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

6 Months Ended

Jun. 30, 2017

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 six months ended June 30,
	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	3,563		3,447
Prior accident year development	2		384
Total provision for unpaid losses and loss adjustment expenses	3,565		3,831
Less: payments
Current accident year	1,009		1,066
Prior accident years	2,292		2,550
Total payments	3,301		3,616
Ending liabilities for unpaid losses and loss adjustment expenses, net	19,321		19,158
Reinsurance and other recoverables [1]	2,809		2,746
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	22,130	$	21,904

[1] Includes reinsurance recoverables of $2,350 and $2,461 for the six months ended June 30, 2017 and 2016, respectively.

(Favorable) Unfavorable Prior Accident Year Development

	For the six months ended June 30,
	2017			2016
Workers’ compensation	$	(20	)	$	(83	)
Workers’ compensation discount accretion	16			14
General liability	10			66
Package business	—			52
Commercial property	(6		)	(3		)
Professional liability	—			(33		)
Bond	(10		)	(6		)
Automobile liability - Commercial Lines	20			1
Automobile liability - Personal Lines	—			140
Homeowners	—			(5		)
Net asbestos reserves	—			197
Net environmental reserves	—			71
Catastrophes	(13		)	(5		)
Uncollectible reinsurance	—			(30		)
Other reserve re-estimates, net	5			8
Total prior accident year development	$	2		$	384

Property and Casualty Insurance Products

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

	For the six months ended June 30,
	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	3,563		3,447
Prior accident year development	2		384
Total provision for unpaid losses and loss adjustment expenses	3,565		3,831
Less: payments
Current accident year	1,009		1,066
Prior accident years	2,292		2,550
Total payments	3,301		3,616
Ending liabilities for unpaid losses and loss adjustment expenses, net	19,321		19,158
Reinsurance and other recoverables [1]	2,809		2,746
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	22,130	$	21,904

[1] Includes reinsurance recoverables of $2,350 and $2,461 for the six months ended June 30, 2017 and 2016, respectively.

(Favorable) Unfavorable Prior Accident Year Development

	For the six months ended June 30,
	2017			2016
Workers’ compensation	$	(20	)	$	(83	)
Workers’ compensation discount accretion	16			14
General liability	10			66
Package business	—			52
Commercial property	(6		)	(3		)
Professional liability	—			(33		)
Bond	(10		)	(6		)
Automobile liability - Commercial Lines	20			1
Automobile liability - Personal Lines	—			140
Homeowners	—			(5		)
Net asbestos reserves	—			197
Net environmental reserves	—			71
Catastrophes	(13		)	(5		)
Uncollectible reinsurance	—			(30		)
Other reserve re-estimates, net	5			8
Total prior accident year development	$	2		$	384

Re-estimates of prior accident year reserves for the six months endedJune 30, 2017

Workers’ compensation reservesin 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.

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

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.

Catastrophes reserveswere reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire.

Re-estimates of prior accident year reserves for thesix months endedJune 30, 2016

Workers' compensation reservesdecreased 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 and management has been placing additional weight on this favorable experience as it becomes more credible.

General liability reservesincreased 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 reservesincreased 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.

Professional liability reservesdecreased 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.

Automobile liability reservesincreased in personal lines primarily due to increased bodily injury frequency and severity for the 2015 accident year and increased bodily injury severity for the 2014 accident year. Increases in auto liability loss costs were across both the direct and agency distribution channels.

Asbestos and environmental reserves increased during the period as a result of the 2016 comprehensive annual review. For a discussion of the Company's 2016 review of asbestos and environmental reserves, see Part II, Item 7 MD&A, Critical Accounting Estimates, Property & Casualty Other Operations section in the Company’s 2016 Form 10-K Annual Report.

Uncollectible reinsurance reservesdecreased as a result of giving greater weight to favorable collectability experience in recent calendar periods in estimating future collections.

Group Life, Disability and Accident Products

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

	For the six months ended June 30,
	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	1,319			1,287
Prior year's discount accretion	101			105
Prior incurral year development [2]	(112		)	(98		)
Total provision for unpaid losses and loss adjustment expenses [3]	1,308			1,294
Less: payments
Current incurral year	542			523
Prior incurral years	833			836
Total payments	1,375			1,359
Ending liabilities for unpaid losses and loss adjustment expenses, net	5,497			5,606
Reinsurance recoverables	212			216
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	5,709		$	5,822

[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 $48, and $51 for for the six months ended June 30, 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 six months endedJune 30, 2017

Group Disability-Prior period reserve estimates decreased by approximately $65 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions. This favorability was partially reduced by lower expectation of future benefit offsets, particularly lower Social Security Disability Income approval rates and longer decision turnaround times in the Social Security Administration.

Group Life and Accident (including Group Life Premium Waiver)-Prior period reserve estimates decreased by approximately $45 largely driven by lower than previously expected claim incidence in Group Life and Group Life Premium Waiver and lower than expected severity on Group Accidental Death & Dismemberment.

Re-estimates of prior incurral years reserves for the six months endedJune 30, 2016

Group Disability-Prior period reserve estimates decreased by approximately $65 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions. This favorability was partially offset by lower Social Security Disability Income 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 $30 largely driven by lower than previously expected incidence on Group Life Premium Waiver.

Group Life, Disability and Accident Products

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

	For the six months ended June 30,
	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	1,319			1,287
Prior year's discount accretion	101			105
Prior incurral year development [2]	(112		)	(98		)
Total provision for unpaid losses and loss adjustment expenses [3]	1,308			1,294
Less: payments
Current incurral year	542			523
Prior incurral years	833			836
Total payments	1,375			1,359
Ending liabilities for unpaid losses and loss adjustment expenses, net	5,497			5,606
Reinsurance recoverables	212			216
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	5,709		$	5,822

[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 $48, and $51 for for the six months ended June 30, 2017 and 2016, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations.