Reserves for Loss and Loss Expenses (Tables)

3 Months Ended

Mar. 31, 2020

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



	March 31,
(In thousands)	2020			2019
Net reserves at beginning of period	$	10,697,998		$	10,248,883
Cumulative effect adjustment resulting from changes in accounting principles	5,927			—
Restated net reserves at beginning of period	10,703,925			10,248,883
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	1,097,523			971,806
Increase in estimates for claims occurring in prior years (2) (3)	433			6,481
Loss reserve discount accretion	9,297			10,363
Total	1,107,253			988,650
Net payments for claims:
Current year	84,310			295,873
Prior years	864,064			567,756
Total	948,374			863,629
Foreign currency translation	(77,167		)	(163		)
Net reserves at end of period	10,785,637			10,373,741
Ceded reserves at end of period	1,946,878			1,719,369
Gross reserves at end of period	$	12,732,515		$	12,093,110

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(1) Claims occurring during the current year are net of loss reserve discounts of $3 million and $6 million for the three months ended March 31, 2020 and 2019, respectively.

(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 decreased by $4 million and increased by $3 million for the three months ended March 31, 2020 and 2019, 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 $4 million and $7 million for the three months ended March 31, 2020 and 2019, respectively.