Property Casualty Loss And Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Insurance [Abstract]

Consolidated Property Casualty Loss And Loss Expense Reserves

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

(Dollars in millions)	Years ended December 31,
	2018			2017			2016
Gross loss and loss expense reserves, January 1	$	5,219		$	5,035		$	4,660
Less reinsurance recoverable	187			298			281
Net loss and loss expense reserves, January 1	5,032			4,737			4,379
Net incurred loss and loss expenses related to:
Current accident year	3,390			3,257			3,029
Prior accident years	(167		)	(119		)	(168		)
Total incurred	3,223			3,138			2,861
Net paid loss and loss expenses related to:
Current accident year	1,391			1,404			1,260
Prior accident years	1,456			1,439			1,243
Total paid	2,847			2,843			2,503
Net loss and loss expense reserves, December 31	5,408			5,032			4,737
Plus reinsurance recoverable	238			187			298
Gross loss and loss expense reserves, December 31	$	5,646		$	5,219		$	5,035

Reconciliation of Property casualty Incurred Losses and ALAE and Paid Losses and ALAE Development Information

The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2018.

(Dollars in millions)	Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance		Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance		Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance		Total liabilities for loss and ALAE, net of reinsurance		Reinsurance recoverable on unpaid losses		Total liabilities for gross loss and loss expense reserves
Commercial casualty	$	4,671	$	2,658	$	94	$	2,107	$	51	$	2,158
Workers' compensation	2,142		1,493		283		932		59		991
Commercial auto	2,104		1,486		14		632		5		637
Commercial property	2,588		2,287		13		314		—		314
Personal auto	1,889		1,603		4		290		34		324
Homeowner	1,614		1,474		3		143		32		175
Excess and surplus	532		256		1		277		7		284
Other lines											483
Total liabilities for loss and ALAE reserves											5,366
Unallocated loss adjustment expense reserves											280
Gross loss and loss expense reserves											$	5,646

Schedule of Incurred and Paid Losses and ALAE Development by Accident Year

The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:

(Dollars in millions, reported claims in thousands)												As of December 31, 2018
Incurred losses and ALAE, net of reinsurance													Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims
	Years ended December 31,
Accident		2014		2015		2016		2017
Year		Unaudited								2018
2014		$	297	$	283	$	286	$	285	$	284		$	—	26
2015				284		275		275		274			—		24
2016						315		304		303			1		23
2017								356		383			3		26
2018										370			15		21
Total										$	1,614
Cumulative paid losses and ALAE, net of reinsurance
2014		$	224	$	273	$	281	$	283	$	283
2015				203		260		269		272
2016						208		283		295
2017								277		356
2018										268
Total										1,474
All outstanding liabilities before 2014, net of reinsurance										3
Liabilities for loss and ALAE, net of reinsurance										$	143

The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:

(Dollars in millions, reported claims in thousands)																					As of December 31, 2018
Incurred losses and ALAE, net of reinsurance																						Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims
	Years ended December 31,
Accident	2009		2010		2011		2012		2013		2014		2015		2016		2017
Year	Unaudited																		2018
2009	$	307	$	278	$	263	$	238	$	238	$	235	$	234	$	234	$	232	$	231		$	17	27
2010			283		274		248		242		240		239		240		237		236			20		26
2011					284		251		246		242		239		236		231		229			20		24
2012							265		245		234		220		213		211		209			22		21
2013									264		246		221		212		208		205			23		20
2014											261		233		214		203		201			20		19
2015													246		220		208		195			46		17
2016															230		218		206			51		16
2017																	218		208			74		15
2018																			222			99		13
Total																			$	2,142
Cumulative paid losses and ALAE, net of reinsurance
2009	$	65	$	132	$	163	$	179	$	188	$	193	$	198	$	201	$	202	$	204
2010			67		134		164		181		192		198		202		204		207
2011					65		131		161		177		186		190		192		195
2012							62		121		147		162		171		175		178
2013									61		119		144		157		164		168
2014											56		110		134		148		157
2015													47		93		115		129
2016															46		97		119
2017																	45		88
2018																			48
Total																			1,493
All outstanding liabilities before 2009, net of reinsurance																			283
Liabilities for loss and ALAE, net of reinsurance																			$	932

The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:

(Dollars in millions, reported claims in thousands)																		As of December 31, 2018
Incurred losses and ALAE, net of reinsurance																			Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims
	Years ended December 31,
Accident		2011		2012		2013		2014		2015		2016		2017
Year		Unaudited														2018
2011		$	48	$	47	$	44	$	38	$	36	$	35	$	35	$	34		$	—	1
2012				67		56		49		40		37		36		35			1		1
2013						74		64		54		45		42		41			3		2
2014								95		82		75		64		60			10		2
2015										96		81		73		67			13		2
2016												93		87		84			22		2
2017														104		95			43		2
2018																116			71		2
Total																$	532
Cumulative paid losses and ALAE, net of reinsurance
2011		$	8	$	14	$	23	$	27	$	30	$	32	$	34	$	33
2012				9		15		19		25		29		31		32
2013						7		12		20		27		32		34
2014								9		17		27		37		43
2015										8		19		29		41
2016												10		21		39
2017														11		23
2018																11
Total																256
All outstanding liabilities before 2011, net of reinsurance																1
Liabilities for loss and ALAE, net of reinsurance																$	277

The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:

(Dollars in millions, reported claims in thousands)												As of December 31, 2018
Incurred losses and ALAE, net of reinsurance													Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims
	Years ended December 31,
Accident		2014		2015		2016		2017
Year		Unaudited								2018
2014		$	452	$	444	$	441	$	442	$	442		$	1	17
2015				454		414		416		415			4		17
2016						590		551		541			4		17
2017								587		560			12		18
2018										630			13		16
Total										$	2,588
Cumulative paid losses and ALAE, net of reinsurance
2014		$	297	$	412	$	432	$	437	$	440
2015				279		388		407		411
2016						358		504		528
2017								395		522
2018										386
Total										2,287
All outstanding liabilities before 2014, net of reinsurance										13
Liabilities for loss and ALAE, net of reinsurance										$	314

The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:

(Dollars in millions, reported claims in thousands)																					As of December 31, 2018
Incurred losses and ALAE, net of reinsurance																						Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims
	Years ended December 31,
Accident	2009		2010		2011		2012		2013		2014		2015		2016		2017
Year	Unaudited																		2018
2009	$	484	$	409	$	412	$	360	$	370	$	365	$	357	$	357	$	353	$	360		$	13	20
2010			495		394		378		349		347		348		349		343		341			16		20
2011					466		404		377		377		375		380		366		365			13		19
2012							466		414		417		394		394		404		399			29		18
2013									448		443		431		416		413		407			53		19
2014											503		496		479		476		479			66		21
2015													533		526		529		516			105		21
2016															563		574		557			152		21
2017																	610		597			262		19
2018																			650			406		16
Total																			$	4,671
Cumulative paid losses and ALAE, net of reinsurance
2009	$	27	$	75	$	151	$	213	$	267	$	295	$	310	$	322	$	328	$	338
2010			33		92		159		203		256		285		300		314		318
2011					27		93		149		227		266		298		315		325
2012							27		88		170		232		288		330		346
2013									35		90		159		232		286		312
2014											34		97		172		287		338
2015													38		108		200		287
2016															46		126		228
2017																	48		122
2018																			44
Total																			2,658
All outstanding liabilities before 2009, net of reinsurance																			94
Liabilities for loss and ALAE, net of reinsurance																			$	2,107

The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:

(Dollars in millions, reported claims in thousands)												As of December 31, 2018
Incurred losses and ALAE, net of reinsurance													Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims
	Years ended December 31,
Accident		2014		2015		2016		2017
Year		Unaudited								2018
2014		$	333	$	346	$	351	$	358	$	359		$	2	51
2015				374		384		394		401			10		51
2016						417		430		450			17		53
2017								451		441			65		51
2018										453			138		46
Total										$	2,104
Cumulative paid losses and ALAE, net of reinsurance
2014		$	159	$	223	$	273	$	310	$	337
2015				173		244		303		349
2016						184		273		350
2017								187		266
2018										184
Total										1,486
All outstanding liabilities before 2014, net of reinsurance										14
Liabilities for loss and ALAE, net of reinsurance										$	632

The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency:

(Dollars in millions, reported claims in thousands)												As of December 31, 2018
Incurred losses and ALAE, net of reinsurance													Total of incurred but not reported liabilities plus expected development on reported losses		Cumulative number of reported claims
	Years ended December 31,
Accident		2014		2015		2016		2017
Year		Unaudited								2018
2014		$	317	$	317	$	325	$	324	$	325		$	—	105
2015				343		356		356		360			—		108
2016						383		384		386			3		110
2017								412		394			14		109
2018										424			64		104
Total										$	1,889
Cumulative paid losses and ALAE, net of reinsurance
2014		$	210	$	267	$	298	$	313	$	320
2015				229		292		325		346
2016						243		316		351
2017								256		324
2018										262
Total										1,603
All outstanding liabilities before 2014 net of reinsurance										4
Liabilities for loss and ALAE, net of reinsurance										$	290

Schedule of Average Annual Percentage Payout of Incurred Claims

The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5	6	7	8	9	10
Average annual percentage payout	7.8%	14.5%	18.2%	18.0%	13.2%	8.4%	4.3%	3.5%	1.4%	2.7%

The following table shows the average annual percentage payout of incurred losses for the commercial property line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5
Average annual percentage payout	66.4%	25.5%	4.6%	1.0%	0.7%

The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses.

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5
Average annual percentage payout	63.6%	17.7%	9.3%	5.2%	2.1%

The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses.

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5	6	7	8
Average annual percentage payout	15.8%	14.4%	18.8%	15.6%	10.5%	6.8%	2.0%	0.5%

The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5	6	7	8	9	10
Average annual percentage payout	26.2%	26.6%	12.2%	6.9%	4.1%	2.1%	1.4%	1.2%	0.9%	0.9%

The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses.

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5
Average annual percentage payout	42.3%	18.3%	15.2%	10.8%	7.5%

The following table shows the average annual percentage payout of incurred losses for the homeowner line of business:

Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years	1	2	3	4	5
Average annual percentage payout	73.2%	20.9%	3.4%	0.8%	0.2%