Claim and Claim Adjustment Expense Reserves (Tables)

6 Months Ended

Jun. 30, 2018

Insurance [Abstract]

Reconciliation of Claim and Claim Adjustment Expense Reserves

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of Other Insurance Operations.

Six Months Ended June 30	2018			2017
(In millions)
Reserves, beginning of year:
Gross	$	22,004		$	22,343
Ceded		3,934			4,094
Net reserves, beginning of year		18,070			18,249
Net incurred claim and claim adjustment expenses:
Provision for insured events of current year		2,552			2,443
Decrease in provision for insured events of prior years		(112	)		(159	)
Amortization of discount		92			93
Total net incurred (a)		2,532			2,377
Net payments attributable to:
Current year events		(312	)		(266	)
Prior year events		(2,387	)		(2,331	)
Total net payments		(2,699	)		(2,597	)
Foreign currency translation adjustment and other		(70	)		70
Net reserves, end of period		17,833			18,099
Ceded reserves, end of period		4,157			4,080
Gross reserves, end of period	$	21,990		$	22,179

(a) Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected in the Consolidated Condensed Statements of Income due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables and benefit expenses related to future policy benefits, which are not reflected in the table above.

Details of the Net Prior Year Development in CNA's Property and Casulaity Operations

The following table and discussion present details of the net prior year claim and claim adjustment expense reserve development in CNA’s Property & Casualty Operations:

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2018				2017				2018				2017
(In millions)
Medical professional liability		$	3			$	2			$	23			$	22
Other professional liability and management liability			(34	)			(37	)			(68	)			(69	)
Surety			(15	)							(30	)
Commercial auto							1				(1	)			(25	)
General liability			26				1				18				(17	)
Workers’ compensation			(6	)			(47	)			(12	)			(47	)
Other			(33	)			25				(28	)			24
Total pretax (favorable) unfavorable development		$	(59	)		$	(55	)		$	(98	)		$	(112	)

Schedule of Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations

The following table presents the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income.

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2018				2017				2018				2017
(In millions)
Additional amounts ceded under LPT:
Net A&EP adverse development before consideration of LPT		$	-			$	-			$	113			$	60
Provision for uncollectible third-party reinsurance on A&EP											(16	)
Total additional amounts ceded under LPT			-				-				97				60
Retroactive reinsurance benefit recognized			(15	)			(3	)			(72	)			(43	)
Pretax impact of deferred retroactive reinsurance		$	(15	)		$	(3	)		$	25			$	17