Unpaid losses and loss expenses (Tables)

12 Months Ended

Dec. 31, 2014

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



	Years Ended December 31
(in millions of U.S. dollars)	2014				2013				2012
Gross unpaid losses and loss expenses, beginning of year		$	37,443			$	37,946			$	37,477
Reinsurance recoverable on unpaid losses⁽¹⁾		(10,612		)		(11,399		)		(11,602		)
Net unpaid losses and loss expenses, beginning of year		26,831				26,547				25,875
Acquisition of subsidiaries		320				86				14
Total		27,151				26,633				25,889
Net losses and loss expenses incurred in respect of losses occurring in:
Current year		10,176				9,878				10,132
Prior years		(527		)		(530		)		(479		)
Total		9,649				9,348				9,653
Net losses and loss expenses paid in respect of losses occurring in:
Current year		3,975				3,942				4,325
Prior years		5,260				5,035				4,894
Total		9,235				8,977				9,219
Foreign currency revaluation and other		(557		)		(173		)		224
Net unpaid losses and loss expenses, end of year		27,008				26,831				26,547
Reinsurance recoverable on unpaid losses⁽¹⁾		11,307				10,612				11,399
Gross unpaid losses and loss expenses, end of year		$	38,315			$	37,443			$	37,946
⁽¹⁾ Net of provision for uncollectible reinsurance.


⁽¹⁾	Excludes unallocated loss expenses and the net activity reflects third-party reinsurance other than the aggregate excess of loss reinsurance provided by National Indemnity Company (NICO) to Westchester Specialty (see Westchester Specialty section below).