Reserves for Loss and Loss Expenses (Tables)

3 Months Ended

Mar. 31, 2021

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


	March 31,
(In thousands)	2021		2020
Net reserves at beginning of period	$	11,620,393	$	10,697,998
Cumulative effect adjustment resulting from changes in accounting principles	—		5,927
Restated net reserves at beginning of period	11,620,393		10,703,925
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	1,115,173		1,097,523
(Decrease) increase in estimates for claims occurring in prior years (2) (3)	(859)		433
Loss reserve discount accretion	7,278		9,297
Total	1,121,592		1,107,253
Net payments for claims:
Current year	97,586		84,310
Prior years	794,472		864,064
Total	892,058		948,374
Foreign currency translation	(14,779)		(77,167)
Net reserves at end of period	11,835,148		10,785,637
Ceded reserves at end of period	2,245,380		1,946,878
Gross reserves at end of period	$	14,080,528	$	12,732,515

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(1) Claims occurring during the current year are net of loss reserve discounts of $5 million and $3 million for the three months ended March 31, 2021 and 2020, 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 $5 million and $4 million for the three months ended March 31, 2021 and 2020, 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 $3 million and $4 million for the three months ended March 31, 2021 and 2020, respectively.