Unpaid losses and loss expenses (Tables)

12 Months Ended

Dec. 31, 2013

Unpaid Losses And Loss Expenses [Abstract]

Schedule Of Unpaid Losses And Loss Expenses Roll Forward

The following table presents a reconciliation of unpaid losses and loss expenses:



	Years Ended December 31
(in millions of U.S. dollars)	2013				2012				2011
Gross unpaid losses and loss expenses, beginning of year		$	37,946			$	37,477			$	37,391
Reinsurance recoverable on unpaid losses⁽¹⁾		(11,399		)		(11,602		)		(12,149		)
Net unpaid losses and loss expenses, beginning of year		26,547				25,875				25,242
Acquisition of subsidiaries		86				14				92
Total		26,633				25,889				25,334
Net losses and loss expenses incurred in respect of losses occurring in:
Current year		9,878				10,132				10,076
Prior years		(530		)		(479		)		(556		)
Total		9,348				9,653				9,520
Net losses and loss expenses paid in respect of losses occurring in:
Current year		3,942				4,325				4,209
Prior years		5,035				4,894				4,657
Total		8,977				9,219				8,866
Foreign currency revaluation and other		(173		)		224				(113		)
Net unpaid losses and loss expenses, end of year		26,831				26,547				25,875
Reinsurance recoverable on unpaid losses⁽¹⁾		10,612				11,399				11,602
Gross unpaid losses and loss expenses, end of year		$	37,443			$	37,946			$	37,477
⁽¹⁾ Net of provision for uncollectible reinsurance.

Schedule Of Asbestos Environmental Loss Roll Forward

expense reserves for A&E exposures, and the provision for uncollectible paid and unpaid reinsurance recoverables:



	Asbestos								Environmental								Total
(in millions of U.S. dollars)	Gross				Net				Gross				Net				Gross				Net
Balance at December 31, 2012 ⁽¹⁾		$	1,886			$	970			$	194			$	136			$	2,080			$	1,106
Incurred activity		125				96				119				75				244				171			⁽²⁾
Paid activity		(367		)		(140		)		(118		)		(86		)		(485		)		(226		)
Balance at December 31, 2013		$	1,644			$	926			$	195			$	125			$	1,839			$	1,051


⁽¹⁾	Balances at December 31, 2012 have been adjusted to present claims in a manner consistent with balances disclosed at December 31, 2013.


⁽²⁾	Excludes unallocated loss expenses.

Schedule Of Brandywine Asbestos Environmental Loss Roll Forward

The following table presents a roll-forward of net loss reserves, allocated loss expense reserves, and provision for uncollectible paid and unpaid reinsurance recoverables in respect of Brandywine operations only, including the impact of the Brandywine NICO Agreement:



	Brandywine													NICO Coverage				Net of NICO Coverage
(in millions of U.S. dollars)	A&E				Other				⁽¹⁾	Total				NICO Coverage				Net of NICO Coverage
Balance at December 31, 2012		$	852			$	421				$	1,273			$	18		$	1,255
Incurred activity		158				9					167				—			167			⁽²⁾
Paid activity		(194		)		(63		)			(257		)		(18		)	(239		)
Balance at December 31, 2013		$	816			$	367				$	1,183			$	—		$	1,183


⁽¹⁾	Other consists primarily of workers' compensation, non-A&E general liability losses, and provision for uncollectible reinsurance on non-A&E business.


⁽²⁾	Excludes $(1) million of unallocated loss expenses (benefits).

The

Schedule Of Westchester Specialty Asbestos Environmental Loss Roll Forward

following table presents a roll-forward of net loss reserves, allocated loss expense reserves, and provision for uncollectible paid and unpaid reinsurance recoverables in respect of 1996 and prior Westchester Specialty operations only, including the impact of the Westchester NICO Agreement:



	Westchester Specialty										NICO Coverage			Net of NICO Coverage
(in millions of U.S. dollars)	A&E			Other				Total			NICO Coverage			Net of NICO Coverage
Balance at December 31, 2012		$	151		$	44			$	195		$	158		$	37
Incurred activity		14			(11		)		3			2			1		⁽¹⁾
Paid activity		(19)			—				(19)			(19)			—
Balance at December 31, 2013		$	146		$	33			$	179		$	141		$	38


⁽¹⁾	Excludes $4 million of unallocated loss expenses.