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Reserves for Losses and Loss Adjustment Expenses (Tables)
12 Months Ended
Dec. 31, 2018
Insurance [Abstract]  
Reserves for Losses and Loss Adjustment Expenses
The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):
 
For the Years Ended December 31,
(in millions)
2018
 
2017
 
2016
Net reserves beginning of the year
$
2,488.0

 
$
2,180.2

 
$
2,133.3

Net Maybrooke reserves acquired

 
131.8

 


Net Ariscom reserves acquired
43.4

 

 

Add:
 
 
 
 
 
Losses and LAE incurred during current calendar year, net of reinsurance:
 
 
 
 
 
Current accident year
1,058.8

 
1,058.4

 
843.4

Prior accident years
(18.0
)
 
(8.2
)
 
(33.3
)
Losses and LAE incurred during calendar year, net of reinsurance
1,040.8


1,050.2


810.1

Deduct:
 
 
 
 
 
Losses and LAE payments made during current calendar year, net of reinsurance:
 
 
 
 
 
Current accident year
273.3

 
289.6

 
178.9

Prior accident years
665.6

 
599.8

 
537.6

Losses and LAE payments made during current calendar year, net of reinsurance:
938.9


889.4


716.5

Change in participation interest (1)
(25.5
)
 
(23.2
)
 
(36.3
)
Foreign exchange adjustments
(44.9
)
 
38.4

 
(10.4
)
Net reserves - end of year
2,562.9


2,488.0


2,180.2

Add:
 
 
 
 
 
Reinsurance recoverables on unpaid losses and LAE, end of year
2,091.7

 
1,713.0

 
1,170.6

Gross reserves - end of year
$
4,654.6


$
4,201.0


$
3,350.8

(1) Amount represents (decrease) increase in reserves due to change in our Syndicate 1200 and Syndicate 1910 participation.
Impact from (Favorable) Unfavorable Development of Prior Accident Years’ Loss and LAE Reserves on Each Reporting Segment
The impact from the (favorable) unfavorable development of prior accident years’ losses and LAE reserves on each reporting segment is presented below: 
 
For the Years Ended December 31,
(in millions)
2018
 
2017
 
2016
U.S. Operations
$
(20.8
)
 
$
(38.7
)
 
$
(35.9
)
International Operations
(9.5
)
 
13.2

 
(16.0
)
Run-off Lines
12.3

 
17.3

 
18.6

Total unfavorable (favorable) prior-year development
$
(18.0
)

$
(8.2
)

$
(33.3
)
Summary of Information About Incurred and Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
The following tables provide information about incurred and cumulative paid losses and allocated loss adjustment expenses (“ALAE”), net of reinsurance. The following tables also include IBNR reserves plus expected development on reported claims and the cumulative number of reported claims as of December 31, 2018.
Reporting Segment: U.S. Operations
Operating Division: Excess and Surplus Lines
Line of Business: Liability
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
202.9

 
$
206.0

 
$
205.8

 
$
200.0

 
$
193.5

 
$
192.8

 
$
189.0

 
$
187.8

2012
 
 
 
189.6

 
196.0

 
189.7

 
183.6

 
184.4

 
182.1

 
182.3

2013
 
 
 
 
 
217.9

 
222.6

 
224.3

 
227.2

 
220.4

 
216.0

2014
 
 
 
 
 
 
 
213.0

 
215.2

 
213.2

 
211.9

 
212.3

2015
 
 
 
 
 
 
 
 
 
232.5

 
237.1

 
228.6

 
226.4

2016
 
 
 
 
 
 
 
 
 
 
 
246.4

 
250.6

 
243.1

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
253.3

 
244.3

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
278.8

 
 
 
 
 
 
 
 
 
 
 

 
 
 
Total

 
$
1,791.0

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
17.6

 
$
53.8

 
$
91.0

 
$
122.9

 
$
146.6

 
$
162.4

 
$
170.0

 
$
174.3

2012
 
 
 
17.2

 
52.8

 
89.1

 
120.8

 
142.4

 
157.5

 
163.4

2013
 
 
 
 
 
17.6

 
60.2

 
100.4

 
135.2

 
163.7

 
179.6

2014
 
 
 
 
 
 
 
15.0

 
52.2

 
95.9

 
131.6

 
154.5

2015
 
 
 
 
 
 
 
 
 
16.5

 
51.9

 
91.4

 
131.5

2016
 
 
 
 
 
 
 
 
 
 
 
17.4

 
52.8

 
95.5

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
11.5

 
38.7

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.0

 
 
 
 
 
 
 
 
 
 
 

 
 
 
Total

 
$
952.5

Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance
 
 
54.7

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
893.2

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
 
Cumulative Number of Reported Claims (2)
2011
 
$
187.8

 
$
10.0

 
8,454

2012
 
182.3

 
11.0

 
7,389

2013
 
216.0

 
21.0

 
7,297

2014
 
212.3

 
36.2

 
6,502

2015
 
226.4

 
60.3

 
6,000

2016
 
243.1

 
100.3

 
5,548

2017
 
244.3

 
153.3

 
5,302

2018
 
278.8

 
227.9

 
4,026

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.
(2) 
The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims.

Reporting Segment: U.S. Operations
Operating Division: Specialty Admitted
Line of Business: Liability
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
140.3

 
$
155.1

 
$
159.0

 
$
157.5

 
$
158.2

 
$
154.0

 
$
153.7

 
$
154.0

2012
 
 
 
140.3

 
146.3

 
149.7

 
153.3

 
151.5

 
147.7

 
146.7

2013
 
 
 
 
 
126.6

 
133.2

 
136.7

 
133.2

 
131.1

 
130.6

2014
 
 
 
 
 


 
115.6

 
121.9

 
116.9

 
114.5

 
111.5

2015
 
 
 
 
 
 
 


 
107.3

 
106.7

 
101.7

 
102.3

2016
 
 
 
 
 
 
 
 
 


 
96.1

 
99.9

 
99.3

2017
 
 
 
 
 
 
 
 
 
 
 


 
121.5

 
129.5

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
147.3

 
 
 
 
 
 
 
 
 

 
 
 
 
 
Total

 
$
1,021.2

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
23.2

 
$
57.5

 
$
85.9

 
$
111.3

 
$
126.1

 
$
135.1

 
$
139.8

 
$
143.1

2012
 
 
 
20.1

 
51.0

 
80.7

 
105.8

 
120.8

 
127.9

 
131.8

2013
 
 
 
 
 
18.9

 
49.4

 
74.0

 
93.6

 
102.8

 
109.7

2014
 
 
 
 
 


 
17.4

 
38.8

 
58.7

 
75.3

 
86.1

2015
 
 
 
 
 
 
 


 
17.2

 
35.0

 
48.8

 
64.2

2016
 
 
 
 
 
 
 
 
 


 
11.1

 
31.7

 
48.6

2017
 
 
 
 
 
 
 
 
 
 
 


 
16.3

 
44.4

2018
 
 
 
 
 
 
 
 
 
 
 

 
 
 
19.4

 
 
 
 
 
 
 
 
 

 
 

 
 
 
Total

 
$
647.3

Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance
 
 
48.7

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
422.6

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
 
Cumulative Number of Reported Claims (2)
2011
 
$
154.0

 
$
6.3

 
28,160

2012
 
146.7

 
8.0

 
23,627

2013
 
130.6

 
10.3

 
18,948

2014
 
111.5

 
13.9

 
16,316

2015
 
102.3

 
21.1

 
14,530

2016
 
99.3

 
22.1

 
11,583

2017
 
129.5

 
50.2

 
12,897

2018
 
147.3

 
82.8

 
13,351

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.
(2) 
The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims.

Reporting Segment: U.S. Operations
Operating Division: Specialty Admitted
Line of Business: Professional
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
35.0

 
$
35.0

 
$
35.0

 
$
32.5

 
$
28.2

 
$
26.9

 
26.6

 
$
26.0

2012
 
 
 
27.8

 
28.3

 
28.6

 
25.8

 
24.0

 
24.5

 
24.9

2013
 
 
 
 
 
20.9

 
21.5

 
21.1

 
19.0

 
19.8

 
19.5

2014
 
 
 
 
 


 
22.4

 
22.4

 
26.0

 
33.7

 
36.2

2015
 
 
 
 
 
 
 


 
29.9

 
29.5

 
33.2

 
34.0

2016
 
 
 
 
 
 
 
 
 


 
44.2

 
44.8

 
45.1

2017
 
 
 
 
 
 
 
 
 
 
 


 
60.1

 
61.8

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
70.8

 
 
 
 
 
 
 
 
 

 
 
 
 
 
Total

 
$
318.3

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
3.2

 
$
11.8

 
$
17.8

 
$
22.0

 
$
24.0

 
$
25.4

 
$
25.7

 
$
25.8

2012
 
 
 
2.3

 
8.6

 
16.9

 
19.9

 
21.4

 
22.6

 
23.5

2013
 
 
 
 
 
1.9

 
6.3

 
10.9

 
14.2

 
17.6

 
17.5

2014
 
 
 
 
 


 
2.3

 
5.4

 
15.1

 
24.1

 
25.5

2015
 
 
 
 
 
 
 


 
1.8

 
8.3

 
15.6

 
20.8

2016
 
 
 
 
 
 
 
 
 


 
2.4

 
11.9

 
24.6

2017
 
 
 
 
 
 
 
 
 
 
 


 
3.5

 
24.9

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.5

 
 
 
 
 
 
 
 
 

 
 
 
 
 
Total

 
$
167.1

Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance
 
 
0.1

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
151.3

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
 
Cumulative Number of Reported Claims (2)
2011
 
$
26.0

 
$
0.3

 
820

2012
 
24.9

 
0.4

 
640

2013
 
19.5

 
1.2

 
620

2014
 
36.2

 
2.8

 
1,043

2015
 
34.0

 
2.1

 
1,816

2016
 
45.1

 
13.1

 
3,226

2017
 
61.8

 
15.9

 
3,669

2018
 
70.8

 
55.0

 
3,603

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.
(2) 
The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims.
Reporting Segment: U.S. Operations
Operating Division: Specialty Admitted
Line of Business: Specialty
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
0.2

 
$
3.9

 
$
3.4

 
$
3.4

 
$
3.6

 
$
2.6

 
$
2.0

 
$
1.7

2012
 
 
 
7.5

 
6.7

 
4.9

 
4.3

 
4.0

 
3.9

 
3.5

2013
 
 
 
 
 
10.0

 
8.6

 
4.6

 
2.5

 
1.7

 
0.9

2014
 
 
 
 
 
 
 
13.1

 
13.1

 
8.9

 
6.0

 
4.8

2015
 
 
 
 
 
 
 
 
 
14.8

 
14.3

 
9.5

 
5.5

2016
 
 
 
 
 
 
 
 
 
 
 
15.0

 
15.0

 
11.2

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
16.2

 
16.2

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.8

 
 
 
 
 
 
 
 
 

 
 
 
 
 
Total

 
$
64.6

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$

 
$
1.6

 
$
1.4

 
$
1.3

 
$
1.2

 
$
1.7

 
$
1.7

 
$
1.7

2012
 
 
 
3.6

 
3.3

 
3.3

 
3.3

 
3.3

 
3.4

 
3.3

2013
 
 
 
 
 
0.4

 
0.9

 
0.9

 
0.9

 
0.9

 
0.9

2014
 
 
 
 
 
 
 
1.1

 
3.3

 
4.0

 
4.0

 
4.1

2015
 
 
 
 
 
 
 
 
 
0.2

 
0.1

 
0.2

 
0.3

2016
 
 
 
 
 
 
 
 
 
 
 
1.3

 
1.6

 
2.2

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
0.3

 
0.1

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

 
 
 
 
 
Total

 
$
12.6

Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance
 
 

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
52.0

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
 
Cumulative Number of Reported Claims (2)
2011
 
$
1.7

 
$

 
80

2012
 
3.5

 
0.2

 
129

2013
 
0.9

 

 
50

2014
 
4.8

 
0.8

 
50

2015
 
5.5

 
2.9

 
24

2016
 
11.2

 
5.5

 
58

2017
 
16.2

 
16.2

 
84

2018
 
20.8

 
19.8

 
71

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.
(2) 
The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims.

Reporting Segment: International Operations
Operating Division: Reinsurance
Line of Business: Property
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
116.3

 
$
105.0

 
$
107.1

 
$
105.1

 
$
104.4

 
$
104.3

 
$
132.3

 
$
138.9

2012
 
 
 
47.2

 
51.3

 
50.3

 
51.6

 
46.4

 
62.7

 
66.9

2013
 
 
 
 
 
32.1

 
33.6

 
33.1

 
31.4

 
33.0

 
32.4

2014
 
 
 
 
 
 
 
26.5

 
26.5

 
24.2

 
35.3

 
38.1

2015
 
 
 
 
 
 
 
 
 
27.1

 
23.3

 
32.6

 
27.1

2016
 
 
 
 
 
 
 
 
 
 
 
43.7

 
175.5

 
169.1

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
157.8

 
158.0

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
67.6

 
 
 
 
 
 
 
 
 

 
 
 
 
 
Total

 
$
698.1

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
40.9

 
$
66.5

 
$
87.7

 
$
95.5

 
$
97.8

 
$
99.0

 
$
127.2

 
$
134.1

2012
 
 
 
12.4

 
31.1

 
40.6

 
49.6

 
44.0

 
58.7

 
64.6

2013
 
 
 
 
 
4.2

 
16.7

 
26.5

 
29.0

 
31.0

 
31.1

2014
 
 
 
 
 
 
 
2.8

 
12.7

 
18.3

 
36.4

 
36.9

2015
 
 
 
 
 
 
 
 
 
4.3

 
11.0

 
20.3

 
20.6

2016
 
 
 
 
 
 
 
 
 
 
 
13.6

 
142.3

 
153.0

2017
 
 
 
 
 
 
 
 
 
 
 


 
84.2

 
139.5

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24.7

 
 
 
 
 
 
 
 
 

 
 

 
 
 
Total

 
$
604.5

Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance
 
 
3.6

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
97.2

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
 
Cumulative Number of Reported Claims (2)
2011
 
$
138.9

 
$
0.3

 
459

2012
 
66.9

 
0.2

 
277

2013
 
32.4

 
0.3

 
219

2014
 
38.1

 
0.5

 
221

2015
 
27.1

 
3.2

 
219

2016
 
169.1

 
11.0

 
381

2017
 
158.0

 
(28.8
)
 
774

2018
 
67.6

 
4.2

 
391

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.
(2) 
The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims.

Reporting Segment: International Operations
Operating Division: Argo Insurance Bermuda
Line of Business: Liability
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$
6.6

 
$
6.6

 
$
6.6

 
$
4.4

 
$
2.2

 
$
1.6

 
$
1.0

 
$

2012
 
 
 
7.4

 
7.4

 
7.4

 
5.6

 
4.4

 
1.7

 

2013
 
 
 
 
 
8.5

 
8.5

 
8.5

 
8.5

 
4.9

 
2.2

2014
 
 
 
 
 
 
 
9.8

 
9.8

 
9.8

 
6.2

 
1.5

2015
 
 
 
 
 
 
 
 
 
11.3

 
14.3

 
24.8

 
35.4

2016
 
 
 
 
 
 
 
 
 
 
 
13.9

 
14.0

 
14.0

2017
 
 
 
 
 
 
 
 
 
 
 


 
17.1

 
17.3

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.9

 
 
 
 
 
 
 
 
 

 
 
 
 

 
Total

 
$
79.3

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2011
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$

2012
 
 
 

 

 

 

 

 

 

2013
 
 
 
 
 

 

 

 

 
2.3

 
2.3

2014
 
 
 
 
 
 
 

 

 
0.1

 
0.1

 
1.2

2015
 
 
 
 
 
 
 
 
 

 

 
16.1

 
20.3

2016
 
 
 
 
 
 
 
 
 
 
 

 

 

2017
 
 
 
 
 
 
 
 
 
 
 


 

 
3.3

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

 
 
 
 

 
Total

 
$
27.1

Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance
 
 

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
52.2

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
 
Cumulative Number of Reported Claims (2)
2011
 
$

 
$

 
1,423

2012
 

 

 
1,381

2013
 
2.2

 

 
1,190

2014
 
1.5

 
0.2

 
1,329

2015
 
35.4

 
1.0

 
1,567

2016
 
14.0

 
13.9

 
1,874

2017
 
17.3

 
12.2

 
1,900

2018
 
8.9

 
8.8

 
839

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.
(2) 
The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims.
Reporting Segment: International Operations
Operating Division: Syndicate 1200
Line of Business: Liability
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2010 (1)
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2010
 
$
5.7

 
$
4.8

 
$
4.4

 
$
6.1

 
$
5.9

 
$
5.8

 
$
5.7

 
$
5.8

 
$
5.7

2011
 
 
 
8.0

 
8.6

 
10.8

 
10.9

 
10.2

 
10.1

 
10.6

 
10.7

2012
 
 
 
 
 
8.7

 
10.8

 
14.9

 
14.2

 
13.8

 
14.5

 
15.0

2013
 
 
 
 
 
 
 
22.7

 
26.7

 
26.2

 
24.4

 
24.3

 
25.1

2014
 
 
 
 
 
 
 
 
 
37.1

 
35.9

 
33.6

 
32.5

 
33.8

2015
 
 
 
 
 
 
 
 
 
 
 
34.2

 
29.6

 
29.2

 
29.6

2016
 
 
 
 
 
 
 
 
 
 
 


 
25.5

 
26.4

 
26.1

2017
 
 
 
 
 
 
 
 
 
 
 
 
 


 
24.5

 
23.3

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21.4

 
 
 
 
 
 
 
 
 
 
 

 
 

 
 
 
Total

 
$
190.7

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2010 (1)
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2010
 
$

 
$
0.2

 
$
0.6

 
$
1.1

 
$
2.0

 
$
2.8

 
$
3.7

 
$
4.0

 
$
4.3

2011
 
 
 
0.2

 
0.8

 
1.6

 
3.4

 
5.4

 
6.9

 
7.8

 
8.7

2012
 
 
 
 
 
0.4

 
1.1

 
2.6

 
5.8

 
8.2

 
10.1

 
11.8

2013
 
 
 
 
 
 
 
1.5

 
3.2

 
7.0

 
11.3

 
15.6

 
19.7

2014
 
 
 
 
 
 
 


 
1.9

 
4.5

 
9.8

 
13.6

 
20.2

2015
 
 
 
 
 
 
 
 
 


 
0.8

 
5.1

 
7.4

 
12.3

2016
 
 
 
 
 
 
 
 
 
 
 


 
1.8

 
5.7

 
10.6

2017
 
 
 
 
 
 
 
 
 
 
 
 
 


 
1.9

 
6.6

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.2

 
 
 
 
 
 
 
 
 
 
 

 
 

 
 
 
Total

 
$
96.4

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
94.3

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
2010
 
$
5.7

 
$
0.1

2011
 
10.7

 
0.2

2012
 
15.0

 
0.6

2013
 
25.1

 
2.5

2014
 
33.8

 
5.0

2015
 
29.6

 
8.2

2016
 
26.1

 
10.2

2017
 
23.3

 
15.2

2018
 
21.4

 
17.6

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.



Reporting Segment: International Operations
Operating Division: Syndicate 1200
Line of Business: Professional
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2010 (1)
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2010
 
$
15.5

 
$
12.8

 
$
12.7

 
$
11.2

 
$
10.1

 
$
9.4

 
$
9.5

 
$
9.5

 
$
9.7

2011
 
 
 
19.1

 
21.0

 
18.5

 
15.5

 
14.7

 
14.7

 
15.1

 
15.7

2012
 
 
 
 
 
13.9

 
13.8

 
14.1

 
14.0

 
14.0

 
14.9

 
15.4

2013
 
 
 
 
 
 
 
22.5

 
22.4

 
22.6

 
22.2

 
22.3

 
23.1

2014
 
 
 
 
 
 
 
 
 
34.5

 
35.7

 
35.9

 
39.0

 
40.9

2015
 
 
 
 
 
 
 
 
 
 
 
37.8

 
37.3

 
38.5

 
38.7

2016
 
 
 
 
 
 
 
 
 
 
 
 
 
32.8

 
26.9

 
26.4

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24.5

 
22.0

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21.2

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 

 
Total

 
$
213.1

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2010 (1)
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2010
 
$
0.1

 
$
0.9

 
$
2.0

 
$
3.0

 
$
3.8

 
$
5.1

 
$
6.5

 
$
6.8

 
$
7.6

2011
 
 
 
1.0

 
2.5

 
4.1

 
6.6

 
8.3

 
10.6

 
11.3

 
12.8

2012
 
 
 
 
 
0.6

 
1.8

 
4.3

 
5.7

 
8.1

 
9.5

 
11.2

2013
 
 
 
 
 
 
 
1.7

 
3.7

 
7.0

 
11.6

 
15.4

 
17.6

2014
 
 
 
 
 
 
 


 
1.6

 
6.3

 
14.6

 
23.7

 
27.9

2015
 
 
 
 
 
 
 
 
 


 
2.2

 
8.2

 
14.8

 
19.7

2016
 
 
 
 
 
 
 
 
 
 
 
 
 
2.0

 
5.8

 
10.6

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.2

 
5.1

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
1.0

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 

 
Total

 
$
113.5

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
99.6

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
2010
 
$
9.7

 
$
0.1

2011
 
15.7

 
0.4

2012
 
15.4

 
0.8

2013
 
23.1

 
3.0

2014
 
40.9

 
6.5

2015
 
38.7

 
11.3

2016
 
26.4

 
10.8

2017
 
22.0

 
14.6

2018
 
21.2

 
17.6

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited. 

Reporting Segment: International Operations
Operating Division: Syndicate 1200
Line of Business: Property
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2010 (1)
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2010
 
$
50.7

 
$
58.2

 
$
54.6

 
$
54.2

 
$
51.5

 
$
51.2

 
$
50.7

 
$
51.4

 
$
51.1

2011
 
 
 
108.0

 
113.3

 
107.5

 
94.8

 
92.9

 
92.4

 
92.4

 
91.8

2012
 
 
 
 
 
88.7

 
88.5

 
92.8

 
91.9

 
90.9

 
90.8

 
89.9

2013
 
 
 
 
 
 
 
83.3

 
79.2

 
78.2

 
76.7

 
76.5

 
75.6

2014
 
 
 
 
 
 
 


 
69.7

 
64.1

 
65.5

 
66.0

 
65.3

2015
 
 
 
 
 
 
 
 
 


 
55.9

 
66.2

 
73.4

 
74.0

2016
 
 
 
 
 
 
 
 
 
 
 
 
 
70.7

 
86.6

 
91.8

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
85.2

 
91.8

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
62.3

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 

 
Total

 
$
693.6

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2010 (1)
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2010
 
$
1.8

 
$
19.5

 
$
28.0

 
$
33.8

 
$
35.8

 
$
40.0

 
$
41.5

 
$
42.6

 
$
43.4

2011
 
 
 
23.4

 
47.1

 
61.8

 
73.5

 
79.3

 
81.0

 
82.7

 
82.4

2012
 
 
 
 
 
29.4

 
47.6

 
62.8

 
73.9

 
76.3

 
77.5

 
77.7

2013
 
 
 
 
 
 
 
44.4

 
56.7

 
69.2

 
73.3

 
74.2

 
73.5

2014
 
 
 
 
 
 
 
 
 
29.4

 
51.4

 
57.5

 
60.0

 
59.9

2015
 
 
 
 
 
 
 
 
 


 
22.8

 
42.7

 
52.6

 
59.1

2016
 
 
 
 
 
 
 
 
 
 
 
 
 
38.8

 
64.1

 
78.8

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29.7

 
62.7

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30.1

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 

 
Total

 
$
567.6

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
126.0

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
2010
 
$
51.1

 
$

2011
 
$
91.8

 
$
0.2

2012
 
89.9

 
0.2

2013
 
75.6

 
0.1

2014
 
65.3

 
0.1

2015
 
74.0

 
0.1

2016
 
91.8

 
0.8

2017
 
91.8

 
15.7

2018
 
62.3

 
31.2

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.

Reporting Segment: International Operations
Operating Division: Syndicate 1200
Line of Business: Specialty
(in millions, except number of claims reported)
 
 
Incurred Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2010 (1)
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2010
 
$
12.8

 
$
15.7

 
$
13.6

 
$
13.0

 
$
12.1

 
$
12.1

 
$
12.0

 
$
12.0

 
$
12.0

2011
 
 
 
38.3

 
40.0

 
38.7

 
34.0

 
33.2

 
33.2

 
33.1

 
32.7

2012
 
 
 
 
 
52.5

 
56.4

 
60.7

 
59.2

 
59.0

 
58.8

 
58.2

2013
 
 
 
 
 
 
 
75.7

 
81.2

 
82.5

 
82.1

 
81.8

 
81.5

2014
 
 
 
 
 
 
 
 
 
92.1

 
98.4

 
99.7

 
101.1

 
100.6

2015
 
 
 
 
 
 
 


 


 
89.8

 
87.8

 
93.8

 
95.3

2016
 
 
 
 
 
 
 
 
 


 


 
86.0

 
84.5

 
87.7

2017
 
 
 
 
 
 
 
 
 
 
 


 
 
 
80.1

 
76.5

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
65.0

 
 
 
 
 
 
 
 
 
 
 

 
 

 
 
 
Total

 
$
609.5

 
 
 
Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year
 
For the Years Ended December 31,
 
2010 (1)
 
2011 (1)
 
2012 (1)
 
2013 (1)
 
2014 (1)
 
2015 (1)
 
2016 (1)
 
2017 (1)
 
2018
2010
 
$
1.8

 
$
8.6

 
$
8.8

 
$
9.2

 
$
9.0

 
$
9.7

 
$
10.0

 
$
10.0

 
$
10.2

2011
 
 
 
11.5

 
19.5

 
23.6

 
27.1

 
28.5

 
29.1

 
29.5

 
29.4

2012
 
 
 


 
17.9

 
27.4

 
38.8

 
45.7

 
48.7

 
49.8

 
50.1

2013
 
 
 
 
 


 
30.9

 
52.3

 
68.7

 
76.2

 
78.2

 
78.6

2014
 
 
 
 
 
 
 


 
37.7

 
71.4

 
82.5

 
88.9

 
90.4

2015
 
 
 
 
 
 
 
 
 


 
30.9

 
54.0

 
66.2

 
74.0

2016
 
 
 
 
 
 
 
 
 
 
 


 
37.3

 
59.0

 
68.7

2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.1

 
42.6

2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18.7

 
 
 
 
 
 
 
 
 
 
 

 
 

 
 
 
Total

 
$
462.7

Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance
 
 
$
146.8

 
 
As of December 31, 2018
Accident Year
 
Incurred Losses & ALAE, Net of Reinsurance
 
IBNR & Expected Development on Reported Claims
2010
 
$
12.0

 
$

2011
 
32.7

 

2012
 
58.2

 

2013
 
81.5

 
(0.5
)
2014
 
100.6

 
0.7

2015
 
95.3

 
3.0

2016
 
87.7

 
6.6

2017
 
76.5

 
21.8

2018
 
65.0

 
40.3

(1) 
Information presented for calendar years prior to 2018 is required supplementary information and is unaudited.
Summary of Reconciliation of Net Incurred and Paid Development to Liability for Unpaid Losses and LAE in Consolidated Balance Sheets
Syndicate 1200 measures claim frequency based on the number of reported claims by individual claimant at a coverage level for non-bordereau reporting, which is con
Schedule of Supplementary Unaudited Information About Annual Percentage Payout of Incurred Losses and ALAE, Net of Reinsurance
The following table provides supplementary unaudited information about the annual percentage payout of incurred losses and ALAE, net of reinsurance, as of December 31, 2018:
 
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (1)
 
Year 1
 
Year 2
 
Year 3
 
Year 4
 
Year 5
 
Year 6
 
Year 7
 
Year 8
 
Year 9
U.S. Operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess and Surplus Lines - Liability
7.8%
 
19.2%
 
19.0%
 
17.1%
 
11.5%
 
7.9%
 
5.3%
 
3.5%
 
N/A
Specialty Admitted - Liability
14.6%
 
21.6%
 
18.3%
 
16.0%
 
9.1%
 
6.1%
 
4.0%
 
2.7%
 
N/A
Specialty Admitted- Professional
7.2%
 
24.5%
 
29.6%
 
19.8%
 
8.4%
 
4.1%
 
2.2%
 
1.3%
 
N/A
Specialty Admitted - Specialty
40.5%
 
30.6%
 
11.9%
 
8.3%
 
4.2%
 
2.2%
 
1.1%
 
0.6%
 
N/A
International Operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance - Property
21.2%
 
33.7%
 
13.8%
 
12.9%
 
6.1%
 
4.0%
 
2.6%
 
1.8%
 
N/A
Argo Insurance Bermuda - Liability
1.3%
 
8.6%
 
17.8%
 
21.9%
 
16.6%
 
10.1%
 
6.8%
 
4.6%
 
N/A
Syndicate 1200 - Liability
3.3%
 
7.2%
 
9.4%
 
12.7%
 
14.6%
 
12.3%
 
10.9%
 
8.6%
 
6.4%
Syndicate 1200 - Professional
4.7%
 
10.4%
 
14.5%
 
14.8%
 
11.3%
 
10.5%
 
8.1%
 
6.8%
 
5.2%
Syndicate 1200 - Property
39.5%
 
28.0%
 
16.0%
 
9.8%
 
3.0%
 
1.7%
 
0.9%
 
0.5%
 
0.3%
Syndicate 1200 - Specialty
38.9%
 
29.2%
 
15.6%
 
9.6%
 
3.7%
 
1.7%
 
0.8%
 
0.3%
 
0.2%
(1) The average annual percentage payout is calculated from a paid losses and ALAE development pattern based on an actuarial analysis of the paid losses and ALAE movements by accident year for each disaggregation category. The paid losses and ALAE development pattern provides the expected percentage of ultimate losses and ALAE to be paid in each year. The pattern considers all accident years included in the claims development tables.
Schedule of Information About Discounted Liabilities For Unpaid Losses and LAE
The following tables provide information about these discounted liabilities for unpaid losses and LAE:
 
Carrying Amount of
 
 
 
 
 
 
 
Reserves for Losses & LAE
 
Aggregate Amount of Discount
 
As of December 31,
 
As of December 31,
(in millions, except discount percentages)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
U.S. Operations:
 
 
 
 
 
 
 
 
 
 
 
Specialty Admitted - Liability
$
140.8

 
$
126.7

 
$
121.1

 
$
11.9

 
$
10.6

 
$
10.3

Run-off Lines
163.1

 
175.5

 
184.5

 
5.0

 
7.0

 
9.1

Total
$
303.9


$
302.2


$
305.6


$
16.9


$
17.6


$
19.4

 
Interest Accretion (1)
 
Discount Rate
 
For the Years Ended December 31,
 
As of December 31,
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
U.S. Operations:
 
 
 
 
 
 
 
 
 
 
 
Specialty Admitted - Liability
$
1.3

 
$
1.9

 
$
1.9

 
2.25%
 
2.25%
 
2.25%
Run-off Lines
2.1

 
2.1

 
2.1

 
3.50%
 
3.50%
 
3.50%
Total
$
3.4


$
4.0


$
4.0

 

 

 

(1) Interest accretion is recorded in the line item “Losses and loss adjustment expenses” in our Consolidated Statements of Income.