Reported claims are in various stages of the

Reported claims are in various stages of the settlement process, and the corresponding reserves for reported claims are based
upon all information available to us. Case reserves consider our estimate of the ultimate cost to settle the claims, including
investigation and defense of lawsuits resulting from the claims, and may be subject to adjustment for differences between costs
originally estimated and costs subsequently re-estimated or incurred. Claims are settled based upon their merits, and some
claims may take years to settle, especially if legal action is involved. As of any balance sheet date, all claims have not yet been
reported, and some claims may not be reported for many years. As a result, the liability for unpaid losses and loss adjustment
expenses includes significant estimates for incurred but not reported claims.
There is normally a time lag between when a loss event occurs and when it is actually reported to us. The actuarial methods
that we use to estimate losses have been designed to address the lag in loss reporting as well as the delay in obtaining
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information that would allow us to more accurately estimate future payments. There is also often a time lag between cedents
establishing case reserves and re-estimating their reserves, and notifying us of the new or revised case reserves. As a result, the
reporting lag is more pronounced in our reinsurance contracts than in our insurance contracts due to the reliance on ceding
companies to report their claims and, in some instances, loss estimates to us. On reinsurance transactions, the reporting lag will
generally be 60 to 90 days after the end of a reporting period, but can be longer in some cases. Based on the experience of our
actuaries and management, we select loss development factors and trending techniques to mitigate the difficulties caused by
reporting lags. At least annually, we evaluate and update our loss development and trending factor selections using cedent
specific and industry data.
U.S. GAAP requires that IBNR reserves be based on the estimated ultimate cost of settling claims, including the effects of
inflation and other social and economic factors, using past experience adjusted for current trends and any other factors that
would modify past experience. IBNR reserves are generally calculated by subtracting paid losses and loss adjustment expenses
and case reserves from estimated ultimate losses and loss adjustment expenses. IBNR reserves were 67% of total unpaid losses
and loss adjustment expenses at December 31, 2021 compared to 66% at December 31, 2020.
The following table summarizes case reserves and IBNR reserves. The amounts in the following table exclude the unamortized
portion of any fair value adjustments for unpaid losses and loss adjustment expenses assumed in conjunction with an
acquisition and any adjustments to discount reserves.