Reserves for Loss and Loss Expenses (Tables)

9 Months Ended

Sep. 30, 2018

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



	September 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)	2,917,231			2,998,687
Increase (decrease) in estimates for claims occurring in prior years (2) (3)	5,262			(7,648		)
Loss reserve discount accretion	32,082			34,436
Total	2,954,575			3,025,475
Net payments for claims:
Current year	597,859			628,078
Prior year	2,106,394			1,996,977
Total	2,704,253			2,625,055
Foreign currency translation	(101,071		)	57,789
Net reserves at end of period	10,206,165			10,048,474
Ceded reserves at end of period	1,665,997			1,605,872
Gross reserves at end of period	$	11,872,162		$	11,654,346

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(1) Claims occurring during the current year are net of loss reserve discounts of $19 million and $17 million for the nine months ended September 30, 2018 and 2017, respectively.

(2) The increase (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 $2 million and $31 million for the nine months ended September 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 $27 million and $31 million for the nine months ended September 30, 2018 and 2017, respectively.