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Claim and Claim Adjustment Expense Reserves (Tables)
 6 Months Ended
Jun. 30, 2017
Liability for Claims and Claims Adjustment Expense [Line Items]  
Schedule of liability for unpaid claims and claims adjustment expense
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.
For the six months ended June 30
 
(In millions)
2017
 
2016
Reserves, beginning of year:
 
 
 
Gross
$
22,343

 
$
22,663

Ceded
4,094

 
4,087

Net reserves, beginning of year
18,249

 
18,576

Net incurred claim and claim adjustment expenses:
 
 
 
Provision for insured events of current year
2,443

 
2,583

Decrease in provision for insured events of prior years
(159
)
 
(198
)
Amortization of discount
93

 
93

Total net incurred (1)
2,377


2,478

Net payments attributable to:
 
 


Current year events
(266
)
 
(311
)
Prior year events
(2,331
)
 
(2,185
)
Total net payments
(2,597
)

(2,496
)
Foreign currency translation adjustment and other
70

 
46

Net reserves, end of period
18,099

 
18,604

Ceded reserves, end of period
4,080

 
4,371

Gross reserves, end of period
$
22,179


$
22,975


(1)
Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Condensed 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, which are not reflected in the table above.
Net prior year development
The following tables and discussion present the net prior year development recorded for Specialty, Commercial, International and Corporate & Other Non-Core segments.
Three months ended June 30, 2017
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(23
)
 
$
(34
)
 
$
2

 
$
—

 
$
(55
)
Pretax (favorable) unfavorable premium development
(5
)
 
1

 
(4
)
 
—

 
(8
)
Total pretax (favorable) unfavorable net prior year development
$
(28
)
 
$
(33
)
 
$
(2
)
 
$
—

 
$
(63
)
Three months ended June 30, 2016
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(65
)
 
$
(18
)
 
$
(15
)
 
$
—

 
$
(98
)
Pretax (favorable) unfavorable premium development
(7
)
 
(2
)
 
1

 
—

 
(8
)
Total pretax (favorable) unfavorable net prior year development
$
(72
)
 
$
(20
)
 
$
(14
)
 
$
—

 
$
(106
)

Six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(54
)
 
$
(58
)
 
$
—

 
$
—

 
$
(112
)
Pretax (favorable) unfavorable premium development
(10
)
 
38

 
(11
)
 
—

 
17

Total pretax (favorable) unfavorable net prior year development
$
(64
)
 
$
(20
)
 
$
(11
)
 
$
—

 
$
(95
)
Six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
(In millions)

Specialty
 
 Commercial
 
International
 
Corporate
& Other
Non-Core
 
Total
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development
$
(99
)
 
$
(32
)
 
$
(19
)
 
$
—

 
$
(150
)
Pretax (favorable) unfavorable premium development
(18
)
 
(4
)
 
—

 
—

 
(22
)
Total pretax (favorable) unfavorable net prior year development
$
(117
)
 
$
(36
)
 
$
(19
)
 
$
—

 
$
(172
)
Specialty  
Liability for Claims and Claims Adjustment Expense [Line Items]  
Net prior year claim and allocated claim adjustment expense reserve development
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)
2017
 
2016
 
2017
 
2016
Pretax (favorable) unfavorable development:
 
 
 
 
 
 
 
Medical Professional Liability
$
3

 
$
(23
)
 
$
4

 
$
(30
)
Other Professional Liability and Management Liability
(37
)
 
(41
)
 
(69
)
 
(50
)
Surety
—

 
—

 
—

 
—

Warranty
6

 
3

 
6

 
5

Other
5

 
(4
)
 
5

 
(24
)
Total pretax (favorable) unfavorable development
$
(23
)
 
$
(65
)
 
$
(54
)
 
$
(99
)
Commercial  
Liability for Claims and Claims Adjustment Expense [Line Items]  
Net prior year claim and allocated claim adjustment expense reserve development
The following table presents further detail of the development recorded for the Commercial segment.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2017
 
2016
 
2017
 
2016
Pretax (favorable) unfavorable development:
 
 
 
 
 
 
 
Commercial Auto
$
—

 
$
(20
)
 
$
(26
)
 
$
(35
)
General Liability
(1
)
 
(37
)
 
(1
)
 
(52
)
Workers' Compensation
(46
)
 
50

 
(46
)
 
54

Property and Other
13

 
(11
)
 
15

 
1

Total pretax (favorable) unfavorable development
$
(34
)
 
$
(18
)
 
$
(58
)
 
$
(32
)
International  
Liability for Claims and Claims Adjustment Expense [Line Items]  
Net prior year claim and allocated claim adjustment expense reserve development
The following table presents further detail of the development recorded for the International segment.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2017
 
2016
 
2017
 
2016
Pretax (favorable) unfavorable development:
 
 
 
 
 
 
 
Medical Professional Liability
$
(5
)
 
$
(1
)
 
$
(5
)
 
$
(1
)
Other Professional Liability
10

 
18

 
9

 
17

Liability
(5
)
 
(19
)
 
(5
)
 
(19
)
Property & Marine
(12
)
 
(3
)
 
(11
)
 
(7
)
Other
14

 
(10
)
 
12

 
(9
)
Total pretax (favorable) unfavorable development
$
2

 
$
(15
)
 
$
—

 
$
(19
)
CNAF Consolidated  
Liability for Claims and Claims Adjustment Expense [Line Items]  
Impact of loss portfolio transfer on the consolidated statement of operations
The following table presents the impact of the Loss Portfolio Transfer on the Condensed Consolidated Statements of Operations.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2017
 
2016
 
2017
 
2016
Net A&EP adverse development before consideration of LPT
$
—

 
$
—

 
$
60

 
$
200

Retroactive reinsurance benefit recognized
(3
)
 
(9
)
 
(43
)
 
(82
)
Pretax impact of A&EP reserve development and the LPT
$
(3
)
 
$
(9
)
 
$
17

 
$
118