Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2014

Loss and loss adjustment expense (LAE) reserve activities

The following table summarizes the loss and LAE reserve activities of OneBeacon's insurance subsidiaries for the three months ended March 31, 2014 and 2013:



	Three months ended March 31,
	2014				2013
	($ in millions)
Gross beginning balance	$	1,054.3			$	1,000.0
Less beginning reinsurance recoverable on unpaid losses	(80.2		)		(107.3		)
Net beginning loss and LAE reserves	974.1				892.7
Loss and LAE incurred relating to:
Current year losses	150.8				151.8
Prior year losses	(1.4		)		(2.9		)
Total incurred loss and LAE from continuing operations	149.4				148.9
Loss and LAE paid relating to:
Current year losses	(18.3		)		(19.8		)
Prior year losses	(115.5		)		(117.3		)
Total loss and LAE payments from continuing operations	(133.8		)		(137.1		)
Net loss and LAE reserves	989.7				904.5
Total incurred loss and LAE from discontinued operations	—				—
Total loss and LAE payments from discontinued operations	(11.1		)		(45.7		)
Net loss and LAE reserves	978.6				858.8
Net change in loss and LAE reserves reported in liabilities held for sale	11.1			⁽¹⁾	45.7			⁽²⁾
Net ending loss and LAE reserves	989.7				904.5
Plus ending reinsurance recoverable on unpaid losses	80.1				105.8
Gross ending loss and LAE reserves	$	1,069.8			$	1,010.3

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⁽¹⁾	Consists of the change in net loss and LAE reserves to $177.3 million from $188.4 million, which amounts were classified as held for sale as of March 31, 2014 and December 31, 2013, respectively, in connection with the Runoff Transaction.


⁽²⁾	Consists of the change in net loss and LAE reserves to $166.1 million from $211.8 million, which amounts were classified as held for sale as of March 31, 2013 and December 31, 2012, respectively, in connection with the Runoff Transaction.