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Claim and Claim Adjustment Expense Reserves (Tables)
 12 Months Ended
Dec. 31, 2013
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)
2013
 
2012
 
2011
Reserves, beginning of year:
 
 
 
 
 
Gross
$
24,763

 
$
24,303

 
$
25,496

Ceded
5,126

 
5,020

 
6,122

Net reserves, beginning of year
19,637

 
19,283

 
19,374

Change in net reserves due to acquisition (disposition) of subsidiaries
—

 
291

 
(277
)
Net incurred claim and claim adjustment expenses:
 
 
 
 
 
Provision for insured events of current year
5,114

 
5,273

 
4,904

Decrease in provision for insured events of prior years
(115
)
 
(182
)
 
(429
)
Amortization of discount
154

 
145

 
135

Total net incurred (a)
5,153

 
5,236

 
4,610

Net payments attributable to:
 
 
 
 
 
Current year events
(981
)
 
(988
)
 
(1,029
)
Prior year events
(4,588
)
 
(4,280
)
 
(3,473
)
Total net payments
(5,569
)
 
(5,268
)
 
(4,502
)
Foreign currency translation adjustment and other
(104
)
 
95

 
78

Net reserves, end of year
19,117

 
19,637

 
19,283

Ceded reserves, end of year
4,972

 
5,126

 
5,020

Gross reserves, end of year
$
24,089

 
$
24,763

 
$
24,303



(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 retroactive reinsurance deferred gain accounting, 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)
2013
 
2012
 
2011
Property and casualty reserve development
$
(115
)
 
$
(180
)
 
$
(429
)
Life reserve development in life company
—

 
(2
)
 
—

Total
$
(115
)
 
$
(182
)
 
$
(429
)
Gross and net carried claim and claim adjustment expense reserves
Gross and Net Carried Claim and Claim Adjustment Expense Reserves
December 31, 2013
CNA Specialty
 
CNA Commercial
 
Hardy
 
Life &
Group Non-Core
 
Corporate
& Other Non-Core
 
Total
(In millions)
 
 
 
 
 
Gross Case Reserves
$
2,270

 
$
5,829

 
$
275

 
$
2,748

 
$
1,140

 
$
12,262

Gross IBNR Reserves
4,419

 
4,820

 
111

 
310

 
2,167

 
11,827

Total Gross Carried Claim and Claim Adjustment Expense Reserves
$
6,689

 
$
10,649

 
$
386

 
$
3,058

 
$
3,307

 
$
24,089

Net Case Reserves
$
2,024

 
$
5,358

 
$
159

 
$
2,352

 
$
283

 
$
10,176

Net IBNR Reserves
4,142

 
4,269

 
75

 
271

 
184

 
8,941

Total Net Carried Claim and Claim Adjustment Expense Reserves
$
6,166

 
$
9,627

 
$
234

 
$
2,623

 
$
467

 
$
19,117



December 31, 2012
CNA Specialty
 
CNA Commercial
 
Hardy
 
Life &
Group Non-Core
 
Corporate
& Other Non-Core
 
Total
(In millions)
 
 
 
 
 
Gross Case Reserves
$
2,292

 
$
6,146

 
$
333

 
$
2,690

 
$
1,207

 
$
12,668

Gross IBNR Reserves
4,456

 
5,180

 
188

 
316

 
1,955

 
12,095

Total Gross Carried Claim and Claim Adjustment Expense Reserves
$
6,748

 
$
11,326

 
$
521

 
$
3,006

 
$
3,162

 
$
24,763

Net Case Reserves
$
2,008

 
$
5,611

 
$
192

 
$
2,253

 
$
292

 
$
10,356

Net IBNR Reserves
4,104

 
4,600

 
82

 
275

 
220

 
9,281

Total Net Carried Claim and Claim Adjustment Expense Reserves
$
6,112

 
$
10,211

 
$
274

 
$
2,528

 
$
512

 
$
19,637
Net prior year development
Net Prior Year Development
Year ended December 31, 2013
 
 
 
 
 
 
 
 
 
(In millions)
CNA
Specialty
 
CNA Commercial
 
Hardy
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(230
)
 
$
104

 
$
14

 
$
(6
)
 
$
(118
)
Pretax (favorable) unfavorable premium development
(17
)
 
(9
)
 
(17
)
 
1

 
(42
)
Total pretax (favorable) unfavorable net prior year development
$
(247
)
 
$
95

 
$
(3
)
 
$
(5
)
 
$
(160
)

Year ended December 31, 2012
 
 
 
 
 
 
 
 
 
(In millions)
CNA
Specialty
 
CNA Commercial
 
Hardy
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(135
)
 
$
(46
)
 
$
(11
)
 
$
(13
)
 
$
(205
)
Pretax (favorable) unfavorable premium development
(15
)
 
(35
)
 
3

 
1

 
(46
)
Total pretax (favorable) unfavorable net prior year development
$
(150
)
 
$
(81
)
 
$
(8
)
 
$
(12
)
 
$
(251
)

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
$
(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
)
Net prior year claim and allocated claim adjustment expense reserve development for CNA Specialty segment
The following table provides further detail of the net prior year claim and allocated claim adjustment expense reserve development (development) recorded for the CNA Specialty segment for the years ended December 31, 2013, 2012 and 2011.
Years ended December 31
 
 
 
 
 
(In millions)
2013
 
2012
 
2011
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
Medical Professional Liability
$
(35
)
 
$
(32
)
 
$
(92
)
Other Professional Liability and Management Liability
(101
)
 
(22
)
 
(78
)
Surety
(74
)
 
(63
)
 
(47
)
Warranty
(3
)
 
(5
)
 
(13
)
Other
(17
)
 
(13
)
 
13

Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(230
)
 
$
(135
)
 
$
(217
)
Net prior year claim and allocated claim adjustment expense reserve development for CNA Commercial segment
The following table provides further detail of the development recorded for the CNA Commercial segment for the years ended December 31, 2013, 2012 and 2011.
Years ended December 31



 
 
(In millions)
2013

2012
 
2011
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
Commercial Auto
$
15

 
$
27

 
$
(98
)
General Liability
59

 
(64
)
 
(39
)
Workers' Compensation
92

 
15

 
36

Property and Other
(62
)
 
(24
)
 
(103
)
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
104

 
$
(46
)
 
$
(204
)
Net prior year claim and allocated claim adjustment expense reserve development for Hardy segment
The following table provides further detail of the development recorded for the Hardy segment for the years ended December 31, 2013 and 2012.
Years ended December 31
 
 
 
(In millions)
2013
 
2012
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
Marine and Aviation
$
2

 
$
—

Non-Marine Property
12

 
(7
)
Property Treaty
(5
)
 
(3
)
Specialty
(6
)
 
(1
)
Commutation
11

 
—

Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
14

 
$
(11
)
Impact of loss portfolio transfer on the consolidated statement of operations
The following table displays the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations.

Years ended December 31
 
 
 
 
 
(In millions)
2013
 
2012
 
2011
Net A&EP adverse development before consideration of LPT
$
363

 
$
261

 
$
84

Provision for uncollectible third-party reinsurance on A&EP
140

 
—

 
—

Additional amounts ceded under LPT
503

 
261

 
84

Retroactive reinsurance benefit recognized
(314
)
 
(261
)
 
(84
)
Pretax impact of unrecognized deferred retroactive reinsurance benefit
$
189

 
$
—

 
$
—