NOTE 5. RESERVES FOR LOSSES AND LAE

We establish reserves for the estimated unpaid ultimate liability for losses and LAE under the terms of our policies and agreements. The determination of reserves for losses and LAE is partially dependent upon the receipt of information from agents and brokers. Reserves include estimates for both claims that have been reported and for IBNR, and include estimates of expenses associated with processing and settling these claims. Reserves are recorded in Reserves for losses and LAE in the Consolidated Balance Sheets. Our estimates and judgments may be revised as additional experience and other data become available and are reviewed, as new or improved methodologies are developed, or as laws change. Frequency/severity analyses are also performed for certain books of business. To the extent that reserves are found deficient or redundant, a strengthening or release is recognized as a charge or credit to earnings.

The following table summarizes activity for our Company’s Reserves for losses and LAE for the years ended December 31, 2016, 2015 and 2014:

	Years Ended December 31,
amounts in thousands	2016			2015			2014
Net reserves for losses and LAE at beginning of year	$	1,393,126		$	1,308,136		$	1,222,633
Provision for losses and LAE for claims occurring in the current year		693,976			637,267			601,041
Increase (decrease) in estimated losses and LAE for claims occurring in prior years		(28,528	)		(64,669	)		(55,812	)
Incurred losses and LAE	$	665,448		$	572,598		$	545,229
Losses and LAE paid for claims occurring during:
Current year		(119,485	)		(159,802	)		(158,806	)
Prior years		(412,544	)		(320,863	)		(295,527	)
Losses and LAE payments	$	(532,029	)	$	(480,665	)	$	(454,333	)
Foreign Currency Adjustment		(16,094	)		(6,943	)		(5,393	)
Net reserves for losses and LAE at end of year		1,510,451			1,393,126			1,308,136
Reinsurance recoverables on unpaid losses and LAE		779,276			809,518			851,498
Gross reserves for losses and LAE at end of year	$	2,289,727		$	2,202,644		$	2,159,634

The reporting and operating segments breakdowns of prior period net reserve strengthening (releases) for the years ended December 31, 2016, 2015 and 2014 are as follows:

	Years Ended December 31,
amounts in thousands	2016			2015			2014
U.S. Insurance
Marine	$	(10,122	)	$	(24,825	)	$	(29,047	)
P&C		2,790			(706	)		17,081
Professional Liability		5,984			(3,788	)		(3,454	)
Total	$	(1,348	)	$	(29,319	)	$	(15,420	)

Int'l Insurance
Marine		(22,068	)		(21,914	)		(31,677	)
P&C		(7,051	)		(8,458	)		(3,829	)
Professional Liability		4,100			4,156			(2,746	)
Total	$	(25,019	)	$	(26,216	)	$	(38,252	)

GlobalRe	$	(2,161	)	$	(9,134	)	$	(2,140	)

Total strengthening (releases)	$	(28,528	)	$	(64,669	)	$	(55,812	)

The following is a discussion of the relevant factors related to the prior period net reserve releases of $28.5 million recorded for the year ended December 31, 2016:

U.S. Insurance reporting segment recorded prior period net reserve releases of $1.3 million. The drivers are as follows:

•

Marine operating segment recorded prior period net reserve releases of $10.1 million driven by favorable claims development in the Craft, Marine Liability, Customs Bonds and Inland Marine products.

•

P&C operating segment recorded prior period net reserve strengthening of $2.8 million driven by large loss activity within our Primary Casualty division, partially offset by ongoing favorable performance within our Excess Casualty, Environmental and Other P&C divisions.

•

Professional Liability operating segment recorded prior period net reserve strengthening of $6.0 million driven by unfavorable development on a few large D&O claims.

Int’l Insurance reporting segment recorded prior period net reserve releases of $25.0 million. The drivers are as follows:

•

Marine operating segment recorded prior period net reserve releases of $22.1 million due to favorable claims development predominately from our Marine Liability product.

•

P&C operating segment recorded prior period net reserve releases of $7.1 million primarily due to favorable claims development in our Energy & Engineering division, partially offset by large loss activity within our Property division.

•

Professional Liability operating segment recorded prior period net reserve strengthening of $4.1 million primarily due to a decline in expected recoveries from a large reinsurer resulting in an increase in bad debt reserve within our D&O division.

GlobalRe reporting segment recorded prior period net reserve releases of $2.2 million primarily driven by favorable loss development in our A&H, P&C and Professional Liability products, partially offset by large loss activity in our Marine product.

The following is a discussion of the relevant factors related to the prior period net reserve releases of $64.7 million recorded for the year ended December 31, 2015:

U.S. Insurance reporting segment recorded prior period net reserve releases of $29.3 million. The drivers are as follows:

•

Marine operating segment recorded prior period net reserve releases of $24.8 million driven by favorable claims development in the Marine Liability, Inland Marine and Cargo products.

•

P&C operating segment recorded prior period net reserve releases of $0.7 million driven by ongoing favorable performance within our Excess Casualty, Environmental and Other P&C divisions, mostly offset by large loss activity within our Primary Casualty division.

•

Professional Liability operating segment recorded prior period net reserve releases of $3.8 million driven by favorable emergence in our E&O division, partially offset by unfavorable development in several large D&O claims

Int’l Insurance reporting segment recorded prior period net reserve releases of $26.2 million. The drivers are as follows:

•

Marine operating segment recorded prior period net reserve releases of $21.9 million driven primarily due to favorable claims development on the Marine Liability, Protection and Indemnity and Specie products.

•

P&C operating segment recorded prior period net reserve releases of $8.5 million due to favorable claims development on the Offshore Energy product within the Energy & Engineering division.

•

Professional Liability operating segment recorded prior period net reserve strengthening of $4.2 million driven by adverse development in our D&O division related to two large losses, partially offset by favorable claims development on our E&O division.

GlobalRe reporting segment recorded prior period net reserve releases of $9.1 million primarily driven by favorable loss development in our Marine, P&C and A&H products.

The following is a discussion of relevant factors related to the prior period net reserve releases of $55.8 million recorded for the year ended December 31, 2014:

U.S. Insurance reporting segment recorded prior period net reserve releases of $15.4 million. The drivers of these prior period net reserve releases by operating segment are as follows.

•

Marine operating segment recorded prior period net reserve releases of $29.0 million driven by favorable claims development on our Marine Liability, Craft, Fishing Vessels, Inland Marine, Hull and Cargo products.

•

P&C operating segment recorded prior period net reserve strengthening of $17.1 million driven by unfavorable activity on pre-2010 California construction defect liability claims in our Primary Casualty division, partially offset by reserve releases due to favorable loss emergence from our Excess Casualty division.

•

Professional Liability operating segment recorded prior period net reserve releases of $3.5 million driven primarily by favorable loss emergence from our D&O division due to a cash settlement of a contract dispute with a former third party administrator.

Int’l Insurance reporting segment recorded prior period net reserve releases of $38.3 million. The drivers are as follows:

•

Marine operating segment recorded prior period net reserve releases of $31.7 million driven by favorable loss emergence across various products.

•

P&C operating segment recorded prior period net reserve releases of $3.8 million driven primarily by favorable claims development in our Energy & Engineering division.

•

Professional Liability operating segment recorded prior period net reserve releases of $2.7 million due to favorable loss emergence in our E&O and D&O divisions.

GlobalRe reporting segment recorded prior period net reserve releases of $2.1 million driven by favorable claim development in our Marine product.

Supplemental tables related to Short Duration Contracts

Effectively all property and casualty insurance contracts are described as “Short Duration Contracts” as opposed to life insurance, by the Securities and Exchange Commission. Our Company only issues short duration contracts. Below are two tables with reserve data for each reporting and operating segment. These tables are presented net of reinsurance. The first table reflects incurred claims development as of December 31, 2016, as well as the cumulative claims frequency and the total of Incurred But Not Reported (“IBNR”) liabilities and expected development on reported claims included within the net incurred claims amounts. The second table reflects the cumulative paid claims development as of December 31, 2016. The conversion of all non USD currencies amounts, for all Accident Years (“AY”), is in USD as of December 31, 2016.

Records for Syndicate 1221 are not available by AY for reporting periods prior to 2012 since data was compiled only on a year-of- account basis prior to 2012, and as such the tables below for our Int’l Insurance reporting segment begin with the 2012 reporting year. Our GlobalRe Segment reserve tables do not have data prior to 2010, as we began writing assumed reinsurance in that year.

Claims frequency is based on claims posted in our Company’s data system as reported. Generally, for most direct insurance and excess-of-loss assumed reinsurance, one claim count is posted for each claim. For assumed bordereau business and business written on binders, one claim count is posted for each bordereau received, which could account for multiple claims. Additionally, if the insured is covered for multiple years, a claim may be initially established in all potentially impacted policy years until the appropriate policy year is determined.

The information about incurred claims development and cumulative paid claims and Allocated Loss Adjustment Expense (“ALAE”), net of reinsurance, for the years ended December 31, 2007 through 2015, is presented as unaudited supplementary information.

Note that asbestos reserves are included in the U.S. Marine operating segment in years prior to 2007.

IBNR values shown in the following tables are the difference between the case reserves for reported losses and the estimated future payments for claims arising from the specific accident period. Our Company has always applied prudent claim reserving practices. For a number of segments, this has resulted in case reserves for more mature accident years exceeding the future payments consistently. IBNR estimates will be negative where our history indicates such favorable future emergence is the best estimate.

	U.S. Marine
	Loss and ALAE, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,																				As of December 31, 2016
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		Total IBNR			# of Reported Claims
2007	$	52,974	$	60,645	$	61,216	$	59,148	$	65,020	$	66,090	$	66,024	$	65,909	$	66,297	$	66,846	$	60			2,737
2008				56,923		67,710		72,580		73,970		73,731		68,703		68,873		67,024		67,238		348			3,202
2009						63,769		60,813		57,266		51,804		49,762		50,905		53,091		52,169		(186	)		2,404
2010								66,336		66,187		63,172		57,063		54,815		59,143		58,557		(263	)		2,164
2011										71,575		72,232		70,019		65,514		64,196		62,571		1,204			2,012
2012												87,905		91,118		73,940		70,421		71,868		(7	)		1,968
2013														65,132		61,289		55,494		58,148		(619	)		1,910
2014																67,610		49,889		48,355		1,509			1,962
2015																		64,575		54,121		13,317			2,155
2016																				56,209		32,884			1,824
																	Total		$	596,082


	U.S. Marine
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	9,294	$	28,937	$	40,256	$	49,214	$	58,772	$	62,002	$	62,767	$	63,384	$	64,450	$	64,570
2008				7,554		36,499		54,408		56,695		62,633		62,989		63,316		63,429		64,317
2009						12,975		30,012		36,593		42,846		44,760		47,347		48,209		50,888
2010								17,211		33,821		41,941		45,032		50,271		54,044		57,254
2011										16,007		41,322		50,841		54,471		59,224		60,198
2012												27,546		47,639		56,040		62,104		68,556
2013														19,565		38,487		44,606		50,410
2014																15,702		29,916		41,609
2015																		17,169		32,439
2016																				12,665
																	Total		$	502,906
																	Net reserves < 2007			13,112
																	Total Net reserves		$	106,288

	U.S. Marine
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
U.S. Marine		26.4	%		32.4	%		16.5	%		8.3	%		8.7	%		3.7	%		2.2	%		2.1	%		1.5	%		0.2	%

	U.S. P&C
	Loss and ALAE, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,																				As of December 31, 2016
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		Total IBNR		# of Reported Claims
2007	$	139,377	$	139,570	$	140,551	$	130,501	$	133,050	$	128,087	$	134,310	$	139,870	$	145,472	$	148,609	$	3,753		11,703
2008				158,337		158,336		144,164		140,818		141,332		143,219		147,434		152,416		157,519		3,971		10,818
2009						133,394		135,984		136,700		142,416		149,975		155,156		155,682		159,110		7,717		8,434
2010								101,527		100,529		98,675		104,709		107,602		109,323		112,080		10,106		7,804
2011										86,056		85,238		92,266		95,292		95,958		105,149		15,964		6,346
2012												111,479		96,618		98,060		103,716		111,746		24,895		4,481
2013														141,728		130,314		133,068		141,817		29,961		3,533
2014																193,897		164,364		152,447		76,085		3,356
2015																		251,752		224,532		134,029		3,123
2016																				274,692		258,449		2,106
																	Total		$	1,587,701


	U.S. P&C
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	7,127	$	24,521	$	49,616	$	72,462	$	92,840	$	104,841	$	114,160	$	122,568	$	130,279	$	136,896
2008				12,178		36,713		58,491		82,028		103,804		115,526		123,945		133,064		146,463
2009						14,619		36,641		59,933		92,033		119,360		132,695		138,227		145,407
2010								12,682		27,542		49,109		69,027		81,262		89,873		94,766
2011										3,925		19,548		35,551		51,868		63,800		75,806
2012												10,013		23,019		33,477		51,980		72,495
2013														7,317		21,500		49,562		85,719
2014																5,272		13,762		45,324
2015																		3,641		24,291
2016																				7,706
																	Total		$	834,873
																	Net reserves < 2007			16,571
																	Total Net reserves		$	769,399

	U.S. P&C
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
U.S. P&C		5.9	%		11.7	%		16.2	%		18.0	%		14.2	%		8.6	%		4.9	%		5.3	%		6.8	%		4.5	%

	U.S. Professional Liability
	Loss and ALAE, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,																					As of December 31, 2016
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016			Total IBNR			# of Reported Claims
2007	$	38,000	$	38,553	$	55,491	$	57,643	$	62,630	$	61,935	$	60,445	$	60,447	$	59,936	$	59,574		$	(70	)		634
2008				34,346		38,449		39,130		35,844		37,603		37,939		37,497		37,620		41,766			(382	)		770
2009						47,473		53,273		61,023		58,600		60,789		58,487		58,660		58,143			(563	)		1,370
2010								52,302		64,020		68,375		75,619		74,535		86,787		85,348			83			1,429
2011										58,116		62,087		70,240		73,028		79,181		79,136			622			1,724
2012												61,196		54,480		57,097		55,917		58,344			3,214			2,180
2013														60,899		54,982		49,104		48,298			4,989			2,226
2014																50,020		35,870		39,826			6,504			2,278
2015																		31,659		30,764			15,870			1,709
2016																				41,672			36,356			1,739
																	Total		$	542,871


	U.S. Professional Liability
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	1,861	$	10,365	$	32,621	$	47,980	$	52,941	$	58,515	$	59,280	$	59,332	$	59,565	$	59,570
2008				1,880		15,288		25,042		30,581		34,902		35,206		35,598		37,175		42,056
2009						3,837		21,742		41,675		51,642		55,378		53,859		57,744		58,095
2010								2,981		23,147		46,868		54,019		59,765		82,013		84,511
2011										3,204		23,878		43,551		59,576		65,710		75,641
2012												3,855		22,635		35,681		44,028		49,675
2013														4,677		22,167		32,904		38,876
2014																2,304		14,371		29,392
2015																		2,257		11,249
2016																				2,383
																	Total		$	451,448
																	Net reserves < 2007			(386	)
																	Total Net reserves		$	91,037

	U.S. Professional Liability
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
U.S. Professional Liability		5.7	%		28.3	%		28.7	%		15.9	%		8.2	%		9.2	%		3.0	%		1.5	%		6.0	%		0.0	%

	Int'l Marine
	Loss and ALAE, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,																				As of December 31, 2016
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		Total IBNR			# of Reported Claims
2007	$	—	$	—	$	—	$	—	$	—	$	70,633	$	67,148	$	66,951	$	66,883	$	66,239	$	(35	)		5,585
2008				—		—		—		—		88,720		85,285		84,131		84,191		82,752		98			5,809
2009						—		—		—		89,057		86,914		84,497		82,096		79,526		111			4,969
2010								—		—		123,719		119,021		114,188		111,468		108,405		282			5,317
2011										—		91,347		86,795		78,872		75,873		70,751		25			4,824
2012												93,696		115,935		99,683		94,886		90,523		(216	)		5,201
2013														68,587		82,313		80,713		77,239		747			5,075
2014																85,512		105,072		107,789		(1,500	)		4,928
2015																		70,675		91,371		5,194			6,967
2016																				84,156		26,285			5,577
																	Total		$	858,751


	Int'l Marine
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	—	$	—	$	—	$	—	$	—	$	59,831	$	60,702	$	61,956	$	62,729	$	63,281
2008				—		—		—		—		69,959		72,309		73,746		77,535		78,683
2009						—		—		—		64,058		68,085		70,834		74,311		75,006
2010								—		—		74,920		87,186		93,167		97,132		99,416
2011										—		43,740		56,569		60,879		65,580		66,538
2012												22,777		52,968		68,498		76,572		79,205
2013														21,703		42,953		54,826		60,828
2014																24,445		50,168		73,921
2015																		22,323		52,356
2016																				22,192
																	Total		$	671,426
																	Net reserves < 2007			9,207
																	Total Net reserves		$	196,532

	Int'l Marine
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
Int'l Marine		24.5	%		28.1	%		18.2	%		7.6	%		5.0	%		2.8	%		2.7	%		2.4	%		1.3	%		0.8	%

	Int'l P&C
	Loss and ALAE, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,																				As of December 31, 2016
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		Total IBNR			# of Reported Claims
2007	$	—	$	—	$	—	$	—	$	—	$	26,084	$	25,817	$	25,740	$	25,855	$	25,778	$	(60	)		584
2008				—		—		—		—		39,504		37,884		37,867		37,296		36,729		(75	)		891
2009						—		—		—		26,499		25,804		25,910		25,418		25,113		13			743
2010								—		—		39,082		39,409		39,050		39,031		38,198		58			836
2011										—		57,463		53,654		52,093		52,666		52,202		(198	)		833
2012												34,479		30,643		30,347		28,626		27,828		(353	)		877
2013														29,496		33,720		31,050		29,684		(308	)		1,229
2014																20,234		16,987		17,006		173			1,167
2015																		26,414		30,932		2,106			1,678
2016																				75,571		13,006			2,646
																	Total		$	359,041


	Int'l P&C
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	—	$	—	$	—	$	—	$	—	$	23,885	$	24,681	$	25,150	$	25,292	$	25,289
2008				—		—		—		—		34,084		35,161		35,463		35,975		35,826
2009						—		—		—		23,371		24,257		24,713		24,286		24,369
2010								—		—		32,156		36,499		39,017		36,509		36,601
2011										—		33,316		42,280		45,125		47,591		48,502
2012												7,884		15,648		20,850		24,871		26,049
2013														6,829		17,613		24,735		27,180
2014																3,813		8,458		12,304
2015																		6,739		18,096
2016																				24,255
																	Total		$	278,471
																	Net reserves < 2007			619
																	Total Net reserves		$	81,189

	Int'l P&C
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
Int'l P&C		25.4	%		33.5	%		21.8	%		9.4	%		5.2	%		-1.0	%		-0.2	%		1.2	%		0.1	%		0.0	%

	Int'l Professional Liability
	Loss and ALAE, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,																				As of December 31, 2016
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		Total IBNR			# of Reported Claims
2007	$	—	$	—	$	—	$	—	$	—	$	12,901	$	12,587	$	12,445	$	12,378	$	12,381	$	(64	)		235
2008				—		—		—		—		15,511		15,302		14,816		14,010		14,023		(175	)		365
2009						—		—		—		14,809		15,367		14,972		16,289		15,780		629			445
2010								—		—		18,603		16,159		15,661		17,451		15,619		1,409			653
2011										—		9,686		7,648		7,125		7,050		6,835		356			681
2012												8,204		9,753		9,106		11,175		16,891		490			718
2013														15,096		17,628		16,272		15,402		4,255			1,053
2014																18,835		24,070		23,457		12,421			1,276
2015																		22,760		30,104		17,379			1,939
2016																				36,006		31,814			2,554
																	Total		$	186,498


	Int'l Professional Liability
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	—	$	—	$	—	$	—	$	—	$	11,293	$	11,704	$	12,269	$	12,277	$	12,382
2008				—		—		—		—		12,150		13,306		13,702		13,732		14,019
2009						—		—		—		8,805		10,716		12,783		13,803		14,118
2010								—		—		5,801		7,169		10,460		12,632		13,366
2011										—		1,197		2,002		2,950		4,007		4,576
2012												2,133		3,219		4,253		5,483		7,365
2013														725		2,196		2,952		9,230
2014																1,368		2,421		5,068
2015																		3,355		5,765
2016																				2,012
																	Total		$	87,901
																	Net reserves < 2007			92
																	Total Net reserves		$	98,689

	Int'l Professional Liability
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
Int'l Professional		7.5	%		7.3	%		7.4	%		20.6	%		15.9	%		11.8	%		4.7	%		2.3	%		1.1	%		0.8	%

	GlobalRe
	Loss and ALAE, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,																				As of December 31, 2016
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		Total IBNR			# of Reported Claims
2007	$	—	$	—	$	—	$	—	$	—	$	6,215	$	6,190	$	6,173	$	5,889	$	5,883	$	(141	)		254
2008				—		—		—		—		13,863		14,024		13,530		13,304		13,298		672			294
2009						4,970		3,734		3,752		11,186		11,380		10,745		10,390		10,475		204			202
2010								3,743		3,500		13,455		13,661		12,899		11,597		12,330		(1,000	)		195
2011										39,678		50,832		74,131		73,511		73,042		72,667		(461	)		766
2012												108,790		103,183		94,766		89,053		114,728		531			1,419
2013														112,735		119,012		101,703		104,913		3,973			1,185
2014																120,479		141,108		121,535		9,825			920
2015																		99,874		91,098		11,623			680
2016																				88,192		38,785			335
																	Total		$	635,119


	GlobalRe
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	—	$	—	$	—	$	—	$	—	$	5,225	$	5,275	$	5,345	$	5,357	$	5,350
2008				—		—		—		—		11,629		11,650		11,510		11,488		11,546
2009						—		3,734		3,752		8,620		8,853		8,974		9,932		10,045
2010								0		3,490		9,875		10,213		10,387		11,009		11,062
2011										4,160		43,342		71,010		71,677		71,954		72,094
2012												37,644		77,077		83,183		84,533		111,681
2013														53,375		82,558		90,567		98,271
2014																66,249		119,136		105,505
2015																		41,620		64,316
2016																				36,253
																	Total		$	526,123
																	Net reserves < 2007			2,598
																	Total Net reserves		$	111,594

	GlobalRe
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
GlobalRe		47.1	%		32.1	%		0.6	%		3.1	%		8.5	%		2.1	%		2.8	%		0.7	%		0.3	%		-0.1	%

The reconciliation of the net incurred and paid claims development tables to the Reserve for losses and LAE in the consolidated statement of financial position is as follows:

	Carried Reserves Reconciliation
amounts in thousands	For the Year Ended December 31, 2016
	Total Net reserves		Reinsurance recoverables on unpaid claims		Total Gross reserves
U.S. Marine	$	106,288	$	83,988	$	190,276
U.S. P&C		769,399		409,648		1,179,047
U.S. Professional Liability		91,037		59,938		150,975
Int'l Marine		196,532		88,900		285,432
Int'l P&C		81,189		79,548		160,737
Int'l Professional Liability		98,689		52,518		151,207
GlobalRe		111,594		4,736		116,330
Liabilities for unpaid claims and claim adjustment expenses	$	1,454,728		779,276	$	2,234,004
Unallocated claims adjustment expenses						55,444
Other						279
Total gross liability for unpaid claims and claim adjustment expense					$	2,289,727

F-1