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Claim and Claim Adjustment Expense Reserves (Tables)
6 Months Ended
Jun. 30, 2015
Liability for Claims and Claims Adjustment Expense [Abstract]  
Net prior year development
The following tables and discussion present net prior year development recorded for Specialty, Commercial, International and Corporate & Other Non-Core segments.
Three months ended June 30, 2015
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(13
)
 
$
16

 
$
(8
)
 
$

 
$
(5
)
Pretax (favorable) unfavorable premium development
(2
)
 
(11
)
 
(2
)
 

 
(15
)
Total pretax (favorable) unfavorable net prior year development
$
(15
)
 
$
5

 
$
(10
)
 
$

 
$
(20
)

Three months ended June 30, 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
$
(41
)
 
$
90

 
$
(25
)
 
$

 
$
24

Pretax (favorable) unfavorable premium development
(2
)
 
(6
)
 
6

 

 
(2
)
Total pretax (favorable) unfavorable net prior year development
$
(43
)
 
$
84

 
$
(19
)
 
$

 
$
22



Six months ended June 30, 2015
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(11
)
 
$
11

 
$
(12
)
 
$

 
$
(12
)
Pretax (favorable) unfavorable premium development
(8
)
 
(12
)
 
14

 

 
(6
)
Total pretax (favorable) unfavorable net prior year development
$
(19
)
 
$
(1
)
 
$
2

 
$

 
$
(18
)

Six months ended June 30, 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
$
(44
)
 
$
108

 
$
(15
)
 
$

 
$
49

Pretax (favorable) unfavorable premium development
(8
)
 
(24
)
 
(1
)
 

 
(33
)
Total pretax (favorable) unfavorable net prior year development
$
(52
)
 
$
84

 
$
(16
)
 
$

 
$
16

Net prior year claim and allocated claim adjustment expense reserve development for Specialty segment
The following table presents further detail of the net prior year claim and allocated claim adjustment expense reserve development (development) recorded for the Specialty segment.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2015
 
2014
 
2015
 
2014
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
 
 
Medical Professional Liability
$
(6
)
 
$
1

 
$
8

 
$
1

Other Professional Liability and Management Liability
(1
)
 
(44
)
 
(4
)
 
(50
)
Surety

 

 
1

 
1

Warranty
1

 

 
1

 

Other
(7
)
 
2

 
(17
)
 
4

Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(13
)
 
$
(41
)
 
$
(11
)
 
$
(44
)
Net prior year claim and allocated claim adjustment expense reserve development for Commercial segment
The following table presents further detail of the development recorded for the Commercial segment. The majority of the 2014 unfavorable development relates to business classes which the Company has exited, but also includes Small Business where the Company has taken underwriting actions in an effort to improve profitability.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2015

2014
 
2015
 
2014
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
 
 
Commercial Auto
$
7

 
$
19

 
$
7

 
$
39

General Liability
1

 
32

 
5

 
32

Workers' Compensation
24

 
39

 
23

 
50

Property and Other
(16
)
 

 
(24
)
 
(13
)
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
16

 
$
90

 
$
11

 
$
108

Net prior year claim and allocated claim adjustment expense reserve development for International segment
The following table presents further detail of the development recorded for the International segment.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2015
 
2014
 
2015
 
2014
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development:
 
 
 
 
 
 
 
Medical Professional Liability
$

 
$

 
$

 
$
1

Other Professional Liability
(5
)
 
(14
)
 
(5
)
 
(15
)
Liability
(2
)
 
(4
)
 
(7
)
 
(6
)
Property & Marine
(8
)
 
(7
)
 
(14
)
 
1

Other
7

 

 
14

 
(6
)
Commutations

 

 

 
10

Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(8
)
 
$
(25
)
 
$
(12
)
 
$
(15
)
Impact of loss portfolio transfer on consolidated statements of operations
The following table displays the impact of the Loss Portfolio Transfer on the Condensed Consolidated Statements of Operations.

Periods ended June 30
Three Months
 
Six Months
(In millions)
2015
 
2014
 
2015
 
2014
Net A&EP adverse development before consideration of LPT
$
150

 
$

 
$
150

 
$

Provision for uncollectible third-party reinsurance on A&EP

 

 

 

Additional amounts ceded under LPT
150

 

 
150

 

Retroactive reinsurance benefit recognized
(66
)
 
(1
)
 
(71
)
 
(5
)
Pretax impact of unrecognized deferred retroactive reinsurance benefit
$
84

 
$
(1
)
 
$
79

 
$
(5
)