Claim and Claim Adjustment Expense Reserves (Tables)

6 Months Ended

Jun. 30, 2016

Net Prior Year Development

The following tables and discussion present net prior year development.

Three Months Ended June 30, 2016	Specialty		Commercial		International		Total
(In millions)
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)
Three Months Ended June 30, 2015
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development		$      (13)		$       16		$            (8)		$        (5)
Pretax (favorable) unfavorable premium development		(2)		(11)		(2)		(15)
Total pretax (favorable) unfavorable net prior year development		$      (15)		$         5		$          (10)		$      (20)

Six Months Ended June 30, 2016	Specialty		Commercial		International		Total
(In millions)
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)
Six Months Ended June 30, 2015
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(11)	$	11	$	(12)	$	(12)
Pretax (favorable) unfavorable premium development		(8)		(12)		14		(6)
Total pretax (favorable) unfavorable net prior year development	$	(19)	$	(1)	$	2	$	(18)

Impact of Loss Portfolio Transfer on Consolidated Condensed Statements of Income

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

	Three Months Ended     June 30,				Six Months Ended    June 30,
	2016		2015		2016		2015
(In millions)
Net A&EP adverse development before consideration of LPT	$	-	$	150	$	200	$	150
Provision for uncollectible third party reinsurance on A&EP
Additional amounts ceded under LPT		-		150		200		150
Retroactive reinsurance benefit recognized	$	(9)		(66)		(82)		(71)
Pretax impact of unrecognized deferred retroactive reinsurance benefit	$	(9)	$	84	$	118	$	79

Specialty [Member] | CNA Financial [Member]

Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development

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

	Three Months Ended     June 30,				Six Months Ended    June 30,
	2016		2015		2016		2015
(In millions)
Medical professional liability	$	(23)	$	(6)	$	(30)	$	8
Other professional liability and management liability		(41)		(1)		(50)		(4)
Surety								1
Warranty		3		1		5		1
Other		(4)		(7)		(24)		(17)
Total pretax (favorable) unfavorable development	$	(65)	$	(13)	$	(99)	$	(11)

Commercial [Member] | CNA Financial [Member]

Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development

The following table and discussion present further detail of the development recorded for the Commercial segment:

	Three Months Ended     June 30,				Six Months Ended    June 30,
	2016		2015		2016		2015
(In millions)
Commercial auto	$	(20)	$	7	$	(35)	$	7
General liability		(37)		1		(52)		5
Workers’ compensation		50		24		54		23
Property and other		(11)		(16)		1		(24)
Total pretax (favorable) unfavorable development	$	(18)	$	16	$	(32)	$	11

International [Member] | CNA Financial [Member]

Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development

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

	Three Months Ended     June 30,				Six Months Ended    June 30,
	2016		2015		2016		2015
(In millions)
Medical professional liability	$	(1)			$	(1)
Other professional liability		18	$	(5)		17	$	(5)
Liability		(19)		(2)		(19)		(7)
Property & marine		(3)		(8)		(7)		(14)
Other		(10)		7		(9)		14
Total pretax (favorable) unfavorable development	$	(15)	$	(8)	$	(19)	$	(12)