Reserves For Losses And Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018, 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, 2009 to 2017 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, 2018 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, 2018
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR		Cumulative Number of Reported Claims
2009	$	689,634	$	656,788	$	624,991	$	599,235	$	589,659	$	561,784	$	557,661	$	553,058	$	546,746	$	542,568	$	18,690	23
2010	—		612,210		615,797		592,117		590,818		577,679		574,780		573,532		571,305		566,695		26,658		23
2011	—		—		665,035		673,730		660,023		659,026		653,864		649,055		645,123		634,264		30,381		24
2012	—		—		—		693,447		702,342		703,118		709,026		713,266		723,610		718,166		47,001		24
2013	—		—		—		—		751,544		792,464		784,906		784,342		805,288		811,592		78,784		26
2014	—		—		—		—		—		847,207		848,947		847,008		851,503		864,157		128,856		26
2015	—		—		—		—		—		—		951,041		986,792		961,289		964,415		217,570		26
2016	—		—		—		—		—		—		—		1,018,454		1,011,368		1,019,749		375,609		25
2017	—		—		—		—		—		—		—		—		1,067,376		1,100,243		567,982		23
2018	—		—		—		—		—		—		—		—		—		1,104,518		837,548		18
Total																			$	8,326,367

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	44,801	$	122,850	$	214,498	$	311,979	$	385,068	$	429,128	$	470,830	$	486,893	$	500,953	$	510,474
2010	—		45,193		128,946		248,698		336,243		417,166		461,442		491,104		508,359		525,016
2011	—		—		48,825		142,713		266,780		379,845		470,849		524,314		556,110		575,194
2012	—		—		—		58,108		158,869		299,842		417,686		513,644		580,750		622,687
2013	—		—		—		—		63,868		189,936		332,871		473,933		589,564		650,428
2014	—		—		—		—		—		79,078		191,394		338,961		481,039		595,024
2015	—		—		—		—		—		—		82,829		210,940		382,498		538,502
2016	—		—		—		—		—		—		—		69,620		209,212		390,552
2017	—		—		—		—		—		—		—		—		80,174		256,448
2018	—		—		—		—		—		—		—		—		—		87,075
Total																			$	4,751,400
	Reserves for loss and loss adjustment expenses before 2009, net of reinsurance																		121,405
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	3,696,372

Primary Workers' Compensation

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2018
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR		Cumulative Number of Reported Claims
2009	$	327,537	$	332,303	$	326,766	$	386,870	$	392,158	$	394,303	$	392,287	$	395,288	$	398,994	$	401,431	$	10,693	43
2010	—		358,734		361,808		409,237		418,315		426,622		429,952		429,762		427,698		424,374		13,958		45
2011	—		—		419,364		442,550		454,797		470,026		472,087		474,076		475,729		471,471		17,942		46
2012	—		—		—		499,752		499,882		503,956		503,863		509,167		512,707		508,169		26,626		48
2013	—		—		—		—		551,342		547,295		546,995		543,238		547,000		542,274		35,177		53
2014	—		—		—		—		—		639,436		637,307		627,767		617,242		615,435		57,455		57
2015	—		—		—		—		—		—		712,800		690,525		650,997		641,169		83,941		58
2016	—		—		—		—		—		—		—		702,716		696,339		684,700		117,425		57
2017	—		—		—		—		—		—		—		—		762,093		733,505		191,034		57
2018	—		—		—		—		—		—		—		—		—		778,964		359,337		53
Total																			$	5,801,492

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	93,647	$	197,736	$	257,972	$	297,079	$	317,796	$	333,793	$	344,771	$	352,516	$	360,289	$	364,712
2010	—		107,742		214,034		279,226		317,986		344,631		362,078		374,013		382,665		388,405
2011	—		—		106,157		234,694		307,873		355,909		385,759		408,304		420,945		428,811
2012	—		—		—		114,998		253,781		339,560		387,368		419,588		437,196		451,991
2013	—		—		—		—		117,502		277,538		363,028		414,160		447,894		466,580
2014	—		—		—		—		—		148,405		319,743		412,611		471,235		503,915
2015	—		—		—		—		—		—		139,320		323,744		421,734		477,541
2016	—		—		—		—		—		—		—		142,998		338,835		446,072
2017	—		—		—		—		—		—		—		—		153,456		362,299
2018	—		—		—		—		—		—		—		—		—		171,006
Total																			$	4,061,332
			Reserves for loss and loss adjustment expenses before 2009, net of reinsurance																170,897
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,911,057

Excess Workers' Compensation

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2018
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR		Cumulative Number of Reported Claims
2009	$	168,762	$	153,766	$	153,912	$	148,223	$	148,189	$	138,765	$	142,768	$	134,716	$	129,249	$	130,790	$	21,734	1
2010	—		135,639		123,497		120,272		118,712		100,331		104,732		100,065		94,986		95,374		14,497		1
2011	—		—		88,650		93,993		98,051		87,064		85,299		83,850		78,246		74,109		17,280		1
2012	—		—		—		72,366		73,230		71,780		73,653		72,441		67,878		69,361		16,293		1
2013	—		—		—		—		63,995		48,493		46,025		42,419		38,551		35,120		16,473		1
2014	—		—		—		—		—		63,465		57,558		49,478		45,758		41,671		18,448		1
2015	—		—		—		—		—		—		69,977		57,897		50,099		45,115		25,425		—
2016	—		—		—		—		—		—		—		72,657		70,281		71,404		37,500		—
2017	—		—		—		—		—		—		—		—		76,701		80,508		42,652		1
2018	—		—		—		—		—		—		—		—		—		77,820		46,840		1
Total																			$	721,272

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	5,060	$	8,402	$	11,037	$	14,138	$	20,729	$	25,272	$	29,150	$	33,573	$	37,817	$	41,243
2010	—		2,867		4,003		5,571		8,701		9,084		11,699		14,261		18,821		22,355
2011	—		—		2,593		4,848		6,395		12,104		15,684		18,638		20,164		21,463
2012	—		—		—		1,127		6,097		9,480		11,167		13,234		15,738		17,982
2013	—		—		—		—		647		630		2,158		3,008		3,396		4,418
2014	—		—		—		—		—		358		1,729		3,354		4,175		5,808
2015	—		—		—		—		—		—		2,069		2,481		3,272		4,099
2016	—		—		—		—		—		—		—		2,498		4,783		5,573
2017	—		—		—		—		—		—		—		—		6,282		12,810
2018	—		—		—		—		—		—		—		—		—		6,141
Total																			$	141,892
	Reserves for loss and loss adjustment expenses before 2009, net of reinsurance																		740,877
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,320,257

Professional Liability

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2018
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR		Cumulative Number of Reported Claims
2009	$	134,784	$	139,091	$	145,515	$	148,899	$	147,994	$	150,452	$	150,783	$	153,492	$	152,711	$	157,451	$	1,087	3
2010	—		147,649		165,755		179,383		177,957		176,723		172,585		174,883		177,844		182,818		1,807		4
2011	—		—		179,875		165,233		186,918		190,096		177,128		173,545		176,865		175,963		3,185		4
2012	—		—		—		238,233		241,944		264,808		250,457		238,704		245,076		243,893		9,507		7
2013	—		—		—		—		269,280		247,320		242,792		248,974		270,449		279,092		15,395		7
2014	—		—		—		—		—		253,284		246,668		259,964		243,936		239,555		19,315		8
2015	—		—		—		—		—		—		259,569		258,251		274,950		276,406		47,934		9
2016	—		—		—		—		—		—		—		310,678		324,979		361,929		90,872		10
2017	—		—		—		—		—		—		—		—		333,803		333,194		178,091		9
2018	—		—		—		—		—		—		—		—		—		335,751		260,095		9
Total																			$	2,586,052

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	12,604	$	52,583	$	85,902	$	117,683	$	127,728	$	138,876	$	143,950	$	144,713	$	147,599	$	151,499
2010	—		14,832		58,916		108,566		129,757		144,474		160,598		165,018		171,330		178,879
2011	—		—		18,779		62,442		103,097		134,608		150,840		159,014		167,286		168,874
2012	—		—		—		21,875		87,008		128,281		159,183		190,295		214,315		223,424
2013	—		—		—		—		24,232		64,030		119,552		177,343		206,655		248,520
2014	—		—		—		—		—		19,545		83,856		138,753		176,181		199,245
2015	—		—		—		—		—		—		20,478		85,561		139,952		187,767
2016	—		—		—		—		—		—		—		28,702		102,853		202,131
2017	—		—		—		—		—		—		—		—		36,733		96,814
2018	—		—		—		—		—		—		—		—		—		28,307
Total																			$	1,685,460
	Reserves for loss and loss adjustment expenses before 2009, net of reinsurance																		4,198
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	904,790

Commercial Automobile

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2018
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR		Cumulative Number of Reported Claims
2009	$	362,302	$	345,139	$	340,967	$	335,851	$	337,915	$	336,855	$	334,652	$	335,089	$	334,977	$	334,926	$	398	39
2010	—		310,591		320,098		330,190		328,854		332,716		331,581		330,552		330,263		329,942		372		37
2011	—		—		312,224		320,898		328,269		331,694		341,362		341,162		342,052		343,524		1,232		37
2012	—		—		—		314,073		326,585		342,379		355,433		364,175		364,437		366,662		1,539		40
2013	—		—		—		—		326,789		348,513		368,318		376,569		366,976		366,565		3,013		42
2014	—		—		—		—		—		363,308		384,692		418,215		416,194		413,697		6,431		45
2015	—		—		—		—		—		—		389,101		417,403		423,601		431,857		18,247		50
2016	—		—		—		—		—		—		—		431,633		431,680		443,030		35,867		49
2017	—		—		—		—		—		—		—		—		430,352		428,601		70,289		44
2018	—		—		—		—		—		—		—		—		—		442,862		145,744		39
Total																			$	3,901,666

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	136,433	$	209,553	$	257,326	$	291,925	$	312,902	$	328,843	$	331,482	$	333,143	$	333,605	$	333,677
2010	—		136,029		208,790		263,639		295,347		313,253		324,963		326,770		327,206		327,829
2011	—		—		135,350		211,756		262,659		296,332		321,786		333,949		338,283		340,319
2012	—		—		—		136,844		215,078		273,277		312,178		344,428		355,740		360,799
2013	—		—		—		—		142,480		218,005		266,694		322,141		343,274		353,159
2014	—		—		—		—		—		155,065		237,118		328,156		365,424		394,147
2015	—		—		—		—		—		—		159,679		265,396		325,369		370,450
2016	—		—		—		—		—		—		—		185,045		280,146		342,214
2017	—		—		—		—		—		—		—		—		180,627		267,469
2018	—		—		—		—		—		—		—		—		—		180,213
Total																			$	3,270,276
			Reserves for loss and loss adjustment expenses before 2009, net of reinsurance																2,482
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	633,872

Short-tail lines

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2018
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR		Cumulative Number of Reported Claims
2009	$	346,870	$	335,921	$	326,440	$	318,111	$	318,349	$	314,290	$	314,117	$	314,010	$	316,220	$	317,098	$	550	18
2010	—		385,541		370,291		358,373		355,916		346,226		346,719		346,885		346,463		346,172		833		19
2011	—		—		478,556		471,555		463,006		459,814		457,011		450,115		449,320		451,211		1,093		21
2012	—		—		—		526,312		535,500		535,885		531,729		507,646		506,705		508,565		3,083		25
2013	—		—		—		—		572,103		583,603		575,582		553,621		552,137		548,730		5,740		26
2014	—		—		—		—		—		701,335		709,832		664,303		663,282		664,350		6,562		30
2015	—		—		—		—		—		—		743,872		731,468		727,677		726,606		15,079		32
2016	—		—		—		—		—		—		—		771,416		774,514		761,891		20,857		34
2017	—		—		—		—		—		—		—		—		750,786		752,193		34,275		38
2018	—		—		—		—		—		—		—		—		—		759,340		161,107		36
Total																			$	5,836,156

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	212,521	$	291,338	$	304,634	$	306,020	$	309,916	$	310,428	$	311,079	$	311,357	$	311,655	$	315,966
2010	—		245,036		325,156		337,686		346,768		340,210		342,918		344,102		345,085		345,106
2011	—		—		303,012		417,701		436,585		440,777		445,073		446,745		447,342		450,155
2012	—		—		—		281,456		453,157		503,364		513,733		498,506		499,446		503,738
2013	—		—		—		—		312,945		486,692		534,939		531,386		538,158		539,443
2014	—		—		—		—		—		371,194		596,829		613,621		633,020		648,373
2015	—		—		—		—		—		—		396,086		612,335		667,846		689,875
2016	—		—		—		—		—		—		—		416,144		669,029		710,618
2017	—		—		—		—		—		—		—		—		444,407		688,821
2018	—		—		—		—		—		—		—		—		—		415,206
Total																			$	5,307,301
	Reserves for loss and loss adjustment expenses before 2009, net of reinsurance																		2,362
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	531,217

Reinsurance

Casualty

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2018
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR
2009	$	334,804	$	328,321	$	327,236	$	309,228	$	301,495	$	293,275	$	282,411	$	288,115	$	281,592	$	279,372	$	17,086
2010	—		290,285		298,300		288,141		276,234		265,771		254,550		251,308		249,062		248,145		18,428
2011	—		—		290,635		309,621		304,409		299,628		306,911		303,867		295,576		292,162		21,264
2012	—		—		—		331,603		335,661		331,006		324,014		332,932		335,636		333,889		25,536
2013	—		—		—		—		319,159		270,221		273,528		283,580		292,447		298,061		33,269
2014	—		—		—		—		—		320,250		320,176		319,855		331,836		326,251		49,301
2015	—		—		—		—		—		—		259,609		232,203		231,020		253,264		30,511
2016	—		—		—		—		—		—		—		241,282		253,450		246,235		62,140
2017	—		—		—		—		—		—		—		—		231,826		221,820		122,752
2018	—		—		—		—		—		—		—		—		—		221,945		184,317
Total																			$	2,721,144

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	21,332	$	53,636	$	85,761	$	124,030	$	155,124	$	181,946	$	196,775	$	211,143	$	221,141	$	228,990
2010	—		17,964		45,626		77,191		106,381		129,041		149,322		165,027		180,544		190,295
2011	—		—		17,876		52,365		97,702		134,285		168,244		191,864		207,692		220,011
2012	—		—		—		22,390		62,198		111,928		151,635		186,483		219,106		240,926
2013	—		—		—		—		28,920		63,849		109,202		143,268		177,101		204,820
2014	—		—		—		—		—		21,306		69,134		116,266		155,764		198,993
2015	—		—		—		—		—		—		17,865		48,593		91,548		141,834
2016	—		—		—		—		—		—		—		19,923		61,930		100,587
2017	—		—		—		—		—		—		—		—		16,493		40,338
2018	—		—		—		—		—		—		—		—		—		11,152
Total																			$	1,577,946
	Reserves for loss and loss adjustment expenses before 2009, net of reinsurance																		369,801
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,512,999

Property

(In thousands)

Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2018
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR
2009	$	48,029	$	43,193	$	42,352	$	38,711	$	38,124	$	37,505	$	36,913	$	36,263	$	35,293	$	35,763	$	—
2010	—		58,576		55,647		52,561		51,448		51,500		50,971		50,871		50,699		50,932		201
2011	—		—		95,217		87,970		85,118		86,544		85,006		84,739		84,471		84,882		314
2012	—		—		—		103,744		94,720		86,426		85,451		83,925		83,938		84,875		626
2013	—		—		—		—		141,298		112,590		114,063		111,915		112,555		111,876		1,192
2014	—		—		—		—		—		112,987		96,668		97,363		100,148		99,410		1,739
2015	—		—		—		—		—		—		127,039		117,582		131,777		130,452		4,367
2016	—		—		—		—		—		—		—		167,989		174,562		181,858		11,130
2017	—		—		—		—		—		—		—		—		206,604		200,535		24,102
2018	—		—		—		—		—		—		—		—		—		108,281		40,135
Total																			$	1,088,864

Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	9,766	$	21,945	$	28,226	$	29,444	$	31,248	$	31,238	$	32,540	$	34,759	$	34,027	$	35,158
2010	—		23,654		37,739		42,413		43,898		44,824		46,419		49,048		49,303		50,053
2011	—		—		31,478		58,875		73,359		76,010		78,577		81,780		82,322		83,401
2012	—		—		—		15,675		51,774		64,238		70,672		77,540		79,099		81,808
2013	—		—		—		—		36,609		74,602		92,646		101,553		104,333		106,051
2014	—		—		—		—		—		38,919		67,000		82,329		88,507		91,646
2015	—		—		—		—		—		—		53,498		89,228		109,187		118,686
2016	—		—		—		—		—		—		—		78,969		133,653		157,622
2017	—		—		—		—		—		—		—		—		72,157		141,458
2018	—		—		—		—		—		—		—		—		—		34,125
Total																			$	900,008
	Reserves for loss and loss adjustment expenses before 2009, net of reinsurance																		776
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	189,632

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, 2018
Undiscounted reserves for loss and loss expenses, net of reinsurance:
	Other liability	$	3,696,372
	Primary workers' compensation	1,911,057
	Excess workers' compensation	1,320,257
	Professional liability	904,790
	Commercial automobile	633,872
	Short-tail lines	531,217
	Other	111,779
	Insurance	9,109,344
	Casualty	1,512,999
	Property	189,632
	Reinsurance	1,702,631
Total undiscounted reserves for loss and loss expenses, net of reinsurance		$	10,811,975

(In thousands)		December 31, 2018
Due from reinsurers on unpaid claims:
	Other liability	$	451,073
	Primary workers' compensation	374,805
	Excess workers' compensation	37,405
	Professional liability	344,958
	Commercial automobile	15,405
	Short-tail lines	293,376
	Other	34,260
	Insurance	1,551,282
	Casualty	116,782
	Property	49,501
	Reinsurance	166,283
Total due from reinsurers on unpaid claims		$	1,717,565

(In thousands)		December 31, 2018
Loss reserve discount:
	Other liability	$	—
	Primary workers' compensation	—
	Excess workers' compensation	(434,302		)
	Professional liability	—
	Commercial automobile	—
	Short-tail lines	—
	Other	—
	Insurance	(434,302		)
	Casualty	(128,790		)
	Property	—
	Reinsurance	(128,790		)
Total loss reserve discount		$	(563,092	)
Total gross reserves for loss and loss expenses		$	11,966,448

Supplementary information regarding average historical claims duration

The following is supplementary information regarding average historical claims duration as of December 31, 2018:

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	8.0	%	14.4	%	18.4	%	16.8	%	13.8	%	8.2	%	5.9	%	3.0	%	2.8	%	1.8	%
Primary workers' compensation	22.5	%	27.6	%	15.6	%	9.4	%	5.9	%	4.0	%	2.8	%	1.9	%	1.6	%	1.1	%
Excess workers' compensation	3.8	%	3.3	%	2.7	%	3.1	%	3.0	%	3.3	%	2.7	%	3.3	%	3.5	%	2.6	%
Professional liability	8.7	%	22.7	%	22.3	%	16.6	%	9.4	%	9.1	%	3.5	%	1.6	%	4.3	%	2.5	%
Commercial automobile	39.7	%	21.6	%	15.6	%	10.7	%	6.8	%	3.5	%	1.0	%	0.4	%	0.2	%	—	%
Short-tail lines	59.6	%	29.8	%	5.8	%	1.6	%	0.1	%	0.3	%	0.4	%	0.3	%	—	%	1.4	%
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	7.2	%	12.5	%	14.6	%	13.3	%	11.2	%	9.0	%	5.9	%	5.2	%	3.8	%	2.8	%
Property	35.3	%	32.3	%	14.8	%	5.5	%	3.9	%	2.0	%	3.2	%	2.7	%	—	%	3.2	%

Reconciliation of beginning and ending reserve balance

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

(In thousands)	2018			2017			2016
Net reserves at beginning of year	$	10,056,914		$	9,590,265		$	9,244,872
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	3,926,489			3,963,543			3,826,620
Increase (decrease) in estimates for claims occurring in prior years (2)	6,831			(5,165		)	(29,904		)
Loss reserve discount accretion	41,382			43,970			49,084
Total	3,974,702			4,002,348			3,845,800
Net payments for claims:
Current year	964,808			1,027,405			1,052,452
Prior year	2,700,077			2,562,550			2,401,722
Total	3,664,885			3,589,955			3,454,174
Foreign currency translation	(117,848		)	54,256			(46,233		)
Net reserves at end of year	10,248,883			10,056,914			9,590,265
Ceded reserve at end of year	1,717,565			1,613,494			1,606,930
Gross reserves at end of year	$	11,966,448		$	11,670,408		$	11,197,195

_______________________________________

(1) Claims occurring during the current year are net of loss reserve discounts of $24,381,000, $22,064,000 and $18,929,000 in 2018, 2017, and 2016, 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 $3,738,000, $32,132,000 and $59,175,000 in 2018, 2017 and 2016, respectively.