| Reconciliation of changes in retroactive reinsurance claim liabilities and deferred charge assets |
Reconciliations of the changes in estimated
liabilities for retroactive reinsurance unpaid losses and loss
adjustment expenses (“claim liabilities”) and related
deferred charge reinsurance assumed assets for each of the three
years ended December 31, 2018 follows (in millions).
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2018 |
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2017 |
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2016 |
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Unpaid losses
and loss
adjustment
expenses |
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Deferred
charges
reinsurance
assumed |
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Unpaid losses
and loss
adjustment
expenses |
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Deferred
charges
reinsurance
assumed |
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Unpaid losses
and loss
adjustment
expenses |
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Deferred
charges
reinsurance
assumed |
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Balances – beginning of year
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$ |
42,937 |
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$ |
(15,278) |
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$ |
24,972 |
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$ |
(8,047) |
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$ |
24,058 |
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$ |
(7,687) |
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Incurred losses and loss adjustment expenses
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Current year contracts
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603 |
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(86) |
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19,005 |
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(7,730) |
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2,136 |
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(874) |
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Prior years’ contracts
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(341) |
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1,260 |
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(41) |
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499 |
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(63) |
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514 |
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Total
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262 |
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1,174 |
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18,964 |
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(7,231) |
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2,073 |
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(360) |
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Paid losses and loss adjustment expenses
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(1,365) |
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— |
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(999) |
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— |
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(1,159) |
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— |
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Balances – end of year
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$ |
41,834 |
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$ |
(14,104) |
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$ |
42,937 |
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$ |
(15,278) |
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$ |
24,972 |
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$ |
(8,047) |
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Incurred losses and loss adjustment expenses, net of deferred
charges
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$ |
1,436 |
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$ |
11,733 |
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$ |
1,713 |
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