Claim and Claim Adjustment Expense Reserves (Tables)

9 Months Ended

Sep. 30, 2015

Net Prior Year Development

The following tables and discussion present net prior year development recorded for Specialty, Commercial, International and Other.

Three Months Ended September 30, 2015	Specialty			Commercial		International		Other			Total
(In millions)
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(130	)	$	(11)	$	(34)				$	(175)
Pretax (favorable) unfavorable premium development		(2	)		(5)		2					(5)
Total pretax (favorable) unfavorable net prior year development	$	(132	)	$	(16)	$	(32)	$	-		$	(180)
Three Months Ended September 30, 2014
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(79	)	$	71	$	(17)	$	(1)		$	(26)
Pretax (favorable) unfavorable premium development		(4	)				7					3
Total pretax (favorable) unfavorable net prior year development	$	(83	)	$	71	$	(10)	$	(1)		$	(23)
Nine Months Ended September 30, 2015
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(141	)			$	(46)				$	(187)
Pretax (favorable) unfavorable premium development		(10	)	$	(17)		16					(11)
Total pretax (favorable) unfavorable net prior year development	$	(151	)	$	(17)	$	(30)	$	-		$	(198)
Nine Months Ended September 30, 2014
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(123	)	$	179	$	(32)	$	(1	)	$	23
Pretax (favorable) unfavorable premium development		(12	)		(24)		6					(30)
Total pretax (favorable) unfavorable net prior year development	$	(135	)	$	155	$	(26)	$	(1	)	$	(7)

Impact of Loss Portfolio Transfer on Consolidated Statements of Income

The following table displays the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income.

	Three Months Ended September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
(In millions)
Net A&EP adverse development before consideration of LPT							$	150
Provision for uncollectible third party reinsurance on A&EP
Additional amounts ceded under LPT								150
Retroactive reinsurance benefit recognized	$	(4	)	$	(4	)		(75	)	$	(9)
Pretax impact of deferred retroactive reinsurance benefit	$	(4	)	$	(4	)	$	75		$	(9)

Specialty [Member] | CNA Financial [Member]

Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development

The following table and discussion provide further detail of the net prior year claim and allocated claim adjustment expense reserve development (“development”) recorded for the Specialty segment:

	Three Months Ended September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
(In millions)
Medical professional liability	$	(19	)	$	16		$	(11	)	$	17
Other professional liability and management liability		(37	)		(9	)		(41	)		(59)
Surety		(70	)		(79	)		(69	)		(78)
Warranty								1
Other		(4	)		(7	)		(21	)		(3)
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(130	)	$	(79	)	$	(141	)	$	(123)

Commercial [Member] | CNA Financial [Member]

Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development

The following table and discussion provide further detail of the development recorded for the Commercial segment. A significant amount of the unfavorable development for the nine months ended September 30, 2014 relates to business classes which CNA has exited, but also includes Small Business where CNA has taken underwriting actions in an effort to improve profitability.

	Three Months Ended September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
(In millions)
Commercial auto				$	13		$	7		$	52
General liability	$	3			44			8			76
Workers’ compensation		(1	)		25			22			75
Property and other		(13	)		(11	)		(37	)		(24)
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(11	)	$	71		$	-		$	179

International [Member] | CNA Financial [Member]

Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development

The following table and discussion provide further detail of the development recorded for the International segment:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
(In millions)
Medical professional liability	$	(8	)	$	(3	)	$	(8	)	$	(2)
Other professional liability		(11	)		1			(16	)		(14)
Liability		(5	)		(3	)		(12	)		(9)
Property & marine		(5	)		(11	)		(19	)		(10)
Other		(5	)		(1	)		9			(7)
Commutations											10
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(34	)	$	(17	)	$	(46	)	$	(32)