Reserves for Loss and Loss Expenses (Tables)

6 Months Ended

Jun. 30, 2018

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



	June 30,
(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)	1,916,140			1,926,394
Decrease in estimates for claims occurring in prior years (2) (3)	(246		)	(6,459		)
Loss reserve discount accretion	20,962			24,367
Total	1,936,856			1,944,302
Net payments for claims:
Current year	316,567			315,437
Prior year	1,527,522			1,432,828
Total	1,844,089			1,748,265
Foreign currency translation	(72,351		)	37,097
Net reserves at end of period	10,077,330			9,823,399
Ceded reserves at end of period	1,659,245			1,500,868
Gross reserves at end of period	$	11,736,575		$	11,324,267

_______________________________________

(1) Claims occurring during the current year are net of loss reserve discounts of $12,818,000 and $11,349,000 for the six months ended June 30, 2018 and 2017, 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 $6,132,000 and $14,873,000 for the six months ended June 30, 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 $19 million and $24 million for the six months ended June 30, 2018 and 2017, respectively.