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Insurance | 6 Months Ended
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Jun. 30, 2019
Insurance [Abstract] |
Insurance | Insurance Property and Casualty Insurance Reserves The following table provides an analysis of changes in the liability for losses and loss adjustment expenses during the first six months of 2019 and 2018 (in millions):
| Six months ended June 30,
| 2019 |  | 2018
Balance at beginning of year | $ | 9,741 |  |  | $ | 9,678 |
Less reinsurance recoverables, net of allowance | 2,942 |  |  | 2,957 |
Net liability at beginning of year | 6,799 |  |  | 6,721 |
Provision for losses and LAE occurring in the current period | 1,501 |  |  | 1,434 |
Net decrease in the provision for claims of prior years | (86 | ) |  | (100 | )
Total losses and LAE incurred | 1,415 |  |  | 1,334 |
Payments for losses and LAE of: |  |  |
Current year | (291 | ) |  | (294 | )
Prior years | (1,079 | ) |  | (975 | )
Total payments | (1,370 | ) |  | (1,269 | )
Reserves of business disposed (*) | — |  |  | (319 | )
Foreign currency translation and other | 1 |  |  | (4 | )
Net liability at end of period | 6,845 |  |  | 6,463 |
Add back reinsurance recoverables, net of allowance | 2,732 |  |  | 2,630 |
Gross unpaid losses and LAE included in the balance sheet at end of period | $ | 9,577 |  |  | $ | 9,093 |
(*) | Reflects the reinsurance to close transaction at Neon discussed below.
The net decrease in the provision for claims of prior years during the first six months of 2019 reflects (i) lower than expected losses in the crop business and lower than expected claim frequency and severity in the transportation businesses (all within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in the workers’ compensation businesses (within the Specialty casualty sub-segment), and (iii) lower than expected claim frequency and severity in the surety and financial institutions businesses and lower than anticipated claim severity in the fidelity business (all within the Specialty financial sub-segment). This favorable development was partially offset by higher than expected claim severity in the excess and surplus lines businesses and higher than expected losses at Neon (all within the Specialty casualty sub-segment). The net decrease in the provision for claims of prior years during the first six months of 2018 reflects (i) lower than expected losses in the crop business and lower than expected claim severity in the transportation businesses (all within the Property and transportation sub-segment), (ii) lower than anticipated claim frequency and severity in the workers’ compensation businesses (within the Specialty casualty sub-segment), and (iii) lower than expected claim frequency and severity in the surety business and lower than expected claim severity in the fidelity business (all within the Specialty financial sub-segment). In December 2017, the Neon Lloyd’s syndicate entered into a reinsurance to close transaction for the 2015 and prior years of account with StarStone Underwriting Limited, a subsidiary of Enstar Group Limited, which was effective as of December 31, 2017 and settled in early 2018. In the Lloyd’s market, a reinsurance to close transaction transfers the responsibility for discharging all of the liabilities that attach to the transferred year of account plus the right to any income due to the closing year of account in return for a premium. This transaction provided Neon with finality on its legacy business.

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- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -URI http://asc.fasb.org/topic&trid=2303980 + Details
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