Unpaid Losses and Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2012

Reconciliation of Beginning and Ending Liability for Unpaid Losses and Loss Expenses

 A reconciliation of the beginning and ending liability for unpaid losses and loss expenses, net of reinsurance recoverable, and a reconciliation of the net liability to the corresponding liability on a gross basis is as follows:

	2012			2011			2010
	(in millions)
Gross liability, beginning of year	$	23,068		$	22,718		$	22,839
Reinsurance recoverable, beginning of year		1,739			1,817			2,053
Net liability, beginning of year		21,329			20,901			20,786
Net incurred losses and loss expenses related to
Current year		8,121			8,174			7,245
Prior years		(614	)		(767	)		(746	)
		7,507			7,407			6,499
Net payments for losses and loss expenses related to
Current year		2,323			2,746			2,280
Prior years		4,493			4,300			4,074
		6,816			7,046			6,354
Foreign currency translation effect		2			67			(30	)
Net liability, end of year		22,022			21,329			20,901
Reinsurance recoverable, end of year		1,941			1,739			1,817
Gross liability, end of year	$	23,963		$	23,068		$	22,718