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

12 Months Ended

Dec. 31, 2014

Reserve for Property-Liability Insurance Claims and Claims Expense

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

($ in millions)	2014			2013			2012
Balance as of January 1	$	21,857		$	21,288		$	20,375
Less reinsurance recoverables		4,664			4,010			2,588
Net balance as of January 1		17,193			17,278			17,787
Esurance acquisition		—			—			(13	) (1)
Incurred claims and claims expense related to:
Current year		19,512			18,032			19,149
Prior years		(84	)		(121	)		(665	)
Total incurred		19,428			17,911			18,484
Claims and claims expense paid related to:
Current year		12,924			11,658			12,545
Prior years		6,468			6,338			6,435
Total paid		19,392			17,996			18,980
Net balance as of December 31		17,229			17,193			17,278
Plus reinsurance recoverables		5,694			4,664			4,010
Balance as of December 31	$	22,923		$	21,857		$	21,288

(1)

The Esurance opening balance sheet reserves were 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.