Loss and Loss Adjustment Expense Reserves (Tables)

6 Months Ended

Jun. 30, 2011

Loss and Loss Adjustment Expense Reserves

Loss and loss adjustment expense ("LAE") reserve activities

	Three Months Ended June 30,						Six Months Ended June 30,
Millions	2011			2010			2011			2010
Gross beginning balance	$	5,759.8		$	6,660.7		$	5,736.8		$	6,379.2
Less beginning reinsurance recoverable on unpaid losses	(2,304.2		)	(2,899.4		)	(2,344.0		)	(2,771.5		)
Net loss and LAE reserves	3,455.6			3,761.3			3,392.8			3,607.7
Loss and LAE reserves acquired — Central National	—			—			—			17.6
Loss and LAE reserves sold — OneBeacon Personal Lines(1)	—			(231.0		)	—			(231.0		)
Loss and LAE incurred relating to:
Current year losses	302.7			428.3			692.5			991.7
Prior year losses	(10.3		)	(26.2		)	(27.5		)	(37.7		)
Total incurred losses and LAE	292.4			402.1			665.0			954.0
Accretion of fair value adjustment to loss and LAE reserves	2.1			2.1			4.2			4.2
Foreign currency translation adjustment to loss and LAE reserves	10.1			(22.4		)	31.2			(33.2		)
Loss and LAE paid relating to:
Current year losses	(87.7		)	(169.6		)	(135.2		)	(258.4		)
Prior year losses	(223.2		)	(292.7		)	(508.7		)	(611.1		)
Total loss and LAE payments	(310.9		)	(462.3		)	(643.9		)	(869.5		)
Net ending balance	3,449.3			3,449.8			3,449.3			3,449.8
Plus ending reinsurance recoverable on unpaid losses	2,193.1			2,748.1			2,193.1			2,748.1
Gross ending balance	$	5,642.4		$	6,197.9		$	5,642.4		$	6,197.9

(1) In the second quarter of 2010, $231.0 of net loss and LAE reserves related to the Personal Lines Transaction were reclassified to net liabilities held for sale.  The Personal Lines Transaction closed in July 2010.