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Claim and Claim Adjustment Expense Reserves (Tables)
 12 Months Ended
Dec. 31, 2015
Liability for Claims and Claims Adjustment Expense [Abstract]  
Reconciliation of claim and claim adjustment expense reserves
The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group Non-Core segment.
As of or for the years ended December 31
 
 
 
 
 
(In millions)
2015
 
2014
 
2013
Reserves, beginning of year:
 
 
 
 
 
Gross
$
23,271

 
$
24,089

 
$
24,763

Ceded
4,344

 
4,972

 
5,126

Net reserves, beginning of year
18,927

 
19,117

 
19,637

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

 
(13
)
 
—

Net incurred claim and claim adjustment expenses:
 
 
 
 
 
Provision for insured events of current year
4,934

 
5,043

 
5,114

Decrease in provision for insured events of prior years
(255
)
 
(36
)
 
(115
)
Amortization of discount
166

 
161

 
154

Total net incurred (a)
4,845

 
5,168

 
5,153

Net payments attributable to:
 
 
 
 
 
Current year events
(856
)
 
(945
)
 
(981
)
Prior year events
(4,089
)
 
(4,355
)
 
(4,588
)
Total net payments
(4,945
)
 
(5,300
)
 
(5,569
)
Foreign currency translation adjustment and other
(251
)
 
(45
)
 
(104
)
Net reserves, end of year
18,576

 
18,927

 
19,117

Ceded reserves, end of year
4,087

 
4,344

 
4,972

Gross reserves, end of year
$
22,663

 
$
23,271

 
$
24,089


(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.
Gross and net carried claim and claim adjustment expense reserves
The following tables present the gross and net carried reserves.
December 31, 2015
 Specialty
 
 Commercial
 
International
 
Life &
Group Non-Core
 
Corporate
& Other Non-Core
 
Total
(In millions)
 
 
 
 
 
Gross Case Reserves
$
2,011

 
$
4,975

 
$
622

 
$
2,973

 
$
1,521

 
$
12,102

Gross IBNR Reserves
4,258

 
4,208

 
725

 
247

 
1,123

 
10,561

Total Gross Carried Claim and Claim Adjustment Expense Reserves
$
6,269

 
$
9,183

 
$
1,347

 
$
3,220

 
$
2,644

 
$
22,663

Net Case Reserves
$
1,810

 
$
4,651

 
$
531

 
$
2,714

 
$
130

 
$
9,836

Net IBNR Reserves
3,758

 
3,925

 
688

 
216

 
153

 
8,740

Total Net Carried Claim and Claim Adjustment Expense Reserves
$
5,568

 
$
8,576

 
$
1,219

 
$
2,930

 
$
283

 
$
18,576



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
Net prior year development
Changes in estimates of claim and allocated claim adjustment expense reserves and premium accruals, net of reinsurance, for prior years are defined as net prior year development. These changes can be favorable or unfavorable. The following tables and discussion present the net prior year development recorded for Specialty, Commercial, International and Corporate & Other Non-Core segments.
Year ended December 31, 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
$
(141
)
 
$
(15
)
 
$
(54
)
 
$
—

 
$
(210
)
Pretax (favorable) unfavorable premium development
(11
)
 
(15
)
 
18

 
—

 
(8
)
Total pretax (favorable) unfavorable net prior year development
$
(152
)
 
$
(30
)
 
$
(36
)
 
$
—

 
$
(218
)
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
)
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.
Years ended December 31
 
 
 
 
 
(In millions)
2015
 
2014
 
2013
Pretax (favorable) unfavorable development:
 
 
 
 
 
Medical Professional Liability
$
(43
)
 
$
39

 
$
(27
)
Other Professional Liability and Management Liability
—

 
(87
)
 
(73
)
Surety
(69
)
 
(82
)
 
(74
)
Warranty
(2
)
 
(2
)
 
(3
)
Other
(27
)
 
(4
)
 
(19
)
Total pretax (favorable) unfavorable development
$
(141
)
 
$
(136
)
 
$
(196
)
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.
Years ended December 31



 
 
(In millions)
2015

2014
 
2013
Pretax (favorable) unfavorable development:
 
 
 
 
 
Commercial Auto
$
(22
)
 
$
31

 
$
18

General Liability
(33
)
 
45

 
64

Workers' Compensation
80

 
139

 
91

Property and Other
(40
)
 
(39
)
 
(51
)
Total pretax (favorable) unfavorable development
$
(15
)
 
$
176

 
$
122
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.
Years ended December 31
 
 
 
 
 
(In millions)
2015
 
2014
 
2013
Pretax (favorable) unfavorable development:
 
 
 
 
 
Medical Professional Liability
$
(9
)
 
$
(7
)
 
$
(7
)
Other Professional Liability
(16
)
 
(26
)
 
(30
)
Liability
(17
)
 
(13
)
 
(8
)
Property & Marine
(29
)
 
(14
)
 
13

Other
17

 
(9
)
 
(17
)
Commutations
—

 
10

 
11

Total pretax (favorable) unfavorable development
$
(54
)
 
$
(59
)
 
$
(38
)
Impact of loss portfolio transfer on the consolidated statement of operations
The following table presents the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations.
Years ended December 31
 
 
 
 
 
(In millions)
2015
 
2014
 
2013
Net A&EP adverse development before consideration of LPT
$
150

 
$
—

 
$
363

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

 
—

 
140

Additional amounts ceded under LPT
150

 
—

 
503

Retroactive reinsurance benefit recognized
(85
)
 
(13
)
 
(314
)
Pretax impact of deferred retroactive reinsurance
$
65

 
$
(13
)
 
$
189