Reserves for Loss and Loss Expenses (Tables)

6 Months Ended

Jun. 30, 2019

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



	June 30,
(In thousands)	2019			2018
Net reserves at beginning of period	$	10,248,883		$	10,056,914
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	1,980,138			1,916,140
Increase (decrease) in estimates for claims occurring in prior years (2) (3)	16,764			(246		)
Loss reserve discount accretion	20,577			20,962
Total	2,017,479			1,936,856
Net payments for claims:
Current year	548,589			316,567
Prior years	1,200,906			1,527,522
Total	1,749,495			1,844,089
Foreign currency translation	(2,228		)	(72,351		)
Net reserves at end of period	10,514,639			10,077,330
Ceded reserves at end of period	1,805,639			1,659,245
Gross reserves at end of period	$	12,320,278		$	11,736,575

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(1) Claims occurring during the current year are net of loss reserve discounts of $11 million and $13 million for the six months ended June 30, 2019 and 2018.

(2) The change 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 increased by $9 million and decreased by $6 million for the six months ended June 30, 2019 and 2018, 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 $14 million and $19 million for the six months ended June 30, 2019 and 2018, respectively.