Liability for Unpaid Loss and Loss Adjustment Expense	12 Months Ended
Dec. 31, 2012
Liability for Unpaid Loss and Loss Adjustment Expense
Liability for Unpaid Claims and Claims Adjustment Expense Schedule, Discussion	(6) Liability for Unpaid Loss and Loss Adjustment Expense The table below provides a reconciliation of the liability for unpaid loss and loss adjustment expense payable at December 31, 2012, 2011 and 2010. ##RS In 2012, our Professional Liability, Accident & Health, U.S. Surety & Credit, and International segments reported favorable net loss development. The International segment’s $10.1 million of net favorable development in 2012 included $43.3 million of adverse development from the International surety & credit line of business. This adverse development related to a specific class of Spanish surety bonds, the majority of which were written prior to 2006. Claims have been presented to us under these bonds, and we have denied them as not covered by the bonds. The related reserves, virtually all of which cover incurred but not reported losses, are based on management’s evaluation of the claims and the likelihood that we may ultimately be required to pay the claims. Due to the nature of these claims and related litigation, the ultimate outcome of these claims may not be known for several years. In 2011 and 2010, our U.S. Property & Casualty, U.S. Surety & Credit, and International segments reported favorable net loss development. The favorable development in 2011 was more than offset by an increase in reserves for the diversified financial products line of business in our Professional Liability segment. The current year net loss and loss adjustment expense includes accident year net catastrophe losses of $52.4 million in 2012, $103.9 million in 2011 and $22.5 million in 2010, primarily in our International segment. The loss development in 2012, 2011 and 2010 includes reserve releases of $21.4 million, $8.1 million and $12.6 million, respectively, related to prior years’ catastrophe losses. We have no material exposure to asbestos claims or environmental pollution losses. Policies issued by our insurance companies do not have significant environmental exposure because of the types of risks covered.

Liability for Unpaid Loss and Loss Adjustment Expense

12 Months Ended

Dec. 31, 2012

Liability for Unpaid Loss and Loss Adjustment Expense

Liability for Unpaid Claims and Claims Adjustment Expense Schedule, Discussion

(6) Liability for Unpaid Loss and Loss Adjustment Expense The table below provides a reconciliation of the liability for unpaid loss and loss adjustment expense payable at December 31, 2012, 2011 and 2010. ##RS In 2012, our Professional Liability, Accident & Health, U.S. Surety & Credit, and International segments reported favorable net loss development. The International segment’s $10.1 million of net favorable development in 2012 included $43.3 million of adverse development from the International surety & credit line of business. This adverse development related to a specific class of Spanish surety bonds, the majority of which were written prior to 2006. Claims have been presented to us under these bonds, and we have denied them as not covered by the bonds. The related reserves, virtually all of which cover incurred but not reported losses, are based on management’s evaluation of the claims and the likelihood that we may ultimately be required to pay the claims. Due to the nature of these claims and related litigation, the ultimate outcome of these claims may not be known for several years. In 2011 and 2010, our U.S. Property & Casualty, U.S. Surety & Credit, and International segments reported favorable net loss development. The favorable development in 2011 was more than offset by an increase in reserves for the diversified financial products line of business in our Professional Liability segment. The current year net loss and loss adjustment expense includes accident year net catastrophe losses of $52.4 million in 2012, $103.9 million in 2011 and $22.5 million in 2010, primarily in our International segment. The loss development in 2012, 2011 and 2010 includes reserve releases of $21.4 million, $8.1 million and $12.6 million, respectively, related to prior years’ catastrophe losses. We have no material exposure to asbestos claims or environmental pollution losses. Policies issued by our insurance companies do not have significant environmental exposure because of the types of risks covered.