Reserves for Loss and Loss Expenses (Tables)

3 Months Ended

Mar. 31, 2018

Insurance [Abstract]

Reserve Balances

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

	March 31,
(In thousands)	2018			2017
Net reserves at beginning of year	$	10,056,914		$	9,590,265
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	956,181			958,684
(Decrease) increase in estimates for claims occurring in prior years (2) (3)	(3,582		)	8,727
Loss reserve discount accretion	10,620			12,192
Total	963,219			979,603
Net payments for claims:
Current year	111,030			97,461
Prior year	810,709			773,571
Total	921,739			871,032
Foreign currency translation	2,501			23,204
Net reserves at end of period	10,100,895			9,722,040
Ceded reserve at end of period	1,684,000			1,502,284
Gross reserves at end of period	$	11,784,895		$	11,224,324

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(1) Claims occurring during the current year are net of loss reserve discounts of $6,448,000 and $5,761,000 for the three months ended March 31, 2018 and 2017, respectively.

(2) The decrease or increase 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 $6,662,000 and increased by $4,841,000 for the three months ended March 31, 2018 and 2017, 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 $12 million and $2 million for the three months ended March 31, 2018 and 2017, respectively.