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Claim and Claim Adjustment Expense Reserves (Tables)
 12 Months Ended
Dec. 31, 2014
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)
2014
 
2013
 
2012
Reserves, beginning of year:
 
 
 
 
 
Gross
$
24,089

 
$
24,763

 
$
24,303

Ceded
4,972

 
5,126

 
5,020

Net reserves, beginning of year
19,117

 
19,637

 
19,283

Change in net reserves due to acquisition (disposition) of subsidiaries
(13
)
 
—

 
291

Net incurred claim and claim adjustment expenses:
 
 
 
 
 
Provision for insured events of current year
5,043

 
5,114

 
5,273

Decrease in provision for insured events of prior years
(36
)
 
(115
)
 
(182
)
Amortization of discount
161

 
154

 
145

Total net incurred (a)
5,168

 
5,153

 
5,236

Net payments attributable to:
 
 
 
 
 
Current year events
(945
)
 
(981
)
 
(988
)
Prior year events
(4,355
)
 
(4,588
)
 
(4,280
)
Total net payments
(5,300
)
 
(5,569
)
 
(5,268
)
Foreign currency translation adjustment and other
(45
)
 
(104
)
 
95

Net reserves, end of year
18,927

 
19,117

 
19,637

Ceded reserves, end of year
4,344

 
4,972

 
5,126

Gross reserves, end of year
$
23,271

 
$
24,089

 
$
24,763



(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)
2014
 
2013
 
2012
Property and casualty reserve development
$
(39
)
 
$
(115
)
 
$
(180
)
Life reserve development in life company
3

 
—

 
(2
)
Total
$
(36
)
 
$
(115
)
 
$
(182
)
Gross and net carried claim and claim adjustment expense reserves
Gross and Net Carried Claim and Claim Adjustment Expense Reserves
December 31, 2014
 Specialty
 
 Commercial
 
International
 
Life &
Group Non-Core
 
Corporate
& Other Non-Core
 
Total
(In millions)
 
 
 
 
 
Gross Case Reserves
$
2,136

 
$
5,298

 
$
752

 
$
2,881

 
$
1,189

 
$
12,256

Gross IBNR Reserves
4,093

 
4,216

 
689

 
302

 
1,715

 
11,015

Total Gross Carried Claim and Claim Adjustment Expense Reserves
$
6,229

 
$
9,514

 
$
1,441

 
$
3,183

 
$
2,904

 
$
23,271

Net Case Reserves
$
1,929

 
$
4,947

 
$
598

 
$
2,572

 
$
144

 
$
10,190

Net IBNR Reserves
3,726

 
3,906

 
663

 
271

 
171

 
8,737

Total Net Carried Claim and Claim Adjustment Expense Reserves
$
5,655

 
$
8,853

 
$
1,261

 
$
2,843

 
$
315

 
$
18,927




December 31, 2013
 Specialty
 
 Commercial
 
International
 
Life &
Group Non-Core
 
Corporate
& Other Non-Core
 
Total
(In millions)
 
 
 
 
 
Gross Case Reserves
$
2,001

 
$
5,570

 
$
803

 
$
2,748

 
$
1,140

 
$
12,262

Gross IBNR Reserves
4,057

 
4,521

 
772

 
310

 
2,167

 
11,827

Total Gross Carried Claim and Claim Adjustment Expense Reserves
$
6,058

 
$
10,091

 
$
1,575

 
$
3,058

 
$
3,307

 
$
24,089

Net Case Reserves
$
1,793

 
$
5,119

 
$
629

 
$
2,352

 
$
283

 
$
10,176

Net IBNR Reserves
3,789

 
3,992

 
705

 
271

 
184

 
8,941

Total Net Carried Claim and Claim Adjustment Expense Reserves
$
5,582

 
$
9,111

 
$
1,334

 
$
2,623

 
$
467

 
$
19,117
Net prior year development
Net Prior Year Development
Year ended December 31, 2014
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(136
)
 
$
176

 
$
(59
)
 
$
(2
)
 
$
(21
)
Pretax (favorable) unfavorable premium development
(13
)
 
(20
)
 
2

 
(1
)
 
(32
)
Total pretax (favorable) unfavorable net prior year development
$
(149
)
 
$
156

 
$
(57
)
 
$
(3
)
 
$
(53
)

Year ended December 31, 2013
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(196
)
 
$
122

 
$
(38
)
 
$
(6
)
 
$
(118
)
Pretax (favorable) unfavorable premium development
(14
)
 
(8
)
 
(21
)
 
1

 
(42
)
Total pretax (favorable) unfavorable net prior year development
$
(210
)
 
$
114

 
$
(59
)
 
$
(5
)
 
$
(160
)

Year ended December 31, 2012
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(93
)
 
$
(25
)
 
$
(74
)
 
$
(13
)
 
$
(205
)
Pretax (favorable) unfavorable premium development
(14
)
 
(36
)
 
3

 
1

 
(46
)
Total pretax (favorable) unfavorable net prior year development
$
(107
)
 
$
(61
)
 
$
(71
)
 
$
(12
)
 
$
(251
)
Net prior year claim and allocated claim adjustment expense reserve development for 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 Specialty segment for the years ended December 31, 2014, 2013 and 2012.
Years ended December 31
 
 
 
 
 
(In millions)
2014
 
2013
 
2012
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
Medical Professional Liability
$
39

 
$
(27
)
 
$
(34
)
Other Professional Liability and Management Liability
(87
)
 
(73
)
 
19

Surety
(82
)
 
(74
)
 
(63
)
Warranty
(2
)
 
(3
)
 
(5
)
Other
(4
)
 
(19
)
 
(10
)
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(136
)
 
$
(196
)
 
$
(93
)
Net prior year claim and allocated claim adjustment expense reserve development for Commercial segment
The following table provides further detail of the development recorded for the Commercial segment for the years ended December 31, 2014, 2013 and 2012.
Years ended December 31



 
 
(In millions)
2014

2013
 
2012
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
Commercial Auto
$
31

 
$
18

 
$
25

General Liability
45

 
64

 
(66
)
Workers' Compensation
139

 
91

 
15

Property and Other
(39
)
 
(51
)
 
1

Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
176

 
$
122

 
$
(25
)
Net prior year claim and allocated claim adjustment expense reserve development for International segment
The following table provides further detail of the development recorded for the International segment for the years ended December 31, 2014, 2013 and 2012.
Years ended December 31
 
 
 
 
 
(In millions)
2014
 
2013
 
2012
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
Medical Professional Liability
$
(7
)
 
$
(7
)
 
$
1

Other Professional Liability
(26
)
 
(30
)
 
(41
)
Liability
(13
)
 
(8
)
 
(2
)
Property & Marine
(14
)
 
13

 
(30
)
Other
(9
)
 
(17
)
 
(2
)
Commutations
10

 
11

 
—

Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(59
)
 
$
(38
)
 
$
(74
)
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)
2014
 
2013
 
2012
Net A&EP adverse development before consideration of LPT
$
—

 
$
363

 
$
261

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

 
140

 
—

Additional amounts ceded under LPT
—

 
503

 
261

Retroactive reinsurance benefit recognized
(13
)
 
(314
)
 
(261
)
Pretax impact of unrecognized deferred retroactive reinsurance benefit
$
(13
)
 
$
189

 
$
—