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Claim and Claim Adjustment Expense Reserves (Tables)
 6 Months Ended
Jun. 30, 2019
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 Other Insurance Operations.
                 
Six Months Ended June 30
 
2019
 
 
2018
 
(In millions)
 
 
 
 
  
 
 
 
 
Reserves, beginning of year:
 
 
 
 
 
 
Gross
 
$
21,984
 
 
$
22,004
 
Ceded
 
 
4,019
 
 
 
3,934
 
Net reserves, beginning of year
 
 
17,965
 
 
 
18,070
 
  
 
 
 
 
 
 
 
 
Net incurred claim and claim adjustment expenses:
 
 
 
 
 
 
Provision for insured events of current year
 
 
2,615
 
 
 
2,552
 
Increase (decrease) in provision for insured events of prior years
 
 
(36
)
 
 
(112
)
Amortization of discount
 
 
98
 
 
 
92
 
Total net incurred (a)
 
 
2,677
 
 
 
2,532
 
 
 
 
 
 
 
 
 
 
Net payments attributable to:
 
 
 
 
 
 
Current year events
 
 
(315
)
 
 
(312
)
Prior year events
 
 
(2,519
)
 
 
(2,387
)
Total net payments
 
 
(2,834
)
 
 
(2,699
)
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment and other
 
 
55
 
 
 
(70
)
 
 
 
 
 
 
 
 
 
Net reserves, end of period
 
 
17,863
 
 
 
17,833
 
Ceded reserves, end of period
 
 
3,866
 
 
 
4,157
 
Gross reserves, end of period
 
$
21,729
 
 
$
21,990
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on 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.
 
 
 
 
 
 
 
 
 
 
 
 
Details of the Net Prior Year Development in CNA's Property and Casualty Operations
The following table and discussion present details of the net prior year claim and claim adjustment expense reserve development in CNA’s Property & Casualty Operations:
                                 
 
Three Months Ended
June 30,
 
 
Six Months Ended
June 30,
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
(In millions)
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
Medical professional liability
 
$
15
 
 
$
3
 
 
$
30
 
 
$
23
 
Other professional liability and management liability
 
 
(7
)
 
 
(34
)
 
 
(19
)
 
 
(68
)
Surety
 
 
(15
)
 
 
(15
)
 
 
(40
)
 
 
(30
)
Commercial auto
 
 
(3
)
 
 
 
 
 
(8
)
 
 
(1
)
General liability
 
 
13
 
 
 
26
 
 
 
(7
)
 
 
18
 
Workers’ compensation
 
 
(7
)
 
 
(6
)
 
 
(5
)
 
 
(12
)
Other
 
 
(27
)
 
 
(33
)
 
 
4
 
 
 
(28
)
Total pretax (favorable) unfavorable development
 
$
(31
)
 
$
(59
)
 
$
(45
)
 
$
(98
)
 
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
June 30,
 
 
Six Months Ended
June 30,
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
(In millions)
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
Additional amounts ceded under LPT:
 
 
 
 
 
 
 
 
 
 
 
 
Net A&EP adverse development before consideration of LPT
 
  
  
 
 
  
  
 
 
  
           
 
 
$
113
 
Provision for uncollectible third-party reinsurance on A&EP
 
 
 
 
 
 
 
 
 
 
 
 
(16
)
Total additional amounts ceded under LPT
 
$
-    
 
 
$
-    
 
 
$
-  
  
 
 
 
97
 
Retroactive reinsurance benefit recognized
 
 
(14
) 
 
 
(15
)
 
 
(36
)
 
 
 
(72
)
Pretax impact of deferred retroactive reinsurance
 
$
(14
) 
 
$
(15
)
 
$
(36
)
 
$
25