AIG 2011 Annual Report Download - page 101

The following table presents the rollforward of net loss reserves:
Years Ended December 31,
(in millions) 2011 2010 2009
Net liability for unpaid claims and claims adjustment expense at beginning of year $ 71,507 $ 67,899 $ 72,455
Foreign exchange effect 353 (126) 1,416
Acquisitions(a) -1,538 -
Dispositions(b) -(87) (9,657)
Reduction of net loss reserves due to NICO transaction (1,703) --
Losses and loss expenses incurred(c):
Current year 27,590 24,074 27,354
Prior years, other than accretion of discount(d) 195 4,182 2,771
Prior years, accretion of discount 375 (181) 313
Losses and loss expenses incurred 28,160 28,075 30,438
Losses and loss expenses paid(c):
Current year 11,534 9,873 11,079
Prior years 15,958 15,919 15,673
Losses and loss expenses paid 27,492 25,792 26,752
Activity of discontinued operations --(1)
Net liability for unpaid claims and claims adjustment expense at end of year $ 70,825 $ 71,507 $ 67,899
(a) Represents the acquisition of Fuji on March 31, 2010.
(b) Transatlantic was deconsolidated during the second quarter of 2009, 21st Century was sold in the third quarter of 2009, and HSB was sold
during the first quarter of 2009.
(c) Includes amounts related to dispositions through the date of disposition.
(d) In 2011, includes $(414) million, $145 million and $413 million related to excess casualty, commercial specialty workers’ compensation and
environmental, respectively. In 2010, includes $1.1 billion, $793 million and $1.5 billion related to excess casualty, excess workers’ compensation
and asbestos, respectively. In 2009, includes $1.5 billion, $956 million and $151 million related to excess casualty, excess workers’ compensation
and asbestos, respectively.
The following tables summarize development, (favorable) or unfavorable, of incurred losses and loss expenses for
prior years (other than accretion of discount):
Years Ended December 31,
(in millions) 2011 2010 2009
Prior Accident Year Development by Operating Segment:
Chartis:
Commercial Insurance $98$ 2,594 $ 1,536
Consumer Insurance 86 (66) 75
Other 27 2,322 1,147
Total Chartis 211 4,850 2,758
Other businesses:
Mortgage Guaranty (16) (668) 38
Other*-- (25)
Total Other businesses (16) (668) 13
Prior years, other than accretion of discount $ 195 $ 4,182 $ 2,771
* Includes Transatlantic which was deconsolidated during the second quarter of 2009, 21st Century was sold in the third quarter of 2009 and
HSB was sold during the first quarter of 2009.
AIG 2011 Form 10-K 87