information about incurred and paid claims development for the years ended December 31, 2008 to 2016 is presented as supplementary information. To enhance the comparability of the loss development data, the Company has removed the impact of foreign exchange rate movements by using the December 31, 2017 exchange rate for all periods. Beginning with accident year 2012, the Company's U.K. and European insurance business is included in the Insurance segment's tables for Other Liability, Professional Liability, Commercial Automobile and Short-Tail Lines. Prior to 2012, the actuarial analysis for its U.K. and European insurance business was performed on an underwriting year basis and accident year data is not available for those years.

Insurance

Other Liability

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2017
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		IBNR		Cumulative Number of Reported Claims
2008	$	830,091	$	798,785	$	744,614	$	707,274	$	687,619	$	678,552	$	651,784	$	642,430	$	644,303	$	638,545	$	24,822	26
2009	—		689,758		656,915		625,068		598,641		589,618		561,674		557,634		552,954		546,645		27,261		23
2010	—		—		612,630		616,196		590,160		591,042		577,714		575,030		573,865		571,623		39,109		23
2011	—		—		—		665,768		674,139		660,240		659,214		653,945		649,035		645,149		45,208		23
2012	—		—		—		—		688,924		703,226		703,984		710,395		714,301		724,641		65,037		24
2013	—		—		—		—		—		752,373		793,662		786,676		786,122		807,181		101,487		26
2014	—		—		—		—		—		—		848,794		851,216		849,147		854,008		180,513		27
2015	—		—		—		—		—		—		—		953,009		988,661		963,803		344,421		26
2016	—		—		—		—		—		—		—		—		1,019,961		1,012,783		545,372		23
2017	—		—		—		—		—		—		—		—		—		1,065,756		783,578		18
Total																			$	7,830,134

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	46,976	$	133,238	$	244,557	$	348,162	$	436,866	$	497,134	$	530,419	$	559,727	$	580,845	$	597,586
2009	—		44,802		122,851		214,500		311,444		384,999		429,062		470,787		486,793		500,851
2010	—		—		45,196		128,959		246,657		336,249		417,172		461,464		491,098		508,308
2011	—		—		—		48,852		141,225		266,761		379,801		470,886		524,250		556,043
2012	—		—		—		—		57,604		158,774		299,938		418,145		513,849		581,195
2013	—		—		—		—		—		63,754		189,747		333,221		474,304		590,435
2014	—		—		—		—		—		—		79,128		191,385		339,111		482,059
2015	—		—		—		—		—		—		—		82,822		211,177		383,425
2016	—		—		—		—		—		—		—		—		69,414		209,350
2017	—		—		—		—		—		—		—		—		—		77,941
Total																			$	4,487,193
	Reserves for loss and loss adjustment expenses before 2008, net of reinsurance																		126,966
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	3,469,907

Primary Workers' Compensation

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2017
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		IBNR		Cumulative Number of Reported Claims
2008	$	377,794	$	347,423	$	345,605	$	345,413	$	388,558	$	388,472	$	389,343	$	391,788	$	393,932	$	396,505	$	12,292	47
2009	—		327,537		332,303		326,766		386,870		392,791		394,303		392,287		395,288		398,994		12,171		43
2010	—		—		358,734		361,808		409,237		420,604		426,622		429,952		429,762		427,698		19,659		45
2011	—		—		—		419,364		442,550		457,134		470,026		472,087		474,076		475,729		24,400		46
2012	—		—		—		—		499,752		501,810		503,956		503,863		509,167		512,707		36,929		48
2013	—		—		—		—		—		552,570		547,295		546,995		543,238		547,000		48,953		53
2014	—		—		—		—		—		—		639,436		637,307		627,767		617,242		71,042		57
2015	—		—		—		—		—		—		—		712,800		690,525		650,997		117,187		58
2016	—		—		—		—		—		—		—		—		702,716		696,339		175,332		57
2017	—		—		—		—		—		—		—		—		—		762,094		370,138		53
Total																			$	5,485,305

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	94,385	$	203,079	$	261,867	$	296,667	$	320,169	$	335,030	$	344,892	$	352,539	$	360,799	$	366,741
2009	—		93,647		197,736		257,972		297,079		318,349		333,793		344,771		352,516		360,289
2010	—		—		107,742		214,034		279,226		320,154		344,631		362,078		374,013		382,665
2011	—		—		—		106,157		234,694		309,509		355,909		385,759		408,304		420,945
2012	—		—		—		—		114,998		255,063		339,560		387,368		419,588		437,196
2013	—		—		—		—		—		117,900		277,538		363,028		414,160		447,894
2014	—		—		—		—		—		—		148,405		319,743		412,611		471,235
2015	—		—		—		—		—		—		—		139,320		323,744		421,734
2016	—		—		—		—		—		—		—		—		142,998		338,835
2017	—		—		—		—		—		—		—		—		—		153,456
Total																			$	3,800,990
			Reserves for loss and loss adjustment expenses before 2008, net of reinsurance																157,868
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,842,183

Excess Workers' Compensation

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2017
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		IBNR		Cumulative Number of Reported Claims
2008	$	186,116	$	181,072	$	154,566	$	152,830	$	150,429	$	150,493	$	146,093	$	147,105	$	140,155	$	139,869	$	30,534	1
2009	—		168,762		153,766		153,912		148,223		147,556		138,765		142,768		134,716		129,249		26,998		1
2010	—		—		135,639		123,497		120,272		116,422		100,331		104,732		100,065		94,986		20,772		1
2011	—		—		—		88,650		93,993		95,714		87,064		85,299		83,850		78,246		23,339		1
2012	—		—		—		—		72,366		71,301		71,780		73,653		72,441		67,878		16,278		1
2013	—		—		—		—		—		62,767		48,493		46,025		42,419		38,551		19,501		1
2014	—		—		—		—		—		—		63,465		57,558		49,478		45,758		27,746		1
2015	—		—		—		—		—		—		—		69,977		57,897		50,099		32,693		—
2016	—		—		—		—		—		—		—		—		72,657		70,281		43,421		—
2017	—		—		—		—		—		—		—		—		—		76,702		48,784		1
Total																			$	791,619

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	2,213	$	2,607	$	5,909	$	9,111	$	13,648	$	19,725	$	27,350	$	31,434	$	36,485	$	41,921
2009	—		5,060		8,402		11,037		14,138		20,176		25,272		29,150		33,573		37,817
2010	—		—		2,867		4,003		5,571		6,533		9,084		11,699		14,261		18,821
2011	—		—		—		2,593		4,848		4,759		12,104		15,684		18,638		20,164
2012	—		—		—		—		1,127		4,815		9,480		11,167		13,234		15,738
2013	—		—		—		—		—		249		630		2,158		3,008		3,396
2014	—		—		—		—		—		—		358		1,729		3,354		4,175
2015	—		—		—		—		—		—		—		2,069		2,481		3,272
2016	—		—		—		—		—		—		—		—		2,498		4,783
2017	—		—		—		—		—		—		—		—		—		6,282
Total																			$	156,369
	Reserves for loss and loss adjustment expenses before 2008, net of reinsurance																		689,657
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,324,907

Professional Liability

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2017
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		IBNR		Cumulative Number of Reported Claims
2008	$	113,409	$	120,203	$	116,836	$	111,535	$	110,337	$	107,829	$	107,369	$	109,291	$	108,554	$	109,325	$	439	2
2009	—		135,534		140,038		145,950		149,172		148,318		150,690		151,013		153,673		152,880		816		3
2010	—		—		147,301		166,172		179,693		178,381		177,127		172,918		175,180		178,122		1,984		4
2011	—		—		—		180,633		166,044		188,095		191,194		178,071		174,328		177,622		4,735		4
2012	—		—		—		—		242,306		245,732		268,793		253,392		241,616		247,513		14,511		8
2013	—		—		—		—		—		274,510		251,267		246,318		252,347		270,285		29,840		8
2014	—		—		—		—		—		—		257,362		250,131		263,782		246,980		44,937		8
2015	—		—		—		—		—		—		—		262,607		261,500		278,281		81,813		10
2016	—		—		—		—		—		—		—		—		313,907		328,108		150,631		11
2017	—		—		—		—		—		—		—		—		—		336,325		254,118		9
Total																			$	2,325,441

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	10,002	$	37,844	$	66,198	$	85,623	$	96,621	$	97,834	$	100,399	$	105,346	$	106,428	$	108,894
2009	—		12,613		52,612		85,960		117,802		127,879		139,030		144,109		144,883		147,768
2010	—		—		14,857		58,980		108,713		129,916		144,645		160,799		165,223		171,539
2011	—		—		—		18,833		62,659		103,404		135,095		151,388		159,555		167,847
2012	—		—		—		—		22,234		87,943		129,442		160,493		191,963		216,476
2013	—		—		—		—		—		24,784		64,525		120,431		178,821		208,169
2014	—		—		—		—		—		—		19,778		84,580		140,094		179,300
2015	—		—		—		—		—		—		—		20,616		86,116		140,660
2016	—		—		—		—		—		—		—		—		28,935		103,632
2017	—		—		—		—		—		—		—		—		—		36,958
Total																			$	1,481,243
	Reserves for loss and loss adjustment expenses before 2008, net of reinsurance																		3,100
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	847,298

Commercial Automobile

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2017
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		IBNR		Cumulative Number of Reported Claims
2008	$	432,629	$	444,941	$	430,453	$	426,543	$	425,600	$	422,999	$	422,309	$	423,258	$	421,829	$	422,919	$	313	50
2009	—		362,302		345,139		340,967		335,851		337,922		336,861		334,654		335,091		334,979		535		39
2010	—		—		311,322		320,306		330,432		329,109		333,028		331,865		330,586		330,297		703		37
2011	—		—		—		314,028		322,724		330,125		335,024		343,701		341,200		342,094		1,781		37
2012	—		—		—		—		314,309		326,831		342,588		355,609		355,461		355,598		2,391		34
2013	—		—		—		—		—		327,514		349,136		368,894		366,305		356,664		6,069		34
2014	—		—		—		—		—		—		364,018		385,364		395,013		392,373		13,596		36
2015	—		—		—		—		—		—		—		390,101		390,734		395,956		31,536		38
2016	—		—		—		—		—		—		—		—		388,050		389,025		62,834		38
2017	—		—		—		—		—		—		—		—		—		391,617		131,197		32
Total																			$	3,711,522

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	175,402	$	270,421	$	334,078	$	377,643	$	402,882	$	413,411	$	417,598	$	420,553	$	420,596	$	422,236
2009	—		136,433		209,553		257,326		291,925		312,903		328,845		331,484		333,144		333,607
2010	—		—		136,054		208,790		263,639		295,355		313,262		324,997		326,804		327,240
2011	—		—		—		135,350		211,756		262,685		296,370		321,814		333,987		338,325
2012	—		—		—		—		136,844		215,214		273,446		312,342		335,805		346,961
2013	—		—		—		—		—		142,929		218,596		267,253		312,470		333,420
2014	—		—		—		—		—		—		155,630		237,802		306,618		342,988
2015	—		—		—		—		—		—		—		160,316		242,185		300,071
2016	—		—		—		—		—		—		—		—		156,753		240,395
2017	—		—		—		—		—		—		—		—		—		159,100
Total																			$	3,144,343
			Reserves for loss and loss adjustment expenses before 2008, net of reinsurance																2,464
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	569,643

Short-tail lines

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2017
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		IBNR		Cumulative Number of Reported Claims
2008	$	395,651	$	384,606	$	377,287	$	371,053	$	368,063	$	368,207	$	367,802	$	367,594	$	368,044	$	367,969	$	737	23
2009	—		346,902		335,950		326,460		318,124		318,454		314,914		314,140		314,068		316,279		1,063		19
2010	—		—		385,650		370,134		358,292		355,579		345,866		346,338		346,700		346,280		1,105		19
2011	—		—		—		477,005		470,151		461,561		456,871		455,005		450,427		449,639		1,511		21
2012	—		—		—		—		533,643		542,372		543,923		539,180		519,459		518,398		4,358		40
2013	—		—		—		—		—		582,165		594,296		585,661		569,888		568,276		7,802		47
2014	—		—		—		—		—		—		715,483		722,317		694,942		692,591		11,939		53
2015	—		—		—		—		—		—		—		748,981		764,638		763,735		28,878		59
2016	—		—		—		—		—		—		—		—		822,176		825,812		48,073		54
2017	—		—		—		—		—		—		—		—		—		796,305		150,489		42
Total																			$	5,645,284

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	244,633	$	338,299	$	351,580	$	361,024	$	360,380	$	365,069	$	366,388	$	366,389	$	366,953	$	366,991
2009	—		212,521		291,338		304,648		306,020		309,939		310,453		311,105		311,386		311,687
2010	—		—		245,042		325,176		337,696		346,630		340,075		342,783		343,909		344,897
2011	—		—		—		303,067		417,818		436,817		441,058		445,356		447,042		447,647
2012	—		—		—		—		283,339		458,412		510,142		520,989		509,941		511,253
2013	—		—		—		—		—		316,603		494,148		544,245		546,651		553,970
2014	—		—		—		—		—		—		375,623		607,174		641,364		660,618
2015	—		—		—		—		—		—		—		398,077		640,637		699,528
2016	—		—		—		—		—		—		—		—		448,522		715,192
2017	—		—		—		—		—		—		—		—		—		470,935
Total																			$	5,082,718
	Reserves for loss and loss adjustment expenses before 2008, net of reinsurance																		3,033
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	565,599

Reinsurance

Casualty

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2017
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		IBNR
2008	$	361,062	$	346,045	$	325,890	$	306,513	$	295,266	$	291,214	$	298,891	$	299,336	$	294,775	$	296,277	$	21,314
2009	—		336,295		329,565		328,313		310,178		302,380		293,983		282,968		288,634		282,130		22,883
2010	—		—		292,363		299,988		289,984		278,155		267,279		255,738		252,537		250,224		24,961
2011	—		—		—		293,319		312,388		306,928		302,166		309,707		306,560		297,910		30,716
2012	—		—		—		—		335,219		339,253		334,435		327,145		336,407		338,715		41,215
2013	—		—		—		—		—		322,691		273,677		276,773		286,997		295,688		47,285
2014	—		—		—		—		—		—		323,796		324,199		323,384		334,922		84,802
2015	—		—		—		—		—		—		—		262,424		234,938		233,590		58,408
2016	—		—		—		—		—		—		—		—		244,028		256,175		119,654
2017	—		—		—		—		—		—		—		—		—		234,749		178,718
Total																			$	2,820,380

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	11,649	$	37,063	$	72,647	$	111,515	$	144,701	$	171,747	$	191,656	$	207,639	$	226,964	$	241,572
2009	—		21,364		53,704		85,860		124,248		155,372		182,225		197,070		211,456		221,467
2010	—		—		18,121		45,931		77,589		106,937		129,700		150,021		165,773		181,311
2011	—		—		—		17,950		52,544		98,028		134,896		169,147		192,900		208,935
2012	—		—		—		—		22,476		62,438		112,445		152,453		187,599		220,422
2013	—		—		—		—		—		28,982		64,072		109,664		143,904		177,890
2014	—		—		—		—		—		—		21,365		69,422		116,894		156,564
2015	—		—		—		—		—		—		—		17,878		48,784		91,987
2016	—		—		—		—		—		—		—		—		19,962		62,099
2017	—		—		—		—		—		—		—		—		—		16,509
Total																			$	1,578,756
	Reserves for loss and loss adjustment expenses before 2008, net of reinsurance																		391,051
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,632,676

Property

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2017
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		IBNR
2008	$	56,494	$	51,978	$	45,195	$	44,412	$	44,733	$	45,175	$	44,259	$	43,803	$	43,771	$	43,758	369
2009	—		48,283		43,508		42,622		38,899		38,327		37,709		37,119		36,462		35,444		350
2010	—		—		58,979		55,995		52,866		51,767		51,809		51,296		51,182		51,007		344
2011	—		—		—		95,697		88,316		85,466		86,876		85,304		85,028		84,747		455
2012	—		—		—		—		104,273		95,094		86,742		85,784		84,212		84,218		1,168
2013	—		—		—		—		—		142,043		113,039		114,430		112,217		112,855		1,906
2014	—		—		—		—		—		—		113,838		97,363		97,876		100,604		2,697
2015	—		—		—		—		—		—		—		127,716		118,016		132,382		5,778
2016	—		—		—		—		—		—		—		—		168,661		174,989		14,581
2017	—		—		—		—		—		—		—		—		—		207,088		84,116
Total																			$	1,027,092

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	11,280	$	29,300	$	34,456	$	36,773	$	37,200	$	38,845	$	39,193	$	40,490	$	42,585	$	43,007
2009	—		9,823		22,045		28,392		29,612		31,438		31,427		32,730		34,953		34,172
2010	—		—		23,882		37,996		42,676		44,165		45,102		46,701		49,353		49,610
2011	—		—		—		31,558		59,067		73,612		76,281		78,838		82,040		82,592
2012	—		—		—		—		15,705		51,967		64,471		70,924		77,786		79,349
2013	—		—		—		—		—		36,654		74,732		92,836		101,794		104,593
2014	—		—		—		—		—		—		39,050		67,255		82,651		88,871
2015	—		—		—		—		—		—		—		53,496		89,384		109,393
2016	—		—		—		—		—		—		—		—		79,015		133,856
2017	—		—		—		—		—		—		—		—		—		72,187
Total																			$	797,630
	Reserves for loss and loss adjustment expenses before 2008, net of reinsurance																		1,369
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	230,831

Reconciliation of net incurred and paid claims development to reserves for loss and loss adjustment expenses

The reconciliation of the net incurred and paid claims development tables to the reserves for loss and loss adjustment expenses in the consolidated balance sheet is as follows:

(In thousands)		December 31, 2017
Undiscounted reserves for loss and loss expenses, net of reinsurance:
	Other liability	$	3,469,907
	Primary workers' compensation	1,842,183
	Excess workers' compensation	1,324,907
	Professional liability	847,298
	Commercial automobile	569,643
	Short-tail lines	565,599
	Other	164,433
	Insurance	8,783,970
	Casualty	1,632,774
	Property	230,831
	Reinsurance	1,863,604
Total undiscounted reserves for loss and loss expenses, net of reinsurance		$	10,647,575

(In thousands)		December 31, 2017
Due from reinsurers on unpaid claims:
	Other liability	$	392,159
	Primary workers' compensation	434,824
	Excess workers' compensation	37,088
	Professional liability	305,294
	Commercial automobile	6,662
	Short-tail lines	275,607
	Other	27,001
	Insurance	1,478,636
	Casualty	113,443
	Property	21,415
	Reinsurance	134,858
Total due from reinsurers on unpaid claims		$	1,613,494

(In thousands)		December 31, 2017
Loss reserve discount:
	Other liability	$	—
	Primary workers' compensation	—
	Excess workers' compensation	(442,349		)
	Professional liability	—
	Commercial automobile	—
	Short-tail lines	—
	Other	—
	Insurance	(442,349		)
	Casualty	(148,312		)
	Property	—
	Reinsurance	(148,312		)
Total loss reserve discount		$	(590,661	)
Total gross reserves for loss and loss expenses		$	11,670,408

Supplementary information regarding average historical claims duration

The following is supplementary information regarding average historical claims duration as of December 31, 2017:

Insurance
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1		2		3		4		5		6		7		8		9		10
Other liability	7.9	%	14.1	%	18.3	%	16.8	%	13.9	%	8.6	%	5.7	%	3.5	%	2.9	%	2.6	%
Primary workers' compensation	22.5	%	27.3	%	15.4	%	9.4	%	6.0	%	4.0	%	2.7	%	2.0	%	2.0	%	1.5	%
Excess workers' compensation	3.1	%	2.3	%	2.7	%	3.1	%	3.2	%	3.7	%	3.3	%	3.7	%	3.4	%	3.9	%
Professional liability	9.0	%	23.9	%	22.3	%	16.9	%	9.6	%	6.4	%	3.2	%	2.9	%	2.7	%	2.3	%
Commercial automobile	40.3	%	21.7	%	15.4	%	10.4	%	6.3	%	3.5	%	0.9	%	0.4	%	0.1	%	0.4	%
Short-tail lines	60.2	%	29.1	%	5.9	%	1.7	%	—	%	0.6	%	0.3	%	0.1	%	0.1	%	—	%
Reinsurance
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1		2		3		4		5		6		7		8		9		10
Casualty	7.0	%	12.3	%	14.3	%	12.3	%	10.8	%	8.9	%	5.9	%	5.6	%	5.0	%	4.9	%
Property	34.8	%	33.2	%	14.7	%	5.2	%	3.6	%	2.5	%	2.6	%	3.2	%	1.3	%	1.0	%

Reconciliation of beginning and ending reserve balance

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

(In thousands)	2017			2016			2015
Net reserves at beginning of year	$	9,590,265		$	9,244,872		$	8,970,641
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	3,963,543			3,826,620			3,653,561
Decrease in estimates for claims occurring in prior years (2)	(5,165		)	(29,904		)	(46,713		)
Loss reserve discount accretion	43,970			49,084			49,422
Total	4,002,348			3,845,800			3,656,270
Net payments for claims:
Current year	1,027,405			1,052,452			914,637
Prior year	2,562,550			2,401,722			2,342,378
Total	3,589,955			3,454,174			3,257,015
Foreign currency translation	54,256			(46,233		)	(125,024		)
Net reserves at end of year	10,056,914			9,590,265			9,244,872
Ceded reserve at end of year	1,613,494			1,606,930			1,424,278
Gross reserves at end of year	$	11,670,408		$	11,197,195		$	10,669,150

_______________________________________

(1) Claims occurring during the current year are net of loss reserve discounts of $22,064,000, $18,929,000 and $20,357,000 in 2017, 2016, and 2015, 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 $32,132,000, $59,175,000 and $64,971,000 in 2017, 2016 and 2015, respectively.