Travelers 2014 Annual Report Download - page 27

Table of Contents
Because of these and other factors, it is difficult to develop a meaningful extrapolation of estimated future redundancies or deficiencies in loss
reserves from the data in the table.
For years prior to 2013, the table excludes reserves of Dominion, which were acquired by the Company on November 1, 2013. Accordingly, the
reserve development for years prior to 2013 does not include reserve development recorded by Dominion. At December 31, 2013, Dominion's gross
reserves were $2,110 million, and net reserves were $1,779 million.
In December 2008, the Company completed the sale of Unionamerica Holdings Limited (Unionamerica), which comprised its United Kingdom
(U.K.) - based runoff insurance and reinsurance businesses. Immediately before the sale, the claims and claim adjustment expense reserves of
Unionamerica totaled $790 million. As a result of the sale, those obligations ceased being the responsibility of the Company and its affiliates. The
sale is reflected in the table as a reduction in December 31, 2008 net reserves of $790 million and as a $790 million increase in paid losses for each of
the years 2004 through 2007 to reflect the transfer (payment) of the reserves to the buyer, resulting in no impact to incurred losses.
26
(at December 31, in millions)
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Reserves for claims and claim
adjustment expense originally
estimated
$
41,446
$
42,895
$
42,844
$
43,098
$
41,312
$
40,941
$
40,255
$
40,919
$
40,634
$
41,585
$
41,036
Cumulative amounts paid as of
One year later
8,871
8,632
7,417
8,146
7,519
7,748
7,653
8,326
8,416
8,099
Two years later
14,666
13,837
13,181
12,798
12,454
12,374
12,567
13,447
13,452
Three years later
18,733
18,466
16,545
16,264
15,668
15,708
16,081
17,049
Four years later
22,514
21,025
19,113
18,524
18,053
18,126
18,634
Five years later
24,572
22,992
20,820
20,244
19,824
19,957
Six years later
26,189
24,423
22,205
21,609
21,319
Seven years later
27,469
25,616
23,381
22,869
Eight years later
28,557
26,675
24,534
Nine years later
29,543
27,741
Ten years later
30,570
Reserves re - estimated as of
One year later
41,706
42,466
42,172
41,373
39,863
39,524
39,413
39,845
39,690
40,628
Two years later
42,565
42,311
40,837
39,925
38,640
38,421
38,393
38,964
38,931
Three years later
42,940
41,692
39,739
38,842
37,613
37,539
37,576
38,402
Four years later
43,148
40,855
38,734
38,223
36,892
36,889
37,179
Five years later
42,655
40,026
38,409
37,716
36,361
36,605
Six years later
42,068
39,849
38,134
37,323
36,240
Seven years later
42,019
39,694
37,858
37,356
Eight years later
41,987
39,518
37,977
Nine years later
41,942
39,705
Ten years later
42,142
Cumulative deficiency
(redundancy)
696
(3,190
)
(4,867
)
(5,742
)
(5,072
)
(4,336
)
(3,076
)
(2,517
)
(1,703
)
(957
)
Gross liability— end of year
$
59,438
$
61,461
$
59,677
$
58,094
$
55,121
$
53,529
$
51,537
$
51,353
$
50,888
$
50,865
$
49,824
Reinsurance recoverables
17,992
18,566
16,833
14,996
13,809
12,588
11,282
10,434
10,254
9,280
8,788
Net liability— end of year
$
41,446
$
42,895
$
42,844
$
43,098
$
41,312
$
40,941
$
40,255
$
40,919
$
40,634
$
41,585
$
41,036
Gross re - estimated liability -
latest
$
59,868
$
57,503
$
53,285
$
50,896
$
48,407
$
47,705
$
47,436
$
48,152
$
49,255
$
49,814
Re - estimated reinsurance
recoverables - latest
17,726
17,798
15,308
13,540
12,167
11,100
10,257
9,750
10,324
9,186
Net re - estimated liability - latest
$
42,142
$
39,705
$
37,977
$
37,356
$
36,240
$
36,605
$
37,179
$
38,402
$
38,931
$
40,628
Gross cumulative deficiency
(redundancy)
$
430
$
(3,958
)
$
(6,392
)
$
(7,198
)
$
(6,714
)
$
(5,824
)
$
(4,101
)
$
(3,201
)
$
(1,633
)
$
(1,051
)