Reserves for Loss and Loss Expenses (Tables)

6 Months Ended

Jun. 30, 2021

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


	June 30,
(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)	2,308,309		2,222,671
Increase in estimates for claims occurring in prior years (2) (3)	1,530		2,050
Loss reserve discount accretion	15,399		17,658
Total	2,325,238		2,242,379
Net payments for claims:
Current year	279,703		289,154
Prior years	1,485,116		1,545,471
Total	1,764,819		1,834,625
Foreign currency translation	(16,153)		(45,572)
Net reserves at end of period	12,164,659		11,066,107
Ceded reserves at end of period	2,316,288		2,022,797
Gross reserves at end of period	$	14,480,947	$	13,088,904

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(1) Claims occurring during the current year are net of loss reserve discounts of $10 million and $5 million for the six months ended June 30, 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 $16 million and $8 million for the six months ended June 30, 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 $4 million and $7 million for the six months ended June 30, 2021 and 2020, respectively.