Reserve for Unpaid Losses and Loss Adjustment Expenses Level 3 (Tables)

3 Months Ended

Mar. 31, 2017

Mar. 31, 2016

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Property and Casualty Insurance Products

Roll-forward of Liabilities for Unpaid Losses and Loss Adjustment Expenses



	For the three months ended March 31,
	2017		2016
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	21,833	$	21,825
Reinsurance and other recoverables	2,776		2,882
Beginning liabilities for unpaid losses and loss adjustment expenses, net	19,057		18,943
Provision for unpaid losses and loss adjustment expenses
Current accident year	1,762		1,636
Prior accident year development	12		33
Total provision for unpaid losses and loss adjustment expenses	1,774		1,669
Less: payments
Current accident year	352		358
Prior accident years	1,300		1,266
Total payments	1,652		1,624
Ending liabilities for unpaid losses and loss adjustment expenses, net	19,179		18,988
Reinsurance and other recoverables [1]	2,772		2,835
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	21,951	$	21,823


[1]	Includes reinsurance recoverables of $2,365 and $2,451 for the three months ended March 31, 2017 and 2016, respectively.

Property and Casualty Insurance Products

Roll-forward of Liabilities for Unpaid Losses and Loss Adjustment Expenses



	For the three months ended March 31,
	2017		2016
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	21,833	$	21,825
Reinsurance and other recoverables	2,776		2,882
Beginning liabilities for unpaid losses and loss adjustment expenses, net	19,057		18,943
Provision for unpaid losses and loss adjustment expenses
Current accident year	1,762		1,636
Prior accident year development	12		33
Total provision for unpaid losses and loss adjustment expenses	1,774		1,669
Less: payments
Current accident year	352		358
Prior accident years	1,300		1,266
Total payments	1,652		1,624
Ending liabilities for unpaid losses and loss adjustment expenses, net	19,179		18,988
Reinsurance and other recoverables [1]	2,772		2,835
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	21,951	$	21,823


[1]	Includes reinsurance recoverables of $2,365 and $2,451 for the three months ended March 31, 2017 and 2016, respectively.

(Favorable) Unfavorable Prior Accident Year Development



	For the three months ended March 31,
	2017			2016
Workers’ compensation	$	(20	)	$	(79	)
Workers’ compensation discount accretion	8			7
General liability	10			32
Package business	—			45
Commercial property	1			(2		)
Professional liability	—			(33		)
Bond	(10		)	(6		)
Automobile liability - Commercial Lines	20			9
Automobile liability - Personal Lines	—			65
Homeowners	—			(6		)
Net asbestos reserves	—			—
Net environmental reserves	—			—
Catastrophes	(3		)	(7		)
Uncollectible reinsurance	—			—
Other reserve re-estimates, net	6			8
Total prior accident year development	$	12		$	33

Re-estimates of prior accident year reserves for the three months ended March 31, 2017

Workers’ compensation reserves in Small Commercial were reduced given the continued emergence of favorable frequency for accident years 2013 to 2015. Management has placed additional weight on this favorable experience as it becomes more credible.

General liability reserves were increased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other Middle Market general liability reserves.

Automobile liability reserves within Commercial Lines were increased in Small Commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims.

Bond business reserves related to recent accident years were reduced as reported losses for commercial and contract surety have emerged favorably.

Re-estimates of prior accident year reserves for the three months ended March 31, 2016

Workers' compensation reserves decreased for accident years 2013 through 2015 due to favorable frequency and, to a lesser extent, lower medical severity trends. Loss costs for these accident years continued to emerge favorably as evidenced by the reserve review completed in the first quarter and management has been placing additional weight on this favorable experience as it becomes more credible.

General liability reserves increased for accident years 2012 through 2015 primarily due to higher severity losses incurred on a class of business that insures service and maintenance contractors.

Small commercial package business reserves increased due to higher than expected severity on liability claims, principally for accident years 2013 through 2015. Severity for these accident years has developed unfavorably and management has placed more weight on emerged experience.

Automobile liability reserves increased in personal lines automobile liability for accident years 2014 and 2015 primarily due to higher emerged bodily injury severity and, for the third and fourth accident quarters of 2015, an increase in bodily injury frequency. Increases in automobile liability loss costs were across both the AARP direct and the independent agency lines of business.

Professional liability reserves decreased for claims made years 2008 through 2013, primarily for large accounts, including on non-securities class action cases. Claim costs have emerged favorably as these years have matured and management has placed more weight on the emerged experience.

(Favorable) Unfavorable Prior Accident Year Development



	For the three months ended March 31,
	2017			2016
Workers’ compensation	$	(20	)	$	(79	)
Workers’ compensation discount accretion	8			7
General liability	10			32
Package business	—			45
Commercial property	1			(2		)
Professional liability	—			(33		)
Bond	(10		)	(6		)
Automobile liability - Commercial Lines	20			9
Automobile liability - Personal Lines	—			65
Homeowners	—			(6		)
Net asbestos reserves	—			—
Net environmental reserves	—			—
Catastrophes	(3		)	(7		)
Uncollectible reinsurance	—			—
Other reserve re-estimates, net	6			8
Total prior accident year development	$	12		$	33

Re-estimates of prior accident year reserves for the three months ended March 31, 2017

Bond business reserves related to recent accident years were reduced as reported losses for commercial and contract surety have emerged favorably.

e-estimates of prior incurral years reserves for the three months ended March 31, 2017

Group Disability- Prior period reserve estimates decreased by approximately $35 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions. This favorability was partially offset by lower Social Security Disability approvals driven by lower approval rates and ongoing backlogs in the Social Security Administration.

Group Life and Accident (including Group Life Premium Waiver)- Prior period reserve estimates decreased by approximately $35 largely driven by lower than previously expected claim incidence. This was partially offset by higher than expected claim severity.

Group Life, Disability and Accident Products

Roll-forward of Liabilities for Unpaid Losses and Loss Adjustment Expenses



	For the three months ended March 31,
	2017			2016 [1]
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	5,772		$	5,889
Reinsurance recoverables	208			218
Beginning liabilities for unpaid losses and loss adjustment expenses, net	5,564			5,671
Provision for unpaid losses and loss adjustment expenses
Current incurral year	678			638
Prior year's discount accretion	52			54
Prior incurral year development [2]	(69		)	(53		)
Total provision for unpaid losses and loss adjustment expenses [3]	661			639
Less: payments
Current incurral year	178			174
Prior incurral years	519			509
Total payments	697			683
Ending liabilities for unpaid losses and loss adjustment expenses, net	5,528			5,627
Reinsurance recoverables	208			219
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	5,736		$	5,846


[1]	Certain prior year amounts have been reclassified to conform to the current year presentation for unpaid losses and loss adjustment expenses.


[2]	Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.


[3]	Includes unallocated loss adjustment expenses of $24, and $24 for for the three months ended March 31, 2017 and 2016, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations.

Group Life, Disability and Accident Products

Roll-forward of Liabilities for Unpaid Losses and Loss Adjustment Expenses



	For the three months ended March 31,
	2017			2016 [1]
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	5,772		$	5,889
Reinsurance recoverables	208			218
Beginning liabilities for unpaid losses and loss adjustment expenses, net	5,564			5,671
Provision for unpaid losses and loss adjustment expenses
Current incurral year	678			638
Prior year's discount accretion	52			54
Prior incurral year development [2]	(69		)	(53		)
Total provision for unpaid losses and loss adjustment expenses [3]	661			639
Less: payments
Current incurral year	178			174
Prior incurral years	519			509
Total payments	697			683
Ending liabilities for unpaid losses and loss adjustment expenses, net	5,528			5,627
Reinsurance recoverables	208			219
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	5,736		$	5,846


[1]	Certain prior year amounts have been reclassified to conform to the current year presentation for unpaid losses and loss adjustment expenses.


[2]	Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.


[3]	Includes unallocated loss adjustment expenses of $24, and $24 for for the three months ended March 31, 2017 and 2016, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations.

Re-estimates of prior incurral years reserves for the three months ended March 31, 2017

Re-estimates of prior incurral years reserves for the three months ended March 31, 2016

Group Life and Accident (including Group Life Premium Waiver)- Prior period reserve estimates decreased by approximately $20 largely driven by lower than previously expected incidence on Group Life Premium Waiver and lower than previously expected severity on Group Accidental Death & Dismemberment.

Re-estimates of prior accident year reserves for the three months ended March 31, 2016

General liability reserves increased for accident years 2012 through 2015 primarily due to higher severity losses incurred on a class of business that insures service and maintenance contractors.

e-estimates of prior incurral years reserves for the three months ended March 31, 2016