Reserves for Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2021

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 Nine Months Ended September 30,
(in millions)	2021		2020
Net reserves beginning of the year	$	2,906.1	$	2,722.7
Net AIL reserves acquired	—		27.9
Add:
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year	884.9		876.9
Prior accident years	6.0		6.1
Losses and LAE incurred during calendar year, net of reinsurance	890.9		883.0
Deduct:
Net reserve ceded - reinsurance to close transaction for years of account 2017 and prior (1)	219.7		—
Losses and LAE payments made during current calendar year, net of reinsurance:
Current accident year	100.5		188.2
Prior accident years	552.8		632.7
Losses and LAE payments made during current calendar year, net of reinsurance:	653.3		820.9
Change in participation interest (2)	12.5		33.0
Foreign exchange adjustments	(7.3)		23.0
Net reserves - end of period	2,929.2		2,868.7
Add:
Reinsurance recoverables on unpaid losses and LAE, end of period	2,510.3		2,521.3
Gross reserves - end of period	$	5,439.5	$	5,390.0

(1)Amount represents reserves ceded under the reinsurance to close transaction with RiverStone for Lloyd’s years of account 2017 and prior, effective January 1, 2020.

(2)Amount represents the change in reserves due to changing our participation in Syndicates 1200 and 1910.

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’ loss and LAE reserves on each reporting segment is presented below: 

	For the Nine Months Ended September 30,
(in millions)	2021		2020
U.S. Operations	$	(0.7)	$	(0.5)
International Operations	0.1		(4.5)
Run-off Lines	6.6		11.1
Total (favorable) unfavorable prior-year development	$	6.0	$	6.1