The Hartford 2015 Annual Report Download - page 199

Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
10. Reserves for Future Policy Benefits and Unpaid Losses and Loss Adjustment Expenses (continued)
F-68
The following table presents (favorable) unfavorable prior accident year development:
For the years ended December 31,
2015 2014 2013
Auto liability $ 54 $ 25 $ 144
Homeowners 9 (7) (6)
Professional liability (36)(17) (29)
Package business 28 3 2
General liability 8 (25) (75)
Bond (2) 8 (8)
Commercial property (6) 2 (7)
Net asbestos reserves 146 212 130
Net environmental reserves 55 30 12
Uncollectible reinsurance — — (25)
Workers’ compensation (37)(7) (2)
Workers’ compensation - NY 25a Fund for Reopened Cases — — 80
Workers’ compensation discount accretion 29 30 30
Catastrophes (18)(45) (63)
Other reserve re-estimates, net 20 19 9
Total prior accident year development $ 250 $ 228 $ 192
Net unfavorable reserve development in 2015 primarily included the following:
• an increase in commercial auto liability reserves, predominantly for accident years 2010 through 2013;
• an increase in package business reserves driven by higher than expected severity on liability claims;
• an increase in net asbestos and net environmental reserves driven by the annual ground-up asbestos and environmental reserve
evaluations;
• partially offset by a decrease in professional liability reserves, for accident years 2009 through 2012;
• also offset by a decrease in and workers' compensation reserves, due to an improvement in claim closure rates resulting in a decrease
in outstanding claims for permanently disabled claimants; and
• also offset by a decrease in catastrophe reserves primarily for accident year 2014.
Net unfavorable reserve development in 2014 primarily included the following:
• an increase in commercial auto liability reserves, for several accident years;
• an increase in net asbestos reserves driven by the annual ground-up asbestos reserve evaluation;
• partially offset by a decrease in general liability reserves due to lower frequency in late emerging claims; and
• also offset by a decrease in professional liability reserves, for accident years 2010, 2012 and 2013; and
• also offset by a decrease in catastrophe reserves primarily for accident year 2013.
Net unfavorable reserve development in 2013 primarily included the following:
• an increase in commercial auto liability reserves, for accident years 2010 through 2012;
• an increase related to the closing of the New York Section 25A Fund for Reopened Cases;
• an increase in net asbestos reserves driven by the annual ground-up asbestos reserve evaluation;
• partially offset by a decrease in general liability reserves, for accident years 2006 through 2011; and
• also offset by a decrease in professional liability reserves, for accident years 2008 through 2012; and
• also offset by a decrease in catastrophe reserves primarily related to Storm Sandy.