Reserve for Property-Liability Insurance Claims and Claims Expense (Tables)

12 Months Ended

Dec. 31, 2013

Reserve for Property-Liability Insurance Claims and Claims Expense

Activity in the reserve for property-liability insurance claims and claims expense

($ in millions)	2013			2012			2011
Balance as of January 1	$	21,288		$	20,375		$	19,468
Less reinsurance recoverables		4,010			2,588			2,072
Net balance as of January 1		17,278			17,787			17,396
Esurance acquisition as of October 7, 2011		—			(13	) (1)		425
Incurred claims and claims expense related to:
Current year		18,032			19,149			20,496
Prior years		(121	)		(665	)		(335	)
Total incurred		17,911			18,484			20,161
Claims and claims expense paid related to:
Current year		11,658			12,545			13,893
Prior years		6,338			6,435			6,302
Total paid		17,996			18,980			20,195
Net balance as of December 31		17,193			17,278			17,787
Plus reinsurance recoverables		4,664			4,010			2,588
Balance as of December 31	$	21,857		$	21,288		$	20,375

(1)

The Esurance opening balance sheet reserves wer e reestimated in 2012 resulting in a reduction in reserves due to lower severity. The adjustment was recorded as a reduction in goodwill and an increase in payables to the seller under the terms of the purchase agreement and therefore had no impact on claims expense.