2018 Q2 Form 10-Q Financial Statement

#000000527218000037 Filed on August 03, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $11.63B $12.50B
YoY Change -6.97% -15.09%
Cost Of Revenue $5.505B $6.284B
YoY Change -12.4% -8.56%
Gross Profit $6.126B $6.218B
YoY Change -1.48% -20.81%
Gross Profit Margin 52.67% 49.74%
Selling, General & Admin $2.323B $2.182B
YoY Change 6.46% -15.62%
% of Gross Profit 37.92% 35.09%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.337B $1.115B
YoY Change 19.91% -17.1%
% of Gross Profit 21.83% 17.93%
Operating Expenses $2.323B $2.182B
YoY Change 6.46% -15.62%
Operating Profit $3.803B $4.036B
YoY Change -5.77% -23.36%
Interest Expense $299.0M $292.0M
YoY Change 2.4% -8.75%
% of Operating Profit 7.86% 7.23%
Other Income/Expense, Net
YoY Change
Pretax Income $1.252B $1.667B
YoY Change -24.9% -41.67%
Income Tax $321.0M $557.0M
% Of Pretax Income 25.64% 33.41%
Net Earnings $937.0M $1.130B
YoY Change -17.08% -40.93%
Net Earnings / Revenue 8.06% 9.04%
Basic Earnings Per Share $1.04 $1.22
Diluted Earnings Per Share $1.02 $1.19
COMMON SHARES
Basic Shares Outstanding 903.2M shares 925.8M shares
Diluted Shares Outstanding 916.6M shares 948.2M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $2.380B $2.810B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $319.8B $320.7B
YoY Change -0.31% -8.53%
Other Assets $14.98B $20.49B
YoY Change -26.9% 9.39%
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $496.8B $499.8B
YoY Change -0.59% -2.07%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt $33.78B $31.81B
YoY Change 6.2% -4.55%
Other Long-Term Liabilities $27.06B $28.96B
YoY Change -6.57% 5.73%
Total Long-Term Liabilities $60.84B $60.77B
YoY Change 0.11% 0.09%
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities $60.84B $60.77B
Total Liabilities $435.0B $425.4B
YoY Change 2.26% 1.34%
SHAREHOLDERS EQUITY
Retained Earnings $23.32B $30.42B
YoY Change -23.35% -4.79%
Common Stock $85.69B $85.68B
YoY Change 0.01% -0.37%
Preferred Stock
YoY Change
Treasury Stock (at cost) $48.05B $47.33B
YoY Change 1.53% 30.52%
Treasury Stock Shares 1.015B shares 1.003B shares
Shareholders Equity $61.19B $73.73B
YoY Change
Total Liabilities & Shareholders Equity $496.8B $499.8B
YoY Change -0.59% -2.07%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income $937.0M $1.130B
YoY Change -17.08% -40.93%
Depreciation, Depletion And Amortization $1.337B $1.115B
YoY Change 19.91% -17.1%
Cash From Operating Activities $598.0M $1.314B
YoY Change -54.49% -14.62%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $502.0M $226.0M
YoY Change 122.12% -134.82%
Cash From Investing Activities $502.0M $226.0M
YoY Change 122.12% -134.82%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.063B -979.0M
YoY Change 8.58% 52.26%
NET CHANGE
Cash From Operating Activities 598.0M 1.314B
Cash From Investing Activities 502.0M 226.0M
Cash From Financing Activities -1.063B -979.0M
Net Change In Cash 37.00M 561.0M
YoY Change -93.4% 127.13%
FREE CASH FLOW
Cash From Operating Activities $598.0M $1.314B
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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3394000000 USD
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us-gaap Adjustment To Additional Paid In Capital Income Tax Effect From Share Based Compensation Net
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1539000000 USD
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2380000000 USD
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us-gaap Supplemental Information For Property Casualty Insurance Underwriters Current Year Claims And Claims Adjustment Expense
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2315000000 USD
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21000000000 USD
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2900000000 USD
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us-gaap Allowance For Loan And Lease Loss Recovery Of Bad Debts
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us-gaap Insurance Commissions And Fees
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CY2018Q2 aig Investment Income
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121000000 USD
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1130000000 USD
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<div><p style='text-align:left;margin-top:12pt;margin-bottom:6pt;line-height:13pt;' ><font style='font-family:Arial;font-size:9pt;font-weight:bold;margin-left:0pt;color:#005984;' >The following table presents the roll-forwar</font><font style='font-family:Arial;font-size:9pt;font-weight:bold;color:#005984;' >d of activity in Loss Reserves:</font></p></div><p style='line-height:20pt;' /><div><table style='border-collapse:collapse;' ><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' ></font></td><td colspan='4' rowspan='1' style='width:96.75pt;border-top-style:solid;border-top-width:1;text-align:center;vertical-align:bottom;border-color:#005984;min-width:96.75pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' >Three Months Ended </font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;text-align:center;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' ></font></td><td colspan='4' rowspan='1' style='width:96.75pt;border-top-style:solid;border-top-width:1;text-align:center;vertical-align:bottom;border-color:#005984;min-width:96.75pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' >Six Months Ended </font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:10pt;color:#000000;' ></font></td><td colspan='4' rowspan='1' style='width:96.75pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:96.75pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' >June 30,</font></td><td style='width:7.5pt;text-align:center;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' ></font></td><td colspan='4' rowspan='1' style='width:96.75pt;border-bottom-style:solid;border-bottom-width:1;text-align:center;vertical-align:bottom;border-color:Black;min-width:96.75pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' >June 30,</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-style:italic;color:#005984;' >(in millions)</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' >2018</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#005984;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#005984;' >2017</font></td><td style='width:7.5pt;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#005984;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#005984;' >2018</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#005984;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#005984;' >2017</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:2;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >Liability for unpaid loss and loss adjustment expenses, beginning of period</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >$</font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >78,098</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >$</font></td><td style='width:39pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >76,050</font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >$</font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >78,393</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >$</font></td><td style='width:39pt;border-top-style:solid;border-top-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >77,077</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >Reinsurance recoverable</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(27,211)</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(26,920)</font></td><td style='width:7.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(26,708)</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(15,532)</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Net Liability for unpaid loss and loss adjustment expenses, beginning of period</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >50,887</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >49,130</font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >51,685</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >61,545</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Losses and loss adjustment expenses incurred</font><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >:</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' > Current year</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >4,452</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >4,209</font></td><td style='width:7.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >9,130</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >8,510</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' > Prior years, excluding discount and amortization of deferred gain</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(26)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >391</font></td><td style='width:7.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(65)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >453</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' > Prior years, discount charge (benefit)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >9</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >260</font></td><td style='width:7.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(177)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >235</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' > Prior years, amortization of deferred gain on retroactive reinsurance</font><sup><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(a)</font></sup></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(69)</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(82)</font></td><td style='width:7.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(108)</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(120)</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Total losses and loss adjustment expenses incurred</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >4,366</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >4,778</font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >8,780</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >9,078</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Losses and loss adjustment expenses paid</font><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >:</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' > Current year</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(910)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(1,137)</font></td><td style='width:7.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(1,520)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(1,708)</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' > Prior years</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(4,635)</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(4,252)</font></td><td style='width:7.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(9,414)</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(9,043)</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Total losses and loss adjustment expenses paid</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(5,545)</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(5,389)</font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(10,934)</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(10,751)</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Other changes</font><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >:</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >Foreign exchange effect</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(431)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >463</font></td><td style='width:7.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(157)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >358</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >Retroactive reinsurance adjustment (net of discount)</font><sup><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(b)</font></sup></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >30</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(299)</font></td><td style='width:7.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(67)</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(11,460)</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >Reclassified to liabilities held for sale</font><sup><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(c)</font></sup></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >-</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >79</font></td><td style='width:7.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >-</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(8)</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Total other changes</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(401)</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >243</font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >(224)</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >(11,110)</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Liability for unpaid loss and loss adjustment expenses, end of period:</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >Net liability for unpaid losses and loss adjustment expenses</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >49,307</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >48,762</font></td><td style='width:7.5pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >49,307</font></td><td style='width:8.25pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >48,762</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:left;vertical-align:bottom;border-color:Black;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >Reinsurance recoverable</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >27,406</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >27,660</font></td><td style='width:7.5pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' ></font></td><td style='width:41.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >27,406</font></td><td style='width:8.25pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:39pt;border-bottom-style:solid;border-bottom-width:1;text-align:right;vertical-align:bottom;border-color:Black;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >27,660</font></td></tr><tr style='height:12pt;' ><td style='width:328.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:left;vertical-align:bottom;border-color:#005984;min-width:328.5pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >Total</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >$</font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >76,713</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >$</font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >76,422</font></td><td style='width:7.5pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:7.5pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' ></font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >$</font></td><td style='width:41.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:41.25pt;' ><font style='font-family:Arial;font-size:8.5pt;font-weight:bold;color:#0073AE;' >76,713</font></td><td style='width:8.25pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:8.25pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >$</font></td><td style='width:39pt;border-top-style:solid;border-top-width:1;border-bottom-style:solid;border-bottom-width:2;text-align:right;vertical-align:bottom;border-color:#005984;min-width:39pt;' ><font style='font-family:Arial;font-size:8.5pt;color:#000000;' >76,422</font></td></tr></table></div><p style='line-height:20pt;' /><div><p style='text-align:left;margin-top:4pt;margin-bottom:0pt;line-height:9pt;' ><font style='font-family:Arial;font-size:7pt;margin-left:0pt;' >(a) Includes $8 million and $10 million </font><font style='font-family:Arial;font-size:7pt;' >for </font><font style='font-family:Arial;font-size:7pt;' >the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for t</font><font style='font-family:Arial;font-size:7pt;' >he three</font><font style='font-family:Arial;font-size:7pt;' >-month periods</font><font style='font-family:Arial;font-size:7pt;' > ended </font><font style='font-family:Arial;font-size:7pt;' >June 30</font><font style='font-family:Arial;font-size:7pt;' >,</font><font style='font-family:Arial;font-size:7pt;' > 2018 and 2017, respectively, and $13 million for both</font><font style='font-family:Arial;font-size:7pt;' > </font><font style='font-family:Arial;font-size:7pt;' >six-month periods</font><font style='font-family:Arial;font-size:7pt;' > ended </font><font style='font-family:Arial;font-size:7pt;' >June 30</font><font style='font-family:Arial;font-size:7pt;' >,</font><font style='font-family:Arial;font-size:7pt;' > 2018 and 2017.</font></p><p style='text-align:left;margin-top:4pt;margin-bottom:0pt;line-height:9pt;' ><font style='font-family:Arial;font-size:7pt;margin-left:0pt;' >(b) Includes discount on retroactive reinsurance of $(</font><font style='font-family:Arial;font-size:7pt;' >20)</font><font style='font-family:Arial;font-size:7pt;' > million and $(</font><font style='font-family:Arial;font-size:7pt;' >108)</font><font style='font-family:Arial;font-size:7pt;' > million </font><font style='font-family:Arial;font-size:7pt;' >for the three</font><font style='font-family:Arial;font-size:7pt;' >-month periods</font><font style='font-family:Arial;font-size:7pt;' > ended </font><font style='font-family:Arial;font-size:7pt;' >June 30</font><font style='font-family:Arial;font-size:7pt;' >,</font><font style='font-family:Arial;font-size:7pt;' > 2018 and 2017, respectively, and $108 million and $</font><font style='font-family:Arial;font-size:7pt;' >1.5</font><font style='font-family:Arial;font-size:7pt;' > billion </font><font style='font-family:Arial;font-size:7pt;' >for the </font><font style='font-family:Arial;font-size:7pt;' >six-month periods</font><font style='font-family:Arial;font-size:7pt;' > ended </font><font style='font-family:Arial;font-size:7pt;' >June 30</font><font style='font-family:Arial;font-size:7pt;' >,</font><font style='font-family:Arial;font-size:7pt;' > 2018 an</font><font style='font-family:Arial;font-size:7pt;' >d 2017, respectively</font><font style='font-family:Arial;font-size:7pt;' >.</font><font style='font-family:Arial;font-size:7pt;' > </font></p><p style='text-align:left;margin-top:4pt;margin-bottom:0pt;line-height:9pt;' ><font style='font-family:Arial;font-size:7pt;margin-left:0pt;' >(c)</font><font style='font-family:Arial;font-size:7pt;' > </font><font style='font-family:Arial;font-size:7pt;' >Represents change in loss reserves included in our sale of certain of our insurance operations to </font><font style='font-family:Arial;font-size:7pt;' >Fairfax Financial Holdings Limited (</font><font style='font-family:Arial;font-size:7pt;' >Fairfax</font><font style='font-family:Arial;font-size:7pt;' >)</font><font style='font-family:Arial;font-size:7pt;' > for the three</font><font style='font-family:Arial;font-size:7pt;' >- and six-month periods</font><font style='font-family:Arial;font-size:7pt;' > ended </font><font style='font-family:Arial;font-size:7pt;' >June 30</font><font style='font-family:Arial;font-size:7pt;' >, 2017. Up</font><font style='font-family:Arial;font-size:7pt;' >on consummation of the sa</font><font style='font-family:Arial;font-size:7pt;' >le, we </font><font style='font-family:Arial;font-size:7pt;' >retain</font><font style='font-family:Arial;font-size:7pt;' >ed</font><font style='font-family:Arial;font-size:7pt;' > a portion of these reserves through reinsurance arrangements.</font><font style='font-family:Arial;font-size:7pt;' > </font></p></div>
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CY2017Q2 aig Accreted Fair Value Adjustment To Liability For Unpaid Claims And Claims Adjustment Expense Incurred Claims Prior Years
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260000000 USD
CY2018Q2 aig Changes In Unpaid Net Loss Reserves Related To Deferred Gain Amortization On Retroactive Reinsurance
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CY2018Q2 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Incurred Claims1
LiabilityForUnpaidClaimsAndClaimsAdjustmentExpenseIncurredClaims1
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4778000000 USD
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1137000000 USD
CY2018Q2 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Claims Paid Prior Years1
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4635000000 USD
CY2017Q2 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Claims Paid Prior Years1
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CY2018Q2 us-gaap Payments For Losses And Loss Adjustment Expense
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CY2017Q2 us-gaap Payments For Losses And Loss Adjustment Expense
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CY2018Q2 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Translation Gain Loss
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CY2017Q2 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Foreign Currency Translation Gain Loss
LiabilityForUnpaidClaimsAndClaimsAdjustmentExpenseForeignCurrencyTranslationGainLoss
463000000 USD
us-gaap Use Of Estimates
UseOfEstimates
<div><p style='text-align:left;margin-top:12pt;margin-bottom:6pt;line-height:13pt;' ><font style='font-family:Arial;font-size:11pt;font-weight:bold;margin-left:0pt;color:#005984;' >Use</font><font style='font-family:Arial;font-size:11pt;font-weight:bold;color:#005984;' > of Estimates</font></p><p style='text-align:left;margin-top:0pt;margin-bottom:3pt;line-height:12pt;' ><font style='font-family:Arial;font-size:9pt;margin-left:0pt;' >The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of </font><font style='font-family:Arial;font-size:9pt;' >estimates and assumptions are considered our critical accounting estimates and are related to the determination of:</font></p><ul style='margin-top:0pt;' ><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >liability for unpaid losses and loss adjustment expenses (loss reserves);</font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >reinsurance assets;</font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >valuation of future policy benefit liabilities</font><font style='font-family:Arial;font-size:9pt;' > and timing and extent of loss recognition;</font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >valuation of liabilities for guaranteed benefit features of variable annuity products;</font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >estimated gross profits to value deferred policy acquisition costs for investment-oriented products;</font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >impairment charges, incl</font><font style='font-family:Arial;font-size:9pt;' >uding other-than-temporary impairments on available for sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment;</font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >allowances for loan losses;</font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >liability for legal contingencies; </font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >fair value me</font><font style='font-family:Arial;font-size:9pt;' >asurements of certain financial assets and liabilities; and</font></li><li style='text-align:left;margin-top:0pt;margin-bottom:3pt;' ><font style='font-family:Arial;font-size:9pt;' >income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net</font><font style='font-family:Arial;font-size:9pt;' > deferred tax asset and provisional estimates associated with the Tax Act.</font></li></ul><p style='text-align:left;margin-top:9pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Arial;font-size:9pt;margin-left:0pt;' >These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from t</font><font style='font-family:Arial;font-size:9pt;' >he assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. </font></p><p style='text-align:left;margin-top:12pt;margin-bottom:6pt;line-height:13pt;' ></p></div>

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