PROPERTY CASUALTY LOSS AND LOSS EXPENSES

This table summarizes activity for our consolidated property casualty loss and loss expense reserves:



(In millions)	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Gross loss and loss expense reserves, beginning of period	$	4,408		$	4,219		$	4,241		$	4,169
Less reinsurance receivable	282			333			299			356
Net loss and loss expense reserves, beginning of period	4,126			3,886			3,942			3,813
Net incurred loss and loss expenses related to:
Current accident year	647			631			2,125			1,840
Prior accident years	(25		)	(38		)	(120		)	(140		)
Total incurred	622			593			2,005			1,700
Net paid loss and loss expenses related to:
Current accident year	353			329			859			699
Prior accident years	286			233			979			897
Total paid	639			562			1,838			1,596
Net loss and loss expense reserves, end of period	4,109			3,917			4,109			3,917
Plus reinsurance receivable	284			321			284			321
Gross loss and loss expense reserves, end of period	$	4,393		$	4,238		$	4,393		$	4,238

We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an

inter-departmental committee that includes actuarial management that is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $42 million at September 30, 2014, and $69 million at September 30, 2013, for certain life and health loss and loss expense reserves.

For the three months ended September 30, 2014, we experienced $25 million of favorable development on prior accident years, including $24 million of favorable development in commercial lines, $5 million of adverse development in personal lines and $6 million favorable development in excess and surplus lines. This included

$5 million from favorable development of catastrophe losses for the three months ended September 30, 2014, compared with $9 million of favorable development of catastrophe losses for the three months ended September 30, 2013. We recognized favorable reserve development during the three months ended

September 30, 2014, of $15 million for the workers' compensation line, $8 million for each the commercial property line and the commercial casualty line and $12 million of adverse development for the commercial auto line, due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.

For the nine months ended September 30, 2014, we experienced $120 million of favorable development on prior accident years, including $84 million of favorable development in commercial lines, $13 million of favorable development in personal lines and $23 million favorable development in excess and surplus lines. This included

$19 million from favorable development of catastrophe losses for the nine months ended September 30, 2014, compared with $24 million of favorable development of catastrophe losses for the nine months ended September 30, 2013. We recognized favorable reserve development during the nine months ended

September 30, 2014, of $45 million for the workers' compensation line, $33 million for the commercial property line, $25 million for the commercial casualty line and $24 million of adverse development in the commercial auto line, due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines.