Allstate 2015 Annual Report Download - page 128

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Commercial lines reserve reestimates in 2015 were primarily the result of non-catastrophe loss development higher
than anticipated in previous estimates. Commercial lines reserve reestimates in 2014 and 2013 were primarily due to
favorable non-catastrophe reserve reestimates.
Pending, new and closed claims for Allstate Protection are summarized in the following table for the years ended
December 31. The increase in pending claims as of December 31, 2015 compared to December 31, 2014 relates to auto
frequency and growth. The increase in pending claims as of December 31, 2014 compared to December 31, 2013 relates
to growth and auto frequency.
Number of claims 2015 2014 2013
Auto
Pending, beginning of year 487,227 473,703 472,078
New 6,752,401 6,330,940 5,902,746
Total closed (6,717,738) (6,317,416) (5,901,121)
Pending, end of year 521,890 487,227 473,703
Homeowners
Pending, beginning of year 33,648 37,420 48,418
New 714,562 759,794 711,883
Total closed (709,345) (763,566) (722,881)
Pending, end of year 38,865 33,648 37,420
Other personal lines
Pending, beginning of year 15,494 17,004 42,969
New 307,011 204,549 197,424
Total closed (306,670) (206,059) (223,389)
Pending, end of year 15,835 15,494 17,004
Commercial lines
Pending, beginning of year 11,836 10,422 10,242
New 74,942 65,970 58,697
Total closed (74,941) (64,556) (58,517)
Pending, end of year 11,837 11,836 10,422
Total Allstate Protection
Pending, beginning of year 548,205 538,549 573,707
New 7,848,916 7,361,253 6,870,750
Total closed (7,808,694) (7,351,597) (6,905,908)
Pending, end of year 588,427 548,205 538,549
Discontinued Lines and Coverages We conduct an annual review in the third quarter of each year to evaluate and
establish asbestos, environmental and other discontinued lines reserves. Reserves are recorded in the reporting period
in which they are determined. Using established industry and actuarial best practices and assuming no change in the
regulatory or economic environment, this detailed and comprehensive methodology determines reserves based on
assessments of the characteristics of exposure (e.g. claim activity, potential liability, jurisdiction, products versus non-
products exposure) presented by policyholders.
Reserve reestimates for the Discontinued Lines and Coverages are shown in the table below.
($ in millions) 2015 2014 2013
January 1
reserves
Reserve
reestimate
January 1
reserves
Reserve
reestimate
January 1
reserves
Reserve
reestimate
Asbestos claims $ 1,014 $ 39 $ 1,017 $ 87 $ 1,026 $ 74
Environmental claims 203 1 208 15 193 30
Other discontinued lines 395 13 421 10 418 38
Total Discontinued Lines and
Coverages $ 1,612 $ 53 $ 1,646 $ 112 $ 1,637 $ 142
Underwriting loss $ (55) $ (115) $ (143)
Reserve reestimates as a
% of underwriting loss (96.4)% (97.4)% (99.3)%