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Claim and Claim Adjustment Expense Reserves (Tables) | 9 Months Ended
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Sep. 30, 2017
Insurance [Abstract] |
Reconciliation of Claim and Claim Adjustment Expense Reserves | The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of non-core operations.
Nine Months Ended September 30 |  | 2017 |  |  | 2016 |
(In millions) |  |  |  |  |  |
Reserves, beginning of year: |  |  |  |  |  |  |  |
Gross |  | $ | 22,343 |  |  | $ | 22,663 |
Ceded |  |  | 4,094 |  |  |  | 4,087 |
Net reserves, beginning of year |  |  | 18,249 |  |  |  | 18,576 |
Net incurred claim and claim adjustment expenses: |  |  |  |  |  |  |  |
Provision for insured events of current year |  |  | 3,949 |  |  |  | 3,799 |
Decrease in provision for insured events of prior years |  |  | (284 | ) |  |  | (332 | )
Amortization of discount |  |  | 138 |  |  |  | 134 |
Total net incurred (a) |  |  | 3,803 |  |  |  | 3,601 |
Net payments attributable to: |  |  |  |  |  |  |  |
Current year events |  |  | (560 | ) |  |  | (591 | )
Prior year events |  |  | (3,401 | ) |  |  | (3,209 | )
Total net payments |  |  | (3,961 | ) |  |  | (3,800 | )
Foreign currency translation adjustment and other |  |  | 110 |  |  |  | 39 |
Net reserves, end of period |  |  | 18,201 |  |  |  | 18,416 |
Ceded reserves, end of period |  |  | 4,008 |  |  |  | 4,256 |
Gross reserves, end of period |  | $ | 22,209 |  |  | $ | 22,672 |
(a) | Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected in the Consolidated Condensed Statements of Income due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables and benefit expenses related to future policy benefits, which are not reflected in the table above.
Net Prior Year Development | The following table and discussion present net prior year development:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development |  | $ | (115 | ) |  | $ | (132 | ) |  | $ | (227 | ) |  | $ | (282 | )
Pretax (favorable) unfavorable premium development |  |  | (19 | ) |  |  | (5 | ) |  |  | (2 | ) |  |  | (27 | )
Total pretax (favorable) unfavorable net prior year development |  | $ | (134 | ) |  | $ | (137 | ) |  | $ | (229 | ) |  | $ | (309 | )
Details of the Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development ("development") | The following table and discussion present details of the net prior year claim and allocated claim adjustment expense reserve development (“development”):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |
Medical professional liability |  | $ | 1 |  |  | $ | 13 |  |  | $ | 5 |  |  | $ | (17 | )
Other professional liability and management liability |  |  | (27 | ) |  |  | (48 | ) |  |  | (96 | ) |  |  | (98 | )
Surety |  |  | (82 | ) |  |  | (63 | ) |  |  | (82 | ) |  |  | (63 | )
Commercial auto |  |  | (14 | ) |  |  | (12 | ) |  |  | (40 | ) |  |  | (47 | )
General liability |  |  | 7 |  |  |  | 14 |  |  |  | 6 |  |  |  | (38 | )
Workers’ compensation |  |  | 7 |  |  |  | (6 | ) |  |  | (39 | ) |  |  | 48 |
Other |  |  | (7 | ) |  |  | (30 | ) |  |  | 19 |  |  |  | (67 | )
Total pretax (favorable) unfavorable development |  | $ | (115 | ) |  | $ | (132 | ) |  | $ | (227 | ) |  | $ | (282 | )
Schedule of Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations | The following table presents the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |
Net A&EP adverse development before consideration of LPT |  | $ | - |  |  | $ | - |  |  | $ | 60 |  |  | $ | 200 |
Retroactive reinsurance benefit recognized |  |  | (17 | ) |  |  | (12 | ) |  |  | (60 | ) |  |  | (94 | )
Pretax impact of A&EP reserve development and the LPT |  | $ | (17 | ) |  | $ | (12 | ) |  | $ | - |  |  | $ | 106 |

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- Definition Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65670824&loc=d3e14764-158437 + Details
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