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Run-off Lines
 12 Months Ended
Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Run-off Lines Run-off Lines
We have discontinued active underwriting of certain lines of business, including those lines that were previously recorded in Argo Group’s risk-management segment. All current activity within these lines is related to the management of claims and other administrative functions. Also included in Run-off Lines are other liability reserves, which include exposure to claims for asbestos and environmental liabilities written in past years. The other liability reserves are often characterized by long elapsed periods between the occurrence of a claim and ultimate payment to resolve the claim. We use a specialized staff dedicated to administer and settle these claims.
The following table presents our gross reserves for Run-off Lines as of December 31:
 
December 31,
(in millions)
2019
 
2018
Asbestos and Environmental:
 
 
 
Reinsurance assumed
$
26.7

 
$
27.7

Other
25.9

 
27.1

Total Asbestos and Environmental
52.6

 
54.8

Risk-management
188.1

 
197.0

Run-off reinsurance lines
0.5

 
1.6

Other run-off lines
12.3

 
12.2

Gross reserves - Run-off Lines
$
253.5

 
$
265.6



We have received asbestos and environmental liability claims arising from other liability coverage primarily written in the 1960s, 1970s and into the early 1980s. Asbestos and environmental claims originate from policies directly underwritten by us and from reinsurance assumed during this period, including a portion assumed from the London market. The following table represents the total gross reserves for our asbestos exposure:
 
December 31,
(in millions)
2019
 
2018
 
2017
Direct written
 
 
 
 
 
Case reserves
$
2.7

 
$
2.7

 
$
2.1

Unallocated loss adjustment expense ("ULAE")
0.5

 
0.5

 
0.5

Incurred but not reported ("IBNR")
16.1

 
19.1

 
18.8

Total direct written reserves
19.3

 
22.3

 
21.4

Assumed domestic
 
 
 
 
 
Case reserves
9.1

 
8.7

 
9.8

ULAE
0.8

 
0.8

 
0.8

IBNR
11.2

 
12.0

 
13.7

Total assumed domestic reserves
21.1

 
21.5

 
24.3

Assumed London
 
 
 
 
 
Case reserves
1.3

 
1.5

 
2.3

ULAE
—

 
—

 
—

IBNR
1.1

 
1.5

 
0.6

Total assumed London reserves
2.4

 
3.0

 
2.9

Total asbestos reserves
$
42.8

 
$
46.8

 
$
48.6


 
The following table presents our underwriting losses for Run-off Lines: 
 
For the Years Ended December 31,
(in millions)
2019
 
2018
 
2017
Asbestos and Environmental:
 
 
 
 
 
Reinsurance assumed
$
(4.4
)
 
$
(3.9
)
 
$
(8.7
)
Other
(3.8
)
 
(4.1
)
 
(6.7
)
Total Asbestos and Environmental
(8.3
)
 
(8.0
)
 
(15.4
)
Risk-management
(4.9
)
 
(2.6
)
 
(8.8
)
Run-off reinsurance lines
0.7

 
—

 
(0.1
)
Other run-off lines
(1.7
)
 
(5.3
)
 
(1.4
)
Total underwriting loss - Run-off Lines
$
(14.2
)
 
$
(15.9
)
 
$
(25.7
)


Reserves for asbestos and environmental claims cannot be estimated with traditional loss reserving techniques that rely on historical accident year loss development factors. The uncertainty in the asbestos and environmental reserves estimates arises from several factors including lack of actuarially credible historical data, inapplicability of standard actuarial projection techniques, uncertainty with regards to claim costs, coverage interpretations and judicial, statutory and regulatory provisions under which the claims may be ultimately resolved. It is impossible to predict how the courts will interpret coverage issues and these resolutions may have a material impact on the ultimate resolution of the asbestos and environmental liabilities. We use a variety of estimation methods to calculate reserves as a whole; however, reserves for asbestos and environmental claims were determined using a variety of methods which rely on historical claim reporting and average claim cost information. We apply greatest weight to the method that projects future calendar period claims and average claim costs because it best captures the unique claim characteristics of our underlying exposures. Although management has recorded its best estimate of loss reserves, due to the uncertainties of estimation of liability that may arise as discussed herein, further deterioration of claims could occur in the future.
Please see Note 5, “Reserves for Losses and Loss Adjustment Expenses” for further discussion.