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Claim and Claim Adjustment Expense Reserves (Tables)
 12 Months Ended
Dec. 31, 2011
Claim and Claim Adjustment Expense Reserves [Abstract]  
Reconciliation of claim and claim adjustment expense reserves
Reconciliation of Claim and Claim Adjustment Expense Reserves
As of and for the years ended December 31
 
 
 
 
 
(In millions)
2011
 
2010
 
2009
Reserves, beginning of year:
 
 
 
 
 
Gross
$
25,496

 
$
26,816

 
$
27,593

Ceded
6,122

 
5,594

 
6,288

Net reserves, beginning of year
19,374

 
21,222

 
21,305

Reduction of net reserves due to the Loss Portfolio Transfer transaction
—

 
(1,381
)
 
—

Reduction of net reserves due to disposition of subsidiaries
(277
)
 
(98
)
 
—

Net incurred claim and claim adjustment expenses:
 
 
 
 
 
Provision for insured events of current year
4,904

 
4,741

 
4,793

Decrease in provision for insured events of prior years
(429
)
 
(544
)
 
(240
)
Amortization of discount
135

 
123

 
122

Total net incurred (a)
4,610

 
4,320

 
4,675

Net payments attributable to:
 
 
 
 
 
Current year events
(1,029
)
 
(908
)
 
(917
)
Prior year events
(3,473
)
 
(3,776
)
 
(3,939
)
Total net payments
(4,502
)
 
(4,684
)
 
(4,856
)
Foreign currency translation adjustment and other
78

 
(5
)
 
98

Net reserves, end of year
19,283

 
19,374

 
21,222

Ceded reserves, end of year
5,020

 
6,122

 
5,594

Gross reserves, end of year
$
24,303

 
$
25,496

 
$
26,816



(a)
Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to uncollectible reinsurance and loss deductible receivables, and benefit expenses related to future policy benefits and policyholders' funds, which are not reflected in the table above.
Net prior year claim and claim adjustment expense reserve development
Reserve Development
Years ended December 31
 
 
 
 
 
(In millions)
2011
 
2010
 
2009
Core (Non-A&EP)
$
(429
)
 
$
(545
)
 
$
(396
)
A&EP
—

 
—

 
155

Property and casualty reserve development
(429
)
 
(545
)
 
(241
)
Life reserve development in life company
—

 
1

 
1

Total
$
(429
)
 
$
(544
)
 
$
(240
)
Gross and net carried claim and claim adjustment expense reserves
Gross and Net Carried Claim and Claim Adjustment Expense Reserves
December 31, 2011
CNA Specialty
 
CNA Commercial
 
Life &
Group Non-Core
 
Corporate
& Other Non-Core
 
Total
(In millions)
 
 
 
 
Gross Case Reserves
$
2,441

 
$
6,266

 
$
2,510

 
$
1,321

 
$
12,538

Gross IBNR Reserves
4,399

 
5,243

 
315

 
1,808

 
11,765

Total Gross Carried Claim and Claim Adjustment Expense Reserves
$
6,840

 
$
11,509

 
$
2,825

 
$
3,129

 
$
24,303

Net Case Reserves
$
2,086

 
$
5,720

 
$
2,025

 
$
347

 
$
10,178

Net IBNR Reserves
3,937

 
4,670

 
254

 
244

 
9,105

Total Net Carried Claim and Claim Adjustment Expense Reserves
$
6,023

 
$
10,390

 
$
2,279

 
$
591

 
$
19,283



December 31, 2010
CNA Specialty
 
CNA Commercial
 
Life &
Group Non-Core
 
Corporate
& Other Non-Core
 
Total
(In millions)
 
 
 
 
Gross Case Reserves
$
2,341

 
$
6,390

 
$
2,403

 
$
1,430

 
$
12,564

Gross IBNR Reserves
4,452

 
6,132

 
336

 
2,012

 
12,932

Total Gross Carried Claim and Claim Adjustment Expense Reserves
$
6,793

 
$
12,522

 
$
2,739

 
$
3,442

 
$
25,496

Net Case Reserves
$
1,992

 
$
5,349

 
$
1,831

 
$
461

 
$
9,633

Net IBNR Reserves
3,926

 
5,292

 
266

 
257

 
9,741

Total Net Carried Claim and Claim Adjustment Expense Reserves
$
5,918

 
$
10,641

 
$
2,097

 
$
718

 
$
19,374
Impact of loss portfolio transfer on the 2010 consolidated condensed statement of income
Impact on Consolidated Statement of Operations
Year ended December 31
 
(In millions)
2010
Other operating expenses
$
529

Income tax benefit
185

Loss from continuing operations, included in the Corporate & Other Non-Core segment
(344
)
Loss from discontinued operations
(21
)
Net loss attributable to CNA
$
(365
)
Net prior year development
Net Prior Year Development
Year ended December 31, 2011
 
 
 
 
 
 
 
(In millions)
CNA
Specialty
 
CNA Commercial
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development- Core (Non-A&EP)
$
(217
)
 
$
(204
)
 
$
(2
)
 
$
(423
)
Pretax (favorable) unfavorable premium development
(28
)
 
21

 
(1
)
 
(8
)
Total pretax (favorable) unfavorable net prior year development
$
(245
)
 
$
(183
)
 
$
(3
)
 
$
(431
)

Year ended December 31, 2010
 
 
 
 
 
 
 
(In millions)
CNA
Specialty
 
CNA Commercial
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development- Core (Non-A&EP)
$
(341
)
 
$
(304
)
 
$
8

 
$
(637
)
Pretax (favorable) unfavorable premium development
(3
)
 
48

 
(2
)
 
43

Total pretax (favorable) unfavorable net prior year development
$
(344
)
 
$
(256
)
 
$
6

 
$
(594
)

Year ended December 31, 2009
 
 
 
 
 
 
 
(In millions)
CNA
Specialty
 
CNA Commercial
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
 
 
Core (Non-A&EP)
$
(218
)
 
$
(230
)
 
$
4

 
$
(444
)
A&EP
—

 
—

 
155

 
155

Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
(218
)
 
(230
)
 
159

 
(289
)
Pretax (favorable) unfavorable premium development
(6
)
 
87

 
—

 
81

Total pretax (favorable) unfavorable net prior year development
$
(224
)
 
$
(143
)
 
$
159

 
$
(208
)
Net prior year claim and allocated claim adjustment expense reserve development for CNA specialty segment
Years ended December 31
 
 
 
 
 
(In millions)
2011
 
2010
 
2009
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
Medical Professional Liability
$
(92
)
 
$
(98
)
 
$
(62
)
Other Professional Liability
(78
)
 
(129
)
 
(98
)
Surety
(47
)
 
(103
)
 
(51
)
Warranty
(13
)
 
—

 
—

Other
13

 
(11
)
 
(7
)
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(217
)
 
$
(341
)
 
$
(218
)
Net prior year claim and allocated claim adjustment expense reserve development for CNA commercial segment
Years ended December 31
 
 
 
 
 
(In millions)
2011
 
2010
 
2009
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
Commercial Auto
$
(98
)
 
$
(88
)
 
$
(9
)
General Liability
(39
)
 
(59
)
 
(100
)
Workers' Compensation
36

 
47

 
69

Property and Other
(103
)
 
(204
)
 
(190
)
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(204
)
 
$
(304
)
 
$
(230
)