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Unpaid losses and loss expenses (Tables)

12 Months Ended

Dec. 31, 2018

Liability for Claims and Claims Adjustment Expense [Abstract]

Schedule Of Unpaid Losses And Loss Expenses Roll Forward

Chubb establishes reserves for the estimated unpaid ultimate liability for losses and loss expenses under the terms of its policies and agreements. Reserves include estimates for both claims that have been reported and for IBNR claims, and include estimates of expenses associated with processing and settling these claims. Reserves are recorded in Unpaid losses and loss expenses in the consolidated balance sheets. While we believe that our reserves for unpaid losses and loss expenses at December 31, 2018 are adequate, new information or trends may lead to future developments in incurred loss and loss expenses significantly greater or less than the reserves provided. Any such revisions could result in future changes in estimates of losses or reinsurance recoverable and would be reflected in our results of operations in the period in which the estimates are changed.

The following table presents a reconciliation of beginning and ending Unpaid losses and loss expenses:



	Year Ended December 31
(in millions of U.S. dollars)	2018			2017			2016
Gross unpaid losses and loss expenses, beginning of year	$	63,179		$	60,540		$	37,303
Reinsurance recoverable on unpaid losses ⁽¹⁾	(14,014		)	(12,708		)	(10,741		)
Net unpaid losses and loss expenses, beginning of year	49,165			47,832			26,562
Acquisition of subsidiaries	—			—			21,402
Total	49,165			47,832			47,964
Net losses and loss expenses incurred in respect of losses occurring in:
Current year	19,048			19,391			17,256
Prior years ⁽²⁾	(981		)	(937		)	(1,204		)
Total	18,067			18,454			16,052
Net losses and loss expenses paid in respect of losses occurring in:
Current year	7,544			6,575			5,899
Prior years	10,796			10,873			9,816
Total	18,340			17,448			15,715
Foreign currency revaluation and other	(621		)	327			(469		)
Net unpaid losses and loss expenses, end of year	48,271			49,165			47,832
Reinsurance recoverable on unpaid losses ⁽¹⁾	14,689			14,014			12,708
Gross unpaid losses and loss expenses, end of year	$	62,960		$	63,179		$	60,540


⁽¹⁾	Net of provision for uncollectible reinsurance.


⁽²⁾	Relates to prior period loss reserve development only and excludes prior period development related to reinstatement premiums, expense adjustments and earned premiums totaling $85 million, $108 million and $69 million for 2018, 2017, and 2016, respectively.

Reconciliation of Claims Development to Liability [Table Text Block]

The following table presents a reconciliation of the loss development tables to the liability for unpaid losses and loss expenses in the consolidated balance sheet:



Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Expenses
(in millions of U.S. dollars)	December 31, 2018
Presented in the loss development tables:
North America Commercial P&C Insurance — Workers' Compensation	$	9,183
North America Commercial P&C Insurance — Liability	16,485
North America Commercial P&C Insurance — Other Casualty	1,884
North America Commercial P&C Insurance — Non-Casualty	1,871
North America Personal P&C Insurance	2,319
Overseas General Insurance — Casualty	5,833
Overseas General Insurance — Non-Casualty	2,265
Global Reinsurance — Casualty	1,218
Global Reinsurance — Non-Casualty	390
Excluded from the loss development tables:
Other	4,399
Net unpaid loss and allocated loss adjustment expense	45,847
Ceded unpaid loss and allocated loss adjustment expense:
North America Commercial P&C Insurance — Workers' Compensation	$	1,766
North America Commercial P&C Insurance — Liability	4,812
North America Commercial P&C Insurance — Other Casualty	544
North America Commercial P&C Insurance — Non-Casualty	1,531
North America Personal P&C Insurance	895
Overseas General Insurance — Casualty	2,070
Overseas General Insurance — Non-Casualty	1,208
Global Reinsurance — Casualty	58
Global Reinsurance — Non-Casualty	99
Other	1,874
Ceded unpaid loss and allocated loss adjustment expense	14,857
Unpaid loss and loss expense on other than short-duration contracts ⁽¹⁾	831
Unpaid unallocated loss adjustment expenses	1,425
Unpaid losses and loss expenses	$	62,960


⁽¹⁾	Primarily includes the claims reserve of our International A&H business and Life Insurance segment reserves.

Claims Development tables [Table Text Block]

This product line consists of the remaining commercial casualty coverages such as automobile liability and aviation. There is also a small portion of commercial multi-peril (CMP) business in accident years 2014 and prior. The paid and reported data are impacted by some catastrophe loss activity primarily on the CMP exposures just noted.



North America Commercial P&C Insurance — Other-Casualty — Long-tail (continued)
Net Incurred Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	599	$	589		$	555	$	535	$	492	$	458	$	452	$	450	$	445	$	452	$	12
2010			613			607		600		545		506		478		480		492		483		8
2011						580		589		580		548		532		524		516		510		17
2012								633		605		576		560		519		518		508		17
2013										526		530		522		515		468		461		27
2014												594		582		580		596		554		68
2015														486		469		501		514		148
2016																503		501		527		196
2017																		531		565		265
2018																				535		383
Total																				$	5,109



Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	70	$	206		$	287	$	336	$	373	$	401	$	413	$	422	$	427	$	431	15
2010			97			236		321		363		392		433		443		448		452		15
2011						86		235		341		400		436		460		465		479		16
2012								69		222		319		386		435		470		486		16
2013										68		196		270		348		385		411		18
2014												80		220		317		391		454		17
2015														47		137		214		304		15
2016																52		145		246		15
2017																		66		175		16
2018																				74		14
Total																				$	3,512



Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	287
All Accident years	$	1,884

This product line is comprised of D&O liability, E&O liability, financial institutions (including crime/fidelity coverages), and non-U.S. general liability as well as aviation and political risk. Exposures are located around the world, including Europe, Latin America, and Asia. Approximately 45 percent of Chubb Overseas General business is generated by European accounts, exclusive of Lloyd's market. There is some U.S. exposure in Casualty from multinational accounts and in financial lines for Lloyd's market. The financial lines coverages are typically written on a claims-made form, while general liability coverages are typically on an occurrence basis and comprised of a mix of primary and excess businesses.



Overseas General Insurance — Casualty — Long-tail (continued)
Net Incurred Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	1,231	$	1,367		$	1,414	$	1,421	$	1,422	$	1,309	$	1,205	$	1,204	$	1,152	$	1,138	$	29
2010			1,180			1,259		1,304		1,375		1,312		1,260		1,138		1,134		1,139		83
2011						1,210		1,216		1,209		1,199		1,116		1,052		1,038		988		62
2012								1,252		1,220		1,283		1,301		1,297		1,278		1,258		166
2013										1,247		1,243		1,240		1,283		1,227		1,192		221
2014												1,248		1,318		1,327		1,337		1,253		333
2015														1,170		1,267		1,293		1,314		387
2016																1,179		1,278		1,345		555
2017																		1,186		1,287		676
2018																				1,287		989
Total																				$	12,201



Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	117	$	327		$	502	$	641	$	733	$	791	$	861	$	952	$	978	$	1,007	38
2010			102			264		461		603		709		797		847		899		942		40
2011						87		239		382		511		610		688		760		811		41
2012								73		244		424		572		683		818		888		43
2013										85		260		414		559		695		796		44
2014												112		287		462		591		704		44
2015														86		282		482		659		46
2016																123		316		521		46
2017																		96		314		44
2018																				109		32
Total																				$	6,751



Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	383
All Accident years	$	5,833

This product line includes property, property catastrophe, marine, credit/surety, A&H and energy. This product line is impacted by natural catastrophes, particularly in the 2011, 2017 and 2018 accident years. Of the non-catastrophe book, the mixture of business varies by year with approximately 69 percent of loss on proportional treaties in treaty year 2009 and after. This percentage has increased over time with the proportion being approximately 54 percent for treaty years 2009 to 2012 growing to an average of 80 percent for treaty years 2013 to 2018, with the remainder being written on an excess of loss basis.



Global Reinsurance — Non-Casualty — Short-tail (continued)
Net Incurred Loss and Allocated Loss Adjustment Expenses
																Years Ended December 31						December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	139	$	170		$	150	$	149	$	142	$	140	$	138	$	138	$	138	$	137	$	3
2010			197			232		221		215		219		221		222		223		222		6
2011						271		272		270		260		261		262		261		261		2
2012								230		210		200		190		189		187		184		1
2013										160		158		146		141		142		140		1
2014												162		178		178		181		180		6
2015														145		153		160		160		8
2016																179		185		187		13
2017																		396		422		32
2018																				283		93
Total																				$	2,176



Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
																Years Ended December 31						December 31 2018
(in millions of U.S. dollars)					Unaudited																	Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	52	$	105		$	121	$	128	$	130	$	132	$	133	$	133	$	133	$	133	0.113
2010			56			160		186		197		203		213		211		214		214		0.102
2011						85		174		205		230		248		253		255		257		0.131
2012								44		129		155		165		171		176		179		0.112
2013										46		102		119		129		132		134		0.119
2014												64		128		151		161		167		0.100
2015														56		103		132		142		0.114
2016																56		130		157		0.177
2017																		191		322		0.290
2018																				94		0.151
Total																				$	1,799



Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	13
All Accident years	$	390

This product line is comprised of commercial fire, marine (predominantly cargo), surety, personal automobile (in Latin America, Asia Pacific and Japan), personal cell phones, personal residential (including high net worth), energy and construction. In general, these lines have relatively stable payment and reporting patterns although they are impacted by natural catastrophes mainly in the 2010, 2011, 2017, and 2018 accident years. Latin America and Europe each make up about 30 percent of the Chubb Overseas General non-casualty book.



Net Incurred Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	1,492	$	1,464		$	1,380	$	1,350	$	1,331	$	1,313	$	1,313	$	1,302	$	1,301	$	1,303	$	—
2010			1,638			1,660		1,635		1,623		1,617		1,603		1,590		1,573		1,575		13
2011						1,861		1,951		1,894		1,855		1,838		1,826		1,818		1,808		2
2012								1,694		1,683		1,644		1,590		1,583		1,572		1,557		15
2013										1,780		1,773		1,705		1,659		1,649		1,619		42
2014												1,868		1,938		1,879		1,852		1,814		29
2015														1,992		2,117		2,071		2,036		63
2016																2,032		2,009		1,998		24
2017																		2,199		2,236		29
2018																				2,161		437
Total																				$	18,107



Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	572	$	1,043		$	1,177	$	1,241	$	1,265	$	1,275	$	1,281	$	1,284	$	1,283	$	1,287	516
2010			664			1,218		1,415		1,477		1,515		1,528		1,534		1,535		1,541		560
2011						753		1,453		1,654		1,709		1,739		1,754		1,762		1,766		578
2012								676		1,220		1,407		1,465		1,488		1,497		1,509		599
2013										695		1,271		1,464		1,495		1,531		1,550		620
2014												755		1,421		1,630		1,693		1,724		591
2015														850		1,548		1,772		1,853		621
2016																1,016		1,654		1,851		619
2017																		1,040		1,822		659
2018																				987		627
Total																				$	15,890



Overseas General Insurance — Non-Casualty — Short-tail (continued)
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	48
All Accident years	$	2,265



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(11	)
All Accident years	$	(109	)

This line consists of primary and excess liability exposures, including medical liability and professional lines, including directors and officers (D&O) liability, errors and omissions (E&O) liability, employment practices liability (EPL), fidelity bonds, and fiduciary liability.

The primary and excess liability business represents the largest part of these exposures. The former includes both monoline and commercial package liability. The latter includes a substantial proportion of commercial umbrella, excess and high excess business, where loss activity can produce significant volatility in the loss triangles at later ages within an accident year (and sometimes across years) due to the size of the limits afforded and the complex nature of the underlying losses.

This line includes management and professional liability products provided to a wide variety of clients, from national accounts to small firms along with private and not-for-profit organizations, distributed through brokers, agents, wholesalers and MGAs. Many of these coverages, particularly D&O and E&O, are typically written on a claims-made form. While most of the coverages are underwritten on a primary basis, there are significant amounts of excess exposure with large policy limits.



Net Incurred Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	3,791	$	3,777		$	3,764	$	3,737	$	3,636	$	3,386	$	3,309	$	3,237	$	3,096	$	3,082	$	221
2010			3,571			3,576		3,594		3,554		3,413		3,245		3,123		3,103		2,991		234
2011						3,494		3,579		3,623		3,658		3,588		3,492		3,377		3,309		473
2012								3,546		3,622		3,606		3,557		3,517		3,419		3,323		626
2013										3,541		3,536		3,536		3,526		3,423		3,209		748
2014												3,529		3,580		3,668		3,711		3,649		1,148
2015														3,553		3,702		3,812		3,968		1,570
2016																3,528		3,589		3,686		1,726
2017																		3,317		3,492		2,442
2018																				3,369		2,950
Total																				$	34,078



North America Commercial P&C Insurance — Liability — Long-tail (continued)
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	134	$	587		$	1,159	$	1,670	$	2,017	$	2,354	$	2,541	$	2,673	$	2,725	$	2,766	20
2010			126			611		1,107		1,557		1,891		2,257		2,423		2,523		2,658		19
2011						160		651		1,207		1,802		2,211		2,473		2,655		2,736		20
2012								166		654		1,170		1,677		2,089		2,322		2,497		20
2013										129		547		1,190		1,594		2,004		2,229		19
2014												164		679		1,249		1,802		2,200		19
2015														138		604		1,204		1,853		21
2016																171		662		1,335		21
2017																		161		616		21
2018																				189		24
Total																				$	19,079



Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	1,486
All Accident years	$	16,485

North America Personal P&C Insurance — Short-tail

Chubb provides personal lines coverages for high-net-worth individuals and families in North America including homeowners, automobile, valuable articles (including fine art), umbrella liability, and recreational marine insurance offered through independent regional agents and brokers. A portfolio acquired from Fireman’s Fund is presented on a prospective basis beginning in May of accident year 2015. Reserves associated with prior accident periods were acquired through a loss portfolio transfer, which does not allow for a retrospective presentation. During this ten-year period, this segment was also impacted by natural catastrophes, mainly in 2012, 2017 and 2018 accident years.



Net Incurred Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	1,606	$	1,593		$	1,563	$	1,549	$	1,541	$	1,534	$	1,534	$	1,530	$	1,529	$	1,527	$	5
2010			1,866			1,875		1,852		1,834		1,830		1,827		1,821		1,819		1,820		8
2011						2,203		2,205		2,181		2,169		2,160		2,156		2,155		2,154		9
2012								2,181		2,179		2,179		2,187		2,182		2,182		2,185		10
2013										1,851		1,879		1,887		1,890		1,915		1,927		16
2014												2,199		2,201		2,187		2,140		2,154		35
2015														2,489		2,544		2,555		2,538		48
2016																2,434		2,530		2,539		190
2017																		3,029		3,064		291
2018																				3,003		428		⁽¹	⁾
Total																				$	22,911


⁽¹⁾	At December 31, 2018, ceded reinsurance recoveries on aggregate catastrophe treaties of approximately $200 million on reported losses have been reflected as a reduction to net IBNR.



North America Personal P&C Insurance — Short-tail (continued)
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																						December 31 2018
(in millions of U.S. dollars)					Unaudited																		Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018			2018
2009	$	884	$	1,233		$	1,343	$	1,435	$	1,482	$	1,499	$	1,509	$	1,517	$	1,519	$	1,520		125
2010			1,151			1,519		1,667		1,726		1,768		1,790		1,801		1,807		1,809			149
2011						1,357		1,831		1,968		2,048		2,101		2,125		2,134		2,141			168
2012								1,174		1,803		1,954		2,059		2,113		2,146		2,160			173
2013										1,038		1,496		1,679		1,778		1,834		1,876			126
2014												1,307		1,760		1,921		2,029		2,074			135
2015														1,495		2,079		2,266		2,386			139
2016																1,450		2,047		2,206			140
2017																		1,694		2,515			144
2018																				1,923		⁽¹⁾	129
Total																				$	20,610


⁽¹⁾	At December 31, 2018, ceded reinsurance recoveries on aggregate catastrophe treaties of approximately $200 million on reported losses have been reflected as a reduction to net IBNR.



Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	18
All Accident years	$	2,319

This product line has a substantial geographic spread and a broad mix across industries. Types of coverage include risk management business predominantly with high deductible policies, loss sensitive business (i.e., retrospectively-rated policies), business fronted for captives, as well as excess and primary guaranteed cost coverages.

The triangle below shows all loss and allocated expense development for the workers' compensation product line. In our prior period development disclosure, we exclude any loss development where there is a directly related premium adjustment. For workers' compensation, changes in the exposure base due to payroll audits will drive changes in ultimate losses. In addition, we record involuntary pool assumptions (premiums and losses) on a lagged basis. Both of these items will influence the development in the triangle, particularly the first prior accident year, and are included in the reconciliation table presented on page F-61.



North America Commercial P&C Insurance — Workers' Compensation — Long-tail (continued)
Net Incurred Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	1,029	$	998		$	997	$	990	$	980	$	977	$	966	$	972	$	965	$	964	$	218
2010			1,049			1,037		1,050		1,065		1,064		1,052		1,028		1,020		1,018		248
2011						1,037		1,030		1,046		1,049		1,053		1,022		1,012		1,008		271
2012								1,050		1,011		1,030		1,040		1,011		989		986		292
2013										1,109		1,108		1,122		1,127		1,086		1,073		358
2014												1,207		1,201		1,217		1,215		1,163		465
2015														1,282		1,259		1,276		1,279		594
2016																1,366		1,361		1,383		743
2017																		1,412		1,380		831
2018																				1,359		995
Total																				$	11,613



Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	107	$	258		$	348	$	416	$	475	$	519	$	550	$	597	$	617	$	633	282
2010			123			300		411		493		551		592		617		641		666		303
2011						119		294		411		484		533		567		595		616		286
2012								111		271		365		436		486		532		574		287
2013										107		286		422		506		553		587		299
2014												113		295		410		484		532		336
2015														116		301		418		501		334
2016																122		326		452		304
2017																		120		313		338
2018																				130		321
Total																				$	5,004



Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	2,574
All Accident years	$	9,183

This product line includes proportional and excess coverages in general, automobile liability, professional liability, medical malpractice, workers' compensation and aviation, with exposures located around the world. In general, reinsurance exhibits less stable development patterns than primary business. In particular general casualty reinsurance and excess coverages are long-tailed and can be very volatile.



Net Incurred Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	316	$	348		$	360	$	367	$	363	$	344	$	328	$	318	$	313	$	303	$	11
2010			398			418		429		440		429		423		413		399		386		39
2011						404		411		426		430		425		416		412		406		34
2012								383		380		388		391		376		369		368		15
2013										318		324		327		327		328		321		30
2014												330		331		336		339		341		36
2015														281		286		296		297		30
2016																219		223		231		38
2017																		210		211		65
2018																				239		139
Total																				$	3,103



Global Reinsurance — Casualty — Long-tail (continued)
Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	34	$	79		$	116	$	154	$	187	$	208	$	226	$	239	$	255	$	262	0.864
2010			56			124		179		220		249		273		291		306		314		0.796
2011						70		145		195		235		266		290		310		323		0.668
2012								76		166		220		259		290		306		321		0.464
2013										64		142		185		221		240		258		0.342
2014												91		183		216		247		263		0.389
2015														89		157		190		215		0.316
2016																57		111		141		0.324
2017																		46		99		0.401
2018																				40		0.196
Total																				$	2,236



Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	351
All Accident years	$	1,218

This product line represents first party commercial product lines that are short-tailed in nature, such as property, inland marine, ocean marine, surety and A&H. There is a wide diversity of products, primary and excess coverages, and policy sizes. During this ten-year period, this product line was also impacted by natural catastrophes mainly in the 2012, 2017, and 2018 accident years.



Net Incurred Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Net IBNR Reserves
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	1,302	$	1,298		$	1,243	$	1,213	$	1,196	$	1,189	$	1,189	$	1,186	$	1,185	$	1,183	$	1
2010			1,500			1,535		1,459		1,423		1,421		1,413		1,409		1,403		1,393		—
2011						1,956		1,930		1,873		1,852		1,831		1,835		1,831		1,831		11
2012								2,029		1,911		1,878		1,860		1,854		1,842		1,840		10
2013										1,428		1,418		1,331		1,354		1,335		1,334		13
2014												1,640		1,656		1,574		1,554		1,544		20
2015														1,732		1,741		1,646		1,634		39
2016																1,906		1,885		1,795		68
2017																		2,700		2,604		207
2018																				2,048		474
Total																				$	17,206



Net Cumulative Paid Loss and Allocated Loss Adjustment Expenses
	Years Ended December 31																					December 31 2018
(in millions of U.S. dollars)					Unaudited																	Reported Claims (in thousands)
Accident Year	2009		2010			2011		2012		2013		2014		2015		2016		2017		2018		2018
2009	$	618	$	1,032		$	1,122	$	1,146	$	1,160	$	1,168	$	1,176	$	1,178	$	1,178	$	1,178	1,124
2010			722			1,221		1,319		1,356		1,381		1,389		1,393		1,393		1,390		1,058
2011						938		1,570		1,714		1,773		1,783		1,807		1,812		1,817		1,052
2012								713		1,573		1,694		1,762		1,790		1,817		1,812		1,036
2013										648		1,134		1,233		1,280		1,306		1,319		1,073
2014												817		1,369		1,479		1,501		1,527		1,101
2015														725		1,340		1,485		1,553		1,170
2016																844		1,500		1,651		1,291
2017																		977		2,084		1,372
2018																				1,026		1,326
Total																				$	15,357



North America Commercial P&C Insurance — Non-Casualty — Short-tail (continued)
Net Liabilities for Loss and Allocated Loss Adjustment Expenses
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	22
All Accident years	$	1,871

Supplementary PPD [Table Text Block]



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(55	)
All Accident years	$	(64	)



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(2	)
All Accident years	$	18



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(1	)
All Accident years	$	(224	)



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	14
All Accident years	$	20



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(11	)
All Accident years	$	(109	)



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(3	)
All Accident years	$	(141	)



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(73	)
All Accident years	$	(155	)



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(7	)
All Accident years	$	47



Supplementary Information: (Favorable)/ Adverse Prior Period Development
(in millions of U.S. dollars)	December 31, 2018
Accident years prior to 2009	$	(48	)
All Accident years	$	(73	)

Schedule of Historical Claims [Table Text Block]



Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	47	%	38	%	8	%	3	%	1	%	1	%	—	%	—	%	—	%	—	%



Global Reinsurance — Non-Casualty — Short-tail (continued)
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	34	%	37	%	13	%	7	%	4	%	3	%	1	%	1	%	—	%	—	%



Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	59	%	24	%	7	%	5	%	3	%	1	%	1	%	—	%	—	%	—	%



Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	5	%	14	%	17	%	16	%	12	%	9	%	6	%	3	%	3	%	1	%



North America Commercial P&C Insurance — Workers' Compensation — Long-tail (continued)
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	10	%	16	%	10	%	7	%	5	%	4	%	3	%	3	%	2	%	2	%



Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	20	%	22	%	13	%	10	%	7	%	6	%	5	%	4	%	3	%	3	%



Overseas General Insurance — Casualty — Long-tail (continued)
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	8	%	15	%	15	%	12	%	9	%	8	%	6	%	6	%	3	%	3	%



North America Commercial P&C Insurance — Other-Casualty — Long-tail (continued)
Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	14	%	25	%	18	%	13	%	8	%	6	%	2	%	2	%	1	%	1	%



Supplementary Information: Average Annual Percentage Payout of Net Incurred Claims by Age, as of December 31, 2018
Age in Years	1		2		3		4		5		6		7		8		9		10
Percentage	44	%	35	%	11	%	4	%	2	%	1	%	1	%	—	%	—	%	—	%

Supplementary PPD Reconciliation [Table Text Block]

The following table presents a reconciliation of the loss development triangles above to prior period development:



	Components of PPD
Year Ended December 31, 2018 (in millions of U.S. dollars) (favorable)/unfavorable	2009 - 2017 accident years (implied PPD per loss triangles)			Accident years prior to 2009			Other ⁽¹⁾				PPD on loss reserves			RIPs, Expense adjustments, and earned premiums		Total
North America Commercial P&C Insurance
Long-tail	$	(214	)	$	(62	)	$	(149	)		$	(425	)	$	30	$	(395	)
Short-tail	(223		)	(1		)	(4		)		(228		)	13		(215		)
	(437		)	(63		)	(153		)	⁽²⁾	(653		)	43		(610		)
North America Personal P&C Insurance (Short-tail)	54			(7		)	(7		)		40			1		41
Overseas General Insurance
Long-tail	(9		)	(55		)	(3		)		(67		)	—		(67		)
Short-tail	(98		)	(11		)	(40		)		(149		)	4		(145		)
	(107		)	(66		)	(43		)	⁽³⁾	(216		)	4		(212		)
Global Reinsurance
Long-tail	(25		)	(48		)	(1		)		(74		)	5		(69		)
Short-tail	20			(2		)	(1		)		17			2		19
	(5		)	(50		)	(2		)		(57		)	7		(50		)
Subtotal	$	(495	)	$	(186	)	$	(205	)		$	(886	)	$	55	$	(831	)
North America Agricultural Insurance (Short-tail)											$	(140	)	$	30	$	(110	)
Corporate (Long-tail)											45			—		45
Consolidated PPD											$	(981	)	$	85	$	(896	)


⁽¹⁾	Other includes the impact of foreign exchange.

⁽²⁾

Includes favorable development of $81 million related to our Alternative Risk Solutions business (U.S. and Bermuda) and an adjustment to exclude $42 million in unfavorable development in the workers' compensation line associated with an increase in exposure for which additional premiums were collected; the remaining difference relates to a number of other items, none of which are individually material.


⁽³⁾	Includes favorable development of $31 million related to International A&H business; the remaining difference relates to a number of other items, none of which are individually material.

Prior Period Development, by Segment [Table Text Block]



Years Ended December 31 (in millions of U.S. dollars, except for percentages)	Long-tail			Short-tail			Total			% of beginning net unpaid reserves ⁽¹⁾
2018
North America Commercial P&C Insurance	$	(395	)	$	(215	)	$	(610	)	1.2	%
North America Personal P&C Insurance	—			41			41			0.1	%
North America Agricultural Insurance	—			(110		)	(110		)	0.2	%
Overseas General Insurance	(67		)	(145		)	(212		)	0.4	%
Global Reinsurance	(69		)	19			(50		)	0.1	%
Corporate	45			—			45			0.1	%
Total	$	(486	)	$	(410	)	$	(896	)	1.8	%
2017
North America Commercial P&C Insurance	$	(562	)	$	(184	)	$	(746	)	1.6	%
North America Personal P&C Insurance	—			69			69			0.1	%
North America Agricultural Insurance	—			(119		)	(119		)	0.2	%
Overseas General Insurance	(71		)	(181		)	(252		)	0.5	%
Global Reinsurance	(68		)	9			(59		)	0.1	%
Corporate	278			—			278			0.6	%
Total	$	(423	)	$	(406	)	$	(829	)	1.7	%
2016
North America Commercial P&C Insurance	$	(693	)	$	(85	)	$	(778	)	1.6	%
North America Personal P&C Insurance	—			27			27			0.1	%
North America Agricultural Insurance	—			(72		)	(72		)	0.2	%
Overseas General Insurance	(236		)	(187		)	(423		)	0.9	%
Global Reinsurance	(77		)	(1		)	(78		)	0.2	%
Corporate	189			—			189			0.4	%
Total	$	(817	)	$	(318	)	$	(1,135	)	2.4	%


⁽¹⁾	Calculated based on the beginning of period consolidated net unpaid losses and loss expenses. For 2016, the percent of beginning net unpaid reserves is calculated inclusive of the net unpaid losses and loss expenses acquired in the Chubb Corp acquisition of $21.4 billion.

Schedule Of Asbestos Environmental Loss Roll Forward and by segment

The following table presents a roll-forward of consolidated A&E loss reserves including allocated loss expense reserves for A&E exposures, and the provision for uncollectible paid and unpaid reinsurance recoverables:



	Asbestos						Environmental						Total
(in millions of U.S. dollars)	Gross			Net			Gross			Net			Gross			Net
Balance at December 31, 2017	$	1,621		$	1,051		$	607		$	476		$	2,228		$	1,527
Incurred activity	136			75			101			(97		)	237			(22		)	⁽¹⁾
Paid activity	(265		)	(162		)	(83		)	104			(348		)	(58		)
Balance at December 31, 2018	$	1,492		$	964		$	625		$	483		$	2,117		$	1,447


⁽¹⁾	Excludes unallocated loss expenses and the net activity reflects third-party reinsurance other than the aggregate excess of loss reinsurance provided by National Indemnity Company (NICO) to Westchester Specialty (see Westchester Specialty section below).

The positive development of $22 million in 2018 principally reflects favorable reinsurance settlements.

The A&E net loss reserves including allocated loss expense reserves and provision for uncollectible reinsurance at December 31, 2018 and 2017 shown in the table above is comprised of:



	December 31
(in millions of U.S. dollars)	2018		2017
Brandywine operations	$	807	$	849
Westchester Specialty	120		113
Chubb Corp	442		486
Other, mainly Overseas General Insurance	78		79
Total	$	1,447	$	1,527