XML 29 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Claim and Claim Adjustment Expense Reserves | 12 Months Ended
--- | ---
Dec. 31, 2017
Liability for Claims and Claims Adjustment Expense [Abstract] |
Claim and Claim Adjustment Expense Reserves | Claim and Claim Adjustment Expense Reserves The Company's property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including IBNR claims as of the reporting date. The Company's reserve projections are based primarily on detailed analysis of the facts in each case, the Company's experience with similar cases and various historical development patterns. Consideration is given to such historical patterns as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions, economic conditions, including inflation, and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves. Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers' compensation, general liability and professional liability claims. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that the Company's ultimate cost for insurance losses will not exceed current estimates. Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in the Company's results of operations and/or equity. The Company reported catastrophe losses, net of reinsurance, of $380 million, $165 million and $141 million for the years ended December 31, 2017, 2016 and 2015. Net catastrophe losses for the year ended December 31, 2017 included $256 million related to Hurricanes Harvey, Irma and Maria. Catastrophe-related reinsurance reinstatement premium was $4 million for the year ended December 31, 2017. The remaining net catastrophe losses in 2017 resulted primarily from the California wildfires and U.S. weather related events. Net catastrophe losses in 2016 related primarily to U.S. weather-related events and the Fort McMurray wildfires. Net catastrophe losses in 2015 related primarily to U.S. weather-related events. Liability for Unpaid Claim and Claim Adjustment Expenses The table below reconciles the net liability for unpaid claim and claim adjustment expenses for the property and casualty segments to the amount presented in the Consolidated Balance Sheets.
As of December 31 |
(In millions) | 2017
Net liability for unpaid claim and claim adjustment expenses: |
Specialty | $ | 5,179 |
Commercial | 7,964 |
International | 1,432 |
Corporate & Other | 205 |
Life & Group (1) | 3,290 |
Total net claim and claim adjustment expenses | 18,070 |
Reinsurance receivables: (2) |
Specialty | 669 |
Commercial | 621 |
International | 204 |
Corporate & Other (3) | 2,231 |
Life & Group | 209 |
Total reinsurance receivables | 3,934 |
Total gross liability for unpaid claim and claim adjustment expenses | $ | 22,004 |
(1) The Life & Group segment amount is primarily related to long term care claim reserves, but also includes amounts related to unfunded structured settlements arising from short duration contracts. Long term care policies are long duration contracts. (2) Reinsurance receivables presented do not include reinsurance receivables related to paid losses. (3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the Loss Portfolio Transfer. The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group segment.
As of or for the years ended December 31 |  |  |  |  |
(In millions) | 2017 |  | 2016 |  | 2015
Reserves, beginning of year: |  |  |  |  |
Gross | $ | 22,343 |  |  | $ | 22,663 |  |  | $ | 23,271 |
Ceded | 4,094 |  |  | 4,087 |  |  | 4,344 |
Net reserves, beginning of year | 18,249 |  |  | 18,576 |  |  | 18,927 |
Net incurred claim and claim adjustment expenses: |  |  |  |  |
Provision for insured events of current year | 5,201 |  |  | 5,025 |  |  | 4,934 |
Decrease in provision for insured events of prior years | (381 | ) |  | (342 | ) |  | (255 | )
Amortization of discount | 179 |  |  | 175 |  |  | 166 |
Total net incurred (1) | 4,999 |  |  | 4,858 |  |  | 4,845 |
Net payments attributable to: |  |  |  |  |
Current year events | (975 | ) |  | (967 | ) |  | (856 | )
Prior year events | (4,366 | ) |  | (4,167 | ) |  | (4,089 | )
Total net payments | (5,341 | ) |  | (5,134 | ) |  | (4,945 | )
Foreign currency translation adjustment and other | 163 |  |  | (51 | ) |  | (251 | )
Net reserves, end of year | 18,070 |  |  | 18,249 |  |  | 18,576 |
Ceded reserves, end of year | 3,934 |  |  | 4,094 |  |  | 4,087 |
Gross reserves, end of year | $ | 22,004 |  |  | $ | 22,343 |  |  | $ | 22,663 |
(1) | Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations 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.
Reserving Methodology In developing claim and claim adjustment expense (“loss” or “losses”) reserve estimates, our actuaries perform detailed reserve analyses that are staggered throughout the year. Every reserve group is reviewed at least once during the year. The analyses generally review losses gross of ceded reinsurance and apply the ceded reinsurance terms to the gross estimates to establish estimates net of reinsurance. In addition to the detailed analyses, we review actual loss emergence for all products each quarter. In developing the loss reserve estimates for property and casualty contracts, we generally project ultimate losses using several common actuarial methods as listed below. We review the various indications from the various methods and apply judgment to select an actuarial point estimate. The indicated required reserve is the difference between the selected ultimate loss and the inception-to-date paid losses. The difference between the selected ultimate loss and the case incurred or reported loss is IBNR. IBNR includes a provision for development on known cases as well as a provision for late reported incurred claims. Further, the Company does not establish case reserves for allocated loss adjustment expenses (ALAE), therefore ALAE reserves are included in our estimate of IBNR. The most frequently utilized methods to project ultimate losses include the following:
• | Paid development: The paid development method estimates ultimate losses by reviewing paid loss patterns and applying them to accident years with further expected changes in paid loss.
• | Incurred development: The incurred development method is similar to the paid development method, but it uses case incurred losses instead of paid losses.
• | Loss ratio: The loss ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year.
• | Bornhuetter-Ferguson using premiums and paid loss: The Bornhuetter-Ferguson using premiums and paid loss method is a combination of the paid development approach and the loss ratio approach. This method normally determines expected loss ratios similar to the approach used to estimate the expected loss ratio for the loss ratio method.
• | Bornhuetter-Ferguson using premiums and incurred loss: The Bornhuetter-Ferguson using premiums and incurred loss method is similar to the Bornhuetter-Ferguson using premiums and paid loss method except that it uses case incurred losses.
• | Frequency times severity: The frequency times severity method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident year to produce ultimate loss estimates.
• | Stochastic modeling: The stochastic modeling produces a range of possible outcomes based on varying assumptions related to the particular product being modeled.
For many exposures, especially those that can be considered long-tail, a particular accident or policy year may not have a sufficient volume of paid losses to produce a statistically reliable estimate of ultimate losses. In such a case, our actuaries typically assign more weight to the incurred development method than to the paid development method. As claims continue to settle and the volume of paid loss increases, the actuaries may assign additional weight to the paid development method. For most of our products, even the incurred losses for accident or policy years that are early in the claim settlement process will not be of sufficient volume to produce a reliable estimate of ultimate losses. In these cases, we may not assign any weight to the paid and incurred development methods. We will use the loss ratio, Bornhuetter-Ferguson and frequency times severity methods. For short-tail exposures, the paid and incurred development methods can often be relied on sooner, primarily because our history includes a sufficient number of years to cover the entire period over which paid and incurred losses are expected to change. However, we may also use the loss ratio, Bornhuetter-Ferguson and frequency times severity methods for short-tail exposures. For other more complex reserve groups where the above methods may not produce reliable indications, we use additional methods tailored to the characteristics of the specific situation. Future Policy Benefit Reserves Reserves for policyholder benefits for our Life & Group segment, which primarily includes long term care, are based on actuarial assumptions which include estimates of morbidity, persistency, inclusive of mortality, discount rates, future premium rate increases and expenses over the life of the contracts. Under GAAP, the best estimates of the actuarial assumptions at the date the contract was issued are locked-in throughout the life of the contract, unless a premium deficiency develops, which occurred in 2015. As a result, the Company updated the assumptions to represent management’s best estimates at the time of the premium deficiency and these revised assumptions are locked-in unless another premium deficiency is identified. Certain claim liabilities are more difficult to estimate and have differing methodologies and considerations which are described below. Mass Tort and A&EP Reserves Our mass tort and A&EP reserving methodologies are similar as both are based on detailed account reviews of large accounts with estimates based on ultimate payments considering the applicable law and coverage litigation. These reserves are subject to greater inherent variability than is typical of the remainder of the Company’s reserves due to, among other things, a general lack of sufficiently detailed data, expansion of the population being held responsible for these exposures and significant unresolved legal issues such as the existence of coverage and the definition of an occurrence. Property and Casualty Reserve Reviews Our actuarial reserve analyses result in point estimates. Each quarter, the results of detailed reserve reviews are summarized and discussed with our senior management to determine management's best estimate of reserves. Senior management considers many factors in making this decision. The factors include, but are not limited to, the historical pattern and volatility of the actuarial indications, the sensitivity of the actuarial indications to changes in paid and incurred loss patterns, the consistency of claims handling processes, the consistency of case reserving practices, changes in our pricing and underwriting, pricing and underwriting trends in the insurance market and legal, judicial, social and economic trends. Our recorded reserves reflect our best estimate as of a particular point in time based upon known facts, consideration of the factors cited above and our judgment. The carried reserve may differ from the actuarial point estimate as the result of our consideration of the factors noted above as well as the potential volatility of the projections associated with the specific product being analyzed and other factors affecting claims costs that may not be quantifiable through traditional actuarial analysis. The following tables present the gross and net carried reserves.
December 31, 2017 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  | Total
(In millions) |  |  |  |  |
Gross Case Reserves | $ | 1,805 |  |  | $ | 4,364 |  |  | $ | 744 |  |  | $ | 3,386 |  |  | $ | 1,371 |  |  | $ | 11,670 |
Gross IBNR Reserves | 4,043 |  |  | 4,221 |  |  | 892 |  |  | 113 |  |  | 1,065 |  |  | 10,334 |
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 5,848 |  |  | $ | 8,585 |  |  | $ | 1,636 |  |  | $ | 3,499 |  |  | $ | 2,436 |  |  | $ | 22,004 |
Net Case Reserves | $ | 1,656 |  |  | $ | 4,047 |  |  | $ | 640 |  |  | $ | 3,208 |  |  | $ | 94 |  |  | $ | 9,645 |
Net IBNR Reserves | 3,523 |  |  | 3,917 |  |  | 792 |  |  | 82 |  |  | 111 |  |  | 8,425 |
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 5,179 |  |  | $ | 7,964 |  |  | $ | 1,432 |  |  | $ | 3,290 |  |  | $ | 205 |  |  | $ | 18,070 |
December 31, 2016 | Specialty |  | Commercial |  | International |  | Life & Group |  | Corporate & Other |  | Total
(In millions) |  |  |  |  |
Gross Case Reserves | $ | 1,871 |  |  | $ | 4,661 |  |  | $ | 632 |  |  | $ | 3,172 |  |  | $ | 1,524 |  |  | $ | 11,860 |
Gross IBNR Reserves | 4,278 |  |  | 4,233 |  |  | 696 |  |  | 186 |  |  | 1,090 |  |  | 10,483 |
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,149 |  |  | $ | 8,894 |  |  | $ | 1,328 |  |  | $ | 3,358 |  |  | $ | 2,614 |  |  | $ | 22,343 |
Net Case Reserves | $ | 1,681 |  |  | $ | 4,353 |  |  | $ | 548 |  |  | $ | 2,951 |  |  | $ | 94 |  |  | $ | 9,627 |
Net IBNR Reserves | 3,723 |  |  | 3,952 |  |  | 653 |  |  | 158 |  |  | 136 |  |  | 8,622 |
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 5,404 |  |  | $ | 8,305 |  |  | $ | 1,201 |  |  | $ | 3,109 |  |  | $ | 230 |  |  | $ | 18,249 |
Development Tables The loss reserve development tables presented herein illustrate the change over time of reserves established for claim and allocated claim adjustment expenses arising from short duration insurance contracts for certain lines of business within our property & casualty segments. Not all lines of business or segments are presented based on their context to the Company's overall loss reserves, calendar year reserve development, or calendar year net earned premiums. Insurance contracts are considered to be short duration contracts when the contracts are not expected to remain in force for an extended period of time. The Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative net incurred claim and allocated claim adjustment expenses relating to each accident year at the end of the stated calendar year. Changes in the cumulative amount across time are the result of the Company's expanded awareness of additional facts and circumstances that pertain to the unsettled claims. The Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative amount paid for claims in each accident year as of the end of the stated calendar year. The Net Strengthening or (Releases) of Prior Accident Year Reserves tables, reading across, show the net increase or decrease in the cumulative net incurred accident year claim and allocated claim adjustment expenses during each stated calendar year and indicates whether the reserves for that accident year were strengthened or released. The information in the tables is reported on a net basis after reinsurance and does not include the effects of discounting. The information contained in the years preceding calendar year 2016 is unaudited. Information contained in the tables pertaining to our International segment has been presented at the year-end 2017 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate changes between calendar years. The Company has presented development information for the Hardy business prospectively from the date of acquisition and is presented as a separate table within our International segment. To the extent the Company enters into a commutation, the transaction is reported on a prospective basis. To the extent that the Company enters into a disposition, the effects of the disposition are reported on a retrospective basis by removing the balances associated with the disposed of business. The amounts reported for the cumulative number of reported claims include direct and assumed open and closed claims by accident year at the claimant level. The number excludes claim counts for claims within a policy deductible where the insured is responsible for payment of losses in the deductible layer. Claim count data for certain assumed reinsurance contracts is unavailable. In the loss reserve development tables, IBNR includes reserves for incurred but not reported losses and expected development on case reserves. The Company does not establish case reserves for ALAE, therefore ALAE reserves are also included in the estimate of IBNR. Net Prior Year Development Changes in estimates of claim and claim adjustment expense reserves and premium accruals, net of reinsurance, for prior years are defined as net prior year development. These changes can be favorable or unfavorable. The following tables and discussion present the net prior year development recorded for Specialty, Commercial, International and Corporate & Other segments.
December 31, 2017 |  |  |  |  |  |  |  |  |
(In millions) | Specialty |  | Commercial |  | International |  | Corporate & Other |  | Total
Pretax (favorable) unfavorable net prior year claim and claim adjustment expense reserve development | $ | (202 | ) |  | $ | (87 | ) |  | $ | (9 | ) |  | $ | (10 | ) |  | $ | (308 | )
Pretax (favorable) unfavorable premium development | (14 | ) |  | 28 |  |  | (18 | ) |  | — |  |  | (4 | )
Total pretax (favorable) unfavorable net prior year development | $ | (216 | ) |  | $ | (59 | ) |  | $ | (27 | ) |  | $ | (10 | ) |  | $ | (312 | )
December 31, 2016 |  |  |  |  |  |  |  |  |
(In millions) | Specialty |  | Commercial |  | International |  | Corporate & Other |  | Total
Pretax (favorable) unfavorable net prior year claim and claim adjustment expense reserve development | $ | (287 | ) |  | $ | 55 |  |  | $ | (58 | ) |  | $ | 2 |  |  | $ | (288 | )
Pretax (favorable) unfavorable premium development | (18 | ) |  | (2 | ) |  | (6 | ) |  | — |  |  | (26 | )
Total pretax (favorable) unfavorable net prior year development | $ | (305 | ) |  | $ | 53 |  |  | $ | (64 | ) |  | $ | 2 |  |  | $ | (314 | )
December 31, 2015 |  |  |  |  |  |  |  |  |
(In millions) | Specialty |  | Commercial |  | International |  | Corporate & Other |  | Total
Pretax (favorable) unfavorable net prior year claim and claim adjustment expense reserve development | $ | (141 | ) |  | $ | (15 | ) |  | $ | (54 | ) |  | $ | — |  |  | $ | (210 | )
Pretax (favorable) unfavorable premium development | (11 | ) |  | (15 | ) |  | 18 |  |  | — |  |  | (8 | )
Total pretax (favorable) unfavorable net prior year development | $ | (152 | ) |  | $ | (30 | ) |  | $ | (36 | ) |  | $ | — |  |  | $ | (218 | )
Favorable net prior year development of $79 million, $45 million and $50 million was recorded in the Life & Group segment for the years ended December 31, 2017, 2016 and 2015. The favorable net prior year development for the year ended December 31, 2017 was driven by lower than expected claim severity. Premium development can occur in the property and casualty business when there is a change in exposure on auditable policies or when premium accruals differ from processed premium. Audits on policies usually occur in a period after the expiration date of the policy. See further information on the premium development in the Commercial segment for the years ended December 31, 2017 and 2016 within the Small Business discussion in Note F. Specialty The following table presents further detail of the net prior year claim and claim adjustment expense reserve development (development) recorded for the Specialty segment.
Years ended December 31 |  |  |  |  |
(In millions) | 2017 |  | 2016 |  | 2015
Pretax (favorable) unfavorable development: |  |  |  |  |
Medical Professional Liability | $ | 5 |  |  | $ | (37 | ) |  | $ | (43 | )
Other Professional Liability and Management Liability | (131 | ) |  | (130 | ) |  | — |
Surety | (84 | ) |  | (63 | ) |  | (69 | )
Warranty | 4 |  |  | 4 |  |  | (2 | )
Other | 4 |  |  | (61 | ) |  | (27 | )
Total pretax (favorable) unfavorable development | $ | (202 | ) |  | $ | (287 | ) |  | $ | (141 | )
2017 Unfavorable development in medical professional liability was primarily due to continued higher than expected frequency in aging services and higher than expected severity for hospitals in recent accident years. This was partially offset by favorable development in life sciences and hospitals in prior accident years as well as favorable development related to unallocated claim adjustment expenses. Favorable development in other professional liability and management liability was primarily due to favorable settlements on closed claims and a lower frequency of large losses for accident years 2011 through 2015 for professional and management liability, lower than expected claim frequency in accident years 2012 through 2015 for professional liability and lower than expected severity in accident years 2014 through 2015 for professional liability. Favorable development in surety coverages was primarily due to lower than expected frequency of large losses in accident years 2015 and prior. 2016 Favorable development for medical professional liability was primarily due to lower than expected severities for individual healthcare professionals, allied facilities and hospitals in accident years 2011 and prior and better than expected severity in medical products liability in accident years 2010 through 2015. This was partially offset by unfavorable development in accident years 2012 and 2013 related to higher than expected large loss emergence in hospitals and higher than expected frequency and severity in accident years 2014 and 2015 in our aging services business. Favorable development in other professional liability and management liability was primarily due to favorable settlements on closed claims and lower than expected frequency of claims in accident years 2010 through 2014 related to professional services and financial institutions. This was partially offset by unfavorable development related to a specific financial institutions claim in accident year 2014, higher management liability severities in accident year 2015, and deterioration on credit crises-related claims in accident year 2009. Favorable development in surety coverages was primarily due to lower than expected frequency of large losses in accident years 2014 and prior. Favorable development for other coverages provided to Specialty customers was due to better than expected claim frequency and claim severity in commercial lines coverages in accident years 2010 through 2015. 2015 Overall, favorable development for medical professional liability was related to lower than expected severity in accident years 2012 and prior. Unfavorable development was recorded related to increased claim frequency and severity in the aging services business in accident years 2013 and 2014. Favorable development in other professional liability and management liability related to better than expected large loss emergence in financial institutions primarily in accident years 2011 through 2014. Additional favorable development related to lower than expected severity for professional services in accident years 2011 and prior. Unfavorable development was recorded related to increased frequency of large claims on public company management liability in accident years 2012 through 2014. Favorable development for surety coverages was primarily due to lower than expected frequency of large losses in accident years 2013 and prior. Favorable development for other coverages was due to better than expected claim frequency in property coverages provided to Specialty customers in accident year 2014. Specialty - Line of Business Composition The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Specialty segment.
As of December 31 |
(In millions) | 2017
Net liability for unpaid claim and claim adjustment expenses: |
Medical Professional Liability | $ | 1,700 |
Other Professional Liability and Management Liability | 2,912 |
Surety | 368 |
Warranty | 54 |
Other | 145 |
Total net liability for unpaid claim and claim adjustment expenses | $ | 5,179 |
Specialty - Medical Professional Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year |  | As of December 31, 2017
(In millions, except reported claims data) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | IBNR |  | Cumulative Number of Claims
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 426 |  |  | $ | 451 |  |  | $ | 496 |  |  | $ | 480 |  |  | $ | 468 |  |  | $ | 468 |  |  | $ | 467 |  |  | $ | 455 |  |  | $ | 442 |  |  | $ | 438 |  |  | $ | 4 |  |  | 14,102 |
2009 |  |  | 462 |  |  | 469 |  |  | 494 |  |  | 506 |  |  | 480 |  |  | 471 |  |  | 463 |  |  | 432 |  |  | 422 |  |  | 3 |  |  | 15,594 |
2010 |  |  |  |  | 483 |  |  | 478 |  |  | 478 |  |  | 486 |  |  | 470 |  |  | 446 |  |  | 403 |  |  | 398 |  |  | 9 |  |  | 15,239 |
2011 |  |  |  |  |  |  | 486 |  |  | 492 |  |  | 507 |  |  | 533 |  |  | 501 |  |  | 491 |  |  | 491 |  |  | 16 |  |  | 17,481 |
2012 |  |  |  |  |  |  |  |  | 526 |  |  | 529 |  |  | 575 |  |  | 567 |  |  | 559 |  |  | 563 |  |  | 39 |  |  | 18,503 |
2013 |  |  |  |  |  |  |  |  |  |  | 534 |  |  | 540 |  |  | 560 |  |  | 567 |  |  | 573 |  |  | 44 |  |  | 19,777 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 511 |  |  | 548 |  |  | 585 |  |  | 564 |  |  | 78 |  |  | 19,764 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 480 |  |  | 539 |  |  | 543 |  |  | 164 |  |  | 17,690 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 469 |  |  | 527 |  |  | 268 |  |  | 14,743 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 452 |  |  | 370 |  |  | 11,137 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 4,971 |  |  | $ | 995 |  |  |
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year
(In millions) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 9 |  |  | $ | 90 |  |  | $ | 207 |  |  | $ | 282 |  |  | $ | 332 |  |  | $ | 377 |  |  | $ | 395 |  |  | $ | 409 |  |  | $ | 428 |  |  | $ | 431 |
2009 |  |  | 9 |  |  | 75 |  |  | 180 |  |  | 278 |  |  | 328 |  |  | 353 |  |  | 377 |  |  | 396 |  |  | 408 |
2010 |  |  |  |  | 11 |  |  | 93 |  |  | 186 |  |  | 273 |  |  | 338 |  |  | 361 |  |  | 371 |  |  | 380 |
2011 |  |  |  |  |  |  | 18 |  |  | 121 |  |  | 225 |  |  | 315 |  |  | 379 |  |  | 407 |  |  | 435 |
2012 |  |  |  |  |  |  |  |  | 15 |  |  | 121 |  |  | 236 |  |  | 359 |  |  | 428 |  |  | 475 |
2013 |  |  |  |  |  |  |  |  |  |  | 18 |  |  | 121 |  |  | 259 |  |  | 364 |  |  | 429 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 25 |  |  | 149 |  |  | 274 |  |  | 374 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 22 |  |  | 105 |  |  | 241 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18 |  |  | 126 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 3,319 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |  |  | $ | 1,652 |
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 |  |  | 20 |
Liability for unallocated claim adjustment expenses for accident years presented |  |  | 28 |
Total net liability for unpaid claim and claim adjustment expenses |  |  | $ | 1,700 |
Net strengthening or (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31 |  |  | Calendar Year |  |
(In millions) |  |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | Total
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | $ | 25 |  |  | $ | 45 |  |  | $ | (16 | ) |  | $ | (12 | ) |  | $ | — |  |  | $ | (1 | ) |  | $ | (12 | ) |  | $ | (13 | ) |  | $ | (4 | ) |  | $ | 12 |
2009 |  |  |  |  |  | 7 |  |  | 25 |  |  | 12 |  |  | (26 | ) |  | (9 | ) |  | (8 | ) |  | (31 | ) |  | (10 | ) |  | (40 | )
2010 |  |  |  |  |  |  |  | (5 | ) |  | — |  |  | 8 |  |  | (16 | ) |  | (24 | ) |  | (43 | ) |  | (5 | ) |  | (85 | )
2011 |  |  |  |  |  |  |  |  |  | 6 |  |  | 15 |  |  | 26 |  |  | (32 | ) |  | (10 | ) |  | — |  |  | 5 |
2012 |  |  |  |  |  |  |  |  |  |  |  | 3 |  |  | 46 |  |  | (8 | ) |  | (8 | ) |  | 4 |  |  | 37 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  | 6 |  |  | 20 |  |  | 7 |  |  | 6 |  |  | 39 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 37 |  |  | 37 |  |  | (21 | ) |  | 53 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 59 |  |  | 4 |  |  | 63 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 58 |  |  | 58 |
Total net development for the accident years presented above |  |  | (27 | ) |  | (2 | ) |  | 32 |  |  |
Total net development for accident years prior to 2008 |  |  | (16 | ) |  | (35 | ) |  | (19 | ) |  |
Total unallocated claim adjustment expense development |  |  | — |  |  | — |  |  | (8 | ) |  |
Total |  |  | $ | (43 | ) |  | $ | (37 | ) |  | $ | 5 |  |  |
(1) Data presented for these calendar years is required supplemental information, which is unaudited. Specialty - Other Professional Liability and Management Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year |  | As of December 31, 2017
(In millions, except reported claims data) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | IBNR |  | Cumulative Number of Claims
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 916 |  |  | $ | 933 |  |  | $ | 954 |  |  | $ | 924 |  |  | $ | 915 |  |  | $ | 880 |  |  | $ | 850 |  |  | $ | 845 |  |  | $ | 827 |  |  | $ | 818 |  |  | $ | 26 |  |  | 16,331 |
2009 |  |  | 829 |  |  | 873 |  |  | 903 |  |  | 898 |  |  | 891 |  |  | 900 |  |  | 895 |  |  | 903 |  |  | 901 |  |  | 32 |  |  | 17,274 |
2010 |  |  |  |  | 825 |  |  | 827 |  |  | 850 |  |  | 848 |  |  | 846 |  |  | 836 |  |  | 823 |  |  | 826 |  |  | 31 |  |  | 17,805 |
2011 |  |  |  |  |  |  | 876 |  |  | 904 |  |  | 933 |  |  | 948 |  |  | 944 |  |  | 910 |  |  | 898 |  |  | 71 |  |  | 18,643 |
2012 |  |  |  |  |  |  |  |  | 907 |  |  | 894 |  |  | 876 |  |  | 870 |  |  | 833 |  |  | 832 |  |  | 73 |  |  | 18,262 |
2013 |  |  |  |  |  |  |  |  |  |  | 844 |  |  | 841 |  |  | 879 |  |  | 840 |  |  | 824 |  |  | 83 |  |  | 17,362 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 841 |  |  | 859 |  |  | 854 |  |  | 798 |  |  | 158 |  |  | 16,984 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 847 |  |  | 851 |  |  | 832 |  |  | 296 |  |  | 16,603 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 859 |  |  | 859 |  |  | 426 |  |  | 17,004 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 810 |  |  | 701 |  |  | 15,206 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 8,398 |  |  | $ | 1,897 |  |  |
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year
(In millions) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 39 |  |  | $ | 181 |  |  | $ | 376 |  |  | $ | 515 |  |  | $ | 600 |  |  | $ | 641 |  |  | $ | 678 |  |  | $ | 719 |  |  | $ | 741 |  |  | $ | 753 |
2009 |  |  | 37 |  |  | 195 |  |  | 358 |  |  | 550 |  |  | 638 |  |  | 719 |  |  | 769 |  |  | 798 |  |  | 821 |
2010 |  |  |  |  | 31 |  |  | 203 |  |  | 404 |  |  | 541 |  |  | 630 |  |  | 670 |  |  | 721 |  |  | 753 |
2011 |  |  |  |  |  |  | 71 |  |  | 313 |  |  | 502 |  |  | 604 |  |  | 682 |  |  | 726 |  |  | 781 |
2012 |  |  |  |  |  |  |  |  | 57 |  |  | 248 |  |  | 398 |  |  | 570 |  |  | 648 |  |  | 698 |
2013 |  |  |  |  |  |  |  |  |  |  | 51 |  |  | 240 |  |  | 426 |  |  | 583 |  |  | 667 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 51 |  |  | 212 |  |  | 375 |  |  | 494 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 48 |  |  | 209 |  |  | 377 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 60 |  |  | 236 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 52 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 5,632 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |  |  | $ | 2,766 |
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 |  |  | 79 |
Liability for unallocated claim adjustment expenses for accident years presented |  |  | 67 |
Total net liability for unpaid claim and claim adjustment expenses |  |  | $ | 2,912 |
Net strengthening or (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31 |  |  | Calendar Year |  |
(In millions) |  |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | Total
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | $ | 17 |  |  | $ | 21 |  |  | $ | (30 | ) |  | $ | (9 | ) |  | $ | (35 | ) |  | $ | (30 | ) |  | $ | (5 | ) |  | $ | (18 | ) |  | $ | (9 | ) |  | $ | (98 | )
2009 |  |  |  |  |  | 44 |  |  | 30 |  |  | (5 | ) |  | (7 | ) |  | 9 |  |  | (5 | ) |  | 8 |  |  | (2 | ) |  | 72 |
2010 |  |  |  |  |  |  |  | 2 |  |  | 23 |  |  | (2 | ) |  | (2 | ) |  | (10 | ) |  | (13 | ) |  | 3 |  |  | 1 |
2011 |  |  |  |  |  |  |  |  |  | 28 |  |  | 29 |  |  | 15 |  |  | (4 | ) |  | (34 | ) |  | (12 | ) |  | 22 |
2012 |  |  |  |  |  |  |  |  |  |  |  | (13 | ) |  | (18 | ) |  | (6 | ) |  | (37 | ) |  | (1 | ) |  | (75 | )
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  | (3 | ) |  | 38 |  |  | (39 | ) |  | (16 | ) |  | (20 | )
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18 |  |  | (5 | ) |  | (56 | ) |  | (43 | )
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4 |  |  | (19 | ) |  | (15 | )
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  | — |
Total net development for the accident years presented above |  |  | 26 |  |  | (134 | ) |  | (112 | ) |  |  |
Total net development for accident years prior to 2008 |  |  | (26 | ) |  | 4 |  |  | (14 | ) |  |
Total unallocated claim adjustment expense development |  |  | — |  |  | — |  |  | (5 | ) |  |
Total |  |  | $ | — |  |  | $ | (130 | ) |  | $ | (131 | ) |  |
(1) Data presented for these calendar years is required supplemental information, which is unaudited. Specialty - Surety Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year |  | As of December 31, 2017
(In millions, except reported claims data) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | IBNR |  | Cumulative Number of Claims
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 114 |  |  | $ | 114 |  |  | $ | 73 |  |  | $ | 68 |  |  | $ | 61 |  |  | $ | 52 |  |  | $ | 48 |  |  | $ | 45 |  |  | $ | 44 |  |  | $ | 44 |  |  | $ | — |  |  | 7,199 |
2009 |  |  | 114 |  |  | 114 |  |  | 103 |  |  | 85 |  |  | 68 |  |  | 59 |  |  | 52 |  |  | 53 |  |  | 53 |  |  | 1 |  |  | 6,679 |
2010 |  |  |  |  | 112 |  |  | 112 |  |  | 111 |  |  | 84 |  |  | 76 |  |  | 66 |  |  | 63 |  |  | 59 |  |  | 7 |  |  | 5,962 |
2011 |  |  |  |  |  |  | 120 |  |  | 121 |  |  | 116 |  |  | 87 |  |  | 75 |  |  | 70 |  |  | 66 |  |  | 9 |  |  | 5,795 |
2012 |  |  |  |  |  |  |  |  | 120 |  |  | 122 |  |  | 98 |  |  | 70 |  |  | 52 |  |  | 45 |  |  | 9 |  |  | 5,519 |
2013 |  |  |  |  |  |  |  |  |  |  | 120 |  |  | 121 |  |  | 115 |  |  | 106 |  |  | 91 |  |  | 10 |  |  | 4,993 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 123 |  |  | 124 |  |  | 94 |  |  | 69 |  |  | 25 |  |  | 4,938 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 131 |  |  | 131 |  |  | 104 |  |  | 63 |  |  | 4,670 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 124 |  |  | 124 |  |  | 84 |  |  | 4,707 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 120 |  |  | 97 |  |  | 2,901 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 775 |  |  | $ | 305 |  |  |
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year
(In millions) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 9 |  |  | $ | 27 |  |  | $ | 35 |  |  | $ | 39 |  |  | $ | 42 |  |  | $ | 43 |  |  | $ | 43 |  |  | $ | 43 |  |  | $ | 43 |  |  | $ | 43 |
2009 |  |  | 13 |  |  | 24 |  |  | 34 |  |  | 41 |  |  | 43 |  |  | 45 |  |  | 46 |  |  | 47 |  |  | 47 |
2010 |  |  |  |  | 13 |  |  | 34 |  |  | 50 |  |  | 55 |  |  | 57 |  |  | 58 |  |  | 55 |  |  | 52 |
2011 |  |  |  |  |  |  | 19 |  |  | 42 |  |  | 55 |  |  | 58 |  |  | 60 |  |  | 60 |  |  | 56 |
2012 |  |  |  |  |  |  |  |  | 5 |  |  | 32 |  |  | 34 |  |  | 35 |  |  | 35 |  |  | 36 |
2013 |  |  |  |  |  |  |  |  |  |  | 16 |  |  | 40 |  |  | 69 |  |  | 78 |  |  | 78 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 7 |  |  | 30 |  |  | 38 |  |  | 36 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7 |  |  | 26 |  |  | 38 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5 |  |  | 37 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 23 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 446 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |  |  | $ | 329 |
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 |  |  | 9 |
Liability for unallocated claim adjustment expenses for accident years presented |  |  | 30 |
Total net liability for unpaid claim and claim adjustment expenses |  |  | $ | 368 |
Net strengthening or (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31 |  |  | Calendar Year |  |
(In millions) |  |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | Total
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | $ | — |  |  | $ | (41 | ) |  | $ | (5 | ) |  | $ | (7 | ) |  | $ | (9 | ) |  | $ | (4 | ) |  | $ | (3 | ) |  | $ | (1 | ) |  | $ | — |  |  | $ | (70 | )
2009 |  |  |  |  | — |  |  | (11 | ) |  | (18 | ) |  | (17 | ) |  | (9 | ) |  | (7 | ) |  | 1 |  |  | — |  |  | (61 | )
2010 |  |  |  |  |  |  | — |  |  | (1 | ) |  | (27 | ) |  | (8 | ) |  | (10 | ) |  | (3 | ) |  | (4 | ) |  | (53 | )
2011 |  |  |  |  |  |  |  |  | 1 |  |  | (5 | ) |  | (29 | ) |  | (12 | ) |  | (5 | ) |  | (4 | ) |  | (54 | )
2012 |  |  |  |  |  |  |  |  |  |  | 2 |  |  | (24 | ) |  | (28 | ) |  | (18 | ) |  | (7 | ) |  | (75 | )
2013 |  |  |  |  |  |  |  |  |  |  |  |  | 1 |  |  | (6 | ) |  | (9 | ) |  | (15 | ) |  | (29 | )
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1 |  |  | (30 | ) |  | (25 | ) |  | (54 | )
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  | (27 | ) |  | (27 | )
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  | — |
Total net development for the accident years presented above |  |  | (65 | ) |  | (65 | ) |  | (82 | ) |  |
Total net development for accident years prior to 2008 |  |  | (4 | ) |  | 2 |  |  | 1 |  |  |
Total unallocated claim adjustment expense development |  |  | — |  |  | — |  |  | (3 | ) |  |
Total |  |  | $ | (69 | ) |  | $ | (63 | ) |  | $ | (84 | ) |  |
(1) Data presented for these calendar years is required supplemental information, which is unaudited. Commercial The following table presents further detail of the development recorded for the Commercial segment.
Years ended December 31 |  |  |  |  |
(In millions) | 2017 |  | 2016 |  | 2015
Pretax (favorable) unfavorable development: |  |  |  |  |
Commercial Auto | $ | (38 | ) |  | $ | (46 | ) |  | $ | (22 | )
General Liability | — |  |  | (28 | ) |  | (33 | )
Workers' Compensation | (65 | ) |  | 150 |  |  | 80 |
Property and Other | 16 |  |  | (21 | ) |  | (40 | )
Total pretax (favorable) unfavorable development | $ | (87 | ) |  | $ | 55 |  |  | $ | (15 | )
2017 Favorable development for commercial auto was primarily due to lower than expected severity in accident years 2013 through 2016, as well as a large favorable recovery on a claim in accident year 2012. Favorable development for workers’ compensation was primarily related to decreases in frequency and severity in recent accident years, partially attributable to California reforms impacting medical costs. This was partially offset by unfavorable development related to an adverse arbitration ruling on reinsurance recoverables from older accident years as well as the recognition of loss estimates associated with favorable premium development. Unfavorable development for property and other was primarily due to higher than expected severity in accident year 2016. 2016 Favorable development for commercial auto was primarily due to favorable settlements on claims in accident years 2010 through 2014 and lower than expected severities in accident years 2012 through 2015. Favorable development for general liability was primarily due to better than expected claim settlements in accident years 2012 through 2014 and better than expected severity on umbrella claims in accident years 2010 through 2013. This was partially offset by unfavorable development related to an increase in reported claims prior to the closing of the three year window set forth by the Minnesota Child Victims Act in accident years 2006 and prior. Unfavorable development for workers' compensation was primarily due to higher than expected severity for Defense Base Act contractors that largely resulted from a reduction of expected future recoveries from the US Department of Labor under the War Hazard Act. Further unfavorable development was due to the impact of recent Florida court rulings for accident years 2008 through 2015. These were partially offset by favorable development related to lower than expected frequencies related to our ongoing Middle Market and Small Business results for accident years 2009 through 2014. Favorable development for property and other was primarily due to better than expected loss frequency in accident years 2013 through 2015. This was partially offset by unfavorable development related to higher than expected severity from a fourth quarter 2015 catastrophe event. 2015 Favorable development for commercial auto was primarily due to lower than expected severity in accident years 2009 through 2014. Favorable development for general liability was primarily due to favorable settlements on claims in accident years 2010 through 2013. Unfavorable development for workers’ compensation was primarily due to higher than expected severity related to Defense Base Act contractors in accident years 2008 through 2014. Favorable development for property and other was primarily due to better than expected claim emergence from 2012 and 2014 catastrophe events and better than expected frequency of large claims in accident year 2014. The year ended December 31, 2015 also included unfavorable loss development related to extra contractual obligation losses and losses associated with premium development. Commercial - Line of Business Composition The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Commercial segment.
As of December 31 |
(In millions) | 2017
Net Claim and claim adjustment expenses: |
Commercial Auto | $ | 389 |
General Liability | 3,123 |
Workers' Compensation | 4,012 |
Property and Other | 440 |
Total net liability for claim and claim adjustment expenses | $ | 7,964 |
Commercial - Commercial Auto Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year |  | As of December 31, 2017
(In millions, except reported claims data) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | IBNR |  | Cumulative Number of Claims
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 322 |  |  | $ | 323 |  |  | $ | 316 |  |  | $ | 306 |  |  | $ | 309 |  |  | $ | 305 |  |  | $ | 298 |  |  | $ | 298 |  |  | $ | 296 |  |  | $ | 297 |  |  | $ | — |  |  | 56,424 |
2009 |  |  | 287 |  |  | 272 |  |  | 274 |  |  | 278 |  |  | 281 |  |  | 277 |  |  | 275 |  |  | 272 |  |  | 272 |  |  | — |  |  | 47,343 |
2010 |  |  |  |  | 262 |  |  | 274 |  |  | 279 |  |  | 283 |  |  | 291 |  |  | 286 |  |  | 281 |  |  | 280 |  |  | 1 |  |  | 46,335 |
2011 |  |  |  |  |  |  | 262 |  |  | 273 |  |  | 279 |  |  | 293 |  |  | 290 |  |  | 285 |  |  | 285 |  |  | 3 |  |  | 46,691 |
2012 |  |  |  |  |  |  |  |  | 270 |  |  | 282 |  |  | 292 |  |  | 296 |  |  | 300 |  |  | 292 |  |  | 7 |  |  | 45,288 |
2013 |  |  |  |  |  |  |  |  |  |  | 242 |  |  | 259 |  |  | 257 |  |  | 241 |  |  | 237 |  |  | 10 |  |  | 38,539 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 231 |  |  | 221 |  |  | 210 |  |  | 204 |  |  | 19 |  |  | 33,029 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 199 |  |  | 197 |  |  | 187 |  |  | 35 |  |  | 29,924 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 196 |  |  | 183 |  |  | 53 |  |  | 29,745 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 196 |  |  | 117 |  |  | 25,173 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 2,433 |  |  | $ | 245 |  |  |
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year
(In millions) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 83 |  |  | $ | 158 |  |  | $ | 210 |  |  | $ | 244 |  |  | $ | 274 |  |  | $ | 289 |  |  | $ | 291 |  |  | $ | 292 |  |  | $ | 293 |  |  | $ | 295 |
2009 |  |  | 72 |  |  | 128 |  |  | 188 |  |  | 229 |  |  | 257 |  |  | 269 |  |  | 270 |  |  | 270 |  |  | 271 |
2010 |  |  |  |  | 72 |  |  | 137 |  |  | 197 |  |  | 240 |  |  | 265 |  |  | 274 |  |  | 279 |  |  | 280 |
2011 |  |  |  |  |  |  | 78 |  |  | 141 |  |  | 193 |  |  | 241 |  |  | 264 |  |  | 275 |  |  | 277 |
2012 |  |  |  |  |  |  |  |  | 77 |  |  | 157 |  |  | 214 |  |  | 253 |  |  | 276 |  |  | 278 |
2013 |  |  |  |  |  |  |  |  |  |  | 73 |  |  | 132 |  |  | 164 |  |  | 195 |  |  | 219 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 63 |  |  | 100 |  |  | 135 |  |  | 163 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 52 |  |  | 95 |  |  | 128 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 51 |  |  | 91 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 58 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 2,060 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |  |  | $ | 373 |
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 |  |  | 6 |
Liability for unallocated claim adjustment expenses for accident years presented |  |  | 10 |
Total net liability for unpaid claim and claim adjustment expenses |  |  | $ | 389 |
Net strengthening or (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31 |  |  | Calendar Year |  |
(In millions) |  |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | Total
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | $ | 1 |  |  | $ | (7 | ) |  | $ | (10 | ) |  | $ | 3 |  |  | $ | (4 | ) |  | $ | (7 | ) |  | $ | — |  |  | $ | (2 | ) |  | $ | 1 |  |  | $ | (25 | )
2009 |  |  |  |  | (15 | ) |  | 2 |  |  | 4 |  |  | 3 |  |  | (4 | ) |  | (2 | ) |  | (3 | ) |  | — |  |  | (15 | )
2010 |  |  |  |  |  |  | 12 |  |  | 5 |  |  | 4 |  |  | 8 |  |  | (5 | ) |  | (5 | ) |  | (1 | ) |  | 18 |
2011 |  |  |  |  |  |  |  |  | 11 |  |  | 6 |  |  | 14 |  |  | (3 | ) |  | (5 | ) |  | — |  |  | 23 |
2012 |  |  |  |  |  |  |  |  |  |  | 12 |  |  | 10 |  |  | 4 |  |  | 4 |  |  | (8 | ) |  | 22 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  | 17 |  |  | (2 | ) |  | (16 | ) |  | (4 | ) |  | (5 | )
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (10 | ) |  | (11 | ) |  | (6 | ) |  | (27 | )
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2 | ) |  | (10 | ) |  | (12 | )
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (13 | ) |  | (13 | )
Total net development for the accident years presented above |  |  | (18 | ) |  | (40 | ) |  | (41 | ) |  |  |
Total net development for accident years prior to 2008 |  |  | (4 | ) |  | (6 | ) |  | 1 |  |  |
Total unallocated claim adjustment expense development |  |  | — |  |  | — |  |  | 2 |  |  |
Total |  |  | $ | (22 | ) |  | $ | (46 | ) |  | $ | (38 | ) |  |
(1) Data presented for these calendar years is required supplemental information, which is unaudited. Commercial - General Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year |  | As of December 31, 2017
(In millions, except reported claims data) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | IBNR |  | Cumulative Number of Claims
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 611 |  |  | $ | 604 |  |  | $ | 630 |  |  | $ | 647 |  |  | $ | 633 |  |  | $ | 632 |  |  | $ | 613 |  |  | $ | 600 |  |  | $ | 591 |  |  | $ | 592 |  |  | $ | 13 |  |  | 44,655 |
2009 |  |  | 591 |  |  | 637 |  |  | 634 |  |  | 633 |  |  | 629 |  |  | 623 |  |  | 619 |  |  | 622 |  |  | 627 |  |  | 18 |  |  | 44,038 |
2010 |  |  |  |  | 566 |  |  | 597 |  |  | 599 |  |  | 649 |  |  | 695 |  |  | 675 |  |  | 659 |  |  | 654 |  |  | 19 |  |  | 43,472 |
2011 |  |  |  |  |  |  | 537 |  |  | 534 |  |  | 564 |  |  | 610 |  |  | 611 |  |  | 621 |  |  | 615 |  |  | 29 |  |  | 38,216 |
2012 |  |  |  |  |  |  |  |  | 539 |  |  | 563 |  |  | 579 |  |  | 570 |  |  | 558 |  |  | 569 |  |  | 34 |  |  | 34,249 |
2013 |  |  |  |  |  |  |  |  |  |  | 615 |  |  | 645 |  |  | 634 |  |  | 643 |  |  | 604 |  |  | 62 |  |  | 33,255 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 627 |  |  | 634 |  |  | 635 |  |  | 627 |  |  | 131 |  |  | 27,478 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 573 |  |  | 574 |  |  | 585 |  |  | 208 |  |  | 23,082 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 622 |  |  | 647 |  |  | 351 |  |  | 21,893 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 627 |  |  | 547 |  |  | 15,375 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 6,147 |  |  | $ | 1,412 |  |  |
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year
(In millions) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 31 |  |  | $ | 129 |  |  | $ | 261 |  |  | $ | 390 |  |  | $ | 473 |  |  | $ | 528 |  |  | $ | 550 |  |  | $ | 560 |  |  | $ | 567 |  |  | $ | 574 |
2009 |  |  | 33 |  |  | 112 |  |  | 270 |  |  | 392 |  |  | 486 |  |  | 532 |  |  | 557 |  |  | 584 |  |  | 596 |
2010 |  |  |  |  | 27 |  |  | 139 |  |  | 267 |  |  | 414 |  |  | 530 |  |  | 577 |  |  | 608 |  |  | 618 |
2011 |  |  |  |  |  |  | 27 |  |  | 135 |  |  | 253 |  |  | 389 |  |  | 484 |  |  | 534 |  |  | 562 |
2012 |  |  |  |  |  |  |  |  | 27 |  |  | 127 |  |  | 233 |  |  | 340 |  |  | 417 |  |  | 473 |
2013 |  |  |  |  |  |  |  |  |  |  | 33 |  |  | 135 |  |  | 257 |  |  | 377 |  |  | 469 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 29 |  |  | 115 |  |  | 245 |  |  | 379 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 31 |  |  | 132 |  |  | 247 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 34 |  |  | 163 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 27 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 4,108 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |  |  | $ | 2,039 |
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 |  |  | 1,026 |
Liability for unallocated claim adjustment expenses for accident years presented |  |  | 58 |
Total net liability for unpaid claim and claim adjustment expenses |  |  | $ | 3,123 |
Net strengthening or (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31 |  |  | Calendar Year |  |
(In millions) |  |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | Total
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | $ | (7 | ) |  | $ | 26 |  |  | $ | 17 |  |  | $ | (14 | ) |  | $ | (1 | ) |  | $ | (19 | ) |  | $ | (13 | ) |  | $ | (9 | ) |  | $ | 1 |  |  | $ | (19 | )
2009 |  |  |  |  | 46 |  |  | (3 | ) |  | (1 | ) |  | (4 | ) |  | (6 | ) |  | (4 | ) |  | 3 |  |  | 5 |  |  | 36 |
2010 |  |  |  |  |  |  | 31 |  |  | 2 |  |  | 50 |  |  | 46 |  |  | (20 | ) |  | (16 | ) |  | (5 | ) |  | 88 |
2011 |  |  |  |  |  |  |  |  | (3 | ) |  | 30 |  |  | 46 |  |  | 1 |  |  | 10 |  |  | (6 | ) |  | 78 |
2012 |  |  |  |  |  |  |  |  |  |  | 24 |  |  | 16 |  |  | (9 | ) |  | (12 | ) |  | 11 |  |  | 30 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  | 30 |  |  | (11 | ) |  | 9 |  |  | (39 | ) |  | (11 | )
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7 |  |  | 1 |  |  | (8 | ) |  | — |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1 |  |  | 11 |  |  | 12 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25 |  |  | 25 |
Total net development for the accident years presented above |  |  | (49 | ) |  | (13 | ) |  | (5 | ) |  |  |
Total net development for accident years prior to 2008 |  |  | 16 |  |  | (15 | ) |  | (2 | ) |  |
Total unallocated claim adjustment expense development |  |  | — |  |  | — |  |  | 7 |  |  |
Total |  |  | $ | (33 | ) |  | $ | (28 | ) |  | $ | — |  |  |
(1) Data presented for these calendar years is required supplemental information, which is unaudited. Commercial - Workers' Compensation Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year |  | As of December 31, 2017
(In millions, except reported claims data) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | IBNR |  | Cumulative Number of Claims
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 558 |  |  | $ | 575 |  |  | $ | 593 |  |  | $ | 606 |  |  | $ | 608 |  |  | $ | 612 |  |  | $ | 622 |  |  | $ | 630 |  |  | $ | 638 |  |  | $ | 652 |  |  | $ | 34 |  |  | 59,911 |
2009 |  |  | 583 |  |  | 587 |  |  | 594 |  |  | 596 |  |  | 600 |  |  | 611 |  |  | 617 |  |  | 625 |  |  | 632 |  |  | 34 |  |  | 51,161 |
2010 |  |  |  |  | 576 |  |  | 619 |  |  | 641 |  |  | 663 |  |  | 683 |  |  | 697 |  |  | 717 |  |  | 721 |  |  | 33 |  |  | 48,144 |
2011 |  |  |  |  |  |  | 593 |  |  | 628 |  |  | 637 |  |  | 648 |  |  | 642 |  |  | 666 |  |  | 668 |  |  | 23 |  |  | 44,691 |
2012 |  |  |  |  |  |  |  |  | 589 |  |  | 616 |  |  | 648 |  |  | 661 |  |  | 671 |  |  | 667 |  |  | 63 |  |  | 41,756 |
2013 |  |  |  |  |  |  |  |  |  |  | 528 |  |  | 563 |  |  | 584 |  |  | 610 |  |  | 584 |  |  | 57 |  |  | 38,153 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 459 |  |  | 474 |  |  | 474 |  |  | 448 |  |  | 106 |  |  | 33,072 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 416 |  |  | 426 |  |  | 401 |  |  | 154 |  |  | 31,470 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 421 |  |  | 399 |  |  | 200 |  |  | 31,310 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 434 |  |  | 254 |  |  | 27,929 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 5,606 |  |  | $ | 958 |  |  |
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year
(In millions) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 92 |  |  | $ | 233 |  |  | $ | 323 |  |  | $ | 381 |  |  | $ | 425 |  |  | $ | 461 |  |  | $ | 489 |  |  | $ | 505 |  |  | $ | 520 |  |  | $ | 541 |
2009 |  |  | 88 |  |  | 223 |  |  | 315 |  |  | 381 |  |  | 435 |  |  | 468 |  |  | 495 |  |  | 516 |  |  | 539 |
2010 |  |  |  |  | 94 |  |  | 245 |  |  | 352 |  |  | 433 |  |  | 500 |  |  | 531 |  |  | 565 |  |  | 603 |
2011 |  |  |  |  |  |  | 97 |  |  | 245 |  |  | 353 |  |  | 432 |  |  | 471 |  |  | 515 |  |  | 557 |
2012 |  |  |  |  |  |  |  |  | 86 |  |  | 229 |  |  | 338 |  |  | 411 |  |  | 465 |  |  | 503 |
2013 |  |  |  |  |  |  |  |  |  |  | 79 |  |  | 211 |  |  | 297 |  |  | 366 |  |  | 413 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 60 |  |  | 157 |  |  | 213 |  |  | 256 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 50 |  |  | 130 |  |  | 179 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 52 |  |  | 127 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 62 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 3,780 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |  |  | $ | 1,826 |
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 |  |  | 2,216 |
Other (2) |  |  | (37 | )
Liability for unallocated claim adjustment expenses for accident years presented |  |  | 7 |
Total net liability for unpaid claim and claim adjustment expenses |  |  | $ | 4,012 |
Net strengthening or (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31 |  |  | Calendar Year |  |
(In millions) |  |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | Total
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | $ | 17 |  |  | $ | 18 |  |  | $ | 13 |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | 10 |  |  | $ | 8 |  |  | $ | 8 |  |  | $ | 14 |  |  | $ | 94 |
2009 |  |  |  |  | 4 |  |  | 7 |  |  | 2 |  |  | 4 |  |  | 11 |  |  | 6 |  |  | 8 |  |  | 7 |  |  | 49 |
2010 |  |  |  |  |  |  | 43 |  |  | 22 |  |  | 22 |  |  | 20 |  |  | 14 |  |  | 20 |  |  | 4 |  |  | 145 |
2011 |  |  |  |  |  |  |  |  | 35 |  |  | 9 |  |  | 11 |  |  | (6 | ) |  | 24 |  |  | 2 |  |  | 75 |
2012 |  |  |  |  |  |  |  |  |  |  | 27 |  |  | 32 |  |  | 13 |  |  | 10 |  |  | (4 | ) |  | 78 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  | 35 |  |  | 21 |  |  | 26 |  |  | (26 | ) |  | 56 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15 |  |  | — |  |  | (26 | ) |  | (11 | )
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10 |  |  | (25 | ) |  | (15 | )
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (22 | ) |  | (22 | )
Total net development for the accident years presented above |  |  | 71 |  |  | 106 |  |  | (76 | ) |  |  |
Adjustment for development on a discounted basis |  |  | (2 | ) |  | 1 |  |  | (4 | ) |  |
Total net development for accident years prior to 2008 |  |  | 11 |  |  | 43 |  |  | 14 |  |  |
Total unallocated claim adjustment expense development |  |  | — |  |  | — |  |  | 1 |  |  |
Total |  |  | $ | 80 |  |  | $ | 150 |  |  | $ | (65 | ) |  |
(1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) Other includes the effect of discounting lifetime claim reserves. International The following table presents further detail of the development recorded for the International segment.
Years ended December 31 |  |  |  |  |
(In millions) | 2017 |  | 2016 |  | 2015
Pretax (favorable) unfavorable development: |  |  |  |  |
Medical Professional Liability | $ | (4 | ) |  | $ | (5 | ) |  | $ | (9 | )
Other Professional Liability | (13 | ) |  | 12 |  |  | (16 | )
Liability | 2 |  |  | (30 | ) |  | (17 | )
Property & Marine | (15 | ) |  | (34 | ) |  | (29 | )
Other | 21 |  |  | (1 | ) |  | 17 |
Total pretax (favorable) unfavorable development | $ | (9 | ) |  | $ | (58 | ) |  | $ | (54 | )
2017 Favorable development for other professional liability was primarily due to better than expected emergence in the Canadian run-off business in accident years 2014 and prior, several favorable settlements relating to large claims in the Europe Professional Indemnity portfolio, and lower than expected large loss frequency in the Europe Financial Institutions portfolio. This was partially offset by higher than expected severity in accident year 2015 arising from the management liability business. Favorable development for property and marine was due to better than expected frequency in accident years 2014 and 2015. Unfavorable development for other coverages was primarily due to higher than expected large claim frequency in the Hardy Political Risks portfolio, relating largely to accident year 2016. 2016 Unfavorable development for other professional liability was primarily due to higher than expected large loss emergence in accident years 2011 through 2015 associated with our Commercial Institutions business, partially offset by favorable settlements on claims in accident years 2013 and prior. Favorable development for liability was primarily due to favorable settlements on claims in accident years 2013 and prior related to our Canadian package business. Additional favorable development in accident years 2013 and 2015 was primarily due to lower than expected frequency of large losses related to our Europe business. Favorable development for property and marine was due to better than expected severity on the December 2015 UK floods and better than expected attritional losses and large loss experience on accident years 2013 through 2015 for Hardy business. Additional favorable development was due to a commutation of exposures in marine run-off classes on our Europe business. 2015 Favorable development in medical professional liability was due to better than expected frequency of losses in accident years 2011 to 2013. Favorable development in other professional liability was due to better than expected large loss emergence in accident years 2011 and prior. Favorable development in liability was due to better than expected large loss emergence in accident years 2012 and prior. Favorable development in property and marine was due to better than expected individual large loss emergence and favorable settlements on large claims in accident years 2013 and 2014. Unfavorable development in other is due to higher than expected large losses in financial institutions and political risk, primarily in accident year 2014. International - Line of Business Composition The table below provides the composition of the net liability for unpaid claim and claim adjustment expenses for the International segment.
As of December 31 |
(In millions) | 2017
Net Claim and claim adjustment expenses: |
International excluding Hardy | $ | 1,026 |
Hardy | 406 |
Total net liability for claim and claim adjustment expenses | $ | 1,432 |
International - Excluding Hardy Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year |  | As of December 31, 2017
(In millions, except reported claims data) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | IBNR |  | Cumulative Number of Claims
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 243 |  |  | $ | 246 |  |  | $ | 234 |  |  | $ | 226 |  |  | $ | 226 |  |  | $ | 218 |  |  | $ | 227 |  |  | $ | 229 |  |  | $ | 225 |  |  | $ | 224 |  |  | $ | 7 |  |  | 25,185 |
2009 |  |  | 272 |  |  | 268 |  |  | 270 |  |  | 271 |  |  | 256 |  |  | 252 |  |  | 242 |  |  | 233 |  |  | 232 |  |  | 7 |  |  | 21,402 |
2010 |  |  |  |  | 247 |  |  | 244 |  |  | 239 |  |  | 232 |  |  | 222 |  |  | 215 |  |  | 208 |  |  | 202 |  |  | 13 |  |  | 22,943 |
2011 |  |  |  |  |  |  | 281 |  |  | 283 |  |  | 275 |  |  | 253 |  |  | 242 |  |  | 235 |  |  | 232 |  |  | 11 |  |  | 25,448 |
2012 |  |  |  |  |  |  |  |  | 282 |  |  | 289 |  |  | 273 |  |  | 266 |  |  | 267 |  |  | 259 |  |  | 28 |  |  | 25,450 |
2013 |  |  |  |  |  |  |  |  |  |  | 304 |  |  | 307 |  |  | 298 |  |  | 278 |  |  | 273 |  |  | 43 |  |  | 24,276 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 292 |  |  | 308 |  |  | 308 |  |  | 296 |  |  | 68 |  |  | 25,343 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 307 |  |  | 323 |  |  | 321 |  |  | 88 |  |  | 23,563 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 301 |  |  | 320 |  |  | 120 |  |  | 17,166 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 317 |  |  | 178 |  |  | 14,772 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 2,676 |  |  | $ | 563 |  |  |
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year
(In millions) | 2008(1) |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 37 |  |  | $ | 92 |  |  | $ | 137 |  |  | $ | 148 |  |  | $ | 156 |  |  | $ | 164 |  |  | $ | 179 |  |  | $ | 187 |  |  | $ | 207 |  |  | $ | 208 |
2009 |  |  | 42 |  |  | 99 |  |  | 130 |  |  | 146 |  |  | 163 |  |  | 174 |  |  | 186 |  |  | 197 |  |  | 203 |
2010 |  |  |  |  | 50 |  |  | 103 |  |  | 126 |  |  | 143 |  |  | 157 |  |  | 167 |  |  | 176 |  |  | 178 |
2011 |  |  |  |  |  |  | 47 |  |  | 121 |  |  | 143 |  |  | 158 |  |  | 172 |  |  | 184 |  |  | 193 |
2012 |  |  |  |  |  |  |  |  | 46 |  |  | 118 |  |  | 153 |  |  | 175 |  |  | 191 |  |  | 204 |
2013 |  |  |  |  |  |  |  |  |  |  | 53 |  |  | 118 |  |  | 146 |  |  | 165 |  |  | 179 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  | 55 |  |  | 128 |  |  | 157 |  |  | 174 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 59 |  |  | 140 |  |  | 171 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 69 |  |  | 139 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 67 |
Total |  |  | $ | 1,716 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |  |  | $ | 960 |
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 |  |  | 42 |
Liability for unallocated claim adjustment expenses for accident years presented |  |  | 24 |
Total net liability for unpaid claim and claim adjustment expenses |  |  | $ | 1,026 |
Net strengthening or (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31 |  | Calendar Year |  |
(In millions) |  |  | 2009(1) |  | 2010(1) |  | 2011(1) |  | 2012(1) |  | 2013(1) |  | 2014(1) |  | 2015(1)(2) |  |  | 2016(1)(2) |  | 2017(2) |  | Total (2)
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | $ | 3 |  |  | $ | (12 | ) |  | $ | (8 | ) |  | $ | — |  |  | $ | (8 | ) |  | $ | 9 |  |  | $ | 2 |  |  | $ | (4 | ) |  | $ | (1 | ) |  | $ | (19 | )
2009 |  |  |  |  | (4 | ) |  | 2 |  |  | 1 |  |  | (15 | ) |  | (4 | ) |  | (10 | ) |  | (9 | ) |  | (1 | ) |  | (40 | )
2010 |  |  |  |  |  |  | (3 | ) |  | (5 | ) |  | (7 | ) |  | (10 | ) |  | (7 | ) |  | (7 | ) |  | (6 | ) |  | (45 | )
2011 |  |  |  |  |  |  |  |  | 2 |  |  | (8 | ) |  | (22 | ) |  | (11 | ) |  | (7 | ) |  | (3 | ) |  | (49 | )
2012 |  |  |  |  |  |  |  |  |  |  | 7 |  |  | (16 | ) |  | (7 | ) |  | 1 |  |  | (8 | ) |  | (23 | )
2013 |  |  |  |  |  |  |  |  |  |  |  |  | 3 |  |  | (9 | ) |  | (20 | ) |  | (5 | ) |  | (31 | )
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 16 |  |  | — |  |  | (12 | ) |  | 4 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 16 |  |  | (2 | ) |  | 14 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 19 |  |  | 19 |
(1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) The amounts included in the loss reserve development tables above are presented at the year-end 2017 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate fluctuations between calendar years. The amounts included within the table on page 101 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates. International - Hardy Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 |  |  |  |  |  | Calendar Year |  | As of December 31, 2017
(In millions, except reported claims data) | Net Claim and Allocated Claim Adjustment Expense Reserves at Acquisition |  | Net Incurred Claim and Allocated Claim Adjustment Expenses in 2012(1)(2) |  | Total Acquired Net Claim and Allocated Claim Adjustment Expense Reserves and 2012 Incurreds |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017 |  | IBNR |  | Cumulative Number of Claims
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 18 |  |  | $ | (3 | ) |  | $ | 15 |  |  | $ | 11 |  |  | $ | 13 |  |  | $ | 13 |  |  | $ | 12 |  |  | $ | 13 |  |  | $ | 1 |  |  | 4,237 |
2009 | 12 |  |  | — |  |  | 12 |  |  | 7 |  |  | (4 | ) |  | 1 |  |  | (2 | ) |  | (3 | ) |  | — |  |  | 3,852 |
2010 | 49 |  |  | (10 | ) |  | 39 |  |  | 48 |  |  | 53 |  |  | 47 |  |  | 53 |  |  | 52 |  |  | (1 | ) |  | 4,524 |
2011 | 126 |  |  | — |  |  | 126 |  |  | 136 |  |  | 136 |  |  | 140 |  |  | 140 |  |  | 140 |  |  | (2 | ) |  | 6,228 |
2012 | 34 |  |  | 71 |  |  | 105 |  |  | 106 |  |  | 113 |  |  | 121 |  |  | 114 |  |  | 115 |  |  | (1 | ) |  | 6,863 |
2013 |  |  |  |  |  |  | 133 |  |  | 148 |  |  | 140 |  |  | 141 |  |  | 142 |  |  | 1 |  |  | 7,525 |
2014 |  |  |  |  |  |  |  |  | 187 |  |  | 185 |  |  | 179 |  |  | 172 |  |  | (2 | ) |  | 7,954 |
2015 |  |  |  |  |  |  |  |  |  |  | 192 |  |  | 182 |  |  | 180 |  |  | 9 |  |  | 8,578 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  | 232 |  |  | 251 |  |  | 53 |  |  | 8,443 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 247 |  |  | 117 |  |  | 6,508 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | 1,309 |  |  | $ | 175 |  |  |
Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table.
As of December 31 | Calendar Year
(In millions) | 2012(1)(2) |  | 2013(1) |  | 2014(1) |  | 2015(1) |  | 2016(1) |  | 2017
Accident Year |  |  |  |  |  |  |  |  |  |  |
2008 | $ | 3 |  |  | $ | 14 |  |  | $ | 10 |  |  | $ | 10 |  |  | $ | 11 |  |  | $ | 11 |
2009 | 2 |  |  | (2 | ) |  | (4 | ) |  | (4 | ) |  | (4 | ) |  | (5 | )
2010 | 19 |  |  | 36 |  |  | 43 |  |  | 46 |  |  | 48 |  |  | 49 |
2011 | 31 |  |  | 84 |  |  | 124 |  |  | 129 |  |  | 133 |  |  | 134 |
2012 | 15 |  |  | 81 |  |  | 101 |  |  | 110 |  |  | 108 |  |  | 110 |
2013 |  |  | 39 |  |  | 103 |  |  | 123 |  |  | 129 |  |  | 133 |
2014 |  |  |  |  | 56 |  |  | 124 |  |  | 143 |  |  | 153 |
2015 |  |  |  |  |  |  | 30 |  |  | 99 |  |  | 131 |
2016 |  |  |  |  |  |  |  |  | 64 |  |  | 147 |
2017 |  |  |  |  |  |  |  |  |  |  | 53 |
Total |  |  | $ | 916 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented |  |  | $ | 393 |
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2008 |  |  | 5 |
Liability for unallocated claim adjustment expenses for accident years presented |  |  | 8 |
Total net liability for unpaid claim and claim adjustment expenses |  |  | $ | 406 |
Net strengthening or (releases) of prior accident year reserves is presented in the following table.
For the years ended December 31 | Calendar Year |  |
(In millions) | 2012(1)(2) |  | 2013(1) |  | 2014(1) |  | 2015(1)(3) |  | 2016(1)(3) |  | 2017(3) |  | Total (3)
Accident Year |  |  |  |  |  |  |  |  |  |  |  |  |
2008 | $ | (3 | ) |  | $ | (4 | ) |  | $ | 2 |  |  | $ | — |  |  | $ | (1 | ) |  | $ | 1 |  |  | $ | (5 | )
2009 | — |  |  | (5 | ) |  | (11 | ) |  | 5 |  |  | (3 | ) |  | (1 | ) |  | (15 | )
2010 | (10 | ) |  | 9 |  |  | 5 |  |  | (6 | ) |  | 6 |  |  | (1 | ) |  | 3 |
2011 | — |  |  | 10 |  |  | — |  |  | 4 |  |  | — |  |  | — |  |  | 14 |
2012 |  |  | 1 |  |  | 7 |  |  | 8 |  |  | (7 | ) |  | 1 |  |  | 10 |
2013 |  |  |  |  | 15 |  |  | (8 | ) |  | 1 |  |  | 1 |  |  | 9 |
2014 |  |  |  |  |  |  | (2 | ) |  | (6 | ) |  | (7 | ) |  | (15 | )
2015 |  |  |  |  |  |  |  |  | (10 | ) |  | (2 | ) |  | (12 | )
2016 |  |  |  |  |  |  |  |  |  |  | 19 |  |  | 19 |
(1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) Data presented for this calendar year is post-acquisition of Hardy. (3) The amounts included in the loss reserve development tables above are presented at the year-end 2017 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate fluctuations between calendar years. The amounts included within the table on page 101 presenting the detail of the development recorded within the International segment include the impact of fluctuations in foreign currency exchange rates. The table below presents information about average historical claims duration as of December 31, 2017 and is presented as required supplementary information, which is unaudited.
Average Annual Percentage Payout of Ultimate Net Incurred Claim and Allocated Claim Adjustment Expenses in Year:
| 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10 |  | Total
Specialty |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Medical Professional Liability | 3.3 | % |  | 18.9 | % |  | 23.5 | % |  | 19.8 | % |  | 12.7 | % |  | 7.2 | % |  | 4.5 | % |  | 3.3 | % |  | 3.6 | % |  | 0.7 | % |  | 97.5 | %
Other Professional Liability and Management Liability | 5.9 | % |  | 21.0 | % |  | 21.1 | % |  | 17.3 | % |  | 9.9 | % |  | 6.0 | % |  | 5.6 | % |  | 4.0 | % |  | 2.6 | % |  | 1.5 | % |  | 94.9 | %
Surety(1) | 21.4 | % |  | 38.4 | % |  | 17.7 | % |  | 7.5 | % |  | 3.4 | % |  | 2.0 | % |  | (2.3 | )% |  | (1.1 | )% |  | — | % |  | — | % |  | 87.0 | %
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Auto | 28.1 | % |  | 22.9 | % |  | 18.4 | % |  | 14.1 | % |  | 9.2 | % |  | 3.4 | % |  | 0.9 | % |  | 0.2 | % |  | 0.4 | % |  | 0.7 | % |  | 98.3 | %
General Liability | 4.9 | % |  | 16.6 | % |  | 20.7 | % |  | 20.8 | % |  | 15.2 | % |  | 8.4 | % |  | 4.2 | % |  | 2.5 | % |  | 1.5 | % |  | 1.2 | % |  | 96.0 | %
Workers' Compensation | 13.5 | % |  | 21.2 | % |  | 14.4 | % |  | 10.7 | % |  | 7.8 | % |  | 5.5 | % |  | 4.9 | % |  | 3.7 | % |  | 3.0 | % |  | 3.2 | % |  | 87.9 | %
International |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
International - Excluding Hardy | 19.6 | % |  | 25.6 | % |  | 12.2 | % |  | 6.8 | % |  | 5.9 | % |  | 4.7 | % |  | 5.1 | % |  | 3.1 | % |  | 5.8 | % |  | 0.4 | % |  | 89.2 | %
International - Hardy (2) | 24.7 | % |  | 39.0 | % |  | 14.3 | % |  | 5.0 | % |  | 2.8 | % |  |  |  |  |  |  |  |  |  |  |  | 85.8 | %
(1) Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables. (2) Average historical claims duration for Hardy is presented prospectively beginning with the first full year subsequent to acquisition, 2013. A&EP Reserves In 2010, Continental Casualty Company (CCC) together with several of the Company’s insurance subsidiaries completed a transaction with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., under which substantially all of the Company’s legacy A&EP liabilities were ceded to NICO through a Loss Portfolio Transfer (LPT). At the effective date of the transaction, the Company ceded approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $4 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third-party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third-party reinsurance related to these liabilities. The Company paid NICO a reinsurance premium of $2 billion and transferred to NICO billed third-party reinsurance receivables related to A&EP claims with a net book value of $215 million, resulting in total consideration of $2.2 billion. Subsequent to the effective date of the LPT, the Company recognized adverse prior year development on its A&EP reserves which resulted in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which the Company recognizes a change in the estimate of A&EP reserves that increases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is affected and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders' benefits in the Consolidated Statement of Operations. The following table presents the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations.
Years ended December 31 |  |  |  |  |
(In millions) | 2017 |  | 2016 |  | 2015
Net A&EP adverse development before consideration of LPT | $ | 60 |  |  | $ | 200 |  |  | $ | 150 |
Retroactive reinsurance benefit recognized | (68 | ) |  | (107 | ) |  | (85 | )
Pretax impact of A&EP reserve development and the LPT | $ | (8 | ) |  | $ | 93 |  |  | $ | 65 |
Based upon the Company's annual A&EP reserve review, net unfavorable prior year development of $60 million, $200 million and $150 million was recognized before consideration of cessions to the LPT for the years ended December 31, 2017, 2016 and 2015. The 2017 unfavorable development was driven by modestly higher anticipated payouts on claims from known sources of asbestos exposure. The 2016 unfavorable development was driven by an increase in anticipated future expenses associated with determination of coverage, higher anticipated payouts associated with a limited number of historical accounts having significant asbestos exposures and higher than expected severity on pollution claims. The 2015 unfavorable development was recorded to reflect a decrease in anticipated future reinsurance recoveries related to asbestos claims and higher than expected severity on pollution claims. While the unfavorable development in these years was ceded to NICO under the LPT, the Company’s Net income in the periods was negatively affected due to the application of retroactive reinsurance accounting. As of December 31, 2017 and 2016, the cumulative amounts ceded under the LPT were $2.9 billion and $2.8 billion. The unrecognized deferred retroactive reinsurance benefit was $326 million and $334 million as of December 31, 2017 and 2016. NICO established a collateral trust account as security for its obligations to the Company. The fair value of the collateral trust account was $3.1 billion and $2.8 billion as of December 31, 2017 and 2016. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to the Company’s A&EP claims.

X
- References No definition available. + Details
Name: | us-gaap_LiabilityForClaimsAndClaimsAdjustmentExpenseAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI http://asc.fasb.org/subtopic&trid=2560295 + Details
Name: | us-gaap_LiabilityForFuturePolicyBenefitsAndUnpaidClaimsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration