Unpaid losses and loss expenses (Tables)

12 Months Ended

Dec. 31, 2015

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



	Years Ended December 31
(in millions of U.S. dollars)	2015				2014				2013
Gross unpaid losses and loss expenses, beginning of year		$	38,315			$	37,443			$	37,946
Reinsurance recoverable on unpaid losses⁽¹⁾		(11,307		)		(10,612		)		(11,399		)
Net unpaid losses and loss expenses, beginning of year		27,008				26,831				26,547
Acquisition of subsidiaries		417				320				86
Total		27,425				27,151				26,633
Net losses and loss expenses incurred in respect of losses occurring in:
Current year		10,030				10,176				9,878
Prior years		(546		)		(527		)		(530		)
Total		9,484				9,649				9,348
Net losses and loss expenses paid in respect of losses occurring in:
Current year		4,053				3,975				3,942
Prior years		5,612				5,260				5,035
Total		9,665				9,235				8,977
Foreign currency revaluation and other		(682		)		(557		)		(173		)
Net unpaid losses and loss expenses, end of year		26,562				27,008				26,831
Reinsurance recoverable on unpaid losses⁽¹⁾		10,741				11,307				10,612
Gross unpaid losses and loss expenses, end of year		$	37,303			$	38,315			$	37,443
⁽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).