Reserves for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Activity in Reserve for Losses and Loss Adjustment Expenses

The following table summarizes our Company’s reserves for losses and LAE activity for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
In thousands	2014			2013			2012
Net reserves for losses and LAE at beginning of year	$	1,222,633		$	1,216,909		$	1,237,234
Provision for losses and LAE for claims occurring in the current year		601,041			520,227			542,724
Increase (decrease) in estimated losses and LAE for claims occurring in prior years		(55,812	)		(1,266	)		(45,291	)
Incurred losses and LAE		545,229			518,961			497,433
Losses and LAE paid for claims occurring during:
Current year		(164,199	)		(147,758	)		(110,373	)
Prior years		(295,527	)		(365,479	)		(407,385	)
Losses and LAE payments		(459,726	)		(513,237	)		(517,758	)
Net reserves for losses and LAE at end of year		1,308,136			1,222,633			1,216,909
Reinsurance recoverables on unpaid losses and LAE		851,498			822,438			880,139
Gross reserves for losses and LAE at end of year	$	2,159,634		$	2,045,071		$	2,097,048

Segment Break Down of Prior Years' Net Reserve Deficiency (Redundancy)

The segment and line of business breakdowns of prior period net reserve strengthening (releases) for the years ended December 31, 2014, 2013 and 2012 are as follows:

	Year Ended December 31,
In thousands	2014			2013			2012
Insurance Companies:
Marine	$	(41,388	)	$	(15,227	)	$	(10,010	)
Property Casualty		14,612			18,466			4,293
Professional Liability		(3,536	)		10,191			7,613
Insurance Companies	$	(30,312	)	$	13,430		$	1,896
Lloyd’s Operations:
Marine	$	(21,336	)	$	(2,998	)	$	(30,735	)
Property Casualty		(1,500	)		(14,574	)		(6,890	)
Professional Liability		(2,664	)		2,876			(9,562	)
Lloyd’s Operations	$	(25,500	)	$	(14,696	)	$	(47,187	)
Total strengthening (releases)	$	(55,812	)	$	(1,266	)	$	(45,291	)

Lloyd's

Segment Break Down of Prior Years' Net Reserve Deficiency (Redundancy)

A summary of the resulting prior period redundancies for each business within our Lloyd’s Operations by prior UWY is set forth below:

In thousands	Marine		Property Casualty		Professional Liability		Total
2010	$	3,492	$	378	$	1,157	$	5,027
2009		14,792		4,170		6,072		25,034
2008 and Prior		12,451		2,342		2,333		17,126
Total Redundancy	$	30,735	$	6,890	$	9,562	$	47,187