The Hartford 2008 Annual Report Download - page 38

Table of Contents
A reconciliation of liabilities for unpaid losses and loss adjustment expenses is herein referenced from Note 11 of Notes to
Consolidated Financial Statements. A table depicting the historical development of the liabilities for unpaid losses and loss
adjustment expenses, net of reinsurance, follows.
Loss Development Table
Property And Casualty Loss And Loss Adjustment Expense Liability Development — Net of Reinsurance
For the Years Ended December 31, [1]
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Liabilities for
unpaid losses
and loss
adjustment
expenses, net
of reinsurance $ 12,902 $ 12,476 $ 12,316 $ 12,860 $ 13,141 $ 16,218 $ 16,191 $ 16,863 $ 17,604 $ 18,231 $ 18,347
Cumulative paid
losses and loss
expenses
One year later 2,939 2,994 3,272 3,339 3,480 4,415 3,594 3,702 3,727 3,703
Two years
later 4,733 5,019 5,315 5,621 6,781 6,779 6,035 6,122 5,980 —
Three years
later 6,153 6,437 6,972 8,324 8,591 8,686 7,825 7,755 — —
Four years
later 7,141 7,652 9,195 9,710 10,061 10,075 9,045 — — —
Five years later 8,080 9,567 10,227 10,871 11,181 11,063 — — — —
Six years later 9,818 10,376 11,140 11,832 12,015 — — — — —
Seven years
later 10,501 11,137 11,961 12,563 — — — — — —
Eight years
later 11,246 11,856 12,616 — — — — — — —
Nine years
later 11,964 12,432 — — — — — — — —
Ten years later 12,483 — — — — — — — — —
Liabilities
re-estimated
One year later 12,662 12,472 12,459 13,153 15,965 16,632 16,439 17,159 17,652 18,005
Two years
later 12,569 12,527 12,776 16,176 16,501 17,232 16,838 17,347 17,475 —
Three years
later 12,584 12,698 15,760 16,768 17,338 17,739 17,240 17,318 — —
Four years
later 12,663 15,609 16,584 17,425 17,876 18,367 17,344 — — —
Five years later 15,542 16,256 17,048 17,927 18,630 18,554 — — — —
Six years later 16,076 16,568 17,512 18,686 18,838 — — — — —
Seven years
later 16,290 17,031 18,216 18,892 — — — — — —
Eight years
later 16,799 17,655 18,410 — — — — — — —
Nine years
later 17,440 17,841 — — — — — — — —
Ten years later 17,616 — — — — — — — — —
Deficiency
(redundancy),
net of
reinsurance $ 4,714 $ 5,365 $ 6,094 $ 6,032 $ 5,697 $ 2,336 $ 1,153 $ 455 $ (129) $ (226)
[1] The above table excludes Hartford Insurance, Singapore as a result of its sale in September 2001, Hartford Seguros as
a result of its sale in February 2001 and Zwolsche as a result of its sale in December 2000.
The table above shows the cumulative deficiency (redundancy) of the Company’s reserves, net of reinsurance, as now
estimated with the benefit of additional information. Those amounts are comprised of changes in estimates of gross losses
and changes in estimates of related reinsurance recoveries.
The table below, for the periods presented, reconciles the net reserves to the gross reserves, as initially estimated and
recorded, and as currently estimated and recorded, and computes the cumulative deficiency (redundancy) of the Company’s
reserves before reinsurance.
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009