RESERVE FOR LOSSES AND LOSS EXPENSES (TABLES)

6 Months Ended

Jun. 30, 2015

Insurance Loss Reserves [Abstract]

RECONCILIATION OF BEGINNING AND ENDING GROSS RESERVE FOR LOSSES AND LOSS EXPENSES AND NET RESERVE FOR UNPAID LOSSES AND LOSS EXPENSES

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 periods indicated:

Six months ended June 30,	2015			2014
Gross reserve for losses and loss expenses, beginning of period	$	9,596,797		$	9,582,140
Less reinsurance recoverable on unpaid losses, beginning of period	(1,890,280		)	(1,900,112		)
Net reserve for unpaid losses and loss expenses, beginning of period	7,706,517			7,682,028
Net incurred losses and loss expenses related to:
Current year	1,213,160			1,238,883
Prior years	(120,679		)	(128,847		)
	1,092,481			1,110,036
Net paid losses and loss expenses related to:
Current year	(86,827		)	(93,218		)
Prior years	(915,124		)	(857,004		)
	(1,001,951		)	(950,222		)
Foreign exchange and other	(125,666		)	35,122
Net reserve for unpaid losses and loss expenses, end of period	7,671,381			7,876,964
Reinsurance recoverable on unpaid losses, end of period	2,022,059			1,929,024
Gross reserve for losses and loss expenses, end of period	$	9,693,440		$	9,805,988

NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT

Prior year reserve development arises from changes to loss and loss expense estimates recognized in the current year but relating to losses incurred in previous calendar years. Such development is summarized by segment in the following table:

	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
Insurance	$	15,421	$	32,963	$	18,783	$	44,571
Reinsurance	49,192		52,391		101,896		84,276
Total	$	64,613	$	85,354	$	120,679	$	128,847