ZAIC2012-1 - Zurich Producer Compensation

ANNUAL STATEMENT FOR THE YEAR 2012 OF THE ZURICH AMERICAN INSURANCE COMPANY
Asbestos (Direct)
Calendar Year
Beginning reserves $
2008
467,767,000 $
2009
422,339,000 $
2010
382,739,000 $
2011
400,256,000 $
2012
345,687,000
Incurred losses
and loss adjustment expenses (144,000) (621,000) 53,187,000 (4,458,000) 65,551,000
Calendar year payments for losses
and loss adjustment expenses (45,284,000) (38,979,000) (35,670,000) (50,111,000) (31,594,000)
Ending reserves $ 422,339,000 $ 382,739,000 $ 400,256,000 $ 345,687,000 $ 379,644,000
Asbestos (Assumed Reinsurance)
Calendar Year
2008
2009 2010 2011
2012
Beginning reserves $ - $ - $ - $ - $ -
Incurred losses
and loss adjustment expenses - - - - -
Calendar year payments for losses
and loss adjustment expenses - - - - -
Ending reserves $ - $ - $ - $ - $ -
Asbestos (Net of Ceded Reinsurance)
Calendar Year
Beginning reserves $
2008
296,090,000 $
2009
269,960,000 $
2010
251,884,000 $
2011
251,047,000 $
2012
303,374,000
Incurred losses
and loss adjustment expenses (135,000) 3,084,000 15,852,000 32,061,000 47,941,000
Calendar year payments for losses
and loss adjustment expenses (25,995,000) (21,160,000) (16,689,000) 20,266,000 (19,963,000)
Ending reserves $ 269,960,000 $ 251,884,000 $ 251,047,000 $ 303,374,000 $ 331,352,000
B. The Company holds reserves for unreported claims. The amount of reserves at December 31, 2012 is:
1. Direct Basis $ 181,616,000
2. Assumed Reinsurance Basis $ -
3. Net of Ceded Reinsurance Basis $ 163,102,000
C. The Company holds reserves for future loss adjustment expenses (including coverage dispute costs). The amount of reserves at
December 31, 2012 is:
1. Direct Basis $ 122,876,000
2. Assumed Reinsurance Basis $ -
3. Net of Ceded Reinsurance Basis $ 91,194,000
D. The Company has exposure to environmental pollution claims. The Company’s exposure arises from general liability and
commercial multi-peril policies. Individual case reserves are determined by a specialized, dedicated claim and legal staff. Bulk
reserves are determined based upon management's best estimate, taking into consideration an actuarial analysis of ultimate
liability. Both case and bulk reserves include a provision for loss and loss adjustment expense. The bulk reserve includes a
provision for unreported claims.
The Company’s environmental pollution loss experience for the five most recent calendar years follows. This data includes the
reserves carried on environmental exposures emanating from accident years 1986 and prior.
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