AIG 2014 Annual Report Download - page 141

ITEM 7 / INSURANCE RESERVES / NON-LIFE INSURANCE COMPANIES
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The following table classifies the components of net loss reserves by business unit:
December 31,
(in millions) 2014 2013
Property Casualty:
Casualty $ 33,065 $34,494
Financial lines 9,538 9,803
Specialty 5,786 5,485
Property 4,079 4,293
Total Property Casualty (a) 52,468 54,075
Mortgage Guaranty 977 1,287
Personal Insurance
Personal lines 2,763 3,385
Accident and health 1,878 2,094
Total Personal Insurance(a) 4,641 5,479
Other run-off insurance lines 3,526 3,475
Net liability for unpaid losses and loss adjustment expenses $ 61,612 $ 64,316
(a) The December 31, 2013 balances have been reclassified between the Property Casualty and Personal Insurance lines of business. The impact of this
correction was a total decrease of $325 million in Property Casualty and a corresponding increase in Personal Insurance, with no income statement or balance
sheet impact.
Discounting of Reserves
The following table presents the components of loss reserve discount included above:
December 31, 2014 2013
Run-off Run-off
Property Insurance Property Insurance
(in millions) Casualty Lines Total Casualty Lines Total
U.S. workers' compensation:
Tabular $ 623 $229 $852 $ 597 $ 201 $ 798
Non-tabular 1,525 689 2,214 1,622 1,102 2,724
Asbestos - 11 11 - 33 33
Total reserve discount $ 2,148 $929 $3,077 $ 2,219 $ 1,336 $ 3,555
The following table presents the net reserve discount benefit (charge):
Years Ended December 31, 2014 2013 2012
Run-off Run-off Run-off
Property Insurance Property Insurance Property Insurance
(in millions) Casualty Lines Total Casualty Lines Total Casualty Lines Total
Change in loss reserve
discount - current
accident year $ 189 $ - $ 189 $ 175 $ - $ 175 $ 348 $ - $ 348
Change in loss reserve
discount - prior year
development (52) (336) (388) (249) 707 458 100 (13) 87
Accretion of reserve
discount (208) (71) (279) (248) (76) (324) (348) (24) (372)
Net reserve discount
benefit (charge) $ (71) $ (407) $(478) $ (322) $ 631 $ 309 $ 100 $ (37)$ 63
Comprised of:
U.S. Workers' compensation $ (71) $ (385) $(456) $ (322) $ 649 $ 327 $ 100 $ - $ 100
Asbestos $ - $ (22) $(22) $ - $ (18)$ (18) $ - $ (37)$ (37)