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Claim and Claim Adjustment Expense Reserves (Tables)

12 Months Ended

Dec. 31, 2019

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)	2019			2018			2017
Reserves, beginning of year:
Gross	$	21,984		$	22,004		$	22,343
Ceded	4,019			3,934			4,094
Net reserves, beginning of year	17,965			18,070			18,249
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	5,356			5,358			5,201
Increase (decrease) in provision for insured events of prior years	(127		)	(179		)	(381		)
Amortization of discount	184			176			179
Total net incurred ⁽¹⁾	5,413			5,355			4,999
Net payments attributable to:
Current year events	(992		)	(1,046		)	(975		)
Prior year events	(4,584		)	(4,285		)	(4,366		)
Total net payments	(5,576		)	(5,331		)	(5,341		)
Foreign currency translation adjustment and other	83			(129		)	163
Net reserves, end of year	17,885			17,965			18,070
Ceded reserves, end of year	3,835			4,019			3,934
Gross reserves, end of year	$	21,720		$	21,984		$	22,004

(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 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, 2019	Specialty		Commercial		International		Life & Group		Corporate & Other		Total
(In millions)	Specialty		Commercial		International		Life & Group		Corporate & Other		Total
Gross Case Reserves	$	1,481	$	3,937	$	858	$	3,576	$	1,137	$	10,989
Gross IBNR Reserves	3,757		4,719		1,018		140		1,097		10,731
Total Gross Carried Claim and Claim Adjustment Expense Reserves	$	5,238	$	8,656	$	1,876	$	3,716	$	2,234	$	21,720
Net Case Reserves	$	1,343	$	3,543	$	759	$	3,441	$	92	$	9,178
Net IBNR Reserves	3,333		4,306		869		116		83		8,707
Total Net Carried Claim and Claim Adjustment Expense Reserves	$	4,676	$	7,849	$	1,628	$	3,557	$	175	$	17,885



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

Net prior year development

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



Years ended December 31
(In millions)	2019			2018			2017
Pretax (favorable) unfavorable development:
Specialty	$	(92	)	$	(150	)	$	(174	)
Commercial	(2		)	(25		)	(115		)
International	21			(4		)	(9		)
Corporate & Other	—			(2		)	(10		)
Total pretax (favorable) unfavorable development	$	(73	)	$	(181	)	$	(308	)

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 on the Consolidated Balance Sheets.



As of December 31
(In millions)	2019
Net liability for unpaid claim and claim adjustment expenses:
Specialty	$	4,676
Commercial	7,849
International	1,628
Corporate & Other	175
Life & Group ⁽¹⁾	3,557
Total net claim and claim adjustment expenses	17,885
Reinsurance receivables: ⁽²⁾
Specialty	562
Commercial	807
International	248
Corporate & Other ⁽³⁾	2,059
Life & Group	159
Total reinsurance receivables	3,835
Total gross liability for unpaid claim and claim adjustment expenses	$	21,720

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

(2) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and 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 (LPT).

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)	2019			2018			2017
Pretax (favorable) unfavorable development:
Medical Professional Liability	$	75		$	47		$	30
Other Professional Liability and Management Liability	(69		)	(127		)	(126		)
Surety	(92		)	(70		)	(84		)
Warranty	(15		)	(10		)	4
Other	9			10			2
Total pretax (favorable) unfavorable development	$	(92	)	$	(150	)	$	(174	)

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)	2019
Net liability for unpaid claim and claim adjustment expenses:
Medical Professional Liability	$	1,429
Other Professional Liability and Management Liability	2,739
Surety	369
Warranty	29
Other	110
Total net liability for unpaid claim and claim adjustment expenses	$	4,676

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)	2019			2018			2017
Pretax (favorable) unfavorable development:
Commercial Auto	$	(25	)	$	1		$	(35	)
General Liability	54			32			(24		)
Workers' Compensation	(13		)	(32		)	(63		)
Property and Other	(18		)	(26		)	7
Total pretax (favorable) unfavorable development	$	(2	)	$	(25	)	$	(115	)

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)	2019
Net Claim and claim adjustment expenses:
Commercial Auto	$	404
General Liability	3,176
Workers' Compensation	3,932
Property and Other	337
Total net liability for claim and claim adjustment expenses	$	7,849

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)	2019			2018			2017
Pretax (favorable) unfavorable development:
Casualty	$	(20	)	$	(17	)	$	9
Property	23			19			(12		)
Energy and Marine	2			(19		)	(12		)
Specialty⁽¹⁾	16			13			6
Total pretax (favorable) unfavorable development	$	21		$	(4	)	$	(9	)

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)	2019
Net Claim and claim adjustment expenses:
International excluding Hardy	$	1,155
Hardy	473
Total net liability for claim and claim adjustment expenses	$	1,628

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, 2019 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	%	20.0	%	24.3	%	19.4	%	12.4	%	7.8	%	5.1	%	3.1	%	1.1	%	0.8	%	97.8	%
Other Professional Liability and Management Liability	6.6	%	22.6	%	21.7	%	16.9	%	10.5	%	6.0	%	4.9	%	3.3	%	3.8	%	0.7	%	97.0	%
Surety⁽¹⁾	20.0	%	44.5	%	21.0	%	4.4	%	2.2	%	0.9	%	(2.5	)%	(1.1	)%	—	%	1.6	%	91.0	%

Commercial
Commercial Auto	28.6	%	24.0	%	18.6	%	14.3	%	9.4	%	3.2	%	1.5	%	0.4	%	—	%	—	%	100.0	%
General Liability	4.3	%	15.8	%	19.0	%	20.1	%	15.7	%	8.7	%	6.0	%	2.5	%	1.5	%	1.6	%	95.2	%
Workers' Compensation	14.1	%	21.4	%	13.9	%	10.3	%	7.0	%	3.7	%	2.9	%	2.7	%	1.4	%	0.8	%	78.2	%

International
International - Excluding Hardy	20.8	%	25.7	%	11.0	%	7.3	%	6.8	%	5.3	%	5.0	%	1.7	%	1.2	%	2.1	%	86.9	%
International - Hardy ⁽²⁾	23.3	%	39.6	%	8.7	%	5.6	%	4.5	%	2.5	%	2.8	%							87.0	%

(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)	2019			2018			2017
Additional amounts ceded under LPT:
Net A&EP adverse development before consideration of LPT	$	150		$	178		$	60
Provision for uncollectible third-party reinsurance on A&EP	(25		)	(16		)	—
Total additional amounts ceded under LPT	125			162			60
Retroactive reinsurance benefit recognized	(107		)	(114		)	(68		)
Pretax impact of deferred retroactive reinsurance	$	18		$	48		$	(8	)

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, 2019
(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⁽¹⁾		2019			IBNR			Cumulative Number of Claims
Accident Year
2010	$	48	$	(10	)	$	39	$	48	$	52	$	46	$	53	$	52	$	51	$	51		$	(1	)	4,565
2011	126		(1		)	125		136		136		140		139		139		142		142			(1		)	6,292
2012	33		71			104		105		112		119		113		113		116		115			1			6,950
2013								131		146		138		140		141		144		145			2			7,724
2014										185		183		177		171		171		172			—			8,242
2015												191		180		179		179		178			1			9,274
2016														229		247		236		225			18			10,152
2017																245		255		244			15			11,837
2018																		273		305			43			12,646
2019																				223			120			6,271
																		Total		$	1,800		$	198

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⁽¹⁾		2019
Accident Year
2010	$	19	$	36	$	43	$	45	$	48	$	49	$	47	$	47
2011	31		84		124		129		133		134		136		137
2012	14		80		100		109		107		109		110		111
2013			38		102		121		127		131		134		138
2014					56		123		142		151		157		162
2015							30		98		130		145		158
2016									63		145		172		182
2017											53		151		184
2018													55		176
2019															44
Total															$	1,339
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented															$	461
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010															3
Liability for unallocated claim adjustment expenses for accident years presented															9
Total net liability for unpaid claim and claim adjustment expenses															$	473

Short-duration contracts reserve development

Net strengthening (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⁾			2016⁽¹⁾			2017⁽¹⁾			2018⁽¹⁾			2019			Total⁽³⁾
Accident Year
2010	$	(9	)	$	9	$	4	$	(6	)	$	7		$	(1	)	$	(1	)	$	—		$	3
2011	(1		)	11		—		4			(1		)	—			3			—			16
2012				1		7		7			(6		)	—			3			(1		)	11
2013						15		(8		)	2			1			3			1			14
2014								(2		)	(6		)	(6		)	—			1			(13		)
2015											(11		)	(1		)	—			(1		)	(13		)
2016														18			(11		)	(11		)	(4		)
2017																	10			(11		)	(1		)
2018																				32			32

(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 2019 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 99 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, 2019
(In millions, except reported claims data)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019		IBNR		Cumulative Number of Claims
Accident Year
2010	$	402	$	412	$	423	$	426	$	415	$	395	$	365	$	360	$	356	$	369	$	1	14,624
2011			429		437		443		468		439		434		437		437		439		2		16,526
2012					464		469		508		498		493		484		493		499		8		17,724
2013							462		479		500		513		525		535		545		27		19,510
2014									450		489		537		530		535		529		16		19,723
2015											433		499		510		494		488		29		18,029
2016													427		487		485		499		63		15,823
2017															412		449		458		127		14,636
2018																	404		429		216		13,760
2019																			430		364		10,467
																	Total		$	4,685	$	853

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)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019
Accident Year
2010	$	10	$	86	$	173	$	257	$	306	$	326	$	337	$	346	$	350	$	353
2011			17		109		208		295		347		375		398		409		414
2012					14		117		221		323		388		427		457		479
2013							17		119		255		355		414		462		495
2014									23		136		258		359		417		472
2015											22		101		230		313		384
2016													18		121		246		339
2017															19		107		235
2018																	21		115
2019																			17
																	Total		$	3,303
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	1,382
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010																			22
Liability for unallocated claim adjustment expenses for accident years presented																			25
Total net liability for unpaid claim and claim adjustment expenses																			$	1,429

Short-duration contracts reserve development

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



For the years ended December 31	Calendar Year
(In millions)	2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018⁽¹⁾			2019			Total
Accident Year
2010	$	10	$	11	$	3	$	(11	)	$	(20	)	$	(30	)	$	(5	)	$	(4	)	$	13		$	(33	)
2011			8		6		25			(29		)	(5		)	3			—			2			10
2012					5		39			(10		)	(5		)	(9		)	9			6			35
2013							17			21			13			12			10			10			83
2014										39			48			(7		)	5			(6		)	79
2015													66			11			(16		)	(6		)	55
2016																60			(2		)	14			72
2017																			37			9			46
2018																						25			25
Total net development for the accident years presented above																65			39			67
Total net development for accident years prior to 2010																(28		)	9			6
Total unallocated claim adjustment expense development																(7		)	(1		)	2
Total																$	30		$	47		$	75

(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, 2019
(In millions, except reported claims data)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019		IBNR		Cumulative Number of Claims
Accident Year
2010	$	828	$	828	$	848	$	848	$	847	$	837	$	824	$	827	$	821	$	821	$	9	17,891
2011			880		908		934		949		944		911		899		888		885		21		18,738
2012					923		909		887		878		840		846		833		831		18		18,499
2013							884		894		926		885		866		863		850		45		17,928
2014									878		898		885		831		835		854		74		17,553
2015											888		892		877		832		807		120		17,390
2016													901		900		900		904		188		17,890
2017															847		845		813		308		18,015
2018																	850		864		460		19,468
2019																			837		714		16,722
																	Total		$	8,466	$	1,957

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)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019
Accident Year
2010	$	31	$	204	$	405	$	541	$	630	$	670	$	721	$	752	$	784	$	790
2011			71		314		503		605		683		726		781		796		828
2012					56		248		400		573		651		711		755		792
2013							54		249		447		618		702		754		771
2014									51		223		392		515		647		707
2015											60		234		404		542		612
2016													64		248		466		625
2017															57		222		394
2018																	54		282
2019																			64
																	Total		$	5,865
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	2,601
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010																			88
Liability for unallocated claim adjustment expenses for accident years presented																			50
Total net liability for unpaid claim and claim adjustment expenses																			$	2,739

Short-duration contracts reserve development

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



For the years ended December 31	Calendar Year
(In millions)	2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018⁽¹⁾			2019			Total
Accident Year
2010	$	—	$	20	$	—		$	(1	)	$	(10	)	$	(13	)	$	3		$	(6	)	$	—		$	(7	)
2011			28		26			15			(5		)	(33		)	(12		)	(11		)	(3		)	5
2012					(14		)	(22		)	(9		)	(38		)	6			(13		)	(2		)	(92		)
2013								10			32			(41		)	(19		)	(3		)	(13		)	(34		)
2014											20			(13		)	(54		)	4			19			(24		)
2015														4			(15		)	(45		)	(25		)	(81		)
2016																	(1		)	—			4			3
2017																				(2		)	(32		)	(34		)
2018																							14			14
Total net development for the accident years presented above																	(92		)	(76		)	(38		)
Total net development for accident years prior to 2010																	(27		)	(44		)	(17		)
Total unallocated claim adjustment expense development																	(7		)	(7		)	(14		)
Total																	$	(126	)	$	(127	)	$	(69	)

(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, 2019
(In millions, except reported claims data)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019		IBNR		Cumulative Number of Claims
Accident Year
2010	$	112	$	112	$	111	$	84	$	76	$	66	$	63	$	59	$	61	$	61	$	—	5,982
2011			120		121		116		87		75		70		66		62		62		2		5,813
2012					120		122		98		70		52		45		39		38		1		5,568
2013							120		121		115		106		91		87		83		3		5,062
2014									123		124		94		69		60		45		4		5,078
2015											131		131		104		79		63		11		4,976
2016													124		124		109		84		36		5,379
2017															120		115		103		54		5,496
2018																	114		108		76		5,451
2019																			119		102		3,549
																	Total		$	766	$	289

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)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019
Accident Year
2010	$	13	$	34	$	50	$	55	$	57	$	58	$	55	$	52	$	52	$	53
2011			19		42		55		58		60		60		56		57		57
2012					5		32		34		35		35		36		37		37
2013							16		40		69		78		78		78		77
2014									7		30		38		36		38		38
2015											7		26		38		40		42
2016													5		37		45		45
2017															23		37		41
2018																	5		25
2019																			12
																	Total		$	427
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	339
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010																			10
Liability for unallocated claim adjustment expenses for accident years presented																			20
Total net liability for unpaid claim and claim adjustment expenses																			$	369

Short-duration contracts reserve development

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



For the years ended December 31	Calendar Year
(In millions)	2011⁽¹⁾		2012⁽¹⁾			2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018⁽¹⁾			2019			Total
Accident Year
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		)	(1		)	(82		)
2013									1			(6		)	(9		)	(15		)	(4		)	(4		)	(37		)
2014												1			(30		)	(25		)	(9		)	(15		)	(78		)
2015															—			(27		)	(25		)	(16		)	(68		)
2016																		—			(15		)	(25		)	(40		)
2017																					(5		)	(12		)	(17		)
2018																								(6		)	(6		)
Total net development for the accident years presented above																		(82		)	(66		)	(79		)
Total net development for accident years prior to 2010																		1			(4		)	(3		)
Total unallocated claim adjustment expense development																		(3		)	—			(10		)
Total																		$	(84	)	$	(70	)	$	(92	)

(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, 2019
(In millions, except reported claims data)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019		IBNR		Cumulative Number of Claims
Accident Year
2010	$	267	$	283	$	287	$	291	$	298	$	293	$	289	$	288	$	288	$	288	$	1	48,035
2011			268		281		288		302		300		294		294		294		291		—		47,909
2012					275		289		299		303		307		299		299		297		3		46,288
2013							246		265		265		249		245		245		241		2		39,429
2014									234		223		212		205		205		201		3		33,622
2015											201		199		190		190		183		7		30,418
2016													198		186		186		186		7		30,414
2017															199		198		200		9		30,850
2018																	229		227		47		33,959
2019																			257		128		31,455
																	Total		$	2,371	$	207

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)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019
Accident Year
2010	$	74	$	141	$	203	$	246	$	271	$	281	$	286	$	287	$	287	$	287
2011			79		145		199		248		274		284		287		289		289
2012					78		160		220		259		282		285		290		291
2013							74		135		168		200		225		234		238
2014									64		102		137		166		187		196
2015											52		96		130		153		172
2016													52		93		126		154
2017															58		107		150
2018																	66		128
2019																			77
																	Total		$	1,982
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	389
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010																			1
Liability for unallocated claim adjustment expenses for accident years presented																			14
Total net liability for unpaid claim and claim adjustment expenses																			$	404

Short-duration contracts reserve development

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



For the years ended December 31	Calendar Year
(In millions)	2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018⁽¹⁾			2019			Total
Accident Year
2010	$	16	$	4	$	4	$	7	$	(5	)	$	(4	)	$	(1	)	$	—		$	—		$	21
2011			13		7		14		(2		)	(6		)	—			—			(3		)	23
2012					14		10		4			4			(8		)	—			(2		)	22
2013							19		—			(16		)	(4		)	—			(4		)	(5		)
2014									(11		)	(11		)	(7		)	—			(4		)	(33		)
2015												(2		)	(9		)	—			(7		)	(18		)
2016															(12		)	—			—			(12		)
2017																		(1		)	2			1
2018																					(2		)	(2		)
Total net development for the accident years presented above															(41		)	(1		)	(20		)
Total net development for accident years prior to 2010															4			1			(4		)
Total unallocated claim adjustment expense development															2			1			(1		)
Total															$	(35	)	$	1		$	(25	)

(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, 2019
(In millions, except reported claims data)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019		IBNR		Cumulative Number of Claims
Accident Year
2010	$	646	$	664	$	658	$	709	$	750	$	726	$	697	$	691	$	691	$	690	$	19	44,229
2011			591		589		631		677		676		681		670		669		667		20		39,361
2012					587		611		639		636		619		635		635		630		31		35,219
2013							650		655		650		655		613		623		620		27		33,570
2014									653		658		654		631		635		658		57		27,877
2015											581		576		574		589		600		73		23,834
2016													623		659		667		671		166		23,817
2017															632		632		632		226		21,114
2018																	653		644		408		17,889
2019																			680		602		12,916
																	Total		$	6,492	$	1,629

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)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019
Accident Year
2010	$	27	$	145	$	280	$	429	$	561	$	611	$	642	$	652	$	656	$	667
2011			28		148		273		411		517		568		602		622		638
2012					28		132		247		374		454		510		559		579
2013							31		128		240		352		450		510		551
2014									31		119		247		376		481		547
2015											19		110		230		357		446
2016													32		163		279		407
2017															23		118		250
2018																	33		107
2019																			25
																	Total		$	4,217
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	2,275
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010																			836
Liability for unallocated claim adjustment expenses for accident years presented																			65
Total net liability for unpaid claim and claim adjustment expenses																			$	3,176

Short-duration contracts reserve development

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



For the years ended December 31	Calendar Year
(In millions)	2011⁽¹⁾		2012⁽¹⁾			2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018⁽¹⁾			2019			Total
Accident Year
2010	$	18	$	(6	)	$	51	$	41	$	(24	)	$	(29	)	$	(6	)	$	—		$	(1	)	$	44
2011			(2		)	42		46		(1		)	5			(11		)	(1		)	(2		)	76
2012						24		28		(3		)	(17		)	16			—			(5		)	43
2013								5		(5		)	5			(42		)	10			(3		)	(30		)
2014										5			(4		)	(23		)	4			23			5
2015													(5		)	(2		)	15			11			19
2016																36			8			4			48
2017																			—			—			—
2018																						(9		)	(9		)
Total net development for the accident years presented above																(32		)	36			18
Total net development for accident years prior to 2010																—			—			29
Total unallocated claim adjustment expense development																8			(4		)	7
Total																$	(24	)	$	32		$	54

(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, 2019
(In millions, except reported claims data)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019		IBNR		Cumulative Number of Claims
Accident Year
2010	$	583	$	632	$	654	$	676	$	698	$	710	$	730	$	733	$	732	$	735	$	55	49,333
2011			607		641		647		659		651		676		676		674		688		40		45,959
2012					601		627		659		669		678		673		671		668		67		42,586
2013							537		572		592		618		593		582		561		93		38,688
2014									467		480		479		452		450		446		99		33,480
2015											422		431		406		408		394		130		31,861
2016													426		405		396		382		144		31,945
2017															440		432		421		138		33,029
2018																	450		440		185		34,647
2019																			452		257		29,795
																	Total		$	5,187	$	1,208

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)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019
Accident Year
2010	$	97	$	251	$	359	$	442	$	510	$	542	$	577	$	615	$	625	$	631
2011			99		249		358		438		478		522		564		571		581
2012					87		232		342		416		470		509		524		536
2013							80		213		300		370		417		419		411
2014									61		159		215		258		282		290
2015											51		131		180		212		231
2016													53		129		169		198
2017															63		151		207
2018																	68		163
2019																			71
																	Total		$	3,319
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	1,868
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010																			2,061
Other⁽²⁾																			(22		)
Liability for unallocated claim adjustment expenses for accident years presented																			25
Total net liability for unpaid claim and claim adjustment expenses																			$	3,932

Short-duration contracts reserve development

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



For the years ended December 31	Calendar Year
(In millions)	2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018⁽¹⁾			2019			Total
Accident Year
2010	$	49	$	22	$	22	$	22	$	12		$	20		$	3		$	(1	)	$	3		$	152
2011			34		6		12		(8		)	25			—			(2		)	14			81
2012					26		32		10			9			(5		)	(2		)	(3		)	67
2013							35		20			26			(25		)	(11		)	(21		)	24
2014									13			(1		)	(27		)	(2		)	(4		)	(21		)
2015												9			(25		)	2			(14		)	(28		)
2016															(21		)	(9		)	(14		)	(44		)
2017																		(8		)	(11		)	(19		)
2018																					(10		)	(10		)
Total net development for the accident years presented above															(100		)	(33		)	(60		)
Adjustment for development on a discounted basis															(3		)	—			3
Total net development for accident years prior to 2010															39			8			21
Total unallocated claim adjustment expense development															1			(7		)	23
Total															$	(63	)	$	(32	)	$	(13	)

(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, 2019
(In millions, except reported claims data)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019		IBNR		Cumulative Number of Claims
Accident Year
2010	$	238	$	234	$	228	$	223	$	213	$	207	$	200	$	194	$	190	$	187	$	6	21,952
2011			271		272		264		244		233		226		224		221		214		3		24,589
2012					272		279		264		256		256		249		242		236		19		24,978
2013							294		295		287		267		263		255		246		18		23,932
2014									282		297		297		285		277		294		31		24,912
2015											296		311		310		292		286		37		23,305
2016													290		309		294		292		59		17,626
2017															306		371		393		133		18,176
2018																	376		394		132		19,756
2019																			350		185		13,415
																	Total		$	2,892	$	623

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)	2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017⁽¹⁾		2018⁽¹⁾		2019
Accident Year
2010	$	49	$	99	$	122	$	137	$	151	$	160	$	169	$	172	$	174	$	178
2011			45		116		139		152		166		178		186		190		193
2012					45		115		148		168		184		196		205		209
2013							50		114		141		158		173		183		202
2014									52		123		151		169		186		207
2015											57		135		165		186		209
2016													67		134		161		184
2017															65		149		190
2018																	91		169
2019																			75
Total																			$	1,816
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	1,076
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010																			52
Liability for unallocated claim adjustment expenses for accident years presented																			27
Total net liability for unpaid claim and claim adjustment expenses																			$	1,155

Short-duration contracts reserve development

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



For the years ended December 31	Calendar Year
(In millions)	2011⁽¹⁾			2012⁽¹⁾			2013⁽¹⁾			2014⁽¹⁾			2015⁽¹⁾			2016⁽¹⁾			2017⁽¹⁾			2018⁽¹⁾			2019			Total ⁽²⁾
Accident Year
2010	$	(4	)	$	(6	)	$	(5	)	$	(10	)	$	(6	)	$	(7	)	$	(6	)	$	(4	)	$	(3	)	$	(51	)
2011				1			(8		)	(20		)	(11		)	(7		)	(2		)	(3		)	(7		)	(57		)
2012							7			(15		)	(8		)	—			(7		)	(7		)	(6		)	(36		)
2013										1			(8		)	(20		)	(4		)	(8		)	(9		)	(48		)
2014													15			—			(12		)	(8		)	17			12
2015																15			(1		)	(18		)	(6		)	(10		)
2016																			19			(15		)	(2		)	2
2017																						65			22			87
2018																									18			18

(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 2019 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 99 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates.