Liability for Loss and LAE

12 Months Ended

Dec. 31, 2016

Liability for Loss and LAE

6. Liability for Loss and LAE

(a) Liability Rollforward

Activity in liability for loss and LAE in 2016, 2015 and 2014 is summarized as follows:

	Year Ended December 31,
	2016		2015		2014
	($ in millions)
Reserves as of January 1	$	10,799.2	$	11,597.2	$	11,952.5
Less: reinsurance recoverables(1)		1,169.3		1,289.4		1,302.1
Net reserves as of January 1		9,629.9		10,307.8		10,650.4
Other adjustments		2.4		(1.9)		56.9(2	)
Incurred loss and LAE, net of reinsurance, related to:
Current year		3,285.2		2,555.3		2,709.7
Prior years		(368.0)		(215.5)		(215.2)
Total incurred loss and LAE, net of reinsurance		2,917.2		2,339.8		2,494.5
Paid loss and LAE, net of reinsurance, related to:(3)
Current year		734.3		417.6		520.8
Prior years		1,866.5		2,390.4		2,178.1
Total paid loss and LAE, net of reinsurance		2,600.8		2,808.0		2,698.9
Foreign exchange effect		(97.7)		(207.8)		(195.1)
Net reserves as of December 31		9,851.0		9,629.9		10,307.8
Reinsurance recoverables as of December 31(1)		1,236.2		1,169.3		1,289.4
Reserves as of December 31	$	11,087.2	$	10,799.2	$	11,597.2

(1) Reinsurance recoverables in this table include only ceded loss and LAE reserves.

(2) Represents reserves acquired in connection with a loss portfolio transfer transaction.

(3) Includes paid losses, net of reinsurance, related to commutations.

Gross loss and LAE reserves as of December 31, 2016 increased from December 31, 2015, reflecting increases in the reinsurance and insurance segments. The increase in gross loss and LAE reserves at the reinsurance segment primarily reflects the impact of higher net premiums earned and higher catastrophe losses, partially offset by favorable prior accident year loss reserve development. The increase in gross loss and LAE reserves at the insurance segment primarily reflects higher current accident year losses and higher catastrophe losses, partially offset by favorable prior accident year loss reserve development.

Gross loss and LAE reserves as of December 31, 2015 decreased from December 31, 2014, reflecting a decrease in the reinsurance segment loss and LAE reserves, partially offset by an increase in the insurance segment. The decrease in gross loss and LAE reserves in the reinsurance segment primarily reflects favorable prior accident year loss reserve development, loss payments including amounts related to commutations in the fourth quarter of 2015 with certain cedants and the impact of changes in foreign currency exchange rates. The increase in gross loss and LAE reserves in the insurance segment primarily reflects higher current accident year losses.

(b) Liability Development

The (favorable) unfavorable prior accident year loss reserve development for 2016, 2015 and 2014 is summarized as follows:

	Year Ended December 31,
	2016			2015			2014
	($ in millions)
Reinsurance Segment:
Property:
Catastrophe events	$	(14.2)	(1)	$	(28.0)	(2)	$	(17.3)	(3)
Non-catastrophe		(91.5)	(4)		(48.7)	(5)		(55.8)	(6)
Total property		(105.7)			(76.7)			(73.1)
Casualty & other:
Malpractice treaties(7)		(10.8)			(12.1)			(12.7)
Commuted A&E Liabilities(8)		-			38.2			-
Other		(177.0)	(9)		(157.7)	(10)		(96.6)	(11)
Total casualty & other		(187.8)			(131.6)			(109.3)
Total Reinsurance Segment		(293.5)			(208.3)			(182.4)
Insurance Segment:
RSUI:
Casualty		(35.3)	(12)		(2.9)	(13)		(30.1)	(14)
Property and other		(33.0)	(15)		(9.0)	(16)		(5.3)	(17)
Total RSUI		(68.3)			(11.9)			(35.4)
CapSpecialty:
Ongoing lines of business		(0.3)			11.0(	18)		0.2
Terminated Program(19)		(1.9)			(6.3)			-
Asbestos-related illness and environmental impairment liability		(2.0)			-			-
Total CapSpecialty		(4.2)			4.7			0.2
PacificComp		(2.0)	(20)		-			2.4(	21)
Total incurred related to prior years	$	(368.0)		$	(215.5)		$	(215.2)

(1) Reflects favorable prior accident year loss reserve development from several catastrophes that occurred in the 2010 through 2015 accident years.

(2) Includes favorable prior accident year loss reserve development of ($27.7) million from Super Storm Sandy in 2012 and various smaller amounts on catastrophes that occurred in the 2010, 2011, 2013 and 2014 accident years, partially offset by unfavorable prior accident year development from the New Zealand earthquake in 2010.

(3) Includes favorable prior accident year loss reserve development of ($1.6) million from Super Storm Sandy in 2012 and ($15.7) million of net favorable prior accident year loss reserve development from other catastrophes. The ($15.7) million primarily reflects favorable prior accident year loss reserve development from several catastrophes that occurred primarily in the 2011 and 2013 accident years, partially offset by unfavorable prior accident year loss reserve development from the New Zealand earthquake in 2010.

(4) Reflects favorable prior accident year loss reserve development primarily related to the 2011 and 2015 accident years.

(5) Reflects favorable prior accident year loss reserve development primarily related to the 2013 and 2014 accident years.

(6) Reflects favorable prior accident year loss reserve development primarily related to the 2012 accident year and, to a lesser extent, the 2011 accident year.

(7) Represents certain medical malpractice treaties pursuant to which the increased underwriting profits created by the favorable prior accident year loss reserve development are largely retained by the cedants. As a result, the favorable prior accident year development is largely offset by an increase in profit commission expense incurred when such favorable prior accident year loss reserve development occurs.

(8) Represents unfavorable prior accident year loss reserve development related to a commutation and release agreement entered into on November 30, 2015 by TransRe with AIG Property Casualty, Inc., National Indemnity Company and Resolute Management, Inc. with respect to certain reinsurance contracts (the “Commutation Agreement”), including contracts covering asbestos-related illness and environmental impairment liabilities for 1986 and prior years (the “Commuted A&E Liabilities”).

(9) Generally reflects favorable prior accident year loss reserve development in a variety of casualty & other lines of business primarily from the 2003 through 2015 accident years.

(10) Generally reflects favorable prior accident year loss reserve development in a variety of casualty & other lines of business primarily from the 2005 through 2014 accident years, including ($30.7) million of favorable prior accident year development related to French medical malpractice loss reserves commuted in the fourth quarter of 2015 with a European cedant, partially offset by unfavorable prior accident year development from the 2004 and prior accident years.

(11) Generally reflects favorable prior accident year loss reserve development in a variety of casualty & other lines of business primarily from the 2003 through 2007 and 2010 through 2011 accident years, partially offset by unfavorable prior accident year loss reserve development from the 2013 accident year and the 2002 and prior accident years.

(12) Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess, general liability and professional liability lines of business related to the 2006 through 2012 accident years.

(13) Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess, general liability and professional liability lines of business related to the 2006 through 2011 accident years, partially offset by unfavorable prior accident year loss reserve development in the directors’ and officers’ liability lines of business related to the 2011 through 2014 accident years.

(14) Primarily reflects favorable prior accident year loss reserve development in the professional liability, general liability and umbrella/excess lines of business, and primarily related to the 2006 through 2010 accident years, partially offset by unfavorable prior accident year loss reserve development in the directors’ and officers’ liability lines of business in the 2011 and 2012 accident years.

(15) Includes favorable prior accident year loss reserve development of ($20.6) million from Super Storm Sandy in 2012 and various other smaller amounts primarily from the non-catastrophe property lines of business in recent accident years.

(16) Primarily reflects favorable prior accident year development of ($4.1) million from Super Storm Sandy in 2012, net of reinsurance, and favorable prior accident year loss reserve development related to unallocated LAE reserves.

(17) Primarily reflects favorable prior accident year development on unallocated LAE reserves and prior year catastrophe loss reserves from recent accident years.

(18) Primarily reflects unfavorable prior accident year loss reserve development related to the casualty lines of business from the 2011 through 2013 accident years.

(19) Represents certain specialty lines of business written through a program administrator in connection with a terminated program related to the 2010 and 2009 accident years and reflects (favorable) loss emergence compared with loss emergence patterns assumed in earlier periods for such business.

(20) Primarily reflects favorable prior accident year loss reserve development related to 2012 and prior accident years.

(21) Primarily reflects unfavorable prior accident year loss reserve development related to 2009 and prior accident years.

(c) Supplementary Information on Incurred and Paid Loss and LAE Development

The following is supplemental information about incurred and paid loss and LAE development, net of reinsurance. Information is also included for the portion of unpaid loss and LAE, net of reinsurance recoverables, that relate to IBNR and, for the insurance segment, the cumulative number of reported insurance claims.

Reinsurance Segment - Property

	Incurred Loss and LAE, Net of Reinsurance
	Year Ended December 31,																				As of December 31, 2016
Accident          Year	2007 (unaudited)		2008 (unaudited)		2009 (unaudited)		2010 (unaudited)		2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016		IBNR
											($ in millions)
2007	$	508.3	$	437.5	$	426.4	$	423.8	$	420.9	$	419.6	$	418.4	$	416.7	$	415.8	$	415.3	$	-
2008				645.0		508.0		510.9		515.9		511.9		510.9		509.4		508.7		508.8		-
2009						489.3		377.4		359.7		358.0		357.1		357.6		355.9		353.7		-
2010								615.6		527.1		528.0		540.4		581.2		606.0		609.9		25.4
2011										1,351.2		1,342.3		1,269.4		1,240.7		1,235.2		1,217.1		9.6
2012												697.2		579.1		530.3		495.6		478.1		21.3
2013														501.2		470.6		444.6		422.1		21.1
2014																496.4		464.8		451.3		37.4
2015																		368.8		332.0		59.7
2016																				684.1		262.2
Total Incurred Loss and LAE for the 2007 through 2016 accident years																			$	5,472.4
	Paid Loss and LAE, Net of Reinsurance
	Year Ended December 31,
Accident          Year	2007  (unaudited)		2008  (unaudited)		2009  (unaudited)		2010  (unaudited)		2011  (unaudited)		2012  (unaudited)		2013  (unaudited)		2014 (unaudited)		2015  (unaudited)		2016
									($ in millions)
2007	$	128.4	$	306.2	$	362.8	$	393.8	$	402.7	$	407.5	$	409.8	$	410.0	$	411.0	$	411.0
2008				163.3		350.8		435.2		477.1		495.0		501.5		503.1		505.0		505.6
2009						114.7		251.7		310.9		332.4		340.6		345.5		347.9		345.7
2010								169.3		349.0		418.9		472.3		513.5		540.1		563.7
2011										407.8		796.4		1,014.3		1,129.2		1,171.0		1,187.2
2012												90.3		268.9		377.8		416.7		438.0
2013														113.1		277.4		361.0		389.8
2014																109.4		297.6		360.0
2015																		96.0		217.7
2016																				210.5
Cumulative Paid Loss and LAE for the 2007 through 2016 accident years																			$	4,629.2
Total incurred loss and LAE for the 2007 through 2016 accident years																			$	5,472.4
Cumulative paid loss and LAE for the 2007 through 2016 accident years																				4,629.2
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2007																				2.8
Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2016																			$	846.0

Reinsurance Segment - Casualty & Other

	Incurred Loss and LAE, Net of Reinsurance
	Year Ended December 31,																				As of December 31, 2016
Accident Year	2007  (unaudited)		2008  (unaudited)		2009  (unaudited)		2010  (unaudited)		2011  (unaudited)		2012  (unaudited)		2013  (unaudited)		2014  (unaudited)		2015  (unaudited)		2016		IBNR
	($ in millions)
2007	$	2,043.1	$	2,024.0	$	2,038.1	$	2,033.2	$	2,014.2	$	1,998.4	$	1,990.2	$	1,953.8	$	1,938.0	$	1,928.4	$	122.3
2008				2,262.7		2,301.0		2,311.8		2,294.4		2,313.3		2,323.3		2,324.8		2,304.4		2,293.5		154.3
2009						2,228.9		2,188.7		2,177.5		2,168.7		2,165.9		2,171.6		2,193.4		2,186.0		170.0
2010								2,123.1		2,108.9		2,076.5		2,041.8		1,982.7		1,953.2		1,927.9		245.5
2011										2,027.2		2,033.2		2,002.2		1,967.5		1,932.1		1,913.6		283.7
2012												1,899.8		1,937.4		1,932.7		1,866.3		1,817.0		364.2
2013														1,649.3		1,671.0		1,637.6		1,600.9		453.7
2014																1,652.2		1,624.0		1,603.1		603.6
2015																		1,558.2		1,567.7		789.4
2016																				1,894.7		1,295.2
Total Incurred Loss and LAE for the 2007 through 2016 accident years																			$	18,732.8
	Paid Loss and LAE, Net of Reinsurance
	Year Ended December 31,
Accident Year	2007  (unaudited)		2008  (unaudited)		2009  (unaudited)		2010  (unaudited)		2011  (unaudited)		2012  (unaudited)		2013  (unaudited)		2014  (unaudited)		2015  (unaudited)		2016
	($ in millions)
2007	$	354.0	$	721.7	$	912.8	$	1,137.3	$	1,282.4	$	1,402.1	$	1,495.0	$	1,572.8	$	1,657.3	$	1,695.4
2008				452.8		853.4		1,137.0		1,337.2		1,515.3		1,676.2		1,809.2		1,912.0		1,972.5
2009						482.0		850.2		1,089.8		1,285.3		1,445.2		1,597.3		1,749.2		1,828.7
2010								438.8		779.7		985.0		1,154.9		1,305.4		1,458.7		1,541.8
2011										406.1		695.8		959.1		1,194.3		1,360.6		1,475.3
2012												401.7		721.3		941.1		1,109.3		1,264.1
2013														287.6		608.6		789.9		959.3
2014																281.0		528.6		752.8
2015																		250.7		509.5
2016																				402.1
Cumulative Paid Loss and LAE for the 2007 through 2016 accident years																			$	12,401.5
Total incurred loss and LAE for the 2007 through 2016 accident years																			$	18,732.8
Cumulative paid loss and LAE for the 2007 through 2016 accident years																				12,401.5
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2007																				767.1
Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2016																			$	7,098.4

Insurance Segment - RSUI - Property

	Incurred Loss and LAE, Net of Reinsurance
	Year Ended December 31,																				As of December 31, 2016
Accident Year	2007 (unaudited)		2008 (unaudited)		2009 (unaudited)		2010 (unaudited)		2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016		IBNR		Cumulative Number of Reported Claims(1)
	($ in millions, except reported claims)
2007	$	69.2	$	67.8	$	66.9	$	64.2	$	64.7	$	64.5	$	64.8	$	65.8	$	65.8	$	65.8	$	0.6		1,192
2008				176.0		181.3		178.2		183.8		193.3		192.8		192.2		192.4		192.5		0.8		1,839
2009						78.3		63.1		60.1		62.5		63.1		63.7		64.5		64.7		0.9		1,313
2010								110.2		101.7		101.8		105.7		104.2		109.8		109.9		1.1		1,630
2011										168.8		162.0		160.5		159.9		159.0		159.3		1.5		2,202
2012												270.9		262.5		258.6		256.1		235.1		6.6		2,309
2013														157.3		157.2		150.4		152.1		3.1		2,387
2014																170.7		166.2		155.9		6.7		3,079
2015																		140.5		136.1		11.8		2,958
2016																				181.4		49.0		2,944
Total Incurred Loss and LAE for the 2007 through 2016 accident years																			$	1,452.8
	Paid Loss and LAE, Net of Reinsurance
	Year Ended December 31,
Accident Year	2007 (unaudited)		2008 (unaudited)		2009 (unaudited)		2010 (unaudited)		2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016
	($ in millions)
2007	$	24.7	$	47.0	$	58.5	$	61.4	$	62.9	$	63.1	$	63.4	$	64.9	$	65.0	$	65.1
2008				65.3		138.8		155.3		173.1		187.6		189.0		190.6		191.2		191.6
2009						36.6		51.0		54.3		58.9		61.4		61.9		63.3		63.6
2010								53.0		83.6		92.4		98.6		100.6		101.1		101.5
2011										61.0		118.4		144.0		154.3		156.1		157.2
2012												62.0		157.5		181.9		193.5		202.4
2013														72.7		118.7		134.0		141.1
2014																93.2		133.8		145.0
2015																		70.8		106.9
2016																				72.0
Cumulative Paid Loss and LAE for the 2007 through 2016 accident years																			$	1,246.4
Total incurred loss and LAE for the 2007 through 2016 accident years																			$	1,452.8
Cumulative paid loss and LAE for the 2007 through 2016 accident years																				1,246.4
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2007																				2.1
Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2016																			$	208.5

(1) Represents claims reported by insured claimants.

Insurance Segment - RSUI - Casualty

	Incurred Loss and LAE, Net of Reinsurance
	Year Ended December 31,																				As of December 31, 2016
Accident Year	2007 (unaudited)		2008 (unaudited)		2009 (unaudited)		2010 (unaudited)		2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016		IBNR		Cumulative Number of Reported Claims(1)
	($ in millions, except reported claims)
2007	$	252.8	$	257.6	$	253.6	$	252.2	$	243.9	$	232.6	$	225.7	$	215.5	$	206.4	$	201.7	$	22.1		5,992
2008				255.0		255.0		260.6		254.8		245.3		237.0		230.8		220.9		216.9		27.5		7,105
2009						230.1		233.7		234.4		236.3		236.3		232.2		221.8		212.0		34.8		6,843
2010								204.1		204.1		204.1		203.4		194.6		178.6		177.0		28.9		6,859
2011										205.9		205.9		208.3		212.1		211.6		206.8		45.3		7,459
2012												226.3		226.3		230.3		242.8		238.9		72.6		7,518
2013														264.8		264.8		277.6		280.1		99.4		8,503
2014																292.0		322.7		321.1		144.3		9,870
2015																		300.2		300.2		207.6		8,661
2016																				290.7		252.2		7,156
Total Incurred Loss and LAE for the 2007 through 2016 accident years																			$	2,445.4
	Paid Loss and LAE, Net of Reinsurance
	Year Ended December 31,
Accident Year	2007 (unaudited)		2008 (unaudited)		2009 (unaudited)		2010 (unaudited)		2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016
	($ in millions)
2007	$	4.1	$	24.2	$	63.0	$	88.9	$	117.4	$	151.4	$	158.8	$	164.2	$	170.5	$	171.9
2008				9.5		35.1		89.5		124.4		145.3		157.4		164.2		171.3		179.4
2009						7.2		38.0		73.2		101.9		136.9		149.5		157.5		166.4
2010								4.7		30.9		70.1		90.1		122.6		128.6		132.9
2011										6.5		31.9		66.7		100.3		118.4		138.5
2012												6.8		38.4		96.0		125.5		144.0
2013														10.1		50.0		103.4		146.2
2014																13.0		69.5		130.1
2015																		9.0		47.3
2016																				13.7
Cumulative Paid Loss and LAE for the 2007 through 2016 accident years																			$	1,270.4
Total incurred loss and LAE for the 2007 through 2016 accident years																			$	2,445.4
Cumulative paid loss and LAE for the 2007 through 2016 accident years																				1,270.4
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2007																				54.0
Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2016																			$	1,229.0

(1) Represents claims reported by insured claimants.

Insurance Segment - CapSpecialty⁽¹⁾

	Incurred Loss and LAE, Net of Reinsurance
	Year Ended December 31,																				As of December 31, 2016
Accident Year	2007 (unaudited)		2008 (unaudited)		2009 (unaudited)		2010 (unaudited)		2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016		IBNR		Cumulative Number of Reported Claims(2)
	($ in millions, except reported claims)
2007	$	110.2	$	107.8	$	103.6	$	108.4	$	109.2	$	109.9	$	109.3	$	109.7	$	107.9	$	107.2	$	1.1		11,028
2008				102.6		97.1		93.2		90.1		89.6		94.3		94.2		96.5		96.8		0.5		8,835
2009						92.2		93.3		90.4		95.7		98.8		99.0		97.9		98.0		0.7		8,527
2010								93.2		110.8		117.9		134.8		134.5		129.8		129.5		3.0		8,205
2011										74.0		71.2		74.4		76.9		79.4		78.4		2.5		5,682
2012												72.7		71.8		66.2		69.3		69.7		2.7		5,250
2013														78.7		81.4		85.2		84.4		4.6		5,106
2014																102.8		102.7		101.0		14.4		5,772
2015																		111.0		111.8		34.1		5,193
2016																				129.4		78.0		4,628
Total Incurred Loss and LAE for the 2007 through 2016 accident years																			$	1,006.2
	Paid Loss and LAE, Net of Reinsurance
	Year Ended December 31,
Accident Year	2007 (unaudited)		2008 (unaudited)		2009 (unaudited)		2010 (unaudited)		2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016
	($ in millions)
2007	$	30.7	$	56.4	$	74.9	$	91.1	$	99.3	$	104.2	$	105.7	$	106.8	$	107.8	$	107.9
2008				26.3		43.8		63.9		74.6		82.4		87.2		90.3		91.7		93.1
2009						27.7		50.1		62.5		78.2		87.2		92.7		94.4		95.7
2010								22.0		56.2		78.4		98.1		111.0		119.2		121.6
2011										16.3		31.9		44.7		57.7		67.3		69.8
2012												18.6		38.6		46.9		57.2		63.3
2013														23.4		48.0		62.0		69.6
2014																34.0		56.3		71.9
2015																		30.9		57.4
2016																				30.3
Cumulative Paid Loss and LAE for the 2007 through 2016 accident years																			$	780.6
Total incurred loss and LAE for the 2007 through 2016 accident years																			$	1,006.2
Cumulative paid loss and LAE for the 2007 through 2016 accident years																				780.6
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2007																				10.8
Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2016																			$	236.4

(1) The vast majority of the CapSpecialty’s loss and LAE reserves relate to its casualty lines of business.

(2) Represents claims reported by insured claimants.

Insurance Segment - PacificComp

	Incurred Loss and LAE, Net of Reinsurance
	Year Ended December 31,																				As of December 31, 2016
Accident Year	2007  (unaudited)		2008  (unaudited)		2009  (unaudited)		2010  (unaudited)		2011  (unaudited)		2012  (unaudited)		2013  (unaudited)		2014  (unaudited)		2015  (unaudited)		2016		IBNR		Cumulative Number of Reported Claims(1)
	($ in millions, except reported claims)
2007	$	90.9	$	105.6	$	112.4	$	113.8	$	116.8	$	118.7	$	121.7	$	122.8	$	123.4	$	123.0	$	4.5		8,449
2008				79.1		90.0		100.6		107.3		108.3		110.8		110.9		109.9		109.1		5.7		5,789
2009						58.2		61.0		74.5		75.8		80.2		82.0		82.0		83.0		4.3		3,013
2010								4.1		5.1		5.4		5.7		6.0		6.0		5.8		0.5		211
2011										2.8		2.8		3.0		3.0		3.0		2.8		0.3		100
2012												14.5		15.1		15.1		15.1		14.7		2.0		560
2013														31.0		30.4		30.4		29.3		5.7		1,005
2014																52.6		52.6		53.5		8.1		2,218
2015																		76.6		76.8		25.4		3,362
2016																				104.8		47.2		4,302
Total Incurred Loss and LAE for the 2007 through 2016 accident years																			$	602.8
	Paid Loss and LAE, Net of Reinsurance
	Year Ended December 31,
Accident Year	2007  (unaudited)		2008  (unaudited)		2009  (unaudited)		2010  (unaudited)		2011  (unaudited)		2012  (unaudited)		2013  (unaudited)		2014  (unaudited)		2015  (unaudited)		2016
	($ in millions)
2007	$	17.9	$	39.7	$	59.2	$	74.7	$	85.9	$	92.9	$	97.8	$	103.1	$	106.8	$	108.9
2008				15.5		35.6		55.3		69.2		78.6		85.8		91.2		94.6		97.2
2009						12.0		28.0		41.1		50.8		58.3		64.7		68.6		71.7
2010								1.4		2.7		3.4		4.0		4.5		4.8		4.9
2011										0.6		1.1		1.7		2.0		2.1		2.5
2012												2.4		5.6		8.2		10.0		11.0
2013														4.7		10.1		15.4		18.4
2014																8.8		20.8		30.1
2015																		10.4		24.9
2016																				15.6
Cumulative Paid Loss and LAE for the 2007 through 2016 accident years																			$	385.2
Total incurred loss and LAE for the 2007 through 2016 accident years																			$	602.8
Cumulative paid loss and LAE for the 2007 through 2016 accident years																				385.2
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2007																				15.1
Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2016																			$	232.7

(1) Represents claims reported by insured claimants.

Loss and LAE Reserve Summary and Reconciliation to Consolidated Balance Sheet

	Unpaid loss and LAE as of December 31, 2016(1)
	Gross Loss and LAE Reserves		Reinsurance Recoverables on Unpaid Losses		Net Loss and LAE Reserves
			($ in millions)
Reinsurance Segment
Property	$	952.7	$	(106.7)	$	846.0
Casualty & other		7,324.4		(226.0)		7,098.4
		8,277.1		(332.7)		7,944.4
Insurance Segment
RSUI - Property		395.3		(186.8)		208.5
RSUI - Casualty		1,981.0		(752.0)		1,229.0
RSUI		2,376.3		(938.8)		1,437.5
CapSpecialty		267.8		(31.4)		236.4
PacificComp		234.5		(1.8)		232.7
		2,878.6		(972.0)		1,906.6
Eliminations		(68.5)		68.5		–
Total	$	11,087.2	$	(1,236.2)	$	9,851.0

(1) Includes unallocated LAE, which aggregate to 1.3 percent of gross loss and LAE reserves as of December 31, 2016. Net loss and LAE Reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the Consolidated Balance Sheets.

(d) Supplementary Information on Historical Loss and LAE Duration (Unaudited)

The following is supplemental information about average historical loss and LAE duration, net of reinsurance, as of December 31, 2016.

	Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance
	As of December 31, 2016
Years	1		2		3		4		5		6		7		8		9		10
Reinsurance Segment:
Property		28.6%		37.2%		16.6%		7.8%		3.8%		1.9%		1.4%		(0.1%)		0.2%		0.0%
Casualty & other		19.9%		17.3%		11.9%		10.0%		7.9%		6.8%		5.5%		4.1%		3.5%		2.0%
Insurance Segment:
RSUI - Property		40.1%		31.3%		10.3%		6.1%		3.4%		0.6%		0.9%		1.0%		0.2%		0.2%
RSUI - Casualty		3.4%		13.5%		20.2%		13.9%		12.5%		8.3%		3.3%		3.4%		3.4%		0.7%
CapSpecialty		25.9%		23.8%		16.2%		14.0%		9.2%		5.1%		2.0%		1.2%		1.2%		0.1%
PacificComp		16.5%		19.8%		16.8%		11.8%		7.5%		7.7%		3.9%		3.7%		2.6%		1.8%