The Hartford 2015 Annual Report Download - page 61

61
The previous table 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 following table, 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.
Loss And Loss Adjustment Expense Liability Development — Gross
Years Ended December 31,
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net reserve, as initially estimated $17,604 $18,231 $18,347 $18,210 $17,948 $18,517 $18,689 $18,676 $18,765 $18,943
Reinsurance and other
recoverables, as initially
estimated 4,387 3,922 3,586 3,441 3,077 3,033 3,027 3,028 3,041 2,882
Gross reserve, as initially
estimated $21,991 $22,153 $21,933 $21,651 $21,025 $21,550 $21,716 $21,704 $21,806 $21,825
Net re-estimated reserve $18,372 $18,499 $18,764 $18,742 $18,980 $19,375 $19,515 $19,170 $19,015
Re-estimated reinsurance and other
recoverables 4,890 4,611 4,292 3,891 3,544 3,466 3,271 3,210 3,181
Gross re-estimated reserve $23,262 $23,110 $23,056 $22,633 $22,524 $22,841 $22,786 $22,380 $22,196
Gross deficiency (redundancy) $ 1,271 $ 957 $ 1,123 $ 982 $ 1,499 $ 1,291 $ 1,070 $ 676 $ 390
The following table is derived from the Loss Development table and summarizes the effect of reserve re-estimates, net of reinsurance, on
calendar year operations for the ten-year period ended December 31, 2015. The total of each column details the amount of reserve re-
estimates made in the indicated calendar year and shows the accident years to which the re-estimates are applicable. The amounts in the
total accident year column on the far right represent the cumulative reserve re-estimates during the ten year period ended December 31,
2015 for the indicated accident year(s).
Effect of Net Reserve Re-estimates on Calendar Year Operations
Calendar Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
By Accident Year
2005 & Prior $ 296 $ 188 $ (29) $ 179 $ 116 $ 282 $ 4 $ 145 $ 346 $ 250 $ 1,777
2006 — (140) (148)(213)(118)(45)(7)(69) 2 25 (713)
2007 — — (49)(113)(156)(71)(15)(67) 10 9 (452)
2008 — — — (39) 1 (31)(1)(37)(13) 43 (77)
2009 — — — — (39)(13)(24)(8) 7 7 (70)
2010 — — — — — 245 3 61 (22) 16 303
2011 — — — — — — 36 148 (4) 12 192
2012 — — — — — — — 19 — (55) (36)
2013 — — — — — — — — (98)(43) (141)
2014 — — — — — — — — — (14) (14)
Total increase (decrease) $ 296 $ 48 $ (226) $ (186) $ (196) $ 367 $ (4) $ 192 $ 228 $ 250 $ 769