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RESERVE FOR LOSSES AND LOSS EXPENSES | 12 Months Ended
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Dec. 31, 2016
Insurance Loss Reserves [Abstract] |
RESERVE FOR LOSSES AND LOSS EXPENSES | Reserving Methodology The reserving process begins with the collection and analysis of paid and incurred claim data for each of our segments. The segmental data is disaggregated by reserving class and further disaggregated by either accident year (i.e. the year in which the loss event occurred) or by underwriting year (i.e. the year in which the contract generating the premium and losses incepted). We use underwriting year information to analyze our reinsurance business and subsequently allocate reserves to the respective accident years. Our reserving classes are selected to ensure that the underlying contracts have homogeneous loss development characteristics, while remaining large enough to make the estimation of trends credible. This data, in addition to industry benchmarks, serves as a key input to many of the methods employed by our actuaries. The relative weights assigned to our own historical loss data versus industry data vary according to the length of the development profile for the reserving class being evaluated. At present, we generally give more weight to our own experience (and, correspondingly, less weight to industry data) for reserving classes with short and medium claim tails. For some of our longer tail reserving classes we give material weight to industry data. (See ‘Net Incurred and Paid Claims Development Tables By Accident Year’ below for more detailed information by reserving class.) The following tables reconcile reserving classes to the lines of business categories and the expected claim tails:
Insurance Segment |  |  |  |  |  |  |
|  | Reported Lines of Business
Reserving Classes | Tail | Property | Marine | Terrorism | Aviation | Credit and Political Risk | Professional Lines | Liability | Accident and Health
Property and Other | Short | X |  | X |  |  |  |  | X
Marine | Short |  | X |  |  |  |  |  |
Aviation | Short |  |  |  | X |  |  |  |
Credit and Political Risk | Medium |  |  |  |  | X |  |  |
Professional Lines | Medium |  |  |  |  |  | X |  |
Liability | Long |  |  |  |  |  |  | X |
Reinsurance Segment |  |  |  |  |  |  |  |
|  | Reported Lines of Business
Reserving Classes | Tail | Catastrophe | Property | Credit and Surety | Professional Lines | Motor | Liability | Engineering | Agriculture | Marine and Other
Property and Other | Short | X | X |  |  |  |  | X | X | X
Credit and Surety | Medium |  |  | X |  |  |  |  |  |
Professional Lines | Medium |  |  |  | X |  |  |  |  |
Motor | Long |  |  |  |  | X |  |  |  |
Liability | Long |  |  |  |  |  | X |  |  |
Multiple actuarial methods are available to estimate ultimate losses. Each method has its own assumptions and its own advantages and disadvantages, with no single estimation method being better than the others in all situations and no one set of assumption variables being meaningful for all reserving classes. The relative strengths and weaknesses of the particular estimation methods when applied to a particular group of claims can also change over time. The following is a brief description of the reserve estimation methods commonly employed by our actuaries:
• | Expected Loss Ratio Method (“ELR Method”): This method estimates ultimate losses for an accident year or underwriting year by applying an expected loss ratio to the earned or written premium for that year. Generally, expected loss ratios are based on one or more of (a) an analysis of historical loss experience to date, (b) pricing information and (c) industry data, adjusted as appropriate, to reflect changes in rates and terms and conditions. This method is insensitive to actual incurred losses for the accident year or underwriting year in question and is, therefore, often useful in the early stages of development when very few losses have been incurred. Conversely, the lack of sensitivity to incurred/paid losses for the accident year or underwriting year in question means that this method is usually inappropriate in later stages of an accident year or underwriting year’s development.
• | Loss Development Method (also referred to as the Chain Ladder Method or Link Ratio Method): This method assumes that the losses incurred/paid for each accident year or underwriting year at a particular development stage follow a relatively similar pattern. It assumes that on average, every accident year or underwriting year will display the same percentage of ultimate losses incurred/paid at the same point in time after the inception of that year. The percentages incurred/paid are established for each development stage (e.g. 12 months, 24 months, etc.) after examining historical averages from historical loss development data and/or external industry benchmark information. Ultimate losses are then estimated by multiplying the actual incurred/paid losses by the reciprocal of the established incurred/paid percentage. The strengths of this method are that it reacts to loss emergence/payments and that it makes full use of historical claim emergence/payment experience. However, this method has weaknesses when the underlying assumption of stable loss development/payment patterns is not valid. This could be the consequence of changes in business mix, claim inflation trends or claim reporting practices and/or the presence of large claims, amongst other things. Furthermore, this method tends to produce volatile estimates of ultimate losses where there is volatility in the underlying incurred/paid patterns. In particular, where the expected percentage of incurred/paid losses is low, small deviations between actual and expected claims can lead to very volatile estimates of ultimate losses. As a result, this method is often unsuitable at early development stages for an accident year or underwriting year.
• | Bornhuetter-Ferguson Method (“BF Method”): This method can be seen as a combination of the ELR and Loss Development Methods, under which the Loss Development Method is given progressively more weight as an accident year or underwriting year matures. The main advantage of the BF Method is that it provides a more stable estimate of ultimate losses than the Loss Development Method at earlier stages of development, while remaining more sensitive to emerging loss development than the ELR Method. In addition, the BF Method allows for the incorporation of external market information through the use of expected loss ratios, whereas the Loss Development Method does not incorporate such information.
As part of our loss reserve review process, our actuaries employ the estimation method(s) that they believe will produce the most reliable estimate of ultimate losses, at that particular evaluation date, for each reserving class and accident year or underwriting year combination. Often, this is a blend (i.e. weighted average) of the results of two or more appropriate actuarial methods. These ultimate loss estimates are generally utilized to evaluate the adequacy of our ultimate loss estimates for previous accident or underwriting years, as established in the prior reporting period. For the initial estimate of the current accident or underwriting year, the available claim data is typically insufficient to produce a reliable estimate of ultimate losses. As a result, our initial estimate for an accident or underwriting year is generally based on the ELR Method for longer tailed lines and a BF Method for shorter tailed lines. The initial ELR for each reserving class is established collaboratively by our actuaries, underwriters and management at the start of the year as part of the planning process, taking into consideration prior accident years’ or underwriting years' experience and industry benchmarks, adjusted after considering factors such as exposure trends, rate differences, changes in contract terms and conditions, business mix changes and other known differences between the current year and prior accident or underwriting years. The initial expected loss ratios for a given accident or underwriting year may be modified over time if the underlying assumptions, such as loss development or premium rate changes, differ from the original assumptions. The use of the above actuarial methods requires us to make certain explicit assumptions, the most significant of which are: (1) expected loss ratios and (2) loss development patterns. In our earlier years, we placed significant reliance on industry benchmarks in establishing our expected loss ratios and loss development patterns. Over time, we have placed more reliance on our historical loss experience in establishing these ratios and patterns where we believe the weight of our own actual experience has become sufficiently credible for consideration. In establishing expected loss ratios for our insurance segment, we give consideration to a number of other factors, including exposure trends, rate adequacy on new and renewal business, ceded reinsurance costs, changes in claims emergence and our underwriters’ view of terms and conditions in the market environment. For our reinsurance segment, expected loss ratios are based on a contract-by-contract review, which considers information provided by clients together with estimates provided by our underwriters and actuaries about the impact of changes in pricing, terms and conditions and coverage. We also have considered the market experience of some classes of business as compiled and analyzed by an independent actuarial firm, as appropriate. The weight given to our experience differs for each of our three claim tails. Our short-tail business generally includes exposures for which losses are usually known and paid within a relatively short period of time after the underlying loss event has occurred. We expect that the majority of development for an accident year or underwriting year will be recognized in the subsequent one to three years. The key actuarial assumptions for our short-tail business in our early accident years were primarily developed with reference to industry benchmarks for both expected loss ratios and loss development patterns. As our own historical loss experience amassed, it gained credibility and became relevant for consideration in establishing these key actuarial assumptions. As a result, we gradually increased the weighting assigned to our own historical experience in selecting the expected loss ratios and loss development patterns utilized to establish our estimates of ultimate losses for an accident year. Due to the relatively short reporting and settlement patterns for our short-tail business, we generally place more weight upon experience-based methods and other qualitative considerations in establishing reserves for both our recent and more mature accident years. Our medium-tail business generally has claim reporting and settlement periods longer than those of our short-tail reserving classes. For our earliest accident and underwriting years, our initial key actuarial expected loss ratio and loss development assumptions were established utilizing industry benchmarks. Due to the longer claim tail, the length of time required to develop our own credible loss history for use in the reserving process is greater for our medium-tail business than for our short-tail business. As a result, the number of years where we relied heavily on industry benchmarks to establish our key actuarial assumptions is greater for our medium-tail business. The claim tails for our long-tail business, in contrast to our short and medium-tail business, is expected to be notably longer, as claims are often reported and ultimately paid or settled years, or even decades, after the related loss events occur. As a general rule, our estimates of accident year or underwriting year ultimate losses for our long-tail business are notably more uncertain than those for our short and medium-tail business. To date, our key actuarial assumptions for our long-tail business have been derived extensively from industry benchmarks supplemented with our own historical experience. Given our relatively short operating history in comparison to the development tail for this business, we do not believe that our own historical loss development for our long-tail business has amassed an appropriate volume to serve as a fully credible input into the key actuarial assumptions previously outlined. While we consider industry benchmarks that we believe reflect the nature and coverage of our business, our actual loss experience may differ from the benchmarks based on industry averages. Due to the length of the development tail for this business, our reserve estimates for most accident years and underwriting years are predominantly based on the BF or ELR method and the consideration of qualitative factors. We cannot estimate losses from widespread catastrophic events, such as hurricanes and earthquakes, using the traditional actuarial methods described above. Rather, loss reserves for such events are estimated by management in collaboration with our actuaries, claim handlers and underwriters after a catastrophe occurs by completing an in-depth analysis of individual contracts which may potentially be impacted by the catastrophic event. This in-depth analysis may rely on several sources of information, including: (1) estimates of the size of insured industry losses from the catastrophic event and our corresponding market share; (2) a review of our portfolio of contracts performed to identify those contracts which may be exposed to the catastrophic event; (3) a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process; (4) discussions of the impact of the event with our customers and brokers and (5) catastrophe bulletins published by various independent statistical reporting agencies. We generally use a blend of these information sources to arrive at our aggregate estimate of the ultimate losses arising from the catastrophic event. In subsequent reporting periods, we review changes in paid and incurred losses in relation to each significant catastrophe and adjust our estimates of ultimate losses for each event if there are developments that are different from our previous expectations. Adjustments are recorded in the period in which they are identified. Our reserving process involves the collaboration of our underwriting, claims, actuarial, legal, ceded reinsurance and finance departments, includes various segmental committee meetings and culminates with the approval of a single point best estimate by our Group Reserving Committee, which comprises senior management. In selecting this best estimate, management considers actuarial estimates and applies informed judgment regarding qualitative factors that may not be fully captured in these actuarial estimates. Such factors include, but are not limited to: the timing of the emergence of claims, volume and complexity of claims, social and judicial trends, potential severity of individual claims and the extent of internal historical loss data versus industry information. While these qualitative factors are considered in arriving at the point estimate, no specific provisions for qualitative factors are established. Reserve for Losses and Loss Expenses Our gross reserve for losses and loss expenses comprise the following:
| As of December 31, | 2016 |  | 2015 |
| Reserve for reported losses and loss expenses | $ | 3,358,514 |  |  | $ | 3,253,080 |  |
| Reserve for losses incurred but not reported | 6,339,313 |  |  | 6,393,205 |  |
| Reserve for losses and loss expenses | $ | 9,697,827 |  |  | $ | 9,646,285 |  |
Reserve Roll-Forward The following table presents a reconciliation of our beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses for the years indicated:
| Year ended December 31, | 2016 |  | 2015 |  | 2014 |
| Gross reserve for losses and loss expenses, beginning of year | $ | 9,646,285 |  |  | $ | 9,596,797 |  |  | $ | 9,582,140 |  |
| Less reinsurance recoverable on unpaid losses, beginning of year | (2,031,309 | ) |  | (1,890,280 | ) |  | (1,900,112 | ) |
| Net reserve for unpaid losses and loss expenses, beginning of year | 7,614,976 |  |  | 7,706,517 |  |  | 7,682,028 |  |
| Net incurred losses and loss expenses related to: |  |  |  |  |  |
| Current year | 2,496,574 |  |  | 2,419,247 |  |  | 2,445,666 |  |
| Prior years | (292,377 | ) |  | (243,048 | ) |  | (258,944 | ) |
|  | 2,204,197 |  |  | 2,176,199 |  |  | 2,186,722 |  |
| Net paid losses and loss expenses related to: |  |  |  |  |  |
| Current year | (428,153 | ) |  | (343,063 | ) |  | (387,197 | ) |
| Prior years | (1,763,696 | ) |  | (1,709,659 | ) |  | (1,544,664 | ) |
|  | (2,191,849 | ) |  | (2,052,722 | ) |  | (1,931,861 | ) |
| Foreign exchange and other | (205,606 | ) |  | (215,018 | ) |  | (230,372 | ) |
| Net reserve for unpaid losses and loss expenses, end of year | 7,421,718 |  |  | 7,614,976 |  |  | 7,706,517 |  |
| Reinsurance recoverable on unpaid losses, end of year | 2,276,109 |  |  | 2,031,309 |  |  | 1,890,280 |  |
| Gross reserve for losses and loss expenses, end of year | $ | 9,697,827 |  |  | $ | 9,646,285 |  |  | $ | 9,596,797 |  |
We write business with loss experience generally characterized as low frequency and high severity in nature, which can result in volatility in our financial results. During 2016, 2015 and 2014, respectively, we recognized aggregate net losses and loss expenses, net of reinstatement premiums of $204 million, $100 million and $93 million in relation to catastrophe and weather-related events. During April 2016, the Company entered into a quota share and adverse development cover reinsurance agreement, a retroactive contract which was deemed to have met the established criteria for retroactive reinsurance accounting. Foreign exchange and other includes reinsurance recoverables of $150 million related to this reinsurance agreement. Prior Year Development Prior year reserve development arises from changes to loss and loss expense estimates related to loss events that occurred in previous calendar years. Such development is summarized by segment in the following table:
|  | Insurance |  | Reinsurance |  | Total |
| Year ended December 31, 2016 | $ | 55,905 |  |  | $ | 236,472 |  |  | $ | 292,377 |  |
| Year ended December 31, 2015 | 23,447 |  |  | 219,601 |  |  | 243,048 |  |
| Year ended December 31, 2014 | 63,735 |  |  | 195,209 |  |  | 258,944 |  |
The majority of the net favorable prior year reserve development in each period related to short-tail reserve classes. Net favorable prior year reserve development for motor, liability, professional lines, and credit and surety reinsurance reserve classes as well as insurance professional lines reserve classes also contributed in 2016. Our short tail business includes the underlying exposures in our property and other, marine and aviation reserve classes within our insurance segment and the property and other reserve class within our reinsurance segment. Development from these classes contributed $148 million, $152 million and $207 million of the total net favorable prior year reserve development in 2016, 2015 and 2014, respectively, and primarily reflected the recognition of better than expected loss emergence. Our medium-tail business consists primarily of professional insurance and reinsurance reserve classes, credit and political risk insurance reserve class, and credit and surety reinsurance reserve class. Our reinsurance professional reserve class business recognized $30 million, $38 million and $33 million of net favorable prior year development in 2016, 2015 and 2014, respectively. The 2016, 2015 and 2014 favorable loss developments on these reserve classes continued to reflect the generally favorable experience on earlier accident years as we continued to transition to more experience based methods. As our loss experience has generally been better than expected, this resulted in the recognition of net favorable prior year reserve development. In 2016, the insurance professional lines recorded $14 million of net favorable prior year development driven by overall better than expected development. In 2015, the insurance professional lines recorded adverse prior year reserve development of $14 million which was primarily the result of strengthening our Australian book of business during the third quarter of 2015. Our credit and surety lines recorded net favorable prior year reserve development of $10 million and $27 million in 2016 and 2015, respectively. This net favorable prior year reserve development reflected the recognition of generally better than expected loss emergence. In 2015, net adverse development of $15 million was recognized in our in credit and political risk insurance lines relating primarily to an increase in loss estimates for one specific claim. Our long-tail business consists primarily of liability and motor reserve classes. In 2016, 2015 and 2014, our motor and reinsurance liability reserve classes contributed net favorable prior year reserve development of $99 million, $82 million and $40 million, respectively. The net favorable prior year reserve development for the motor reserve class related to favorable loss emergence trends on several classes of business spanning multiple accident years. The net favorable prior year reserve development for our reinsurance liability reserve class primarily reflected the progressively increased weight given by management to experience based indications on older accident years, which has generally been favorable. This favorable development was partially offset by adverse development in our insurance liability reserve class of $8 million, $27 million and $23 million in 2016, 2015 and 2014, respectively, related primarily to an increase in loss estimates for specific individual claim reserves as well as a higher frequency of large auto liability claims which impacted the adverse reserve development in 2015. Our December 31, 2016 net reserve for losses and loss expenses includes estimated amounts for numerous catastrophe events. We caution that the magnitude and/or complexity of losses arising from certain of these events, in particular the Hurricane Matthew, Fort McMurray wildfires, Storm Sandy, the 2011 Japanese earthquake and tsunami, the 2010-11 New Zealand earthquakes and the Tianjin port explosion, inherently increases the level of uncertainty and, therefore, the level of management judgment involved in arriving at our estimated net reserves for losses and loss expenses. As a result, our actual losses for these events may ultimately differ materially from our current estimates. Net Incurred and Paid Claims Development Tables By Accident Year The following tables present net incurred and paid claims development by accident year, total incurred-but-not-reported liabilities plus expected development on reported claims, cumulative reported claims frequency and claims duration for each reserve class. The development triangles are presented on an accident year basis for both our Insurance and Reinsurance segments. We do not discount our unpaid losses and loss expense reserves. Non-U.S. dollar denominated loss data is converted to U.S dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in currency exchange rates may cause material shifts in loss development. Reserves for losses and loss expenses, disclosed on our consolidated balance sheets, are also revalued using the exchange rate at the balance sheet date. There are many considerations in establishing loss reserves and an attempt to evaluate our loss reserves using solely the data presented in these tables could be misleading. We caution against mechanical application of standard actuarial methodologies to project ultimate losses using data presented in this disclosure. Insurance Segment The reporting of cumulative claims frequency for the reserve classes within our Insurance segment has been measured by counting the number of unique claim references including claim references assigned to nil and nominal case reserves. Claim references are grouped by claimant by loss event for each class of business. For certain insurance facilities and business produced by managing general agents where underlying data is reported to the Company in an aggregated format, the information necessary to provide cumulative claims frequency is not available therefore reporting of claims frequency is deemed to be impracticable. Insurance Property and Other This reserve class includes our property, terrorism and accident and health lines of business. Our property line of business provides physical loss or damage, business interruption and machinery breakdown coverage for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore energy installations. This line of business consists of both primary and excess risks, some of which are catastrophe-exposed. Our terrorism line of business provides coverage for physical damage and business interruption of an insured following an act of terrorism. Our accident and health line of business includes accidental death, travel insurance and specialty health products for employer and affinity groups, as well as accident and health reinsurance for catastrophic or per life events on a quota share and/or excess of loss basis, with aggregate and/or per person deductibles. The accident and health line of business has contributed an increasing portion of the premium earned within this reserve class from 2010 forward with a large increase in reported claims observed from 2012. In general, paid and reporting patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events.
Insurance Property and Other
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 209,411 |  | $ | 162,796 |  | $ | 160,343 |  | $ | 151,107 |  | $ | 149,236 |  | $ | 149,580 |  | $ | 148,350 |  | $ | 147,875 |  | $ | 147,552 |  | $ | 147,178 |  | $ | 449 |  | 834
2008 |  | 318,702 |  | 273,666 |  | 265,330 |  | 255,880 |  | 240,324 |  | 238,882 |  | 234,488 |  | 232,738 |  | 231,713 |  | 2,017 |  | 1,573
2009 |  |  | 120,169 |  | 101,823 |  | 92,505 |  | 85,202 |  | 83,139 |  | 80,983 |  | 81,204 |  | 80,880 |  | 815 |  | 1,483
2010 |  |  |  | 182,337 |  | 155,368 |  | 147,867 |  | 122,700 |  | 117,130 |  | 116,193 |  | 115,888 |  | 469 |  | 2,309
2011 |  |  |  |  | 386,326 |  | 364,736 |  | 340,974 |  | 317,110 |  | 316,756 |  | 315,517 |  | 2,583 |  | 3,736
2012 |  |  |  |  |  | 463,117 |  | 470,059 |  | 446,790 |  | 426,457 |  | 422,394 |  | 9,381 |  | 27,679
2013 |  |  |  |  |  |  | 421,113 |  | 414,793 |  | 387,086 |  | 381,573 |  | 10,120 |  | 51,231
2014 |  |  |  |  |  |  |  | 471,402 |  | 467,335 |  | 442,392 |  | 19,696 |  | 60,120
2015 |  |  |  |  |  |  |  |  | 378,216 |  | 375,867 |  | 38,959 |  | 43,312
2016 |  |  |  |  |  |  |  |  |  | 519,834 |  | 189,742 |  | 51,460
|  |  |  |  |  |  |  |  | Total | $ | 3,033,236 |  |  |
Insurance Property and Other
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 54,533 |  | $ | 105,253 |  | $ | 126,050 |  | $ | 134,379 |  | $ | 137,481 |  | $ | 139,931 |  | $ | 146,404 |  | $ | 146,717 |  | $ | 146,807 |  | $ | 146,563 |
2008 |  | 83,640 |  | 164,425 |  | 186,147 |  | 197,852 |  | 224,874 |  | 227,438 |  | 229,498 |  | 228,989 |  | 228,945 |
2009 |  |  | 34,370 |  | 63,009 |  | 71,529 |  | 75,366 |  | 76,212 |  | 77,228 |  | 79,435 |  | 79,717 |
2010 |  |  |  | 48,970 |  | 87,621 |  | 96,449 |  | 107,257 |  | 111,450 |  | 111,543 |  | 111,349 |
2011 |  |  |  |  | 88,982 |  | 221,701 |  | 282,382 |  | 304,349 |  | 305,184 |  | 305,007 |
2012 |  |  |  |  |  | 107,441 |  | 278,331 |  | 341,818 |  | 364,966 |  | 372,567 |
2013 |  |  |  |  |  |  | 128,519 |  | 302,372 |  | 345,866 |  | 359,867 |
2014 |  |  |  |  |  |  |  | 173,615 |  | 345,785 |  | 398,150 |
2015 |  |  |  |  |  |  |  |  | 124,166 |  | 280,577 |
2016 |  |  |  |  |  |  |  |  |  | 173,233 |
Total |  | 2,455,975 |
All outstanding liabilities before 2007, net of reinsurance |  | 5,376 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 582,637 |
Insurance Property and Other
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
35.1% | 38.5% | 12.4% | 5.9% | 3.4% | 0.8% | 2.0% | 0.1% | 0.1% | (0.2)%
Insurance Marine This reserve class comprises our marine line of business and provides coverage for traditional marine classes, including offshore energy, cargo, liability, recreational marine, fine art, specie as well as hull and war. Offshore energy coverage includes physical damage, business interruption, operators extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases. The complex nature of claims arising under our marine policies tends to result in payment and reporting patterns that are longer than those of our property and other class. Exposure to natural perils such as windstorm and earthquake can result in volatility.
Insurance Marine
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 96,533 |  | $ | 95,994 |  | $ | 106,228 |  | $ | 100,962 |  | $ | 97,949 |  | $ | 96,304 |  | $ | 94,612 |  | $ | 92,405 |  | $ | 92,077 |  | $ | 92,063 |  | $ | 257 |  | 684
2008 |  | 107,697 |  | 108,208 |  | 103,287 |  | 102,201 |  | 95,006 |  | 88,612 |  | 84,848 |  | 84,483 |  | 84,221 |  | 324 |  | 516
2009 |  |  | 82,075 |  | 75,532 |  | 71,049 |  | 65,787 |  | 58,383 |  | 56,208 |  | 54,774 |  | 53,652 |  | 531 |  | 475
2010 |  |  |  | 67,916 |  | 69,312 |  | 65,198 |  | 52,161 |  | 50,248 |  | 47,397 |  | 45,934 |  | (1,368 | ) | 472
2011 |  |  |  |  | 90,608 |  | 78,293 |  | 72,137 |  | 65,383 |  | 65,363 |  | 65,572 |  | 2,449 |  | 602
2012 |  |  |  |  |  | 89,663 |  | 82,344 |  | 68,315 |  | 70,404 |  | 71,370 |  | 9,821 |  | 697
2013 |  |  |  |  |  |  | 79,011 |  | 99,885 |  | 94,917 |  | 95,954 |  | 9,907 |  | 727
2014 |  |  |  |  |  |  |  | 59,880 |  | 44,221 |  | 47,870 |  | 8,864 |  | 794
2015 |  |  |  |  |  |  |  |  | 158,240 |  | 138,915 |  | 23,853 |  | 850
2016 |  |  |  |  |  |  |  |  |  | 86,115 |  | 41,293 |  | 804
|  |  |  |  |  |  |  |  | Total | $ | 781,666 |  |  |
Insurance Marine
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 14,828 |  | $ | 35,176 |  | $ | 57,907 |  | $ | 76,551 |  | $ | 82,021 |  | $ | 85,219 |  | $ | 85,211 |  | $ | 86,792 |  | $ | 90,115 |  | $ | 90,267 |
2008 |  | 22,745 |  | 54,266 |  | 70,590 |  | 78,641 |  | 79,737 |  | 83,465 |  | 83,546 |  | 83,692 |  | 83,772 |
2009 |  |  | 18,938 |  | 31,745 |  | 40,968 |  | 44,535 |  | 46,490 |  | 47,082 |  | 49,588 |  | 49,845 |
2010 |  |  |  | 17,387 |  | 27,822 |  | 32,327 |  | 41,158 |  | 43,962 |  | 44,730 |  | 45,634 |
2011 |  |  |  |  | 26,431 |  | 44,004 |  | 54,618 |  | 57,677 |  | 59,481 |  | 60,181 |
2012 |  |  |  |  |  | 10,669 |  | 38,301 |  | 44,463 |  | 49,100 |  | 49,891 |
2013 |  |  |  |  |  |  | 18,309 |  | 43,193 |  | 53,633 |  | 61,737 |
2014 |  |  |  |  |  |  |  | 6,359 |  | 14,877 |  | 26,111 |
2015 |  |  |  |  |  |  |  |  | 21,584 |  | 54,575 |
2016 |  |  |  |  |  |  |  |  |  | 12,459 |
Total |  | 534,472 |
All outstanding liabilities before 2007, net of reinsurance |  | 6,114 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 253,308 |
Insurance Marine
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
23.4% | 26.6% | 16.3% | 10.8% | 3.5% | 2.4% | 1.7% | 0.8% | 1.9% | 0.2%
Insurance Aviation This reserve class comprises our aviation line of business and provides hull and liability and specific war coverage primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers. The claims reporting pattern varies by coverage. Losses arising from war/terrorism and damage to hulls of aircraft are generally reported quickly. This is to be contrasted with liability claims which involve passengers and third parties and generally exhibit longer reporting and paid patterns. To date, the claims we have been advised of have predominantly related to damage to hulls, hence our payment and reporting patterns have typically exhibited a relatively short tail.
Insurance Aviation
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 29,801 |  | $ | 25,466 |  | $ | 22,682 |  | $ | 17,043 |  | $ | 16,756 |  | $ | 16,352 |  | $ | 14,427 |  | $ | 12,958 |  | $ | 12,853 |  | $ | 12,422 |  | $ | 53 |  | 270
2008 |  | 14,480 |  | 12,009 |  | 8,504 |  | 8,341 |  | 8,243 |  | 7,095 |  | 5,925 |  | 5,840 |  | 5,985 |  | 91 |  | 187
2009 |  |  | 17,408 |  | 14,490 |  | 18,680 |  | 18,007 |  | 16,835 |  | 16,535 |  | 15,351 |  | 14,519 |  | 176 |  | 317
2010 |  |  |  | 12,629 |  | 11,383 |  | 11,095 |  | 9,419 |  | 8,444 |  | 8,370 |  | 8,418 |  | 253 |  | 516
2011 |  |  |  |  | 17,721 |  | 15,377 |  | 12,763 |  | 9,536 |  | 8,404 |  | 7,257 |  | 434 |  | 730
2012 |  |  |  |  |  | 12,772 |  | 10,642 |  | 10,764 |  | 8,678 |  | 7,728 |  | 499 |  | 866
2013 |  |  |  |  |  |  | 15,647 |  | 16,313 |  | 15,179 |  | 15,223 |  | 1,010 |  | 1,005
2014 |  |  |  |  |  |  |  | 20,429 |  | 23,016 |  | 24,322 |  | 2,969 |  | 1,255
2015 |  |  |  |  |  |  |  |  | 29,748 |  | 28,453 |  | 4,999 |  | 1,751
2016 |  |  |  |  |  |  |  |  |  | 29,135 |  | 9,919 |  | 1,143
|  |  |  |  |  |  |  |  | Total | $ | 153,462 |  |  |
Insurance Aviation
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 2,400 |  | $ | 6,692 |  | $ | 9,219 |  | $ | 10,498 |  | $ | 11,100 |  | $ | 11,781 |  | $ | 12,129 |  | $ | 12,126 |  | $ | 12,148 |  | $ | 12,182 |
2008 |  | 488 |  | 2,057 |  | 3,074 |  | 3,655 |  | 4,205 |  | 4,475 |  | 4,651 |  | 5,258 |  | 5,514 |
2009 |  |  | 2,022 |  | 3,516 |  | 6,957 |  | 12,697 |  | 13,819 |  | 14,183 |  | 14,120 |  | 13,617 |
2010 |  |  |  | 745 |  | 3,819 |  | 5,995 |  | 6,567 |  | 7,230 |  | 7,345 |  | 7,788 |
2011 |  |  |  |  | 638 |  | 2,813 |  | 4,499 |  | 5,015 |  | 5,547 |  | 5,796 |
2012 |  |  |  |  |  | 951 |  | 2,848 |  | 4,133 |  | 5,927 |  | 6,793 |
2013 |  |  |  |  |  |  | 4,398 |  | 7,317 |  | 9,731 |  | 11,427 |
2014 |  |  |  |  |  |  |  | 3,985 |  | 8,011 |  | 11,672 |
2015 |  |  |  |  |  |  |  |  | 8,077 |  | 16,137 |
2016 |  |  |  |  |  |  |  |  |  | 10,396 |
Total |  | 101,322 |
All outstanding liabilities before 2007, net of reinsurance |  | 2,410 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 54,550 |
Insurance Aviation
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
18.1% | 25.1% | 19.7% | 15.4% | 8.0% | 3.5% | 2.7% | 2.2% | 2.3% | 0.3%
Insurance Credit and Political Risk This reserve class comprises our credit and political risk line of business and provides credit and political risk insurance products for banks and corporations. Coverage is provided for a range of risks including sovereign default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers. For the credit insurance contracts, it is necessary for the buyer of the insurance (most often a bank) to hold an insured asset (most often an underlying loan) in order to claim compensation under the insurance contract. Claims for this business tend to be characterized by their severity risk, as opposed to their frequency risk. Therefore, claim payment and reporting patterns are anticipated to be volatile. Under the notification provisions of our credit insurance, we anticipate being advised of an insured event within a relatively short time period. As a result, we generally estimate ultimate losses based on a contract-by-contract analysis which considers the contracts’ terms, the facts and circumstances of underlying loss events and qualitative input from claims managers.
Insurance Credit and Political Risk
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 50,812 |  | $ | 44,972 |  | $ | 16,695 |  | $ | 5,253 |  | $ | 898 |  | $ | 898 |  | $ | 3,609 |  | $ | 3,642 |  | $ | 3,667 |  | $ | 2,741 |  | $ | 200 |  | 2
2008 |  | 52,993 |  | 63,552 |  | 48,715 |  | 45,554 |  | 45,551 |  | 45,551 |  | 45,600 |  | 45,200 |  | 44,410 |  | — |  | 9
2009 |  |  | 248,082 |  | 305,277 |  | 326,017 |  | 335,525 |  | 335,398 |  | 335,258 |  | 335,278 |  | 339,557 |  | 1,740 |  | 24
2010 |  |  |  | 62,415 |  | 63,179 |  | 63,259 |  | 65,595 |  | 64,975 |  | 65,009 |  | 72,099 |  | 6,900 |  | 6
2011 |  |  |  |  | 58,154 |  | 48,665 |  | 47,706 |  | 48,361 |  | 48,333 |  | 45,036 |  | 17,400 |  | 4
2012 |  |  |  |  |  | 32,602 |  | 15,672 |  | 12,435 |  | 12,447 |  | 10,319 |  | 10,282 |  | 4
2013 |  |  |  |  |  |  | 26,439 |  | 25,684 |  | 9,759 |  | 9,880 |  | 1,600 |  | 1
2014 |  |  |  |  |  |  |  | 38,825 |  | 70,712 |  | 67,109 |  | 9,247 |  | 5
2015 |  |  |  |  |  |  |  |  | 30,329 |  | 30,368 |  | 7,059 |  | 3
2016 |  |  |  |  |  |  |  |  |  | 43,756 |  | 19,043 |  | 1
|  |  |  |  |  |  |  |  | Total | $ | 665,275 |  |  |
Insurance Credit and Political Risk
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | — |  | $ | 2,798 |  | $ | 4,263 |  | $ | 4,236 |  | $ | 4,236 |  | $ | 4,236 |  | $ | 4,236 |  | $ | 4,236 |  | $ | 4,236 |  | $ | 4,236 |
2008 |  | — |  | 69,217 |  | 45,625 |  | 45,638 |  | 45,379 |  | 45,379 |  | 44,410 |  | 44,410 |  | 44,410 |
2009 |  |  | 92,841 |  | 344,648 |  | 346,248 |  | 346,209 |  | 341,564 |  | 345,508 |  | 345,507 |  | 345,555 |
2010 |  |  |  | 50,000 |  | 85,418 |  | 90,729 |  | 106,766 |  | 101,784 |  | 101,946 |  | 102,152 |
2011 |  |  |  |  | 32,788 |  | 37,205 |  | 27,636 |  | 27,636 |  | 27,636 |  | 27,636 |
2012 |  |  |  |  |  | — |  | — |  | — |  | — |  | 36 |
2013 |  |  |  |  |  |  | 745 |  | 2,235 |  | 3,726 |  | 5,216 |
2014 |  |  |  |  |  |  |  | 1,924 |  | 39,951 |  | 61,108 |
2015 |  |  |  |  |  |  |  |  | — |  | 23,309 |
2016 |  |  |  |  |  |  |  |  |  | — |
Total |  | 613,658 |
All outstanding liabilities before 2007, net of reinsurance |  | 20 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 51,637 |
Insurance Credit and Political Risk
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
18.0% | 60.0% | 4.2% | 5.2% | (1.4)% | 0.3% | (0.5)% | —% | —% | —%
Insurance Professional Lines This reserve class comprises our professional line of business and provides coverage for directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, medical malpractice and other financial insurance related coverages for commercial enterprises, financial institutions and not-for-profit organizations. This business is predominantly written on a claims-made basis. Typically this reserve class is anticipated to exhibit medium to long tail claim reporting and settlement patterns. With respect to our key actuarial assumptions, we are progressively giving more weight to our own experience when establishing our expected loss ratios and our selected loss development patterns, though we continue to consider industry benchmarks. Loss reporting patterns for professional lines business tend to be volatile, causing instability in actuarial indications based on incurred loss data until an accident year matures for a number of years. Consequently, our initial loss reserves for an accident year are generally based upon an ELR method and the consideration of relevant qualitative factors. As accident years mature, we increasingly give more weight to methods that reflect our actual experience until our selections are based almost exclusively on experience-based methods. We evaluate the appropriateness of the transition to experience-based methods at the reserving class level, commencing this transition when we believe that our incurred loss development is sufficient to produce meaningful actuarial indications. The rate at which we transition fully to sole reliance on experience-based methods can vary, depending on our assessment of the stability and relevance of such indications. For some professional lines in our insurance segment, we also rely upon the evaluation of the open claim inventory in addition to the commonly employed actuarial methods when establishing reserves.
Insurance Professional Lines
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 221,212 |  | $ | 247,155 |  | $ | 249,780 |  | $ | 248,741 |  | $ | 221,708 |  | $ | 217,901 |  | $ | 201,294 |  | $ | 202,636 |  | $ | 197,765 |  | $ | 196,562 |  | $ | 4,683 |  | 3,596
2008 |  | 240,809 |  | 279,486 |  | 280,329 |  | 299,422 |  | 295,953 |  | 309,268 |  | 328,628 |  | 326,623 |  | 324,197 |  | 23,024 |  | 4,582
2009 |  |  | 251,995 |  | 257,354 |  | 258,134 |  | 256,731 |  | 263,157 |  | 245,939 |  | 247,495 |  | 223,700 |  | 14,856 |  | 6,148
2010 |  |  |  | 251,985 |  | 257,527 |  | 255,337 |  | 218,436 |  | 195,831 |  | 173,104 |  | 195,869 |  | 44,799 |  | 5,975
2011 |  |  |  |  | 341,302 |  | 342,063 |  | 359,448 |  | 348,860 |  | 355,008 |  | 368,830 |  | 69,175 |  | 7,633
2012 |  |  |  |  |  | 353,693 |  | 399,610 |  | 401,976 |  | 408,870 |  | 397,517 |  | 108,180 |  | 8,805
2013 |  |  |  |  |  |  | 410,537 |  | 425,400 |  | 430,517 |  | 398,776 |  | 161,370 |  | 9,835
2014 |  |  |  |  |  |  |  | 435,447 |  | 443,665 |  | 451,917 |  | 244,910 |  | 10,017
2015 |  |  |  |  |  |  |  |  | 401,941 |  | 401,660 |  | 277,836 |  | 10,178
2016 |  |  |  |  |  |  |  |  |  | 348,076 |  | 312,698 |  | 8,935
|  |  |  |  |  |  |  |  | Total | $ | 3,307,104 |  |  |
Insurance Professional Lines
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 3,817 |  | $ | 18,301 |  | $ | 49,258 |  | $ | 102,031 |  | $ | 114,021 |  | $ | 139,144 |  | $ | 150,649 |  | $ | 161,153 |  | $ | 168,368 |  | $ | 169,572 |
2008 |  | 5,154 |  | 22,565 |  | 68,355 |  | 125,594 |  | 167,923 |  | 189,952 |  | 214,542 |  | 249,050 |  | 267,314 |
2009 |  |  | 4,251 |  | 24,559 |  | 49,396 |  | 76,121 |  | 105,510 |  | 117,174 |  | 136,271 |  | 174,032 |
2010 |  |  |  | 8,179 |  | 30,353 |  | 57,282 |  | 78,663 |  | 96,431 |  | 109,403 |  | 119,939 |
2011 |  |  |  |  | 8,470 |  | 36,396 |  | 78,605 |  | 117,097 |  | 177,629 |  | 250,219 |
2012 |  |  |  |  |  | 8,895 |  | 44,804 |  | 106,822 |  | 194,031 |  | 240,671 |
2013 |  |  |  |  |  |  | 18,305 |  | 75,901 |  | 136,542 |  | 182,468 |
2014 |  |  |  |  |  |  |  | 25,351 |  | 73,828 |  | 132,966 |
2015 |  |  |  |  |  |  |  |  | 20,745 |  | 68,050 |
2016 |  |  |  |  |  |  |  |  |  | 15,707 |
Total |  | 1,620,938 |
All outstanding liabilities before 2007, net of reinsurance |  | 31,393 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 1,717,559 |
Insurance Professional Lines
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
3.4% | 9.6% | 13.7% | 15.9% | 11.6% | 10.2% | 6.9% | 10.9% | 4.7% | 0.6%
Insurance Liability This reserve class comprises our liability line of business and primarily targets primary and low/mid-level excess and umbrella commercial liability risks in the U.S. wholesale markets. Target industry sectors include construction, manufacturing, transportation and trucking and other services. The delay between the writing of a contract, notification and subsequent settlement of a claim in respect of that contract results in claim payment and reporting patterns that are typically long tail in nature. A consequence of the claim development tail is that this line of business is particularly exposed, amongst a number of uncertainties, to the potential for unanticipated levels of claim inflation relative to that assumed when the contracts were written. Factors influencing claim inflation on this class can include, but are not limited to, underlying economic and medical inflation, judicial inflation, mass tort and changing social trends.
Insurance Liability
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 100,380 |  | $ | 88,102 |  | $ | 95,435 |  | $ | 98,625 |  | $ | 98,851 |  | $ | 99,483 |  | $ | 102,010 |  | $ | 101,299 |  | $ | 97,526 |  | $ | 97,078 |  | $ | 12,107 |  | 3,766
2008 |  | 82,969 |  | 79,836 |  | 80,947 |  | 81,785 |  | 82,225 |  | 81,949 |  | 101,589 |  | 102,444 |  | 108,189 |  | 20,340 |  | 3,697
2009 |  |  | 61,469 |  | 64,017 |  | 67,410 |  | 67,869 |  | 76,431 |  | 83,281 |  | 101,179 |  | 98,384 |  | 11,813 |  | 2,735
2010 |  |  |  | 79,406 |  | 94,222 |  | 98,637 |  | 98,115 |  | 99,574 |  | 98,064 |  | 105,123 |  | 15,988 |  | 2,196
2011 |  |  |  |  | 72,586 |  | 75,329 |  | 83,118 |  | 87,059 |  | 85,243 |  | 83,730 |  | 20,189 |  | 1,776
2012 |  |  |  |  |  | 70,836 |  | 70,608 |  | 73,280 |  | 70,769 |  | 68,179 |  | 23,448 |  | 1,215
2013 |  |  |  |  |  |  | 92,146 |  | 94,171 |  | 94,247 |  | 87,491 |  | 36,011 |  | 1,494
2014 |  |  |  |  |  |  |  | 106,121 |  | 122,583 |  | 128,465 |  | 55,811 |  | 2,240
2015 |  |  |  |  |  |  |  |  | 127,318 |  | 125,844 |  | 83,145 |  | 2,970
2016 |  |  |  |  |  |  |  |  |  | 123,233 |  | 107,850 |  | 3,099
|  |  |  |  |  |  |  |  | Total | $ | 1,025,716 |  |  |
Insurance Liability
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 436 |  | $ | 5,968 |  | $ | 22,206 |  | $ | 40,853 |  | $ | 52,660 |  | $ | 60,080 |  | $ | 69,335 |  | $ | 76,411 |  | $ | 80,150 |  | $ | 82,449 |
2008 |  | 1,906 |  | 8,796 |  | 18,507 |  | 27,861 |  | 37,408 |  | 47,447 |  | 51,776 |  | 55,314 |  | 61,618 |
2009 |  |  | 726 |  | 4,646 |  | 13,305 |  | 26,754 |  | 31,865 |  | 41,322 |  | 44,105 |  | 83,991 |
2010 |  |  |  | 1,030 |  | 15,968 |  | 30,791 |  | 53,584 |  | 61,033 |  | 66,118 |  | 71,792 |
2011 |  |  |  |  | 2,761 |  | 10,540 |  | 20,190 |  | 38,376 |  | 46,074 |  | 54,996 |
2012 |  |  |  |  |  | 1,630 |  | 5,513 |  | 15,410 |  | 30,144 |  | 37,138 |
2013 |  |  |  |  |  |  | 2,355 |  | 23,275 |  | 33,314 |  | 42,044 |
2014 |  |  |  |  |  |  |  | 1,410 |  | 18,620 |  | 49,816 |
2015 |  |  |  |  |  |  |  |  | 5,437 |  | 22,323 |
2016 |  |  |  |  |  |  |  |  |  | 6,307 |
Total |  | 512,474 |
All outstanding liabilities before 2007, net of reinsurance |  | 39,713 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 552,955 |
Insurance Liability
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
2.3% | 10.7% | 13.8% | 16.6% | 8.8% | 8.4% | 5.4% | 17.0% | 4.9% | 2.4%
Reinsurance Segment The main difficulty in presenting accident year triangles for the Reinsurance segment relates to the allocation of loss information on proportional treaties to the appropriate accident years. As an example, many proportional treaty reinsurance contracts are submitted using quarterly bordereau reporting by underwriting year, with a supplemental listing of large losses. The large losses can be accurately allocated to the corresponding accident years. However, the remaining losses can generally only be allocated to accident years based on estimated premium earning and loss reporting patterns. To the extent management’s assumptions and allocation procedures differ from the actual loss development patterns, the actual loss development may differ materially from the loss development presented below. The reporting of cumulative claims frequency for the reserve classes within our Reinsurance segment is deemed to be impracticable. The information necessary to provide cumulative claims frequency for these reserve classes is not available to the Company. Reinsurance Property and Other This reserve class comprises our property, catastrophe, engineering, agriculture and marine and other lines of business. Our catastrophe line of business provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The exposure in the underlying policies is principally property exposure but also covers other exposures including workers compensation, personal accident and life. The principal perils in this portfolio are hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. We underwrite catastrophe reinsurance principally on an excess of loss basis. Our property line of business provides coverage for property damage and related losses resulting from natural and man-made perils contained in underlying personal and commercial policies. While our predominant exposure is to property damage, other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. While our most significant exposures typically relate to losses from windstorms, tornadoes and earthquakes, we are also exposed to other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events. We assume business on both a proportional and excess of loss basis. Our agriculture line of business provides coverage for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. We provide both proportional and aggregate stop loss reinsurance. Our engineering line of business provides coverage for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes coverage for losses arising from operational failures of machinery, plant and equipment and electronic equipment as well as business interruption. Our marine and other line of business includes marine, aviation and personal accident reinsurance. In general, paid and reporting patterns are relatively short-tailed and can be volatile due to the incidence of catastrophe events such as hurricanes and earthquakes.
Reinsurance Property and Other
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 394,054 |  | $ | 321,110 |  | $ | 279,571 |  | $ | 265,204 |  | $ | 249,436 |  | $ | 238,779 |  | $ | 231,597 |  | $ | 224,023 |  | $ | 220,937 |  | $ | 220,469 |  | $ | 379 |
2008 |  | 671,079 |  | 569,031 |  | 584,076 |  | 562,028 |  | 547,586 |  | 536,555 |  | 520,174 |  | 513,948 |  | 512,261 |  | (296 | )
2009 |  |  | 337,333 |  | 279,833 |  | 241,346 |  | 227,777 |  | 220,889 |  | 199,777 |  | 193,703 |  | 195,545 |  | 705 |
2010 |  |  |  | 599,084 |  | 584,912 |  | 553,798 |  | 567,341 |  | 569,697 |  | 563,532 |  | 555,647 |  | 7,034 |
2011 |  |  |  |  | 1,083,060 |  | 1,092,015 |  | 1,090,593 |  | 1,049,625 |  | 1,032,549 |  | 1,006,528 |  | 10,715 |
2012 |  |  |  |  |  | 484,438 |  | 450,563 |  | 440,303 |  | 409,836 |  | 393,775 |  | 10,707 |
2013 |  |  |  |  |  |  | 466,295 |  | 441,492 |  | 411,440 |  | 392,459 |  | 10,724 |
2014 |  |  |  |  |  |  |  | 437,470 |  | 455,607 |  | 442,330 |  | 53,805 |
2015 |  |  |  |  |  |  |  |  | 380,660 |  | 359,185 |  | 69,223 |
2016 |  |  |  |  |  |  |  |  |  | 440,384 |  | 224,911 |
|  |  |  |  |  |  |  |  | Total | $ | 4,518,583 |  |
Reinsurance Property and Other
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 58,955 |  | $ | 159,438 |  | $ | 189,166 |  | $ | 203,754 |  | $ | 211,499 |  | $ | 215,294 |  | $ | 219,809 |  | $ | 217,756 |  | $ | 215,894 |  | $ | 217,366 |
2008 |  | 157,415 |  | 312,580 |  | 437,973 |  | 489,821 |  | 502,377 |  | 506,139 |  | 505,939 |  | 510,628 |  | 509,433 |
2009 |  |  | 55,694 |  | 126,587 |  | 156,617 |  | 174,250 |  | 184,513 |  | 183,729 |  | 186,448 |  | 188,103 |
2010 |  |  |  | 104,263 |  | 296,764 |  | 388,310 |  | 419,571 |  | 465,358 |  | 494,362 |  | 519,128 |
2011 |  |  |  |  | 246,222 |  | 557,409 |  | 759,930 |  | 859,089 |  | 888,222 |  | 961,477 |
2012 |  |  |  |  |  | 92,620 |  | 228,876 |  | 300,983 |  | 322,801 |  | 337,115 |
2013 |  |  |  |  |  |  | 54,451 |  | 218,110 |  | 328,765 |  | 355,706 |
2014 |  |  |  |  |  |  |  | 65,721 |  | 271,621 |  | 346,856 |
2015 |  |  |  |  |  |  |  |  | 48,121 |  | 187,229 |
2016 |  |  |  |  |  |  |  |  |  | 77,205 |
Total |  | 3,699,618 |
All outstanding liabilities before 2007, net of reinsurance |  | 4,498 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 823,463 |
Reinsurance Property and Other
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
21.2% | 37.7% | 19.2% | 7.7% | 4.3% | 2.9% | 2.0% | 0.3% | (0.5)% | 0.7%
Reinsurance Credit and Surety This reserve class is comprised of our credit and surety line of business and consists of reinsurance of trade credit insurance products and includes both proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. The Company provides credit insurance coverage to mortgage guaranty insurers and government sponsored entities. Also included in this line of business is coverage for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world. Our initial and most recent underwriting year loss projections are generally based on the ELR method, with consideration given to qualitative factors. Given that there is a quicker and more stable reporting pattern for trade credit business, we generally commence the transition to experience-based methods sooner than for the surety business.
Reinsurance Credit and Surety
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 48,646 |  | $ | 53,197 |  | $ | 44,789 |  | $ | 40,395 |  | $ | 39,015 |  | $ | 39,584 |  | $ | 45,853 |  | $ | 53,938 |  | $ | 52,838 |  | $ | 53,775 |  | $ | 915 |
2008 |  | 79,689 |  | 102,595 |  | 92,784 |  | 92,151 |  | 93,339 |  | 92,118 |  | 88,619 |  | 87,638 |  | 87,130 |  | 1,456 |
2009 |  |  | 137,963 |  | 117,004 |  | 100,943 |  | 100,177 |  | 99,872 |  | 94,541 |  | 91,346 |  | 90,893 |  | 2,968 |
2010 |  |  |  | 112,888 |  | 92,842 |  | 86,340 |  | 83,888 |  | 79,568 |  | 72,316 |  | 71,016 |  | 6,397 |
2011 |  |  |  |  | 117,902 |  | 101,752 |  | 99,640 |  | 106,196 |  | 104,414 |  | 96,269 |  | 9,658 |
2012 |  |  |  |  |  | 155,730 |  | 142,870 |  | 145,147 |  | 142,639 |  | 134,620 |  | 19,094 |
2013 |  |  |  |  |  |  | 161,647 |  | 148,760 |  | 139,761 |  | 136,024 |  | 23,760 |
2014 |  |  |  |  |  |  |  | 132,483 |  | 131,887 |  | 139,026 |  | 34,983 |
2015 |  |  |  |  |  |  |  |  | 156,959 |  | 161,178 |  | 46,635 |
2016 |  |  |  |  |  |  |  |  |  | 138,876 |  | 72,455 |
|  |  |  |  |  |  |  |  | Total | $ | 1,108,807 |  |
Reinsurance Credit and Surety
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 13,612 |  | $ | 24,105 |  | $ | 28,797 |  | $ | 33,178 |  | $ | 34,476 |  | $ | 35,328 |  | $ | 36,580 |  | $ | 46,356 |  | $ | 46,734 |  | $ | 47,496 |
2008 |  | 20,345 |  | 63,686 |  | 61,530 |  | 75,801 |  | 77,425 |  | 79,414 |  | 81,152 |  | 81,790 |  | 82,026 |
2009 |  |  | 31,892 |  | 73,878 |  | 74,948 |  | 76,863 |  | 80,635 |  | 83,281 |  | 83,338 |  | 83,185 |
2010 |  |  |  | 25,558 |  | 44,156 |  | 54,023 |  | 54,849 |  | 56,304 |  | 57,263 |  | 58,579 |
2011 |  |  |  |  | 22,198 |  | 50,959 |  | 66,120 |  | 73,282 |  | 77,734 |  | 79,807 |
2012 |  |  |  |  |  | 48,576 |  | 82,707 |  | 95,544 |  | 101,328 |  | 104,802 |
2013 |  |  |  |  |  |  | 32,113 |  | 74,740 |  | 88,904 |  | 95,282 |
2014 |  |  |  |  |  |  |  | 35,261 |  | 59,406 |  | 83,536 |
2015 |  |  |  |  |  |  |  |  | 32,757 |  | 79,523 |
2016 |  |  |  |  |  |  |  |  |  | 41,768 |
Total |  | 756,004 |
All outstanding liabilities before 2007, net of reinsurance |  | 3,865 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 356,668 |
Reinsurance Credit and Surety
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
27.8% | 30.5% | 9.3% | 6.3% | 2.9% | 2.1% | 1.6% | 6.2% | 0.5% | 1.4%
Reinsurance Professional Lines This reserve class is comprised of our professional line of business and covers directors' and officers' liability, employment practices liability, medical malpractice, professional indemnity, environmental liability and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. Business is written on both a proportional and excess of loss basis. Claim payment and reporting patterns on an accident year basis are typically medium to long tail in nature. With respect to our key actuarial assumptions, we are progressively giving more weight to our own experience when establishing our expected loss ratios and our selected loss development patterns, though we continue to consider industry benchmarks. Loss reporting patterns for professional lines business tend to be volatile, causing instability in actuarial indications based on incurred loss data until an accident year matures for a number of years. Consequently, our initial loss reserves for an accident year or underwriting year are generally based upon an ELR method and the consideration of relevant qualitative factors. As accident and underwriting years mature, we increasingly give more weight to methods that reflect our actual experience until our selections are based almost exclusively on experience-based methods. We evaluate the appropriateness of the transition to experience-based methods at the reserving class level, commencing this transition when we believe that our incurred loss development is sufficient to produce meaningful actuarial indications. The rate at which we transition fully to sole reliance on experience-based methods can vary, depending on our assessment of the stability and relevance of such indications.
Reinsurance Professional Lines
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 195,045 |  | $ | 204,971 |  | $ | 204,594 |  | $ | 196,696 |  | $ | 176,792 |  | $ | 151,628 |  | $ | 137,392 |  | $ | 118,321 |  | $ | 114,714 |  | $ | 111,256 |  | $ | 8,173 |
2008 |  | 174,881 |  | 181,729 |  | 181,097 |  | 177,038 |  | 175,203 |  | 171,409 |  | 172,414 |  | 170,509 |  | 170,596 |  | 14,293 |
2009 |  |  | 210,606 |  | 210,413 |  | 215,065 |  | 217,656 |  | 208,234 |  | 207,939 |  | 192,974 |  | 189,290 |  | 21,035 |
2010 |  |  |  | 208,718 |  | 209,034 |  | 210,413 |  | 213,560 |  | 213,316 |  | 196,067 |  | 188,729 |  | 42,307 |
2011 |  |  |  |  | 200,400 |  | 200,776 |  | 201,989 |  | 210,770 |  | 208,126 |  | 207,237 |  | 75,492 |
2012 |  |  |  |  |  | 209,109 |  | 215,586 |  | 221,036 |  | 223,023 |  | 221,722 |  | 94,535 |
2013 |  |  |  |  |  |  | 208,804 |  | 213,810 |  | 214,659 |  | 212,763 |  | 114,919 |
2014 |  |  |  |  |  |  |  | 218,734 |  | 218,662 |  | 218,610 |  | 120,754 |
2015 |  |  |  |  |  |  |  |  | 211,420 |  | 211,181 |  | 163,900 |
2016 |  |  |  |  |  |  |  |  |  | 194,558 |  | 183,486 |
|  |  |  |  |  |  |  |  | Total | $ | 1,925,942 |  |
Reinsurance Professional Lines
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 56 |  | $ | 4,133 |  | $ | 21,286 |  | $ | 34,567 |  | $ | 54,438 |  | $ | 60,188 |  | $ | 70,636 |  | $ | 73,941 |  | $ | 82,406 |  | $ | 86,573 |
2008 |  | 373 |  | 6,411 |  | 21,620 |  | 49,053 |  | 70,329 |  | 91,554 |  | 108,226 |  | 123,672 |  | 132,194 |
2009 |  |  | 914 |  | 8,588 |  | 32,286 |  | 62,988 |  | 83,537 |  | 108,140 |  | 127,697 |  | 137,842 |
2010 |  |  |  | 1,740 |  | 12,000 |  | 31,198 |  | 52,066 |  | 76,635 |  | 107,096 |  | 123,711 |
2011 |  |  |  |  | 1,510 |  | 11,812 |  | 30,216 |  | 57,119 |  | 84,672 |  | 102,813 |
2012 |  |  |  |  |  | 776 |  | 10,346 |  | 29,527 |  | 53,440 |  | 85,753 |
2013 |  |  |  |  |  |  | 1,059 |  | 12,020 |  | 30,403 |  | 64,809 |
2014 |  |  |  |  |  |  |  | 2,019 |  | 13,049 |  | 48,714 |
2015 |  |  |  |  |  |  |  |  | 3,134 |  | 13,503 |
2016 |  |  |  |  |  |  |  |  |  | 1,755 |
Total |  | 797,667 |
All outstanding liabilities before 2007, net of reinsurance |  | 26,189 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 1,154,464 |
Reinsurance Professional Lines
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
0.7% | 4.6% | 11.2% | 13.6% | 13.7% | 11.1% | 9.6% | 5.8% | 6.3% | 3.7%
Reinsurance Motor This reserving class is comprised of our motor line of business and provides coverage to insurers for motor liability and property damage losses arising out of any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. We offer traditional proportional and non-proportional reinsurance as well as structured solutions predominantly relating to European exposures. The business written on a proportional basis has expanded significantly since 2010 and now represents the majority of the written premium on this class. Most of the premium relates to a relatively small number of large United Kingdom ("U.K.") and, to a lesser extent, Greek quota share treaties. The motor proportional class generally has significantly shorter paid and reported loss development patterns relative to the motor non-proportional class. The motor non-proportional business consists of standard excess of loss contracts written for cedants in several European countries with the two major markets, U.K. and France, generally accounting for the majority of the premium volume. From 2009/2010 onwards increasing numbers of large bodily injury settlements in the U.K. market were settled using indexed annuities (Periodical Payment Orders "PPOs"). This led to a materially longer development tail on the older accident years for the U.K. non-proportional motor book. This also resulted in a move towards generally lower treaty attachment points and the inclusion of capitalization clauses on a number of U.K. motor treaties partly helping to mitigate the lengthening of the development tail on more recent accident years. Despite the trend toward a greater number of claims settlements using PPOs, we note that there has been a trend towards generally quicker and more adequate reporting of losses in recent years.
Reinsurance Motor
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 65,601 |  | $ | 66,567 |  | $ | 62,829 |  | $ | 62,768 |  | $ | 63,813 |  | $ | 60,568 |  | $ | 59,548 |  | $ | 58,086 |  | $ | 55,279 |  | $ | 54,504 |  | $ | 14,117 |
2008 |  | 64,513 |  | 69,234 |  | 68,617 |  | 70,961 |  | 68,486 |  | 67,783 |  | 63,627 |  | 58,250 |  | 54,678 |  | 18,178 |
2009 |  |  | 77,092 |  | 75,034 |  | 82,170 |  | 83,944 |  | 85,870 |  | 87,017 |  | 78,929 |  | 73,670 |  | 17,780 |
2010 |  |  |  | 92,168 |  | 97,598 |  | 97,823 |  | 96,811 |  | 91,248 |  | 86,409 |  | 77,560 |  | 27,778 |
2011 |  |  |  |  | 149,535 |  | 151,432 |  | 155,096 |  | 160,516 |  | 156,912 |  | 148,843 |  | 44,483 |
2012 |  |  |  |  |  | 170,379 |  | 159,822 |  | 149,420 |  | 142,454 |  | 137,841 |  | 37,418 |
2013 |  |  |  |  |  |  | 155,880 |  | 150,277 |  | 139,138 |  | 130,299 |  | 30,902 |
2014 |  |  |  |  |  |  |  | 175,848 |  | 173,568 |  | 168,846 |  | 33,650 |
2015 |  |  |  |  |  |  |  |  | 215,342 |  | 207,409 |  | 49,375 |
2016 |  |  |  |  |  |  |  |  |  | 238,258 |  | 100,635 |
|  |  |  |  |  |  |  |  | Total | $ | 1,291,908 |  |
Reinsurance Motor
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 1,663 |  | $ | 3,881 |  | $ | 4,150 |  | $ | 6,127 |  | $ | 9,939 |  | $ | 11,616 |  | $ | 13,710 |  | $ | 18,527 |  | $ | 20,433 |  | $ | 21,596 |
2008 |  | 2,741 |  | 5,612 |  | 5,827 |  | 6,984 |  | 8,438 |  | 10,788 |  | 13,366 |  | 13,975 |  | 15,452 |
2009 |  |  | 2,533 |  | 6,343 |  | 7,346 |  | 8,761 |  | 12,037 |  | 17,973 |  | 20,167 |  | 24,535 |
2010 |  |  |  | 5,138 |  | 9,299 |  | 13,939 |  | 17,068 |  | 19,972 |  | 23,957 |  | 27,017 |
2011 |  |  |  |  | 23,397 |  | 45,270 |  | 58,841 |  | 68,802 |  | 74,955 |  | 80,593 |
2012 |  |  |  |  |  | 28,703 |  | 50,904 |  | 64,918 |  | 74,063 |  | 80,182 |
2013 |  |  |  |  |  |  | 33,173 |  | 50,230 |  | 62,830 |  | 72,085 |
2014 |  |  |  |  |  |  |  | 42,546 |  | 70,547 |  | 88,652 |
2015 |  |  |  |  |  |  |  |  | 56,940 |  | 89,516 |
2016 |  |  |  |  |  |  |  |  |  | 59,989 |
Total |  | 559,617 |
All outstanding liabilities before 2007, net of reinsurance |  | 78,865 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 811,156 |
Reinsurance Motor
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
15.8% | 10.7% | 6.0% | 4.6% | 4.4% | 4.9% | 3.9% | 5.3% | 3.1% | 2.1%
Reinsurance Liability This reserve class is comprised of our liability line of business and provides coverage to insurers of standard casualty business, excess and surplus casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, although workers' compensation and auto liability are also written. Claim payment and reporting patterns are typically long tail in nature and, therefore, also subject to increased uncertainty surrounding future loss development. In particular, claims can be subject to inflation from a number of sources including, but not limited to, economic and medical inflation, judicial inflation and changing social trends.
Reinsurance Liability
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2016
| For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 160,455 |  | $ | 157,947 |  | $ | 158,773 |  | $ | 157,966 |  | $ | 157,886 |  | $ | 157,822 |  | $ | 144,241 |  | $ | 114,939 |  | $ | 97,515 |  | $ | 92,712 |  | $ | 11,940 |
2008 |  | 137,646 |  | 137,932 |  | 138,926 |  | 139,592 |  | 137,793 |  | 132,317 |  | 110,545 |  | 105,286 |  | 94,589 |  | 20,513 |
2009 |  |  | 169,886 |  | 171,868 |  | 179,239 |  | 176,853 |  | 184,378 |  | 203,553 |  | 191,701 |  | 177,852 |  | 34,578 |
2010 |  |  |  | 169,442 |  | 168,929 |  | 180,949 |  | 181,663 |  | 199,656 |  | 189,531 |  | 180,860 |  | 53,863 |
2011 |  |  |  |  | 170,182 |  | 170,606 |  | 172,708 |  | 190,043 |  | 196,805 |  | 193,749 |  | 45,166 |
2012 |  |  |  |  |  | 165,409 |  | 162,127 |  | 166,492 |  | 171,033 |  | 172,176 |  | 55,572 |
2013 |  |  |  |  |  |  | 171,121 |  | 174,885 |  | 180,802 |  | 182,813 |  | 83,598 |
2014 |  |  |  |  |  |  |  | 198,634 |  | 201,551 |  | 203,252 |  | 124,579 |
2015 |  |  |  |  |  |  |  |  | 213,387 |  | 213,776 |  | 157,257 |
2016 |  |  |  |  |  |  |  |  |  | 238,524 |  | 199,828 |
|  |  |  |  |  |  |  |  | Total | $ | 1,750,303 |  |
Reinsurance Liability
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| For the Years Ended December 31,
Accident Year | 2007 Unaudited | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016
2007 | $ | 2,556 |  | $ | 10,663 |  | $ | 22,833 |  | $ | 32,641 |  | $ | 42,081 |  | $ | 54,374 |  | $ | 59,966 |  | $ | 65,026 |  | $ | 66,791 |  | $ | 70,221 |
2008 |  | 2,156 |  | 9,940 |  | 21,917 |  | 29,991 |  | 36,497 |  | 43,397 |  | 51,786 |  | 53,578 |  | 57,686 |
2009 |  |  | 1,703 |  | 17,100 |  | 44,429 |  | 56,586 |  | 73,197 |  | 103,871 |  | 123,051 |  | 127,354 |
2010 |  |  |  | 2,405 |  | 17,576 |  | 46,123 |  | 62,207 |  | 83,542 |  | 97,167 |  | 108,476 |
2011 |  |  |  |  | 5,190 |  | 21,274 |  | 39,983 |  | 69,886 |  | 92,221 |  | 112,066 |
2012 |  |  |  |  |  | 3,540 |  | 12,791 |  | 28,354 |  | 58,639 |  | 78,037 |
2013 |  |  |  |  |  |  | 5,965 |  | 22,214 |  | 52,299 |  | 69,021 |
2014 |  |  |  |  |  |  |  | 7,086 |  | 28,645 |  | 48,363 |
2015 |  |  |  |  |  |  |  |  | 7,267 |  | 27,440 |
2016 |  |  |  |  |  |  |  |  |  | 11,859 |
Total |  | 710,523 |
All outstanding liabilities before 2007, net of reinsurance |  | 28,494 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 1,068,274 |
Reinsurance Liability
Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
2.7% | 8.5% | 12.7% | 11.0% | 10.2% | 11.1% | 8.0% | 3.3% | 3.1% | 3.7%
Reconciliation of Development Tables to Consolidated Balance Sheet The following table reconciles the reserves for loss and loss expenses as of December 31, 2016 as reported in our Consolidated Balance Sheet to the reserves for loss and loss expenses included in the development tables:
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses
|  | At December 31, 2016
|  | Net outstanding liabilities |  | Reinsurance recoverable on unpaid claims |  | Gross outstanding liabilities
Insurance Segment |  |  |  |  |  |
Property and Other |  | $ | 582,637 |  |  | $ | 169,707 |  |  | $ | 752,344 |
Marine |  | 253,308 |  |  | 180,996 |  |  | 434,304 |
Aviation |  | 54,550 |  |  | 6,384 |  |  | 60,934 |
Credit and Political Risk |  | 51,637 |  |  | 154 |  |  | 51,791 |
Professional Lines |  | 1,717,559 |  |  | 998,873 |  |  | 2,716,432 |
Liability |  | 552,955 |  |  | 837,215 |  |  | 1,390,170 |
Total Insurance Segment |  | 3,212,646 |  |  | 2,193,329 |  |  | 5,405,975 |
Reinsurance Segment |  |  |  |  |  |
Property and Other |  | 823,463 |  |  | 55,637 |  |  | 879,100 |
Credit and Surety |  | 356,668 |  |  | 1,916 |  |  | 358,584 |
Professional Lines |  | 1,154,464 |  |  | 8,353 |  |  | 1,162,817 |
Motor |  | 811,156 |  |  | — |  |  | 811,156 |
Liability |  | 1,068,274 |  |  | 16,874 |  |  | 1,085,148 |
Total Reinsurance Segment |  | 4,214,025 |  |  | 82,780 |  |  | 4,296,805 |
Total |  | $ | 7,426,671 |  |  | $ | 2,276,109 |  |  | 9,702,780 |
Unallocated claims adjustment expenses |  |  |  |  |  | 144,375 |
Foreign exchange and other(1) |  |  |  |  |  | (59,988 | )
(Ceded)/assumed reserves related to retroactive transactions |  |  |  |  |  | (89,340 | )
Total liability for unpaid claims and claims adjustment expense |  |  |  |  |  | $ | 9,697,827 |
(1) | Non-U.S. dollar denominated loss data is converted to U.S dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in currency exchange rates cause material shifts in loss development. Reserves for losses and loss expenses, disclosed on our consolidated balance sheets, are also revalued using the exchange rate at the balance sheet date.

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