LOSSES AND LOSS EXPENSES

12 Months Ended

Dec. 31, 2011

Loss And Loss Expenses Disclosure [Text Block]

10. LOSSES AND LOSS EXPENSES

          Unpaid losses and loss expenses are comprised of:

Year Ended December 31 (U.S. dollars in thousands)	2011		2010
Reserve for reported losses and loss expenses	$	8,153,585	$	8,510,605
Reserve for losses incurred but not reported		12,460,316		12,021,002
Unpaid losses and loss expenses	$	20,613,901	$	20,531,607

          Net losses and loss expenses incurred are comprised of:

Year Ended December 31 (U.S. dollars in thousands)	2011			2010			2009
Loss and loss expenses payments	$	4,911,737		$	4,309,523		$	5,138,951
Change in unpaid losses and loss expenses		260,631			(141,589	)		(1,148,495	)
Change in unpaid losses and loss expenses recoverable		(28,442	)		(117,120	)		441,397
Paid loss recoveries		(1,065,535	)		(839,014	)		(1,263,016	)
Net losses and loss expenses incurred	$	4,078,391		$	3,211,800		$	3,168,837

          The following table represents an analysis of the Company’s paid and unpaid losses and loss expenses incurred and a reconciliation of the beginning and ending unpaid losses and loss expenses for the years indicated:

(U.S. dollars in thousands)	2011			2010			2009
Unpaid losses and loss expenses at beginning of year	$	20,531,607		$	20,823,524		$	21,650,315
Unpaid losses and loss expenses recoverable		3,649,290			3,557,391			3,964,836
Net unpaid losses and loss expenses at beginning of year		16,882,317			17,266,133			17,685,479
Increase (decrease) in net losses and loss expenses incurred in respect of losses occurring in:
Current year		4,363,258			3,584,662			3,453,577
Prior years		(284,867	)		(372,862	)		(284,740	)
Total net incurred losses and loss expenses		4,078,391			3,211,800			3,168,837
Exchange rate effects		(130,533	)		(125,107	)		287,752
Less net losses and loss expenses paid in respect of losses occurring in:
Current year		589,870			442,262			439,638
Prior years		3,256,332			3,028,247			3,436,297
Total net paid losses		3,846,202			3,470,509			3,875,935
Net unpaid losses and loss expenses at end of year		16,983,973			16,882,317			17,266,133
Unpaid losses and loss expenses recoverable		3,629,928			3,649,290			3,557,391
Unpaid losses and loss expenses at end of year	$	20,613,901		$	20,531,607		$	20,823,524

(a) Current year net losses incurred

          Current year net losses incurred increased by $778.6 million in 2011 as compared to 2010. This was mainly as a result of the current year loss ratio increasing by 10.7 loss percentage points due to higher losses from natural catastrophes as compared to 2010, but also from the following: (i) the Insurance segment in 2011 experienced higher large loss activity in the energy, property and marine businesses, as compared to 2010; and (ii) the Reinsurance segment in 2011 experienced higher levels of large loss events in U.S. property including a deterioration in the performance of a large U.S. agricultural program, higher attritional losses as well as business mix changes, as compared to 2010.

          Current year net losses incurred increased by $131.1 million in 2010 as compared to 2009. This was mainly as a result of the current year loss ratio increasing by 4.2 loss percentage points due to higher losses from natural catastrophes as compared to 2009, but also from the following: (i) the Insurance segment - in 2010, there were higher large loss events in property and excess casualty, adverse experience in exited lines of business and the impact of flat to slightly negative rate changes partially offset by changes in business mix and improved loss experience in aerospace, as compared to 2009; and (ii) the Reinsurance segment – in 2010, there were large loss events in the marine lines which were offset by changes in business mix, improved loss experience in property, discontinued financial lines and the professional and trade credit business related to the credit crisis, as compared to 2009.

(b) Prior year net losses incurred

          The following table presents the net (favorable) adverse prior year loss development of the Company’s loss and loss expense reserves for its property and casualty operations by operating segment for each of the years indicated:

(U.S. dollars in millions)	2011			2010			2009
Insurance segment	$	(76.5	)	$	(127.4	)	$	(62.9	)
Reinsurance segment		(208.4	)		(245.5	)		(221.8	)
Total	$	(284.9	)	$	(372.9	)	$	(284.7	)

          The significant developments in prior year loss reserve estimates for each of the years indicated within the Company’s Insurance and Reinsurance segments are discussed below.

          Insurance Segment

          The following table summarizes the net (favorable) adverse prior year development by line of business relating to the Insurance segment for the last three years ended December 31:

(U.S. dollars in millions)	2011			2010			2009
Property	$	(8.9	)	$	(23.5	)	$	(50.7	)
Casualty and Professional		(47.1	)		(105.2	)		(41.0	)
Specialty and Other		(20.5	)		1.3			28.8
Total	$	(76.5	)	$	(127.4	)	$	(62.9	)

          Net favorable prior year reserve development for the Insurance segment of $76.5 million (corresponding gross development was $23.1 million unfavorable) for the year ended December 31, 2011 and was mainly attributable to the following:

•	For property lines, net prior year development during the year was $8.9 million favorable as a result of better than expected reported loss activity mainly for the 2010 accident year of $22.6 million for the international property book of business for the non-catastrophe exposures, partially offset by adverse development in the international construction ($5.0 million) and Bermuda property ($4.6 million) books of business (also primarily attributable to the 2010 accident year) for non-catastrophe exposures, and an increase in the reinsurance bad debt reserve ($2.8 million).
•	For casualty lines, net prior year development during the year was $40.5 million unfavorable (gross unfavorable of $158.5 million) mainly related to adverse development on large excess casualty claims associated with the Deepwater Horizon event in the 2010 accident year totaling $135.6 million gross and $33.4 million net. In addition, $150.0 million gross and $65.0 million net excess casualty IBNR reserves were reallocated to the 2010 accident year in respect of Deepwater Horizon exposures. These IBNR movements were entirely offset by reserve reductions in older accident years. This activity largely explains the difference between the gross and net prior year development for the Insurance segment.
	Furthermore, there was modest adverse loss experience in the workers compensation profiles in the U.S. risk managment ($7.4 million) and U.S. middle market ($2.6 million) books of business spread across the 2004 to 2010 accident years. These were partially offset by the continued benign large loss experience in primary casualty for the 2002 and prior accident years.

•	For professional lines, the net prior year development during the year was $87.5 million favorable.
	The core professional business benefited from releases in reserves for clash losses totaling $88.5 million. These were comprised of releases of $45.3 million for the 2006 and prior report years reflecting favorable development across these years and $54.3 million for report year 2010 to reflect the limited clash events in that year, partially offset by a modest strengthening of $11.1 million for the 2007 to 2009 report years. The core professional business also benefited from a $98.7 million favorable movement excluding clash due to better than expected incurred activity mainly in the 2007 and prior report years.
	There was a strengthening in the U.S. Private Commercial business of $29.2 million reflecting worse than expected incurred activity primarily in the 2010 report year.
	There was a $37.5 million strengthening in the Design portfolio covering architects and engineers professional liability across the 2004 to 2010 report years driven by worse than expected reported loss experience.
	The Select business portfolio, which offers lawyers, real estate and miscellaneous professional liability to small and midsize firms in the U.S., had strengthening of $17.5 million due to worse than expected reported loss experience mainly in the 2009 and 2010 report years.
	Finally, there was strengthening of unallocated loss adjustment expense reserves across all professional lines totaling $12.9 million.
•	For specialty and other lines, net prior year development during the year was $20.5 million favorable mainly due to better than expected reported loss experience for non-catastrophe exposures in several books of business, including aerospace ($20.8 million), specie ($7.9 million), international environmental ($7.1 million), marine ($16.9 million) and discontinued lines ($7.8 million). In addition, there was favorable development from better than expected reported loss experience in the marine book of business for catastrophe exposures of $9.7 million and a decrease in the reinsurance bad debt reserve of $8.3 million, which were partially offset by adverse development in the excess and surplus lines ($27.7 million) and programs ($7.1 million) books of business and adverse development in the run-off surety book of business of $20.9 million predominantly relating to one discontinued program.

          Net favorable prior year reserve development for the Insurance segment of $127.4 million for the year ended December 31, 2010 was mainly attributable to the following:

• For property lines, net prior year development during the year was $23.5 million favorable due mainly to lower than expected actual losses for non-catastrophe exposures for North America P&C and International P&C business.

• For casualty lines, net prior year development during the year was $13.4 million unfavorable due mainly to a $45.1 million strengthening in the U.S. risk management lines, where there has been higher than expected actual losses and reserve assumptions have been revised to give greater weight to actual experience relative to industry benchmarks. The unfavorable development was partially offset by a $26.0 million decrease in the uncollectible reinsurance reserve from reduced exposures and lower estimated risk levels from the Swiss operations. On a gross basis, the excess casualty lines have experienced higher than expected actual losses which have only been partially offset by lower than expected actual losses in the primary casualty lines. However, the gross deterioration in excess casualty was heavily ceded so that on a net basis the strengthening in excess casualty has been almost entirely offset by the release in primary casualty.

• For professional lines, net prior year development was $118.6 million favorable. This was driven by lower than expected actual losses in the core U.S. professional business ($89.8 million mainly from report years 2007 and prior) and International ($41.1 million in report year 2006) lines, favorable reserve development in Bermuda errors and omissions lines ($57.2 million for report years 2003 and prior), and favorable Clash development ($28.2 million from report years 2006 and prior). This was partially offset by higher than expected actual losses in the U.S. Private Commercial lines ($63.7 million), and in the small to midsize professional services lines, in particular in the miscellaneous professionals ($21.8 million), architects and engineers ($6.2 million), and real estate ($5.5 million) books.

• For specialty and other lines, net prior year development was $1.3 million unfavorable due mainly to an unfavorable settlement in the surety lines ($40.4 million), higher than expected actual losses in the environmental lines ($15.5 million), and an unfavorable commutation in the financial lines ($9.1 million). This was mostly offset by lower than expected actual losses in the aerospace ($32.9 million), marine ($7.2 million), specie ($5.5 million) and equine ($3.1 million) lines as well as a reduction in the provision for unrecoverable reinsurance due to reduced exposures and lower estimated risk levels from the London Market operations ($13.1 million).

          Net favorable prior year reserve development for the Insurance segment of $62.9 million for the year ended December 31, 2009 was mainly attributable to the following:

• For property lines, net prior year development during the year was $50.7 million favorable largely as a result of a lower than expected level of attritional non-catastrophe claims across older accident years as well as reserve releases in the 2008 European general property portfolio due to lower than expected reported loss activity. Prior year catastrophe loss estimates remained stable.

• For casualty lines, net prior year development during the year was $29.4 million unfavorable due to reserve strengthening on the European excess lines for accident years 2000 to 2004, and the recognition of potential excess casualty exposures on the discontinued casualty lines. Offsetting this reserve strengthening were reserve releases from the casualty primary business due to better than expected loss activity from the more recent accident years, and U.S. risk management lines due to greater reliance on actual loss experience over initial target loss ratios.

• For professional lines, net prior year development was $70.4 million favorable, primarily as a result of lower incurred activity than expected based on the Company’s prior valuation in global D&O lines, primarily for underwriting years 2002 to 2006. This release was partially offset by strengthening of global E&O reserves primarily in the 2000 and 2001 years due to large claims. In addition, there was a reallocation of subprime and related credit crisis reserves from the 2007 to 2008 report year to better reflect the indications of our latest exposure-based reserve analysis for these years.

• For specialty and other lines, net prior year adverse development was $28.8 million due in part to a deterioration in environmental lines but mainly from discontinued specialty lines, specifically, for surety to reflect our assessment of the potential impact of the economic downturn on ultimate loss activity, the Lloyd’s Accident & Health book where incurred development was higher than implied by the Company’s selected benchmarks and the resulting lengthening of loss reporting patterns, and political risks where there was reserve strengthening on a specific potential claim. Offsetting the adverse development was favorable reserve development on the aerospace and marine and offshore energy lines due to better than expected activity and an update of development assumptions to reflect recent historical experience.

          There is no assurance that conditions and trends that have affected the development of liabilities in the past will continue. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the Company’s historical results.

          Reinsurance Segment

          The following table summarizes the net (favorable) adverse prior year development by line of business relating to the Reinsurance segment for the last three years ended December 31:

(U.S. dollars in millions)	2011			2010			2009
Property and other short-tail lines	$	(64.3	)	$	(145.8	)	$	(142.5	)
Casualty and other		(144.1	)		(99.7	)		(79.3	)
Total	$	(208.4	)	$	(245.5	)	$	(221.8	)

          Net favorable prior year reserve development for the Reinsurance segment of $208.4 million for the year ended December 31, 2011 was mainly attributable to the following:

• Net favorable prior year development of $64.3 million for the short-tailed lines in the year ended December 31, 2011 and details of these by specific lines are as follows:

• For property catastrophe lines, net prior year development during the year was $37.3 million favorable with the main components of this being better than expected loss development of $11.0 million from several European windstorm losses and $8.0 million from Hurricanes Katrina and Rita.

• For property other lines, net prior year development during the year was $40.5 million favorable as a result of lower than expected reported losses across most lines of business and most underwriting years with the exception of one cedant in Latin America.

• For marine and aviation lines, net prior year development during the year was $13.5 million unfavorable primarily due to reported claim development being above expectations mainly in marine lines of business.

• Net favorable prior year development of $144.1 million for the long-tailed lines for the year ended December 31, 2011 and details of these by specific lines are as follows:

• For casualty lines, net prior year development during the year was $109.4 million in favorable development primarily related to $56.0 million in better than expected claim activity in North America, $32.1 million in Europe and $20.0 million related to favorable development on Enron-related professional liability claims. The favorable development is primarily for the 1999 to 2006 underwriting years.

• For other lines, net prior year development during the year was $34.7 million favorable due to reserve releases on whole account treaties written on Lloyd’s syndicates for the 2008 underwriting year as well as releases on large losses and trade credit.

          Net favorable prior year reserve development for the Reinsurance segment of $245.5 million for the year ended December 31, 2010 was mainly attributable to the following:

• Net favorable prior year development of $145.8 million for the short-tailed lines in the year ended December 31, 2010 and details of these by specific lines are as follows:

• $35.6 million in favorable property catastrophe development primarily due to better than expected activity in underwriting years 2007 to 2009, lowering of expected loss ratios to attritional levels on the 2009 underwriting year and reserve releases related to European windstorms of $7.2 million and Hurricane Katrina of $3.8 million.

• $87.4 million in favorable property other releases driven by $50.7 million of releases from U.S. exposures for most underwriting years including $7.9 million from reduced exposures relating to a U.S agricultural program from underwriting year 2009, $20.0 million in releases from Latin America proportional exposures primarily from 2007 to 2009 underwriting years and $16.7 million in releases from Europe and Asia Pacific exposures from most underwriting years.

• $22.8 million in marine and aviation lines due to favorable marine development of $10.9 million and favorable aviation development of $11.9 million due to better than expected activity in most underwriting years.

• Net favorable prior year development of $99.7 million for the long-tailed lines for the year ended December 31, 2010 and details of these by specific lines are as follows:

• $25.2 million in favorable casualty and professional development attributable to $33.0 million in releases due to settlements related to Enron losses, $21.6 million in releases mainly due to U.S. professional exposures in underwriting years 2005 and prior, $11.9 million primarily due to releases related to revision of European loss development factors and initial expected loss ratios, $7.1 million related to releases from run-off of Australia casualty exposures in underwriting years 2005 and prior offset by adverse development of $43.0 million related to Italian hospital medical malpractice exposures written through a Lloyd’s syndicate and adverse development of $5.4 million related to European Financial Institution exposures in underwriting years 2002 and 2004.

• $74.5 million in favorable other lines development primarily driven by $42.1 million in favorable development from whole account contracts written in Lloyd’s syndicates of which $36.1m in releases related to reinsurance to close (“RITC”) in years of account 2007 and prior and $6.0 million due to better than expected activity in underwriting years 2008 and 2009.Contributions also from North American bond run-off exposures due to better than expected activity in underwriting years 2006 and prior resulting in releases of $12.6 million, a reduction of $7.5 million on one political risk loss, Latin America Surety releases of $5.6 million related to better than expected loss experience across most underwriting years, $3.7 million in relation to one specific contract commutation and $3.0 million in releases primarily due to favorable activity in European trade credit run-off exposures in most prior underwriting years.

          Net favorable prior year reserve development for the Reinsurance segment of $221.8 million for the year ended December 31, 2009 was mainly attributable to the following:

• Net favorable prior year development of $142.5 million for the short-tailed lines in the year ended December 31, 2009 and details of these by specific lines are as follows:

• $46.2 million in favorable property catastrophe development due to lower than expected loss development, particularly on the 2008 underwriting year and $12.3 million in reserve reductions for several 2005 natural catastrophe events including European floods, windstorm Erwin and California wildfires.

• $88.8 million in favorable development due primarily to lower than expected claim emergence from underwriting years 2005 to 2008 in Latin America ($27.5 million), Europe ($21.6 million), Bermuda ($20.6 million) and U.S. ($13.8 million).

• $7.5 million in marine and aviation lines due to lower than expected claim emergence in the European marine book for underwriting years 2007 and 2008 offset by minimal net reserve increases on the aviation book.

• Net favorable prior year development of $79.3 million for the long-tailed lines for the year ended December 31, 2009 and details of these by specific lines are as follows:

• $21.0 million in favorable casualty development related primarily to the European General Liability and U.K. Motor portfolios in underwriting years 2004 to 2007.

• $40.7 million in favorable professional development due primarily to U.S. exposures for underwriting years 2002 and prior in addition to professional indemnity exposures underwritten in Europe in years 2006 and prior.

• $17.6 million in favorable development in non-casualty long tail lines largely in Latin America due to favorable emergence from surety exposures.

          There is no assurance that conditions and trends that have affected the development of liabilities in the past will continue. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the Company’s historical results.

(c) Exchange rate effects

          Exchange rate effects on net loss reserves in each of the three years ended December 31, 2011, 2010 and 2009 related to the global operations of the Company primarily where reporting units have a functional currency that is not the U.S. dollar. In 2011, the U.S. dollar was stronger against U.K. sterling, the Euro, the Brazilian real and the Swiss franc, which more than offset losses that were driven by a stronger Australian dollar In 2010, the U.S. dollar was stronger against the Euro, while weaker against the Swiss franc, Canadian dollar and Brazilian real. In 2009, the U.S. dollar weakened against all of the Company’s major currency exposures, particularly the Canadian dollar and U.K. sterling. These movements in the U.S. dollar gave rise to translation and revaluation exchange movements related to carried loss reserve balances of $(130.5) million, $(125.1) million and $287.8 million in the years ended December 31, 2011, 2010 and 2009, respectively.

(d) Net paid losses

          Total net paid losses were $3.8 billion, $3.5 billion and $3.9 billion in each of 2011, 2010 and 2009, respectively.

(e) Other loss information

          The Company did not dispose of or acquire net loss reserves in 2011, 2010 or 2009.

          The Company’s net incurred losses and loss expenses include actual and estimates of potential non-recoveries from reinsurers. As at December 31, 2011 and 2010, the reserve for potential non-recoveries from reinsurers was $99.2 million and $121.9 million, respectively. For further information, see Note 9, “Reinsurance.”

          Except for certain workers’ compensation (including long term disability) liabilities and certain U.K. motor liability claims, the Company does not discount its unpaid losses and loss expenses.

          The Company utilizes tabular reserving for workers’ compensation (including long-term disability) unpaid losses that are considered fixed and determinable, and discounts such losses using an interest rate of 5% in 2011 and 2010. The interest rate approximates the average yield to maturity on specific fixed income investments that support these liabilities. The tabular reserving methodology results in applying uniform and consistent criteria for establishing expected future indemnity and medical payments (including an explicit factor for inflation) and the use of mortality tables to determine expected payment periods. Tabular unpaid losses and loss expenses, net of reinsurance, at December 31, 2011 and 2010 on an undiscounted basis were $612.9 million and $660.3 million, respectively. The related discounted unpaid losses and loss expenses were $290.3 million and $311.9 million at December 31, 2011 and 2010, respectively.

          The nature of the Company’s high excess of loss liability and catastrophe business can result in loss events that are both irregular and significant. Similarly, adjustments to reserves for individual years can be irregular and significant. Such adjustments are part of the normal course of business for the Company. Conditions and trends that have affected development of liability in the past may not continue in the future. Accordingly, it is inappropriate to extrapolate future redundancies or deficiencies based upon historical experience.

(f) Asbestos and Environmental Related Claims

          The Company’s reserving process includes a continuing evaluation of the potential impact on unpaid liabilities from exposure to asbestos and environmental claims, including related loss adjustment expenses. Liabilities are established to cover both known and incurred but not reported claims.

          A reconciliation of the opening and closing unpaid losses and loss expenses related to asbestos and environmental exposure claims for the years indicated is as follows:

Year Ended December 31,	2011			2010			2009
(U.S. dollars in thousands)
Net unpaid losses and loss expenses at beginning of year	$	84,075		$	100,922		$	111,860
Net incurred losses and loss expenses		(41	)		(130	)		(312	)
Less net paid losses and loss expenses		6,256			16,718			10,626
Net increase (decrease) in unpaid losses and loss expenses		(6,297	)		(16,848	)		(10,938	)
Net unpaid losses and loss expenses at end of year		77,778			84,075			100,922
Unpaid losses and loss expenses recoverable at end of year		134,323			142,037			151,963
Gross unpaid losses and loss expenses at end of year	$	212,101		$	226,112		$	252,885

          Reserves for incurred but not reported losses, net of reinsurance, included in the above table were $47.2 million, $54.9 million and $68.5 million in 2011, 2010 and 2009, respectively. Unpaid losses recoverable are net of potential uncollectible amounts.

          As of December 31, 2011, the Company had 1,038 open claim files for potential asbestos exposures and 362 open claim files for potential environmental exposures. Approximately 43%, 44% and 50% of the open claim files are due to precautionary claim notices in 2011, 2010 and 2009, respectively. Precautionary claim notices are submitted by the ceding companies in order to preserve their right to receive coverage under the reinsurance contract.

          Such notices do not contain an incurred loss amount to the Company. The development of the number of open claim files for potential asbestos and environmental claims is as follows:

	Asbestos Claims			Environmental Claims
Total number of claims outstanding at December 31, 2008		1,546			548
New claims reported in 2009		221			38
Claims resolved in 2009		(330	)		(102	)
Total number of claims outstanding at December 31, 2009		1,437			484
New claims reported in 2010		125			31
Claims resolved in 2010		(362	)		(98	)
Total number of claims outstanding at December 31, 2010		1,200			417
New claims reported in 2011		106			36
Claims resolved in 2011		(268	)		(91	)
Total number of claims outstanding at December 31, 2011		1,038			362

          The Company’s reserving process includes a continuing evaluation of the potential impact on unpaid liabilities from exposure to asbestos and environmental claims, including related loss adjustment expenses. Liabilities are established to cover both known and incurred but not reported claims.

          The Company’s exposure to asbestos and environmental claims arises from the following three sources:

(1)	Reinsurance contracts written, both on a proportional and excess basis, after 1972. The Company discontinued writing contracts with these exposures in 1985. Business written was across many different policies, each with a relatively small contract limit. The Company’s reported asbestos claims relate to both traditional products and premises and operations coverage.
(2)	Winterthur – business of Winterthur purchased by the Company from AXA Insurance (formerly Winterthur Swiss Insurance Company) in 2001. AXA reimburses the Company for asbestos claim payments pursuant to the Sale and Purchase Agreement.
(3)	During 2006, the Company acquired $40.2 million in losses through a loss portfolio transfer contract of which $18.3 million in losses related to asbestos and environmental claims. Given the terms of the policy, the combined aggregate limit on the total acquired reserves is limited to $60.0 million, not including coverage for claims handling costs over a defined period.

          The estimation of loss and loss expense liabilities for asbestos and environmental exposures is subject to much greater uncertainty than is normally associated with the establishment of liabilities for certain other exposures due to several factors, including: (i) uncertain legal interpretation and application of insurance and reinsurance coverage and liability; (ii) the lack of reliability of available historical claims data as an indicator of future claims development; (iii) an uncertain political climate which may impact, among other areas, the nature and amount of costs for remediating waste sites; and (iv) the potential of insurers and reinsurers to reach agreements in order to avoid further significant legal costs. Due to the potential significance of these uncertainties, the Company believes that no meaningful range of loss and loss expense liabilities beyond recorded reserves can be established. As the Company’s net unpaid loss and loss expense reserves related to asbestos and environmental exposures are less than 1% of the total net reserves at December 31, 2011 and 2010, further adverse development is not expected to be material to the Company’s overall net loss reserves. The Company believes it has made reasonable provision for its asbestos and environmental exposures and is unaware of any specific issues that would significantly affect its estimate for loss and loss expenses.