The Hartford 2015 Annual Report Download - page 55

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Prior accident years development recorded in 2013
Included within prior accident year development were the following increases (decreases) in reserves:
Year Ended December 31, 2013
Commercial
Lines Personal Lines
Property &
Casualty Other
Operations
Total Property
& Casualty
Insurance
Auto liability $ 141 $ 3 $ — $ 144
Homeowners — (6) — (6)
Professional liability (29) — — (29)
Package business 2 — — 2
General liability (75) — — (75)
Bond (8) — — (8)
Commercial property (7) — — (7)
Net asbestos reserves — — 130 130
Net environmental reserves — — 12 12
Uncollectible reinsurance (25) — — (25)
Workers’ compensation (2) — — (2)
Workers’ compensation - NY 25a Fund for Reopened
Cases 80 — — 80
Workers’ compensation discount accretion 30 — — 30
Catastrophes (24)(39) — (63)
Other reserve re-estimates, net — 3 6 9
Total prior accident year development $ 83 $ (39) $ 148 $ 192
During 2013, the Company’s re-estimates of prior accident years reserves included the following significant reserve changes:
• Increased commercial auto liability reserves, primarily related to specialty lines claims, arising from a higher frequency of large
loss bodily injury claims in accident years 2010 through 2012.
• Decreased professional liability reserves for accident years 2008 through 2012 due to lower than expected claim severity,
primarily for large-sized accounts.
• Decreased general liability reserves for accident years 2006 through 2011. The emergence of claim severity as well as the
frequency of late reported claims for these years was lower than expected and management has placed more weight on the
emerged experience.
• The Company reviewed the allowance for uncollectible reinsurance in the second quarter of 2013 and decreased the allowance
as a result of favorable collections compared to expectations.
• The decrease in workers’ compensation reserves is the net of decreases for accident year 2009 and prior reflecting favorable
development in average severity, the result of a speed up in settlements and the result of moving to an enhanced state-level
analysis of loss experience, offset by unfavorable development of workers’ compensation reserves for accident years 2010
through 2012 reflecting the emergence of a higher mix of more severe claims.
• Increased reserves related to the closing of the New York Section 25A Fund for Reopened Cases (the "Fund"). These claims
were previously funded through assessments and paid by the Fund. The claims became payable by the Company effective
January 1, 2014.
• Decreased catastrophe reserves primarily related to Storm Sandy.
• Other reserve re-estimates, net includes an $18 recovery related to a class action settlement with American International Group
involving prior accident years involuntary workers compensation pool loss and loss adjustment expense.
• Refer to the Property & Casualty Other Operations Claims section for further discussion of the increase in net asbestos and net
environmental reserves.