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Claim and Claim Adjustment Expense Reserves (Tables)

12 Months Ended

Dec. 31, 2018

Net Incurred Claim and Claim 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 segment.



As of or for the years ended December 31
(In millions)	2018			2017			2016
Reserves, beginning of year:
Gross	$	22,004		$	22,343		$	22,663
Ceded	3,934			4,094			4,087
Net reserves, beginning of year	18,070			18,249			18,576
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	5,358			5,201			5,025
Decrease in provision for insured events of prior years	(179		)	(381		)	(342		)
Amortization of discount	176			179			175
Total net incurred ⁽¹⁾	5,355			4,999			4,858
Net payments attributable to:
Current year events	(1,046		)	(975		)	(967		)
Prior year events	(4,285		)	(4,366		)	(4,167		)
Total net payments	(5,331		)	(5,341		)	(5,134		)
Foreign currency translation adjustment and other	(129		)	163			(51		)
Net reserves, end of year	17,965			18,070			18,249
Ceded reserves, end of year	4,019			3,934			4,094
Gross reserves, end of year	$	21,984		$	22,004		$	22,343


(1)	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, 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, 2018	Specialty		Commercial		International		Life & Group		Corporate & Other		Total
(In millions)	Specialty		Commercial		International		Life & Group		Corporate & Other		Total
Gross Case Reserves	$	1,623	$	4,181	$	867	$	3,516	$	1,208	$	11,395
Gross IBNR Reserves	3,842		4,562		883		85		1,217		10,589
Total Gross Carried Claim and Claim Adjustment Expense Reserves	$	5,465	$	8,743	$	1,750	$	3,601	$	2,425	$	21,984
Net Case Reserves	$	1,483	$	3,831	$	749	$	3,364	$	96	$	9,523
Net IBNR Reserves	3,348		4,167		775		56		96		8,442
Total Net Carried Claim and Claim Adjustment Expense Reserves	$	4,831	$	7,998	$	1,524	$	3,420	$	192	$	17,965



December 31, 2017	Specialty		Commercial		International		Life & Group		Corporate & Other		Total
(In millions)	Specialty		Commercial		International		Life & Group		Corporate & Other		Total
Gross Case Reserves	$	1,742	$	4,427	$	744	$	3,386	$	1,371	$	11,670
Gross IBNR Reserves	3,927		4,337		892		113		1,065		10,334
Total Gross Carried Claim and Claim Adjustment Expense Reserves	$	5,669	$	8,764	$	1,636	$	3,499	$	2,436	$	22,004
Net Case Reserves	$	1,600	$	4,103	$	640	$	3,208	$	94	$	9,645
Net IBNR Reserves	3,407		4,033		792		82		111		8,425
Total Net Carried Claim and Claim Adjustment Expense Reserves	$	5,007	$	8,136	$	1,432	$	3,290	$	205	$	18,070

Net prior year development

The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments.



December 31, 2018
(In millions)	2018			2017			2016
Pretax (favorable) unfavorable development:
Specialty	$	(150	)	$	(174	)	$	(247	)
Commercial	(25		)	(115		)	15
International	(4		)	(9		)	(58		)
Corporate & Other	(2		)	(10		)	2
Total pretax (favorable) unfavorable development	$	(181	)	$	(308	)	$	(288	)

Short-duration insurance contracts, reconciliation of claims development to liability

The table below reconciles the net liability for unpaid claim and claim adjustment expenses to the amount presented in the Consolidated Balance Sheets.



As of December 31
(In millions)	2018
Net liability for unpaid claim and claim adjustment expenses:
Specialty	$	4,831
Commercial	7,998
International	1,524
Corporate & Other	192
Life & Group ⁽¹⁾	3,420
Total net claim and claim adjustment expenses	17,965
Reinsurance receivables: ⁽²⁾
Specialty	634
Commercial	745
International	226
Corporate & Other ⁽³⁾	2,233
Life & Group	181
Total reinsurance receivables	4,019
Total gross liability for unpaid claim and claim adjustment expenses	$	21,984

(1) The Life & Group segment amounts are primarily related to long term care claim reserves, but also includes amounts related to unfunded structured settlements arising from short duration contracts. Long term care policies are long duration contracts.

(2) Reinsurance receivables presented do not include reinsurance receivables related to paid losses.

(3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the Loss Portfolio Transfer.

Specialty

Net Incurred Claim and Claim 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 Specialty segment.



Years ended December 31
(In millions)	2018			2017			2016
Pretax (favorable) unfavorable development:
Medical Professional Liability	$	47		$	30		$	9
Other Professional Liability and Management Liability	(127		)	(126		)	(140		)
Surety	(70		)	(84		)	(63		)
Warranty	(10		)	4			4
Other	10			2			(57		)
Total pretax (favorable) unfavorable development	$	(150	)	$	(174	)	$	(247	)

Short-duration insurance contracts, reconciliation of claims development to liability

The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Specialty segment.



As of December 31
(In millions)	2018
Net liability for unpaid claim and claim adjustment expenses:
Medical Professional Liability	$	1,457
Other Professional Liability and Management Liability	2,849
Surety	379
Warranty	40
Other	106
Total net liability for unpaid claim and claim adjustment expenses	$	4,831

Commercial

Net Incurred Claim and Claim 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.



Years ended December 31
(In millions)	2018			2017			2016
Pretax (favorable) unfavorable development:
Commercial Auto	$	1		$	(35	)	$	(47	)
General Liability	32			(24		)	(65		)
Workers' Compensation	(32		)	(63		)	145
Property and Other	(26		)	7			(18		)
Total pretax (favorable) unfavorable development	$	(25	)	$	(115	)	$	15

Short-duration insurance contracts, reconciliation of claims development to liability

The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Commercial segment.



As of December 31
(In millions)	2018
Net Claim and claim adjustment expenses:
Commercial Auto	$	412
General Liability	3,195
Workers' Compensation	3,968
Property and Other	423
Total net liability for claim and claim adjustment expenses	$	7,998

International

Net Incurred Claim and Claim 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.



Years ended December 31
(In millions)	2018			2017			2016
Pretax (favorable) unfavorable development:
Casualty	$	(17	)	$	9		$	(29	)
Property	17			(16		)	(21		)
Energy and Marine	(19		)	(12		)	(18		)
Specialty	27			12			19
Healthcare and Technology	(12		)	(2		)	(9		)
Total pretax (favorable) unfavorable development	$	(4	)	$	(9	)	$	(58	)

Short-duration insurance contracts, reconciliation of claims development to liability

The table below provides the composition of the net liability for unpaid claim and claim adjustment expenses for the International segment.



As of December 31
(In millions)	2018
Net Claim and claim adjustment expenses:
International excluding Hardy	$	1,059
Hardy	465
Total net liability for claim and claim adjustment expenses	$	1,524

CNAF Consolidated

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Schedule of historical claims duration

The table below presents information about average historical claims duration as of December 31, 2018 and is presented as required supplementary information, which is unaudited.



Average Annual Percentage Payout of Ultimate Net Incurred Claim and Allocated Claim Adjustment Expenses in Year:
	1		2		3		4		5		6		7		8		9		10		Total
Specialty
Medical Professional Liability	3.8	%	19.7	%	24.3	%	20.1	%	12.1	%	7.2	%	4.5	%	2.5	%	1.0	%	2.9	%	98.1	%
Other Professional Liability and Management Liability	6.2	%	21.5	%	21.3	%	17.4	%	10.7	%	6.4	%	5.8	%	2.9	%	3.3	%	2.1	%	97.6	%
Surety⁽¹⁾	21.6	%	37.9	%	21.0	%	7.9	%	2.1	%	1.6	%	(1.7	)%	(0.5	)%	—	%	—	%	89.9	%

Commercial
Commercial Auto	28.0	%	23.0	%	18.5	%	14.2	%	9.3	%	3.1	%	1.3	%	0.3	%	0.2	%	0.7	%	98.6	%
General Liability	4.3	%	15.9	%	19.5	%	20.5	%	15.7	%	8.0	%	5.6	%	3.2	%	1.6	%	0.8	%	95.1	%
Workers' Compensation	13.7	%	21.1	%	13.9	%	10.6	%	7.5	%	4.4	%	4.4	%	3.2	%	2.5	%	1.2	%	82.5	%

International
International - Excluding Hardy	20.5	%	26.0	%	11.2	%	7.1	%	6.5	%	4.8	%	4.3	%	2.8	%	1.7	%	3.7	%	88.6	%
International - Hardy ⁽²⁾	24.0	%	38.9	%	13.3	%	6.0	%	2.9	%	2.1	%									87.2	%

(1) Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables.

(2) Average historical claims duration for Hardy is presented prospectively beginning with the first full year subsequent to acquisition, 2013.

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)	2018			2017			2016
Additional amounts ceded under LPT:
Net A&EP adverse development before consideration of LPT	$	178		$	60		$	200
Provision for uncollectible third-party reinsurance on A&EP	(16		)	—			—
Total additional amounts ceded under LPT	162			60			200
Retroactive reinsurance benefit recognized	(114		)	(68		)	(107		)
Pretax impact of deferred retroactive reinsurance	$	48		$	(8	)	$	93

Hardy | International

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Short-duration contracts net incurred claims and allocated claim adjustment expenses

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31								Calendar Year																As of December 31, 2018
(In millions, except reported claims data)	Net Claim and Allocated Claim Adjustment Expense Reserves at Acquisition		Net Incurred Claim and Allocated Claim Adjustment Expenses in 2012⁽¹⁾⁽²⁾			Total Acquired Net Claim and Allocated Claim Adjustment Expense Reserves and 2012 Incurreds		2013⁽¹⁾		2014⁽¹⁾			2015⁽¹⁾		2016⁽¹⁾			2017⁽¹⁾			2018			IBNR			Cumulative Number of Claims
Accident Year
2009	$	11	$	—		$	12	$	6	$	(4	)	$	1	$	(2	)	$	(3	)	$	(3	)	$	(2	)	3,856
2010	48		(9		)	38		47		52			46		52			51			50			—			4,540
2011	125		(1		)	124		134		134			138		137			137			140			(2		)	6,252
2012	33		71			104		104		112			119		113			113			115			1			6,900
2013								130		146			138		139			140			144			4			7,624
2014										184			182		176			170			170			2			8,097
2015													190		179			177			178			3			8,968
2016															227			245			234			28			9,536
2017																		244			252			48			10,309
2018																					270			103			7,563
																		Total			$	1,550		$	185

Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense

Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year
(In millions)	2012⁽¹⁾⁽²⁾		2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018
Accident Year
2009	$	2	$	(2	)	$	(4	)	$	(4	)	$	(4	)	$	(5	)	$	(4	)
2010	19		35			42			45			47			48			46
2011	30		83			123			127			131			132			134
2012	14		79			100			109			106			109			110
2013			38			101			120			126			130			133
2014						56			122			141			150			155
2015									29			98			129			144
2016												63			144			171
2017															53			150
2018																		55
Total																		$	1,094
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																		$	456
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2009																		—
Liability for unallocated claim adjustment expenses for accident years presented																		9
Total net liability for unpaid claim and claim adjustment expenses																		$	465

Short-duration contracts reserve development

Net strengthening or (releases) of prior accident year reserves is presented in the following table.



For the years ended December 31	Calendar Year
(In millions)	2012⁽¹⁾⁽²⁾			2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾⁽³⁾			2016⁽¹⁾⁽³⁾			2017⁽¹⁾⁽³⁾			2018⁽³⁾			Total⁽³⁾
Accident Year
2009	$	1		$	(6	)	$	(10	)	$	5		$	(3	)	$	(1	)	$	—		$	(14	)
2010	(10		)	9			5			(6		)	6			(1		)	(1		)	2
2011	(1		)	10			—			4			(1		)	—			3			15
2012				—			8			7			(6		)	—			2			11
2013							16			(8		)	1			1			4			14
2014										(2		)	(6		)	(6		)	—			(14		)
2015													(11		)	(2		)	1			(12		)
2016																18			(11		)	7
2017																			8			8

(1) Data presented for these calendar years is required supplemental information, which is unaudited.

(2) Data presented for this calendar year is post-acquisition of Hardy.

(3) The amounts included in the loss reserve development tables above are presented at the year-end 2018 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate fluctuations between calendar years. The amounts included within the table on page 102 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates.

Medical Professional Liability | Specialty

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Short-duration contracts net incurred claims and allocated claim adjustment expenses

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year																				As of December 31, 2018
(In millions, except reported claims data)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018		IBNR		Cumulative Number of Claims
Accident Year
2009	$	389	$	390	$	392	$	392	$	366	$	346	$	336	$	309	$	302	$	310	$	—	14,716
2010			402		412		423		426		415		395		365		360		356		—		14,615
2011					429		437		443		468		439		434		437		437		8		16,505
2012							464		469		508		498		493		484		493		10		17,691
2013									462		479		500		513		525		535		28		19,442
2014											450		489		537		530		535		30		19,602
2015													433		499		510		494		78		17,835
2016															427		487		485		120		15,427
2017																	412		449		217		13,777
2018																			404		333		11,205
																	Total		$	4,498	$	824

Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense

Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year
(In millions)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018
Accident Year
2009	$	9	$	63	$	143	$	211	$	247	$	269	$	280	$	288	$	291	$	300
2010			10		86		173		257		306		326		337		346		350
2011					17		109		208		295		347		375		398		409
2012							14		117		221		323		388		427		457
2013									17		119		255		355		414		462
2014											23		136		258		359		417
2015													22		101		230		313
2016															18		121		246
2017																	19		107
2018																			21
																	Total		$	3,082
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	1,416
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2009																			18
Liability for unallocated claim adjustment expenses for accident years presented																			23
Total net liability for unpaid claim and claim adjustment expenses																			$	1,457

Short-duration contracts reserve development

Net strengthening or (releases) of prior accident year reserves is presented in the following table.



For the years ended December 31	Calendar Year
(In millions)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018			Total
Accident Year
2009	$	1	$	2	$	—	$	(26	)	$	(20	)	$	(10	)	$	(27	)	$	(7	)	$	8		$	(79	)
2010			10		11		3			(11		)	(20		)	(30		)	(5		)	(4		)	(46		)
2011					8		6			25			(29		)	(5		)	3			—			8
2012							5			39			(10		)	(5		)	(9		)	9			29
2013										17			21			13			12			10			73
2014													39			48			(7		)	5			85
2015																66			11			(16		)	61
2016																			60			(2		)	58
2017																						37			37
Total net development for the accident years presented above																60			58			47
Total net development for accident years prior to 2009																(51		)	(21		)	1
Total unallocated claim adjustment expense development																—			(7		)	(1		)
Total																$	9		$	30		$	47

(1) Data presented for these calendar years is required supplemental information, which is unaudited.

Other Professional Liability and Management Liability | Specialty

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Short-duration contracts net incurred claims and allocated claim adjustment expenses

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year																				As of December 31, 2018
(In millions, except reported claims data)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018		IBNR		Cumulative Number of Claims
Accident Year
2009	$	831	$	875	$	908	$	903	$	893	$	903	$	897	$	906	$	904	$	892	$	18	17,374
2010			828		828		848		848		847		837		824		827		821		19		17,888
2011					880		908		934		949		944		911		899		888		39		18,728
2012							923		909		887		878		840		846		833		41		18,491
2013									884		894		926		885		866		863		65		17,918
2014											878		898		885		831		835		88		17,515
2015													888		892		877		832		194		17,333
2016															901		900		900		279		17,787
2017																	847		845		479		17,780
2018																			850		726		16,564
																	Total		$	8,559	$	1,948

Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense

Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year
(In millions)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018
Accident Year
2009	$	37	$	195	$	361	$	553	$	641	$	722	$	772	$	801	$	825	$	844
2010			31		204		405		541		630		670		721		752		784
2011					71		314		503		605		683		726		781		796
2012							56		248		400		573		651		711		755
2013									54		249		447		618		702		754
2014											51		223		392		515		647
2015													60		234		404		542
2016															64		248		466
2017																	57		222
2018																			54
																	Total		$	5,864
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	2,695
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2009																			90
Liability for unallocated claim adjustment expenses for accident years presented																			64
Total net liability for unpaid claim and claim adjustment expenses																			$	2,849

Short-duration contracts reserve development

Net strengthening or (releases) of prior accident year reserves is presented in the following table.



For the years ended December 31	Calendar Year
(In millions)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾			2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018			Total
Accident Year
2009	$	44	$	33	$	(5	)	$	(10	)	$	10		$	(6	)	$	9		$	(2	)	$	(12	)	$	61
2010			—		20			—			(1		)	(10		)	(13		)	3			(6		)	(7		)
2011					28			26			15			(5		)	(33		)	(12		)	(11		)	8
2012								(14		)	(22		)	(9		)	(38		)	6			(13		)	(90		)
2013											10			32			(41		)	(19		)	(3		)	(21		)
2014														20			(13		)	(54		)	4			(43		)
2015																	4			(15		)	(45		)	(56		)
2016																				(1		)	—			(1		)
2017																							(2		)	(2		)
Total net development for the accident years presented above																	(125		)	(94		)	(88		)
Total net development for accident years prior to 2009																	(15		)	(25		)	(32		)
Total unallocated claim adjustment expense development																	—			(7		)	(7		)
Total																	$	(140	)	$	(126	)	$	(127	)

(1) Data presented for these calendar years is required supplemental information, which is unaudited.

Surety | Specialty

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Short-duration contracts net incurred claims and allocated claim adjustment expenses

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year																				As of December 31, 2018
(In millions, except reported claims data)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018		IBNR		Cumulative Number of Claims
Accident Year
2009	$	114	$	114	$	103	$	85	$	68	$	59	$	52	$	53	$	53	$	52	$	1	6,688
2010			112		112		111		84		76		66		63		59		61		1		5,971
2011					120		121		116		87		75		70		66		62		1		5,808
2012							120		122		98		70		52		45		39		2		5,559
2013									120		121		115		106		91		87		6		5,039
2014											123		124		94		69		60		19		5,036
2015													131		131		104		79		36		4,887
2016															124		124		109		60		5,185
2017																	120		115		78		4,936
2018																			114		101		3,105
																	Total		$	778	$	305

Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense

Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year
(In millions)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018
Accident Year
2009	$	13	$	24	$	34	$	41	$	43	$	45	$	46	$	47	$	47	$	47
2010			13		34		50		55		57		58		55		52		52
2011					19		42		55		58		60		60		56		57
2012							5		32		34		35		35		36		37
2013									16		40		69		78		78		78
2014											7		30		38		36		38
2015													7		26		38		40
2016															5		37		45
2017																	23		37
2018																			5
																	Total		$	436
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	342
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2009																			7
Liability for unallocated claim adjustment expenses for accident years presented																			30
Total net liability for unpaid claim and claim adjustment expenses																			$	379

Short-duration contracts reserve development

Net strengthening or (releases) of prior accident year reserves is presented in the following table.



For the years ended December 31	Calendar Year
(In millions)	2010⁽¹⁾		2011⁽¹⁾			2012⁽¹⁾			2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018			Total
Accident Year
2009	$	—	$	(11	)	$	(18	)	$	(17	)	$	(9	)	$	(7	)	$	1		$	—		$	(1	)	$	(62	)
2010			—			(1		)	(27		)	(8		)	(10		)	(3		)	(4		)	2			(51		)
2011						1			(5		)	(29		)	(12		)	(5		)	(4		)	(4		)	(58		)
2012									2			(24		)	(28		)	(18		)	(7		)	(6		)	(81		)
2013												1			(6		)	(9		)	(15		)	(4		)	(33		)
2014															1			(30		)	(25		)	(9		)	(63		)
2015																		—			(27		)	(25		)	(52		)
2016																					—			(15		)	(15		)
2017																								(5		)	(5		)
Total net development for the accident years presented above																		(64		)	(82		)	(67		)
Total net development for accident years prior to 2009																		1			1			(3		)
Total unallocated claim adjustment expense development																		—			(3		)	—
Total																		$	(63	)	$	(84	)	$	(70	)

(1) Data presented for these calendar years is required supplemental information, which is unaudited.

Commercial Auto | Commercial

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Short-duration contracts net incurred claims and allocated claim adjustment expenses

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year																				As of December 31, 2018
(In millions, except reported claims data)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018		IBNR		Cumulative Number of Claims
Accident Year
2009	$	291	$	276	$	280	$	282	$	285	$	281	$	278	$	276	$	276	$	277	$	—	48,499
2010			267		283		287		291		298		293		289		288		288		1		48,030
2011					268		281		288		302		300		294		294		294		4		47,905
2012							275		289		299		303		307		299		299		6		46,288
2013									246		265		265		249		245		245		7		39,429
2014											234		223		212		205		205		9		33,609
2015													201		199		190		190		22		30,388
2016															198		186		186		27		30,342
2017																	199		198		45		30,580
2018																			229		118		28,602
																	Total		$	2,411	$	239

Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense

Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year
(In millions)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018
Accident Year
2009	$	73	$	130	$	191	$	233	$	261	$	272	$	274	$	274	$	275	$	277
2010			74		141		203		246		271		281		286		287		287
2011					79		145		199		248		274		284		287		289
2012							78		160		220		259		282		285		290
2013									74		135		168		200		225		234
2014											64		102		137		166		187
2015													52		96		130		153
2016															52		93		126
2017																	58		107
2018																			66
																	Total		$	2,016
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	395
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2009																			6
Liability for unallocated claim adjustment expenses for accident years presented																			11
Total net liability for unpaid claim and claim adjustment expenses																			$	412

Short-duration contracts reserve development

Net strengthening or (releases) of prior accident year reserves is presented in the following table.



For the years ended December 31	Calendar Year
(In millions)	2010⁽¹⁾			2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018			Total
Accident Year
2009	$	(15	)	$	4	$	2	$	3	$	(4	)	$	(3	)	$	(2	)	$	—		$	1		$	(14	)
2010				16		4		4		7			(5		)	(4		)	(1		)	—			21
2011						13		7		14			(2		)	(6		)	—			—			26
2012								14		10			4			4			(8		)	—			24
2013										19			—			(16		)	(4		)	—			(1		)
2014													(11		)	(11		)	(7		)	—			(29		)
2015																(2		)	(9		)	—			(11		)
2016																			(12		)	—			(12		)
2017																						(1		)	(1		)
Total net development for the accident years presented above																(37		)	(41		)	—
Total net development for accident years prior to 2009																(10		)	4			—
Total unallocated claim adjustment expense development																—			2			1
Total																$	(47	)	$	(35	)	$	1

(1) Data presented for these calendar years is required supplemental information, which is unaudited.

General Liability | Commercial

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Short-duration contracts net incurred claims and allocated claim adjustment expenses

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year																				As of December 31, 2018
(In millions, except reported claims data)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018		IBNR		Cumulative Number of Claims
Accident Year
2009	$	662	$	716	$	733	$	755	$	752	$	756	$	755	$	754	$	755	$	755	$	16	44,934
2010			646		664		658		709		750		726		697		691		691		24		44,144
2011					591		589		631		677		676		681		670		669		26		39,283
2012							587		611		639		636		619		635		635		46		35,083
2013									650		655		650		655		613		623		51		33,420
2014											653		658		654		631		635		71		27,736
2015													581		576		574		589		122		23,471
2016															623		659		667		265		23,078
2017																	632		632		412		19,716
2018																			653		553		13,336
																	Total		$	6,549	$	1,586

Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense

Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year
(In millions)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018
Accident Year
2009	$	33	$	124	$	305	$	468	$	576	$	625	$	663	$	701	$	721	$	727
2010			27		145		280		429		561		611		642		652		656
2011					28		148		273		411		517		568		602		622
2012							28		132		247		374		454		510		559
2013									31		128		240		352		450		510
2014											31		119		247		376		481
2015													19		110		230		357
2016															32		163		279
2017																	23		118
2018																			33
																	Total		$	4,342
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	2,207
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2009																			927
Liability for unallocated claim adjustment expenses for accident years presented																			61
Total net liability for unpaid claim and claim adjustment expenses																			$	3,195

Short-duration contracts reserve development

Net strengthening or (releases) of prior accident year reserves is presented in the following table.



For the years ended December 31	Calendar Year
(In millions)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾			2013⁽¹⁾			2014⁽¹⁾		2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018			Total
Accident Year
2009	$	54	$	17	$	22		$	(3	)	$	4	$	(1	)	$	(1	)	$	1		$	—		$	93
2010			18		(6		)	51			41		(24		)	(29		)	(6		)	—			45
2011					(2		)	42			46		(1		)	5			(11		)	(1		)	78
2012								24			28		(3		)	(17		)	16			—			48
2013											5		(5		)	5			(42		)	10			(27		)
2014													5			(4		)	(23		)	4			(18		)
2015																(5		)	(2		)	15			8
2016																			36			8			44
2017																						—			—
Total net development for the accident years presented above																(46		)	(31		)	36
Total net development for accident years prior to 2009																(19		)	(1		)	—
Total unallocated claim adjustment expense development																—			8			(4		)
Total																$	(65	)	$	(24	)	$	32

(1) Data presented for these calendar years is required supplemental information, which is unaudited.

Workers' Compensation | Commercial

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Short-duration contracts net incurred claims and allocated claim adjustment expenses

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year																				As of December 31, 2018
(In millions, except reported claims data)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018		IBNR		Cumulative Number of Claims
Accident Year
2009	$	592	$	599	$	609	$	611	$	616	$	626	$	631	$	638	$	649	$	650	$	46	51,822
2010			583		632		654		676		698		710		730		733		732		44		49,106
2011					607		641		647		659		651		676		676		674		27		45,637
2012							601		627		659		669		678		673		671		59		42,477
2013									537		572		592		618		593		582		86		38,665
2014											467		480		479		452		450		104		33,465
2015													422		431		406		408		146		31,828
2016															426		405		396		171		31,905
2017																	440		432		171		32,811
2018																			450		276		30,399
																	Total		$	5,445	$	1,130

Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense

Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year
(In millions)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018
Accident Year
2009	$	89	$	227	$	321	$	388	$	443	$	476	$	503	$	525	$	549	$	557
2010			97		251		359		442		510		542		577		615		625
2011					99		249		358		438		478		522		564		571
2012							87		232		342		416		470		509		524
2013									80		213		300		370		417		419
2014											61		159		215		258		282
2015													51		131		180		212
2016															53		129		169
2017																	63		151
2018																			68
																	Total		$	3,578
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	1,867
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2009																			2,131
Other⁽²⁾																			(32		)
Liability for unallocated claim adjustment expenses for accident years presented																			2
Total net liability for unpaid claim and claim adjustment expenses																			$	3,968

Short-duration contracts reserve development

Net strengthening or (releases) of prior accident year reserves is presented in the following table.



For the years ended December 31	Calendar Year
(In millions)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018			Total
Accident Year
2009	$	7	$	10	$	2	$	5	$	10	$	5		$	7		$	11		$	1		$	58
2010			49		22		22		22		12			20			3			(1		)	149
2011					34		6		12		(8		)	25			—			(2		)	67
2012							26		32		10			9			(5		)	(2		)	70
2013									35		20			26			(25		)	(11		)	45
2014											13			(1		)	(27		)	(2		)	(17		)
2015														9			(25		)	2			(14		)
2016																	(21		)	(9		)	(30		)
2017																				(8		)	(8		)
Total net development for the accident years presented above														95			(89		)	(32		)
Adjustment for development on a discounted basis														(3		)	(3		)	—
Total net development for accident years prior to 2009														53			28			7
Total unallocated claim adjustment expense development														—			1			(7		)
Total														$	145		$	(63	)	$	(32	)

(1) Data presented for these calendar years is required supplemental information, which is unaudited.

(2) Other includes the effect of discounting lifetime claim reserves.

Excluding Hardy | International

Net Incurred Claim and Claim Adjustment Expense [Line Items]

Short-duration contracts net incurred claims and allocated claim adjustment expenses

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year																				As of December 31, 2018
(In millions, except reported claims data)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018		IBNR		Cumulative Number of Claims
Accident Year
2009	$	254	$	251	$	253	$	253	$	239	$	236	$	226	$	218	$	216	$	219	$	8	20,257
2010			232		229		223		217		208		201		195		188		184		8		21,949
2011					265		266		258		239		227		221		219		216		9		24,585
2012							266		273		258		251		251		244		236		20		24,975
2013									287		289		281		261		257		250		25		23,909
2014											275		290		290		279		271		38		24,874
2015													289		305		304		286		51		23,239
2016															284		302		289		79		17,557
2017																	300		363		134		17,865
2018																			369		174		16,565
																	Total		$	2,683	$	546

Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense

Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.



As of December 31	Calendar Year
(In millions)	2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018
Accident Year
2009	$	39	$	92	$	122	$	137	$	153	$	162	$	174	$	185	$	190	$	198
2010			48		96		119		133		146		156		164		167		169
2011					44		114		135		149		162		174		181		185
2012							43		112		144		164		180		191		201
2013									49		112		138		155		169		179
2014											51		120		148		165		182
2015													55		131		161		181
2016															66		131		157
2017																	64		145
2018																			90
Total																			$	1,687
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	996
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2009																			39
Liability for unallocated claim adjustment expenses for accident years presented																			24
Total net liability for unpaid claim and claim adjustment expenses																			$	1,059

Short-duration contracts reserve development

Net strengthening or (releases) of prior accident year reserves is presented in the following table.



For the years ended December 31	Calendar Year
(In millions)	2010⁽¹⁾			2011⁽¹⁾			2012⁽¹⁾			2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾⁽²⁾			2016⁽¹⁾⁽²⁾			2017⁽¹⁾⁽²⁾			2018⁽²⁾			Total ⁽²⁾
Accident Year
2009	$	(3	)	$	2		$	—		$	(14	)	$	(3	)	$	(10	)	$	(8	)	$	(2	)	$	3		$	(35	)
2010				(3		)	(6		)	(6		)	(9		)	(7		)	(6		)	(7		)	(4		)	(48		)
2011							1			(8		)	(19		)	(12		)	(6		)	(2		)	(3		)	(49		)
2012										7			(15		)	(7		)	—			(7		)	(8		)	(30		)
2013													2			(8		)	(20		)	(4		)	(7		)	(37		)
2014																15			—			(11		)	(8		)	(4		)
2015																			16			(1		)	(18		)	(3		)
2016																						18			(13		)	5
2017																									63			63

(1) Data presented for these calendar years is required supplemental information, which is unaudited.

(2) The amounts included in the loss reserve development tables above are presented at the year-end 2018 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate fluctuations between calendar years. The amounts included within the table on page 102 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates.