Development of prior year incurred losses was $135.6 million unfavorable in 2006, $26.4 million favorable in 2005 and $249.4 million unfavorable in 2004.
Such losses were the result of the reserve development noted above, as well as inherent uncertainty in establishing loss and LAE reserves.
Reserves for Asbestos and Environmental Losses and Loss Adjustment Expenses As of year end 2006, 7.4% of reserves reflect an estimate for the Company’s ultimate liability for A&E claims for which ultimate value cannot be estimated using traditional reserving techniques.
The Company’s A&E liabilities stem from Mt.
McKinley’s direct insurance business and Everest Re’s assumed reinsurance business.
There are significant uncertainties in estimating the amount of the Company’s potential losses from A&E claims.
See ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Asbestos and Environmental Exposures” and Note 3 of Notes to Consolidated Financial Statements.
Mt.
McKinley’s book of direct A&E exposed insurance is relatively small and homogenous.
It also arises from a limited period, effective 1978 to 1984.
The book is based principally on excess liability policies, thereby limiting exposure analysis to a limited number of policies and forms.
As a result of this focused structure, the Company believes that it is able to comprehensively analyze its exposures, allowing it to identify, analyze and actively monitor those claims which have unusual exposure, including policies in which it may be exposed to pay expenses in addition to policy limits or non-products asbestos claims.
The Company endeavors to be actively engaged with every insured account posing significant potential asbestos exposure to Mt.
McKinley.
Such engagement can take the form of pursuing a final settlement, negotiation, litigation, or the monitoring of claim activity under Settlement in Place (“SIP”) agreements.
SIP agreements generally condition an insurer’s payment upon the actual claim experience of the insured and may have annual payment caps or other measures to control the insurer’s payments.
The Company’s Mt.
McKinley operation is currently managing eight SIP agreements, three of which were executed prior to the acquisition of Mt.
McKinley in 2000.
The Company’s preference with respect to coverage settlements is to execute settlements that call for a fixed schedule of payments, because such settlements eliminate future uncertainty.
The Company has significantly enhanced its classification of insureds by exposure characteristics over time, as well as its analysis by insured for those it considers to be more exposed or active.
Those insureds identified as relatively less exposed or active are subject to less rigorous, but still active management, with an emphasis on monitoring those characteristics, which may indicate an increasing exposure or levels of activity.
The Company continually focuses on further enhancement of the detailed estimation processes used to evaluate potential exposure of policyholders, including those that may not have reported significant A&E losses.
Everest Re’s book of assumed reinsurance is relatively concentrated within a modest number of A&E exposed relationships.
It also arises from a limited period, effectively 1977 to 1984.
Because the book of business is relatively concentrated and the Company has been managing the A&E exposures for many years, its claim staff is familiar with the ceding companies that have generated most of these liabilities in the past and which are therefore most likely to generate future liabilities.
The Company’s claim staff has developed familiarity both with the nature of the business written by its ceding companies and the claims handling and reserving practices of those companies.
This level of familiarity enhances the quality of the Company’s analysis of its exposure through those companies.
As a result, the Company believes that it can identify those claims on which it has unusual exposure, such as non-products asbestos claims, for concentrated attention.
However, in setting reserves for its reinsurance liabilities, the Company relies on claims data supplied, both formally and informally by its ceding companies and brokers.
This furnished information is not always timely or accurate and can impact the accuracy and timeliness of the Company’s ultimate loss projections.
The following table summarizes the composition of the Company’s total reserves for A&E losses, gross and net of reinsurance, for the years ended December 31:
## Table 0 ##
(1) Additional reserves are case specific reserves determined by the Company to be needed over and above those reported by the ceding company
Incurred Losses and LAE.
The following table presents the incurred losses and LAE for the Insurance segment for the periods indicated.
## Table 1 ##
Incurred losses and LAE increased by 8.7% to $1,122.7 million in 2016 compared to $1,033.3 million in 2015 mainly due to an increase of $49.4 million in current year catastrophe losses, an increase of $21.5 million in prior years’ attritional losses mainly related to run-off construction liability and umbrella program business and an increase of $18.7 million in current year attritional losses primarily related to the impact of the increase in premiums earned.
The $49.4 million of current year catastrophe losses in 2016 were due to the 2016 U. S.  storms ($30.0 million), Hurricane Matthew ($11.0 million) and the Fort McMurray Canada wildfire ($8.4 million).
There were no current year catastrophe losses in 2015.
Incurred losses and LAE increased by 27.3% to $1,033.3 million in 2015 compared to $811.4 million in 2014, mainly due to an increase of $127.2 million in prior years’ attritional losses related to run-off umbrella program and construction liability business and an increase of $94.7 million in current year attritional losses related primarily to the impact of the increase in premiums earned.
There were no current year catastrophe losses in 2015 and 2014.
Segment Expenses.
Commission and brokerage increased by 16.5% to $205.3 million in 2016 compared to $176.2 million in 2015.
The increase was mainly due to the impact of the increase in premiums earned and changes in the mix of business.
Segment other underwriting expenses increased to $176.8 million in 2016 compared to $136.7 million in 2015.
The increase was primarily due to increased expenses due to the build out of our insurance platform.
Commission and brokerage increased by 17.7% to $176.2 million in 2015 compared to $149.8 million in 2014.
The increase was primarily driven by the impact of the increase in premiums earned and the change in the mix of business.
Segment other underwriting expenses increased to $136.7 million in 2015 compared to $118.0 million in 2014.
The increase was primarily due to the impact of the increase in premiums earned and increased focus on insurance operations resulting in increased operating expenses, including new hires.
properly allocating responsibility and/or liability for asbestos or environmental damage; (d) changes in underlying laws and judicial interpretation of those laws; (e) the potential for an asbestos or environmental claim to involve many insurance providers over many policy periods; (f) questions concerning interpretation and application of insurance and reinsurance coverage; and (g) uncertainty regarding the number and identity of insureds with potential asbestos or environmental exposure.
Due to the uncertainties discussed above, the ultimate losses attributable to A&E, and particularly asbestos, may be subject to more variability than are non-A&E reserves and such variation could have a material adverse effect on our financial condition, results of operations and/or cash flows.
See also ITEM 8, “Financial Statements and Supplementary Data” - Notes 1 and 3 of Notes to the Consolidated Financial Statements.
Reinsurance Receivables.
We have purchased reinsurance to reduce our exposure to adverse claim experience, large claims and catastrophic loss occurrences.
Our ceded reinsurance provides for recovery from reinsurers of a portion of losses and loss expenses under certain circumstances.
Such reinsurance does not relieve us of our obligation to our policyholders.
In the event our reinsurers are unable to meet their obligations under these agreements or are able to successfully challenge losses ceded by us under the contracts, we will not be able to realize the full value of the reinsurance receivable balance.
To minimize exposure from uncollectible reinsurance receivables, we have a reinsurance security committee that evaluates the financial strength of each reinsurer prior to our entering into a reinsurance arrangement.
In some cases, we may hold full or partial collateral for the receivable, including letters of credit, trust assets and cash.
Additionally, creditworthy foreign reinsurers of business written in the U. S. , as well as capital markets’ reinsurance mechanisms, are generally required to secure their obligations.
We have established reserves for uncollectible balances based on our assessment of the collectability of the outstanding balances.
As of December 31, 2016 and 2015, the reserve for uncollectible balances was $15.0 million.
Actual uncollectible amounts may vary, perhaps substantially, from such reserves, impacting income (loss) in the period in which the change in reserves is made.
See also ITEM 8, “Financial Statements and Supplementary Data” - Note 11 of Notes to the Consolidated Financial Statements and “Financial Condition – Reinsurance Receivables” below.
Premiums Written and Earned.
Premiums written by us are earned ratably over the coverage periods of the related insurance and reinsurance contracts.
We establish unearned premium reserves to cover the unexpired portion of each contract.
Such reserves, for assumed reinsurance, are computed using pro rata methods based on statistical data received from ceding companies.
Premiums earned, and the related costs, which have not yet been reported to us, are estimated and accrued.
Because of the inherent lag in the reporting of written and earned premiums by our ceding companies, we use standard accepted actuarial methodologies to estimate earned but not reported premium at each financial reporting date.
These earned but not reported premiums are combined with reported earned premiums to comprise our total premiums earned for determination of our incurred losses and loss and LAE reserves.
Commission expense and incurred losses related to the change in earned but not reported premium are included in current period company and segment financial results.
See also ITEM 8, “Financial Statements and Supplementary Data” - Note 1 of Notes to the Consolidated Financial Statements.
The following table displays the estimated components of net earned but not reported premiums by segment for the periods indicated.
## Table 2 ##

['

(Dollars in millions)	2006	2005	2004
Case reserves reported by ceding companies	$135.6	$125.2	$148.5
Additional case reserves established by the Company (assumed reinsurance) (1)	152.1	157.6	151.3
Case reserves established by the Company (direct insurance)	213.7	243.5	272.1
Incurred but not reported reserves	148.7	123.3	156.4
Gross reserves	650.1	649.6	728.3
Reinsurance receivable	-138.7	-199.1	-221.6
Net reserves	$511.4	$450.5	$506.7

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Years Ended December 31,
(Dollars in millions)	Current Year	Ratio %/ Pt Change	Prior Years	Ratio %/ Pt Change	Total Incurred	Ratio %/ Pt Change
2016
Attritional	$899.9	69.7%	$173.6	13.4%	$1,073.5	83.1%
Catastrophes	49.4	3.8%	-0.2	0.0%	49.2	3.8%
Total segment	$949.3	73.5%	$173.4	13.4%	$1,122.7	86.9%
2015
Attritional	$881.2	69.6%	$152.1	12.0%	$1,033.2	81.6%
Catastrophes	-	0.0%	0.1	0.0%	0.1	0.0%
Total segment	$881.2	69.6%	$152.2	12.0%	$1,033.3	81.6%
2014
Attritional	$786.5	76.4%	$24.9	2.4%	$811.3	78.8%
Catastrophes	-	0.0%	0.1	0.0%	0.1	0.0%
Total segment	$786.5	76.4%	$25.0	2.4%	$811.4	78.8%
Variance 2016/2015
Attritional	$18.7	0.1	pts	$21.5	1.4	pts	$40.3	1.5	pts
Catastrophes	49.4	3.8	pts	-0.3	-	pts	$49.1	3.8	pts
Total segment	$68.1	3.9	pts	$21.2	1.4	pts	$89.4	5.3	pts
Variance 2015/2014
Attritional	$94.7	-6.8	pts	$127.2	9.6	pts	$221.9	2.8	pts
Catastrophes	-	-	pts	-	-	pts	-	-	pts
Total segment	$94.7	-6.8	pts	$127.2	9.6	pts	$221.9	2.8	pts
(Some amounts may not reconcile due to rounding.)

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At December 31,
(Dollars in millions)	2016	2015	2014
U.S. Reinsurance	$385.5	$372.5	$388.3
International	235.4	243.9	239.8
Bermuda	258.4	253.4	208.4
Total	$879.3	$869.8	$836.5
(Some amounts may not reconcile due to rounding.)

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Question: what is the growth rate in net reserves in 2005?
Answer: -0.11091000000000001