Reserves for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Activity in Reserve for Losses and Loss Adjustment Expenses

The following table summarizes the Company’s reserves for losses and LAE activity for the years ended December 31, 2013, 2012 and 2011:

	Year Ended December 31,
In thousands	2013			2012			2011
Net reserves for losses and LAE at beginning of year	$	1,216,909		$	1,237,234		$	1,142,542
Provision for losses and LAE for claims occurring in the current year		520,227			542,724			474,852
Increase (decrease) in estimated losses and LAE for claims occurring in prior years		(1,266	)		(45,291	)		2,145
Incurred losses and LAE		518,961			497,433			476,997
Losses and LAE paid for claims occurring during:
Current year		(147,758	)		(110,373	)		(73,242	)
Prior years		(365,479	)		(407,385	)		(309,063	)
Losses and LAE payments		(513,237	)		(517,758	)		(382,305	)
Net reserves for losses and LAE at end of year		1,222,633			1,216,909			1,237,234
Reinsurance recoverables on unpaid losses and LAE		822,438			880,139			845,445
Gross reserves for losses and LAE at end of year	$	2,045,071		$	2,097,048		$	2,082,679

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

The segment and line of business breakdowns of prior period net reserve deficiencies (redundancies) for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Year Ended December 31,
In thousands	2013			2012			2011
Insurance Companies:
Marine	$	(15,227	)	$	(10,010	)	$	1,348
Property Casualty		18,466			4,293			(6,828	)
Professional Liability		10,191			7,613			17,582
Insurance Companies	$	13,430		$	1,896		$	12,102
Lloyd’s Operations:
Marine	$	(2,998	)	$	(30,735	)	$	(10,311	)
Property Casualty		(14,574	)		(6,890	)		(5,434	)
Professional Liability		2,876			(9,562	)		5,788
Lloyd’s Operations	$	(14,696	)	$	(47,187	)	$	(9,957	)
Total deficiencies (redundancies)	$	(1,266	)	$	(45,291	)	$	2,145

Lloyd's

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

Liability business. A summary of the resulting prior period redundancies for each business within our Lloyd’s Operations by prior UY 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