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Reserves for Losses and Loss Adjustment Expenses

12 Months Ended

Dec. 31, 2019

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)	2019			2018			2017
Net reserves beginning of the year	$	2,562.9		$	2,488.0		$	2,180.2
Net Maybrooke reserves acquired	—			—			131.8
Net reserves acquired	—			43.4			—
Add:
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year	1,082.6			1,058.8			1,058.4
Prior accident years	138.1			(18.0		)	(8.2		)
Losses and LAE incurred during calendar year, net of reinsurance	1,220.7			1,040.8			1,050.2
Deduct:
Losses and LAE payments made during current calendar year, net of reinsurance:
Current accident year	224.3			273.3			289.6
Prior accident years	806.0			665.6			599.8
Losses and LAE payments made during current calendar year, net of reinsurance:	1,030.3			938.9			889.4
Change in participation interest ⁽¹⁾	(14.4		)	(25.5		)	(23.2		)
Foreign exchange adjustments	(16.2		)	(44.9		)	38.4
Net reserves - end of period	2,722.7			2,562.9			2,488.0
Add:
Reinsurance recoverables on unpaid losses and LAE, end of period	2,434.9			2,091.7			1,713.0
Gross reserves - end of period	$	5,157.6		$	4,654.6		$	4,201.0

⁽¹⁾Amount represents (decrease) increase in reserves due to change in our Syndicate 1200 and Syndicate 1910 participation.

Reserves for losses and LAE represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results.

The impact from the unfavorable (favorable) development of prior accident years’ losses and LAE reserves on each reporting segment is presented below:



	For the Years Ended December 31,
(in millions)	2019		2018			2017
U.S. Operations	$	15.7	$	(20.8	)	$	(38.7	)
International Operations	110.4		(9.5		)	13.2
Run-off Lines	12.0		12.3			17.3
Total unfavorable (favorable) prior-year development	$	138.1	$	(18.0	)	$	(8.2	)

The following describes the primary factors behind each segment’s prior accident year reserve development for the years ended December 31, 2019, 2018 and 2017:

Year ended December 31, 2019:

•

U.S. Operations: Unfavorable development in professional, property and liability lines partially offset by favorable development in specialty lines. The unfavorable professional lines development was driven by movements on individual large management liability claims primarily impacting accident years 2015 through 2017. The unfavorable property development was primarily driven by large excess claims resulting from the 2017 and 2018 catastrophe events. The unfavorable liability lines development was driven by actual loss activity greater than expected. The three most recent accident years showed unfavorable development partially offset by favorable development on older years. The favorable specialty lines development was driven by favorable experience in the surety business across multiple accident years.

•

International Operations: Unfavorable development was primarily concentrated in liability and professional lines. The charges impacted our Bermuda casualty and professional divisions, and our Syndicate 1200 and European operations. The charges in our Bermuda business stemmed from public utility business in our casualty division, which we previously exited, as well as updated estimates on a number of other casualty and professional claims based on new information received in the last three quarters of 2019. As it relates to Syndicate 1200, the adverse development generally related to businesses that we have previously exited or where aggressive remedial underwriting actions have been taken. As it relates to Europe, the adverse development primarily related to certain cover-holders whose contracts were previously terminated or where aggressive remedial underwriting actions have been taken as well as unexpected movements in large professional liability losses. This unfavorable development was primarily due to obtaining additional information on several individual claims, including investigations regarding causes of the incidents leading to the losses, reports provided by outside counsel, audits of the underlying losses and recent court decisions, settlements and jury awards. The result was an increase in the number of claims with the potential for underlying losses to reach our attachment point, particularly within our Bermuda Operations. Adverse development in Syndicate 1200 related to large claims involving the marine and energy and liability divisions. Losses on small and medium enterprise package business were also higher than expected. The unfavorable development during the year was also attributable to the results of ongoing audits, underwriting reviews, and updates from third-party cover-holders, which included the identification of differences from original expectations with regard to the classes written, the distribution of writings by geography, and the rates charged by the cover-holders.


•	Run-off Lines: Unfavorable development in asbestos and environmental and other run-off segments partially offset by favorable development in risk management workers compensation. The change in asbestos was driven by assumed business where accounts are staying open longer than expected. The change in environmental was driven by individual claims on direct business.

Year ended December 31, 2018:


•	U.S. Operations: Favorable development in general liability and surety lines, partially offset by unfavorable development in commercial multi-peril lines.


•	International Operations: Favorable development in property partially offset by unfavorable development within specialty and liability lines.


•	Run-off Lines: Unfavorable development in liability lines as well as asbestos and environmental.

Year ended December 31, 2017:


•	U.S. Operations: Favorable development in our general liability, workers compensation, surety and commercial automobile lines.


•	International Operations: Unfavorable development in the property and liability lines, primarily due to the first quarter 2017 Ogden rate change and claims from Hurricane Matthew. Partially offsetting this unfavorable development was favorable development on the property reinsurance lines.


•	Run-off Lines: Unfavorable development on prior accident years driven by our asbestos exposure due to increasing defense costs and an increase in the time claims remain open, and in other run-off lines, partially offset by favorable development in the run-off risk-management lines.

In the opinion of management, our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

Short-Duration Contract Disclosures

Our basis for disaggregating short-duration contracts is by each of our two ongoing reporting segments, U.S. Operations and International Operations, further disaggregated within each segment by our operating divisions and the primary insurance and reinsurance lines of business we write. We have chosen to disaggregate the data in this way so as to not obscure useful information by otherwise aggregating items with significantly different characteristics. See Note 18, “Segment Information,” for additional information regarding our two ongoing reporting segments.

Operating Divisions

Our U.S. Operations reporting segment is comprised of two primary operating divisions, Excess and Surplus Lines and Specialty Admitted, while International Operations’ primary operating divisions are Syndicate 1200, Reinsurance, Argo Insurance Bermuda and Europe. Each of these operating divisions are further described below.

Excess and Surplus Lines

The Excess and Surplus Lines division focuses on U.S.-based risks that the standard (admitted) market is unwilling or unable to underwrite. The standard market’s limited appetite for such coverage is often driven by the insured’s unique risk characteristics, the perils involved, the nature of the business, and/or the insured’s loss experience. We are often able to underwrite these risks with more flexible policy terms through our Excess and Surplus Lines division. We underwrite this business on both an admitted and non-admitted basis.

Specialty Admitted

This Specialty Admitted division provides coverages designed to meet the specialized insurance needs of U.S.-based businesses within certain well-defined markets. It targets business classes and industries with distinct risk profiles that can benefit from specially designed insurance programs, tailored loss control and expert claims handling. This division serves its targeted niche markets with a narrowly focused underwriting profile and specialized knowledge of the businesses it serves.

Argo Insurance Bermuda

Argo Insurance Bermuda offers casualty, property and professional lines, which serves the needs of global clients by providing the following coverages: property, general and products liability, directors and officers liability, errors and omissions liability and employment practices liability.

Reinsurance

The Reinsurance division operates in two areas - treaty property and specialty. This business is focused on mainly North American commercial properties and writes on both a primary and excess basis. Business is written on an open market basis through retail and wholesale brokers. Treaty property reinsurance is predominantly catastrophe-focused. Specialty reinsurance encompasses marine, energy, aviation, terrorism and property. This reinsurance portfolio is focused on treaties where high-quality exposure and experience data allow our underwriters to quantify the risk.

Syndicate 1200

The Syndicate 1200 division is focused on underwriting worldwide property, specialty and non-U.S. liability insurance through Argo Underwriting Agency, Ltd. on behalf of Lloyd’s Syndicate 1200 within the Lloyd’s of London global franchise.

Europe

The Europe division underwrites professional liability, surety, and property and casualty business in continental Europe and is a specialty underwriter of property, marine, accident & health and liability insurance with a focus on Italy and Southern Europe.

Lines of Business

We use an underwriting committee structure to monitor and evaluate the operating performance of our lines of business. The underwriting committees are organized to allow products or coverages with similar characteristics to be managed and evaluated in distinct groups. Using this approach, our insurance business is categorized into underwriting groups, which are Liability, Professional, Property and Specialty. Noted below are descriptions of the types of characteristics considered to disaggregate our business into these groups, as well as other qualitative factors to consider when using the information contained in the following incurred and paid claims development tables.

Liability

Our Liability business generally covers exposures where most claims are reported without a significant time lag between the event that gives rise to a claim and the date the claim is reported to us. However, since facts and information are frequently not complete at the time claims are reported to us, and because protracted litigation is sometimes involved, it can be several years before the ultimate value of these claims is determined. In our Argo Bermuda Insurance division, much of the business covers higher layers, potentially increasing the time it takes to fully determine our exposure.

Professional

Much of our Professional business is written on a claims-made basis resulting in coverage only for claims that are reported to us during the year in which the policy is effective, thus reducing the number of claims that will become known to us after the end of the policy expiration date. However, facts and information are frequently not complete at the time claims are reported to us, and protracted litigation is sometimes involved. It can be several years before the ultimate value of these claims is determined. In our Argo Bermuda Insurance division, much of the business covers higher layers, potentially increasing the time it takes to fully determine our exposure.

Property

Property losses are generally reported within a short period of time from the date of loss, and in most instances, property claims are settled and paid within a relatively short timeframe. However, Property can be impacted by catastrophe losses which can be more complex than non-catastrophe Property claims due to factors such as difficulty accessing impacted areas and other physical, legal and regulatory impediments potentially extending the period of time it takes to settle and pay claims. The impacts of catastrophe losses can be more significant in our Reinsurance and Syndicate 1200 divisions.

Specialty

Specialty lines losses are generally reported within a short period of time from the date of loss, and in most instances, Specialty lines claims are settled and paid within a relatively short timeframe. However, Specialty lines can be impacted by larger losses where facts and information are frequently not complete at the time claims are reported to us. These large losses can be more complex than smaller Specialty claims due to factors such as difficulty determining actual damages and other physical, legal and regulatory impediments potentially extending the period of time it takes to settle and pay claims.

Descriptions of the primary types of coverages included in the significant lines of business for each operating division, as disclosed in the following tables, are noted below:

Excess and Surplus Lines


•	Liability: primary and excess specialty casualty, contract liability, commercial multi-peril, product liability, environmental liability, and auto liability

Specialty Admitted


•	Liability: workers compensation, general liability, auto liability, and various public entity liability risks


•	Professional: management liability and errors and omissions liability


•	Specialty: surety and inland marine

Argo Insurance Bermuda


•	Liability: long-tail excess casualty and general liability

Reinsurance


•	Property: property catastrophe reinsurance and excess property direct and facultative insurance

Syndicate 1200


•	Liability: general liability, international casualty and motor treaties


•	Professional: professional indemnity, directors and officer’s liability, and medical malpractice


•	Property: direct and facultative excess insurance, North American and international binders, and residential collateral protection for lending institutions


•	Specialty: personal accident, aviation, cargo, yachts, and onshore and offshore marine

Europe


•	Professional: directors and officer’s liability, professional indemnity and cyber

Run-off Lines Segment

We have a Run-off Lines segment for certain products that we no longer underwrite, including asbestos and environmental claims. We have excluded the Run-off Lines segment from the following disaggregated short-duration contract disclosures due to its insignificance to our consolidated financial position and results of operations, both quantitatively and qualitatively. Gross reserves for losses and LAE in Run-off Lines account for less than 5% of our consolidated gross reserves for losses and LAE, and are primarily related to accident years prior to the mid-1990s. As such, claims development tables for the most recent ten accident years would not provide meaningful information to users of our financial statements, as the majority of the remaining reserves for losses and LAE would be for accident years not separately presented. See Note 6, “Run-off Lines,” for further information on this segment, including discussion of prior accidents years’ development.

Accident Years Presented

Based on the previous operating structure and management of our business prior to calendar year 2011, we did not track ultimate claims and claim adjustment expenses by accident year at a level of detail consistent with the current segmentation of our business, including our operating divisions, with the exception of the business in Syndicate 1200. As a result, it is impracticable to obtain the information necessary to provide historical ultimate claims and claim adjustment expense estimates prior to December 31, 2011 in the following incurred and paid claims development tables for all disaggregation categories except those associated with Syndicate 1200.

Syndicate 1200 ultimate claims and claim adjustment expenses are provided beginning with accident year 2010 due to the retroactive whole account quota share contract we entered into on December 31, 2012. As a result of this transaction, reserves for losses and LAE prior to accident year 2010 were legally transferred to another syndicate within the Lloyd’s market. Under this quota share contract, we did not retain any direct indemnity or credit risk for the reserves prior to accident year 2010.

Prior to the acquisition of Ariel Re in February 2017, Ariel Re’s ultimate claims and claim adjustment expense data was not historically available by accident years and line of business. As a result, it is not practical, nor would it be consistent to provide information for calendar years 2016 and prior by accident year at our line of business level. Beginning with the 2017 calendar year, we began accumulating such claims information by accident year and line of business, and have included such in the tabular disclosures below for the Reinsurance operating division, Property line of business disaggregation category. Accordingly, calendar years prior to 2017 for the aforementioned tabular disclosures relate only to our Reinsurance business prior to the acquisition of Ariel Re.

We formed ArgoGlobal SE in the fourth quarter of 2011. Beginning with the 2012 calendar year, we began accumulating such claims information by accident year and line of business, and have included such in the tabular disclosures below for the Europe operating division, Professional line of business disaggregation category.

Foreign Currency

Portions of the business we write in the Syndicate 1200, Argo Bermuda Insurance, Reinsurance and Europe divisions are denominated in foreign currencies. We have used the December 31, 2019 balance sheet foreign exchange rates to recast the incurred and paid claims information for all periods presented in the following claims development tables in order to eliminate the effects of changes in foreign currency translation rates.

Reserves for IBNR Claims

Reserves for IBNR claims are 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. We use a variety of statistical and actuarial techniques to analyze current claims costs, including frequency and severity data and prevailing economic, social and legal factors. Each such method has its own set of assumptions and outputs, and each has strengths and weaknesses in different areas. Since no single estimation method is superior to another method in all situations, the methods and assumptions used to project loss reserves will vary by coverage and product. We use what we believe to be the most appropriate set of actuarial methods and assumptions for each product line grouping and coverage. While the loss projection methods may vary by product line and coverage, the general approach for calculating IBNR remains the same: ultimate losses are forecasted first, and that amount is reduced by the amount of cumulative paid claims and case reserves. Reserves established in prior years are adjusted as loss experience develops and new information becomes available. Adjustments to previously estimated reserves are reflected in the results of operations in the year in which they are made.

As described above, various actuarial methods are used to determine the reserves for losses and LAE recorded in our consolidated balance sheets. Weightings of methods at a detailed level may change from evaluation to evaluation based on a number of observations, measures, and time elements. There were no significant changes to the methods and assumptions underlying our consolidated reserve estimations and selections as of December 31, 2019.

Incurred & Paid Claims Development Disclosures

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, 2019.



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 ⁽¹⁾		2019
2011	$	202.9	$	206.0	$	205.8	$	200.0	$	193.5	$	192.8	$	189.0	$	187.8	$	185.8
2012			189.6		196.0		189.7		183.6		184.4		182.1		182.3		181.0
2013					217.9		222.6		224.3		227.2		220.4		216.0		214.3
2014							213.0		215.2		213.2		211.9		212.3		210.0
2015									232.5		237.1		228.6		226.4		224.8
2016											246.4		250.6		243.1		248.3
2017													253.3		244.3		249.0
2018															278.8		269.5
2019																	269.8
															Total		$	2,052.5

	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 ⁽¹⁾		2019
2011	$	17.6	$	53.8	$	91.0	$	122.9	$	146.6	$	162.4	$	170.0	$	174.4	$	177.5
2012			17.2		52.8		89.1		120.8		142.4		157.5		163.4		170.3
2013					17.6		60.2		100.4		135.2		163.7		179.6		192.2
2014							15.0		52.2		95.9		131.6		154.5		172.8
2015									16.5		51.9		91.4		131.5		162.8
2016											17.4		52.8		95.5		149.5
2017													11.5		38.7		88.0
2018															15.0		47.0
2019																	14.9
															Total		$	1,175.0
Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance																	35.5
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																	$	913.0



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims ⁽²⁾
2011	$	185.8	$	3.9	8,490
2012	181.0		5.8		7,453
2013	214.3		11.4		7,397
2014	210.0		19.0		6,684
2015	224.8		32.5		6,306
2016	248.3		59.7		6,038
2017	249.0		92.5		6,251
2018	269.5		163.8		5,852
2019	269.8		207.5		4,199


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
2011	$	140.3	$	155.1	$	159.0	$	157.5	$	158.2	$	154.0	$	153.7	$	154.0	$	151.6
2012			140.3		146.3		149.7		153.3		151.5		147.7		146.7		146.2
2013					126.6		133.2		136.7		133.2		131.1		130.6		128.9
2014							115.6		121.9		116.9		114.5		111.5		111.9
2015									107.3		106.7		101.7		102.3		103.1
2016											96.1		99.9		99.3		104.7
2017													121.5		129.5		135.3
2018															147.3		160.9
2019																	151.3
															Total		$	1,193.9

	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 ⁽¹⁾		2019
2011	$	23.2	$	57.5	$	85.9	$	111.3	$	126.1	$	135.1	$	139.8	$	143.1	$	144.0
2012			20.1		51.0		80.7		105.8		120.8		127.9		131.9		135.0
2013					18.9		49.4		74.0		93.6		102.8		109.7		114.7
2014							17.4		38.8		58.7		75.3		86.1		93.5
2015									17.2		35.0		48.8		64.2		73.6
2016											11.1		31.7		48.6		67.6
2017													16.3		44.4		70.9
2018															19.4		51.9
2019																	17.5
															Total		$	768.7
Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance																	42.3
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																	$	467.5



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims ⁽²⁾
2011	$	151.6	$	4.4	28,181
2012	146.2		5.1		23,657
2013	128.9		7.0		18,975
2014	111.9		10.1		16,346
2015	103.1		14.2		14,622
2016	104.7		15.1		11,802
2017	135.3		37.2		13,473
2018	160.9		54.6		15,267
2019	151.3		89.4		12,867


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
2011	$	—	$	35.0	$	35.0	$	32.5	$	28.2	$	26.9	$	26.6	$	26.0	$	25.8
2012			27.8		28.3		28.6		25.8		24.0		24.5		24.9		24.6
2013					20.9		21.5		21.1		19.0		19.8		19.5		18.3
2014							22.4		22.4		26.0		33.7		36.2		35.4
2015									29.9		29.5		33.2		34.0		37.1
2016											44.2		44.8		45.1		42.9
2017													60.1		61.8		78.3
2018															70.8		73.2
2019																	94.4
															Total		$	430.0

	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 ⁽¹⁾		2019
2011	$	—	$	11.8	$	17.8	$	22.0	$	24.0	$	25.4	$	25.7	$	25.7	$	25.7
2012			2.3		8.6		16.9		19.9		21.4		22.6		23.5		24.2
2013					1.9		6.3		10.9		14.2		17.6		17.5		17.9
2014							2.3		5.4		15.1		24.1		25.5		32.3
2015									1.8		8.3		15.6		20.8		26.2
2016											2.4		11.9		24.6		28.9
2017													3.5		24.9		38.0
2018															4.5		16.7
2019																	4.9
															Total		$	214.8
Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance																	1.7
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																	$	216.9



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims ⁽²⁾
2011	$	25.8	$	0.1	820
2012	24.6		0.2		641
2013	18.3		0.3		622
2014	35.4		0.6		1,044
2015	37.1		1.4		1,840
2016	42.9		7.8		3,238
2017	78.3		7.0		3,724
2018	73.2		39.7		4,224
2019	94.4		75.3		4,432


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
2011	$	0.2	$	3.9	$	3.4	$	3.4	$	3.6	$	2.6	$	2.0	$	1.7	$	1.7
2012			7.5		6.7		4.9		4.3		4.0		3.9		3.5		3.6
2013					10.0		8.6		4.6		2.5		1.7		0.9		0.9
2014							13.1		13.1		8.9		6.0		4.8		4.7
2015									14.8		14.3		9.5		5.5		1.2
2016											15.0		15.0		11.2		6.2
2017													16.2		16.2		7.6
2018															20.9		17.4
2019																	22.8
															Total		$	66.1

	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 ⁽¹⁾		2019
2011	$	—	$	1.6	$	1.4	$	1.3	$	1.2	$	1.7	$	1.7	$	1.7	$	1.7
2012			3.6		3.3		3.3		3.3		3.3		3.4		3.3		3.4
2013					0.4		0.9		0.9		0.9		0.9		0.9		0.9
2014							1.1		3.3		4.0		4.0		4.1		4.1
2015									0.2		0.1		0.2		0.3		0.3
2016											1.3		1.6		2.2		2.2
2017													0.3		0.1		—
2018																	0.7
2019																	0.7
															Total		$	14.0
Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance																	0.6
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																	$	52.7



	As of December 31, 2019
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	3.6		0.2		129
2013	0.9		—		50
2014	4.7		0.6		50
2015	1.2		0.9		24
2016	6.2		1.0		57
2017	7.6		7.6		96
2018	17.4		15.3		114
2019	22.8		22.1		122


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
2011	$	126.1	$	104.7	$	106.7	$	104.6	$	103.9	$	103.7	$	131.7	$	138.3	$	140.5
2012			47.1		51.3		50.3		51.6		46.4		62.7		66.9		69.3
2013					31.9		33.3		32.8		31.1		32.7		32.1		31.6
2014							26.5		26.5		24.2		35.3		38.1		39.9
2015									27.1		23.4		159.5		155.1		150.2
2016											43.5		48.5		41.1		58.4
2017													157.7		158.0		165.1
2018															68.0		82.7
2019																	61.2
															Total		$	798.9

	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 ⁽¹⁾		2019
2011	$	41.6	$	67.0	$	87.8	$	95.3	$	97.4	$	98.6	$	126.8	$	133.6	$	137.4
2012			12.4		31.1		40.5		49.6		44.0		58.7		64.6		68.1
2013					4.1		16.5		26.3		28.7		30.7		30.8		30.8
2014							2.8		12.6		18.3		36.4		37.0		39.5
2015									4.2		11.0		135.4		142.5		145.9
2016											13.5		27.1		31.1		51.6
2017													84.2		139.6		164.0
2018															24.6		71.5
2019																	8.1
															Total		$	716.9
Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance																	3.7
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																	$	85.7



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims			Cumulative Number of Reported Claims ⁽²⁾
2011	$	140.5	$	0.3		460
2012	69.3		—			278
2013	31.6		0.2			222
2014	39.9		0.1			221
2015	150.2		1.3			220
2016	58.4		4.9			384
2017	165.1		(14.5		)	813
2018	82.7		(11.6		)	645
2019	61.2		43.0			133


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
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		—		0.6
2013					8.5		8.5		8.5		8.5		4.9		2.2		5.3
2014							9.8		9.8		9.8		6.2		1.5		2.3
2015									11.3		14.3		24.8		35.4		45.4
2016											13.9		14.0		14.0		6.6
2017													17.1		17.3		26.9
2018															8.9		32.0
2019																	13.3
															Total		$	132.4

	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 ⁽¹⁾		2019
2011	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2012			—		—		—		—		—		—		—		—
2013					—		—		—		—		2.3		2.3		2.3
2014							—		—		0.1		0.1		1.2		1.2
2015									—		—		16.1		20.3		26.6
2016											—		—		—		0.1
2017													—		3.3		3.4
2018															—		13.8
2019																	—
															Total		$	47.4
Outstanding liabilities for unpaid losses and ALAE prior to 2011, net of reinsurance																	—
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																	$	85.0



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims ⁽²⁾
2011	$	—	$	—	1,425
2012	0.6		0.6		1,385
2013	5.3		1.9		1,194
2014	2.3		0.3		1,338
2015	45.4		6.7		1,583
2016	6.6		6.5		1,907
2017	26.9		4.6		2,035
2018	32.0		13.7		982
2019	13.3		13.3		907


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
2010	$	5.8	$	4.9	$	4.5	$	6.2	$	6.0	$	5.9	$	5.8	$	5.9	$	5.8	$	6.2
2011			8.2		8.7		11.0		11.1		10.4		10.2		10.7		10.9		11.5
2012					8.6		10.7		14.9		14.2		13.8		14.5		15.0		15.6
2013							22.6		26.7		26.2		24.3		24.2		25.0		26.4
2014									36.9		35.9		33.3		32.2		33.5		35.6
2015											34.1		29.1		28.8		29.1		32.9
2016													25.2		26.2		25.8		28.3
2017															24.4		23.2		26.7
2018																	21.4		19.9
2019																			16.5
																	Total		$	219.6

	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 ⁽¹⁾		2019
2010	$	—	$	0.2	$	0.6	$	1.1	$	2.0	$	2.8	$	3.8	$	4.1	$	4.4	$	5.1
2011			0.2		0.8		1.7		3.4		5.5		7.0		7.9		8.8		9.8
2012					0.4		1.2		2.5		5.7		8.2		10.0		11.8		12.8
2013							1.5		3.2		7.0		11.3		15.6		19.7		22.5
2014									1.9		4.5		9.8		13.6		20.1		24.6
2015											0.8		5.1		7.3		12.2		17.5
2016													1.8		5.7		10.5		15.1
2017															1.9		6.6		11.0
2018																	2.3		6.6
2019																			1.3
																	Total		$	126.3
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	93.3



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims
2010	$	6.2	$	0.1
2011	11.5		0.5
2012	15.6		0.6
2013	26.4		1.5
2014	35.6		3.7
2015	32.9		6.5
2016	28.3		7.1
2017	26.7		11.9
2018	19.9		12.0
2019	16.5		13.6


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
2010	$	15.6	$	12.8	$	12.7	$	11.2	$	10.1	$	9.4	$	9.5	$	9.5	$	9.8	$	10.0
2011			19.1		21.0		18.5		15.5		14.6		14.7		15.1		15.7		16.2
2012					13.5		13.5		13.7		13.6		13.7		14.6		15.1		16.0
2013							21.9		21.8		21.9		21.5		21.7		22.5		23.9
2014									33.8		35.0		35.1		38.1		40.0		41.9
2015											36.8		36.1		37.3		37.4		40.8
2016													31.8		26.0		25.5		30.9
2017															23.6		21.1		24.4
2018																	20.1		17.0
2019																			22.4
																	Total		$	243.5

	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 ⁽¹⁾		2019
2010	$	0.1	$	1.0	$	2.0	$	3.0	$	3.8	$	5.1	$	6.5	$	6.8	$	7.7	$	7.9
2011			1.0		2.5		4.2		6.6		8.3		10.6		11.4		12.8		13.5
2012					0.6		1.8		4.3		5.8		8.2		9.5		11.2		12.5
2013							1.7		3.7		7.1		11.6		15.4		17.7		20.1
2014									1.6		6.3		14.6		23.6		27.8		32.3
2015											2.2		8.3		14.8		19.6		24.9
2016													2.1		5.8		10.6		17.2
2017															1.2		5.0		9.6
2018																	1.0		4.8
2019																			2.5
																	Total		$	145.3
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	98.2



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims
2010	$	10.0	$	0.2
2011	16.2		0.7
2012	16.0		0.8
2013	23.9		2.1
2014	41.9		4.9
2015	40.8		8.6
2016	30.9		8.0
2017	24.4		11.3
2018	17.0		10.6
2019	22.4		18.6


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
2010	$	50.7	$	58.2	$	54.8	$	54.3	$	51.6	$	51.3	$	50.8	$	51.5	$	51.2	$	51.1
2011			108.5		113.8		108.0		95.2		93.3		92.7		92.8		92.2		91.9
2012					88.9		88.7		93.0		92.1		91.0		90.9		90.1		89.6
2013							83.4		79.3		78.3		76.9		76.7		75.7		74.6
2014									69.8		64.2		65.7		66.3		65.6		63.6
2015											55.9		66.3		73.6		74.2		72.9
2016													70.6		86.4		91.6		90.7
2017															84.9		91.4		96.1
2018																	62.2		61.9
2019																			42.8
																	Total		$	735.2

	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 ⁽¹⁾		2019
2010	$	1.8	$	19.6	$	28.1	$	33.9	$	35.9	$	40.1	$	41.6	$	42.7	$	43.4	$	43.4
2011			23.5		47.3		62.0		73.8		79.6		81.3		82.9		82.6		82.0
2012					29.6		47.8		63.0		74.1		76.4		77.6		77.8		77.7
2013							44.5		56.8		69.3		73.5		74.3		73.5		72.5
2014									29.5		51.5		57.6		60.1		60.0		58.0
2015											22.9		42.8		52.7		59.1		58.6
2016													38.9		63.9		78.6		80.0
2017															29.3		62.4		71.5
2018																	30.2		53.1
2019																			20.5
																	Total		$	617.3
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	117.9



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims
2010	$	51.1	$	—
2011	91.9		—
2012	89.6		—
2013	74.6		—
2014	63.6		—
2015	72.9		—
2016	90.7		—
2017	96.1		3.0
2018	61.9		6.2
2019	42.8		21.4


⁽¹⁾	Information presented for calendar years prior to 2019 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 ⁽¹⁾		2019
2010	$	12.9	$	15.8	$	13.6	$	13.1	$	12.1	$	12.1	$	12.1	$	12.1	$	12.0	$	12.0
2011			38.5		40.2		38.9		34.2		33.3		33.4		33.2		32.9		32.8
2012					52.6		56.4		60.8		59.3		59.1		58.9		58.3		58.0
2013							75.8		81.3		82.7		82.3		82.0		81.7		80.7
2014									92.1		98.6		99.9		101.4		100.8		99.1
2015											89.7		87.8		93.8		95.3		95.0
2016													85.5		83.9		87.2		89.5
2017															79.6		76.0		85.9
2018																	64.7		69.8
2019																			77.5
																	Total		$	700.3

	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 ⁽¹⁾		2019
2010	$	1.9	$	8.6	$	8.9	$	9.3	$	9.0	$	9.7	$	10.0	$	10.1	$	10.2	$	10.3
2011			11.5		19.6		23.7		27.2		28.6		29.2		29.6		29.5		29.3
2012					17.9		27.5		39.0		45.8		48.8		49.9		50.2		50.2
2013							31.0		52.5		68.9		76.3		78.3		78.6		78.3
2014									37.8		71.5		82.7		89.0		90.4		89.4
2015											31.0		54.0		66.0		73.9		75.5
2016													37.2		58.6		68.3		75.2
2017															19.8		42.2		57.1
2018																	18.7		49.3
2019																			29.6
																	Total		$	544.2
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	156.1



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims
2010	$	12.0	$	—
2011	32.8		—
2012	58.0		—
2013	80.7		—
2014	99.1		—
2015	95.0		—
2016	89.5		2.2
2017	85.9		7.1
2018	69.8		17.5
2019	77.5		44.7


⁽¹⁾	Information presented for calendar years prior to 2019 is required supplementary information and is unaudited



Reporting Segment: International Operations Operating Division: Europe Line of Business: Professional (in millions, except number of claims reported)

Accident Year
	2012 ⁽¹⁾		2013 ⁽¹⁾		2014 ⁽¹⁾		2015 ⁽¹⁾		2016 ⁽¹⁾		2017 ⁽¹⁾		2018 ⁽¹⁾		2019
2012	$	0.1	$	0.1	$	—	$	0.1	$	0.1	$	0.1	$	0.2	$	0.1
2013			0.8		0.7		0.5		0.4		0.5		0.6		0.4
2014					0.7		0.6		0.5		0.7		0.7		6.7
2015							2.6		2.1		2.9		18.4		21.1
2016									0.9		1.1		1.1		0.8
2017											5.6		6.1		13.5
2018													45.5		56.6
2019															71.7
													Total		$	170.9


Accident Year
	2012 ⁽¹⁾		2013 ⁽¹⁾		2014 ⁽¹⁾		2015 ⁽¹⁾		2016 ⁽¹⁾		2017 ⁽¹⁾		2018 ⁽¹⁾		2019
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	0.1	$	—
2013			—		—		0.5		0.4		0.5		0.5		0.2
2014					—		—		—		0.1		0.1		0.1
2015							—		—		—		0.1		2.3
2016									—		—		0.3		0.1
2017											1.0		2.0		6.8
2018													9.8		17.2
2019															1.2
													Total		$	27.9
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance															—
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance															$	143.0



	As of December 31, 2019
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims			Cumulative Number of Reported Claims ⁽²⁾
2012	$	0.1	$	0.1		3
2013	0.4		0.2			22
2014	6.7		6.6			19
2015	21.1		18.8			36
2016	0.8		0.7			63
2017	13.5		(10.4		)	91
2018	56.6		7.6			143
2019	71.7		69.3			101


⁽¹⁾	Information presented for calendar years prior to 2019 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.

Syndicate 1200 Claim Frequency Information

Cumulative claim frequency information has been excluded from the Syndicate 1200 Liability, Professional, Property and Specialty incurred and paid claims development tables above due to the impracticality of obtaining such information at the level required for meaningful disaggregated disclosure.

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 consistent with market practices for insurance business sourced through open market channels. For claims reported on a bordereau for business sourced through channels such as Lloyd’s authorized coverholders, which constitutes approximately half of the business written in Syndicate 1200, the number of reported claims is measured by bordereau report at a coverage level. This method of tracking and analyzing bordereau-reported claims is consistent with common industry practice within the Lloyd’s market. The information for both bordereau and non-bordereau claims may be pooled dependent on the class of business and analyzed in the aggregate to determine the ultimate cost of settling the claims by line of business and Lloyd’s year of account. Due to our methodology of establishing ultimate liabilities for Syndicate 1200 claims, there is not a reasonable way to disaggregate the IBNR reserves and expected development on reported claims between bordereau and non-bordereau business for separate disclosure.

The reconciliation of the net incurred and paid development tables to the liability for unpaid losses and LAE in our consolidated balance sheets is as follows:



(in millions)	As of December 31, 2019
Liabilities for unpaid losses and ALAE:
US Operations:
Excess and Surplus Lines - Liability	$	913.0
Commercial Specialty - Liability	467.5
Commercial Specialty - Professional	216.9
Commercial Specialty - Specialty	52.7
International Operations:
Reinsurance - Property	85.7
Argo Insurance Bermuda- Liability	85.0
Syndicate 1200 - Liability	93.3
Syndicate 1200 - Professional	98.2
Syndicate 1200 - Property	117.9
Syndicate 1200 - Specialty	156.1
Europe - Professional	143.0
Run-off Lines	173.3
Other lines	75.7
Total liabilities for unpaid losses and ALAE, net of reinsurance	2,678.3

Reinsurance recoverables on unpaid losses and LAE:
US Operations:
Excess and Surplus Lines - Liability	385.5
Commercial Specialty - Liability	332.2
Commercial Specialty - Professional	175.1
Commercial Specialty - Specialty	29.0
International Operations:
Reinsurance - Property	418.2
Argo Insurance Bermuda- Liability	175.4
Syndicate 1200 - Liability	58.3
Syndicate 1200 - Professional	79.9
Syndicate 1200 - Property	117.0
Syndicate 1200 - Specialty	112.0
Europe - Professional	7.8
Run-off Lines	85.1
Other lines	459.4
Total reinsurance recoverables on unpaid losses and LAE	2,434.9

Unallocated loss adjustment expenses	62.3
Unamortized reserve discount	(17.9		)
Gross liability for unpaid losses and LAE	$	5,157.6

Other lines in the table above is comprised of lines of business and operating divisions within our two ongoing reporting segments which are not individually significant for separate disaggregated disclosure.

Claims Duration

The following table provides supplementary unaudited information about the annual percentage payout of incurred losses and ALAE, net of reinsurance, as of December 31, 2019:



	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	7.6%	16.8%	20.5%	18.6%	12.6%	8.3%	5.3%	3.4%	2.2%
Specialty Admitted - Liability	14.1%	21.3%	18.4%	16.4%	9.3%	6.3%	4.2%	2.8%	1.9%
Specialty Admitted- Professional	7.7%	25.2%	26.3%	16.9%	10.3%	5.8%	3.2%	1.8%	1.1%
Specialty Admitted - Specialty	35.8%	32.5%	17.6%	7.3%	3.5%	1.7%	0.8%	0.4%	0.2%
International Operations:
Reinsurance - Property	22.5%	22.7%	29.4%	14.2%	4.4%	2.3%	1.3%	0.8%	0.6%
Argo Insurance Bermuda - Liability	3.7%	16.8%	17.4%	15.7%	14.1%	7.7%	7.0%	2.0%	5.5%
Europe Professional	4.6%	10.7%	14.5%	15.5%	11.8%	9.8%	8.7%	N/A	N/A
Syndicate 1200 - Liability	3.7%	7.8%	9.5%	12.3%	14.7%	11.7%	10.6%	8.4%	6.4%
Syndicate 1200 - Professional	4.6%	10.7%	14.5%	15.5%	11.8%	9.8%	8.7%	6.7%	5.0%
Syndicate 1200 - Property	41.5%	29.6%	15.7%	8.4%	2.4%	1.2%	0.6%	0.3%	0.2%
Syndicate 1200 - Specialty	37.2%	30.9%	16.6%	9.4%	3.4%	1.4%	0.6%	0.2%	0.1%

⁽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.

Information About Amounts Reported at Present Value

We discount certain workers compensation liabilities for unpaid losses and LAE within our U.S. Operations and Run-off Lines segments. The discounted U.S. Operations liabilities relate to all non-ALAE workers compensation liabilities within one of our insurance subsidiaries. In Run-off Lines, we discount certain pension-type 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)	2019		2018		2017		2019		2018		2017
U.S. Operations:
Specialty Admitted - Liability	$	153.1	$	140.8	$	126.7	$	13.0	$	11.9	$	10.6
Run-off Lines	148.9		163.1		175.5		4.9		5.0		7.0
Total	$	302.0	$	303.9	$	302.2	$	17.9	$	16.9	$	17.6



	Interest Accretion⁽¹⁾						Discount Rate
	For the Years Ended December 31,						As of December 31,
	2019		2018		2017		2019	2018	2017
U.S. Operations:
Specialty Admitted - Liability	$	1.3	$	1.3	$	1.9	2.25%	2.25%	2.25%
Run-off Lines	0.2		2.1		2.1		3.50%	3.50%	3.50%
Total	$	1.5	$	3.4	$	4.0

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