Reserves for Loss and Loss Expenses (Tables)

6 Months Ended

Jun. 30, 2020

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


	June 30,
(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)	2,222,671		1,980,138
Increase in estimates for claims occurring in prior years (2) (3)	2,050		16,764
Loss reserve discount accretion	17,658		20,577
Total	2,242,379		2,017,479
Net payments for claims:
Current year	289,154		548,589
Prior years	1,545,471		1,200,906
Total	1,834,625		1,749,495
Foreign currency translation	(45,572)		(2,228)
Net reserves at end of period	11,066,107		10,514,639
Ceded reserves at end of period	2,022,797		1,805,639
Gross reserves at end of period	$	13,088,904	$	12,320,278

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(1) Claims occurring during the current year are net of loss reserve discounts of $5 million and $11 million for the six months ended June 30, 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 $8 million and increased by $9 million for the six months ended June 30, 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 $7 million and $14 million for the six months ended June 30, 2020 and 2019, respectively.