Reserves for Losses and Loss Adjustment Expenses

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Reserves for Losses and Loss Adjustment Expenses

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)	2021		2020		2019
Net reserves beginning of the year	$	2,906.1	$	2,722.7	$	2,562.9
Net AIL reserves acquired	—		27.9		—
Add:
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year	1,176.3		1,201.1		1,082.6
Prior accident years	138.3		7.7		138.1
Losses and LAE incurred during calendar year, net of reinsurance	1,314.6		1,208.8		1,220.7
Deduct:
Losses and LAE payments made during current calendar year, net of reinsurance:
Current accident year	180.8		253.4		224.3
Prior accident years	688.4		866.4		806.0
Losses and LAE payments made during current calendar year, net of reinsurance:	869.2		1,119.8		1,030.3
Net reserve ceded - reinsurance to close transaction for years of account 2017 and prior (1)	219.7		—		—
Change in participation interest (2)	8.4		32.8		(14.4)
Foreign exchange adjustments	(17.0)		33.7		(16.2)
Net reserves - end of period	3,123.2		2,906.1		2,722.7
Add:
Reinsurance recoverables on unpaid losses and LAE, end of period	2,471.8		2,499.9		2,434.9
Gross reserves - end of period	$	5,595.0	$	5,406.0	$	5,157.6

(1) Amount represents a decrease in reserves due to an RITC to RiverStone, see Note 2, recent acquisitions, disposals & other transactions.

(2) 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.

Underwriting results for the year ended December 31, 2021 included net losses and loss adjustment expenses attributed to the COVID-19 pandemic of $12.4 million, primarily resulting from contingency and property exposures in the Company’s International Operations. Property losses relate to sub-limited affirmative business interruption coverage, primarily in certain International markets, as well as expected costs associated with claims handling.

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)	2021		2020		2019
U.S. Operations	$	120.9	$	2.4	$	15.7
International Operations	(26.9)		(6.2)		110.4
Run-off Lines	44.3		11.5		12.0
Total (favorable) unfavorable prior-year development	$	138.3	$	7.7	$	138.1

The following describes the primary factors behind each segment’s prior accident year reserve development for the years ended December 31, 2021, 2020 and 2019:

Year ended December 31, 2021:

•U.S. Operations: Net unfavorable development in liability and professional lines, partially offset by favorable development in specialty. The liability lines and professional lines prior-year development was largely due to movements in the fourth quarter

of 2021. The liability lines movement was largely due to actual incurred loss movements greater than the expected movements in business units with significant exposure to claims alleging construction defect ($112.1 million of prior year development), driven by accident years 2017 and prior. The professional lines movement was driven by evaluations of individual management liability claims. The professional lines prior-year development of $33.0 million was driven by accident years 2018 and prior.

•International Operations: Net favorable development primarily related to favorable development in liability and property lines, partially offset by unfavorable development in Argo Insurance Bermuda. The unfavorable movement in Argo Insurance Bermuda was driven by liability and professional losses.

•Run-off Lines: Net unfavorable loss reserve development in run-off liability lines, including asbestos and environmental lines, and risk management workers compensation. The movement on liability exposures excluding asbestos and environmental was due to analysis of individual claims. The exposures driving the change were largely the result of claims alleging abuse. A large portion of the change was due to defense costs. The movement on asbestos and environmental lines was due to higher than expected loss activity and movements on large claims alleging environmental losses.

Year ended December 31, 2020:

•U.S. Operations: Net unfavorable development in liability and professional lines, partially offset by favorable development in specialty and property.

•International Operations: Net favorable development primarily related to favorable development in Reinsurance, partially offset by unfavorable development in Bermuda Insurance. The favorable development in Reinsurance was due to experience on catastrophe losses from recent years and decreases on claims from older accident years. The unfavorable movement in Bermuda Insurance was driven by professional and liability losses.

•Run-off Lines: Net unfavorable loss reserve development in asbestos and environmental lines and other run-off lines, partially offset by favorable loss reserve development on prior accident years in risk management workers compensation.

Year ended December 31, 2019:

•U.S. Operations: Net 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: Net 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 coverholders 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 coverholders, 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 coverholders.

•Run-off Lines: Net 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.

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 reasonable assumptions 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.

The spread of COVID-19 and related economic shutdown has increased the uncertainty that is always present in our estimate of the ultimate cost of loss and settlement expense. Actuarial models base future emergence on historic experience, with adjustments for current trends, and the appropriateness of these assumptions involved more uncertainty as of December 31, 2021. We expect there will be impacts to the timing of loss emergence and ultimate loss ratios for certain coverages we underwrite. The industry is experiencing new issues, including the temporary suspension of civil court cases in most states, the extension of certain statutes of limitations and the impact on our insureds from a significant reduction in economic activity. Our booked reserves include consideration of these factors, but legislative, regulatory or judicial actions could result in loss reserve deficiencies and reduce earnings in future periods.

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, with International Operations further disaggregated by operating divisions. 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 19, “Segment Information,” for additional information regarding our two ongoing reporting segments.

Operating Divisions

Our U.S. Operations reporting segment is comprised of one primary operating division (see Note 19, “Segment Information” for additional information on U.S Operations). International Operations’ primary operating divisions are Argo Insurance Bermuda and Syndicate 1200. Each of these operating divisions are further described below.

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.

Syndicate 1200

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

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

U.S Operations

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

•Professional: management liability, transaction liability and errors and omissions liability

•Property: primary and excess property, inland marine and auto physical damage

•Specialty: surety, animal mortality and ocean marine

Argo Insurance Bermuda

•Liability: directors and officers liability, errors and omissions liability and employment practices liability

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

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 8, “Run-off Lines,” for further information on this segment, including discussion of prior accidents years’ development.

Foreign Currency

Portions of the business we write in the Syndicate 1200 and Argo Bermuda Insurance is denominated in foreign currencies. We used the December 31, 2021 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.

Lloyd’s Reinsurance to Close Process

Syndicate 1200 and Syndicate 1910 are subject to the reinsurance to close process at Lloyd’s where a year of account stays open for three years and is then reinsured into the next year of account. As a result, our economic participation on the years reinsured into the next year of account can change, perhaps significantly. We recast the incurred and paid claims information for all periods presented in the following claims development tables in order to eliminate the effects of the changes in economic participation. In addition, the assets and liabilities for the 2017 and prior years of account for Syndicate 1200 were transferred to Riverstone as part of the reinsurance to close transaction effective on January 1, 2021. As a result, losses from the 2017 and prior years of account are no longer included in the Syndicate 1200 triangles.

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.

Given the long-tail nature of some of our claims, judgement used in selecting actuarial assumptions and weighing the indications of the various actuarial methods in developing our ultimate loss selection may have a material impact on our reserves. Construction defect and professional liability claims are two examples where determining the ultimate claims liability can be complex and challenging. Claims on these lines are subject to greater inherent variability than is typical of the remainder of the Company’s reserves, and are highly dependent upon court settlements, economic conditions, and the predictability of those results inherently have a larger range of potential outcomes.

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, 2021.

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, 2021.

Reporting Segment: U.S. Operations 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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	329.9	$	342.3	$	339.3	$	336.9	$	335.9	$	329.7	$	328.9	$	327.2	$	328.2	$	329.3
2013			344.5		355.8		361.0		360.4		351.5		346.6		343.1		344.8		357.3
2014					328.6		337.1		330.0		326.3		323.9		321.9		327.4		341.3
2015							339.8		343.8		330.3		328.7		328.0		335.4		347.9
2016									342.6		350.5		342.4		353.0		355.3		379.0
2017											374.8		373.7		384.3		397.7		431.7
2018													426.1		430.4		414.5		420.4
2019															421.1		423.7		427.1
2020																	404.2		386.7
2021																			416.5
																	Total		$	3,837.2
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	37.3	$	103.8	$	169.8	$	226.6	$	263.2	$	285.3	$	295.4	$	305.3	$	313.2	$	315.7
2013			36.5		109.7		174.3		228.8		266.5		289.3		306.9		318.2		325.4
2014					32.4		91.0		154.6		206.9		240.6		266.3		283.2		291.4
2015							33.7		86.9		140.2		195.6		236.4		263.9		289.3
2016									28.5		84.5		144.1		217.1		255.6		293.8
2017											27.8		83.0		158.8		238.5		295.2
2018													34.3		98.9		175.8		245.5
2019															32.4		113.6		186.1
2020																	25.6		85.9
2021																			27.6
																	Total		$	2,355.9
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			59.4
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	1,540.7

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2012	$	329.3	$	35.6	27,587
2013	357.3		48.4		27,258
2014	341.3		56.3		23,473
2015	347.9		54.2		21,729
2016	379.0		60.7		18,693
2017	431.7		102.3		20,868
2018	420.4		117.0		23,150
2019	427.1		181.8		22,270
2020	386.7		261.2		17,001
2021	416.5		366.6		11,344

(1)Information presented for calendar years prior to 2021 is required supplementary information and is unaudited.

(2)During 2021, the Company revised the manner in which it measures reported claims. 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. During 2021, we implemented additional processes to consolidate multiple data sources for U.S. Operations reserving. As part of that process, the level of detail used to determine the number of reported claims for some of the business units in US Operations changed. As a result, the cumulative number of reported claims for each accident year presented above as of December 31, 2021 is not comparable to the cumulative number of reported claims disclosed in previously issued financial statements.

Reporting Segment: U.S. Operations 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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	27.8	$	28.3	$	28.6	$	25.8	$	24.0	$	24.5	$	24.9	$	24.7	$	24.4	$	24.3
2013			20.9		21.5		21.1		19.0		19.8		19.5		18.3		18.1		18.0
2014					22.4		22.4		26.0		33.7		36.2		35.4		35.1		34.4
2015							29.9		29.5		33.2		34.0		37.1		37.9		38.3
2016									44.2		44.8		45.1		42.9		35.5		43.0
2017											60.1		61.8		78.3		87.9		99.5
2018													70.8		73.2		79.2		94.8
2019															94.4		96.8		105.0
2020																	152.6		142.6
2021																			177.9
																	Total		777.8
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	2.3	$	8.6	$	16.9	$	19.9	$	21.4	$	22.6	$	23.5	$	24.2	$	24.0	$	24.3
2013			1.9		6.3		10.9		14.2		17.6		17.5		17.9		17.9		17.9
2014					2.3		5.4		15.1		24.1		25.5		32.3		33.3		33.6
2015							1.8		8.3		15.6		20.8		26.2		31.3		31.7
2016									2.4		11.9		24.6		28.9		30.8		34.4
2017											3.5		24.9		38.0		59.7		77.9
2018													4.5		16.7		43.8		62.6
2019															4.9		32.9		50.0
2020																	13.3		36.4
2021																			12.1
																	Total		$	380.9
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			14.4
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	411.3

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2012	$	24.3	$	0.1	642
2013	18.0		0.1		625
2014	34.4		0.1		1,044
2015	38.3		2.2		1,831
2016	43.0		(0.1)		3,256
2017	99.5		4.2		3,759
2018	94.8		(0.5)		4,303
2019	105.0		22.5		5,091
2020	142.6		78.7		5,389
2021	177.9		149.2		5,208

(1)Information presented for calendar years prior to 2021 is required supplementary information and is unaudited.

(2)During 2021, the Company revised the manner in which it measures reported claims. 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. During 2021, we implemented additional processes to consolidate multiple data sources for U.S. Operations reserving. As part of that process, the level of detail used to determine the number of reported claims for some of the business units in US Operations changed. As a result, the cumulative number of reported claims for each accident year presented above as of December 31, 2021 is not comparable to the cumulative number of reported claims disclosed in previously issued financial statements.

Reporting Segment: U.S. Operations 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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	103.8	$	101.8	$	98.7	$	98.8	$	98.5	$	98.7	$	98.7	$	98.6	$	98.6	$	97.4
2013			74.5		79.9		78.7		78.2		77.8		78.2		78.4		78.2		77.2
2014					80.4		82.2		77.0		77.1		76.9		76.9		76.1		76.0
2015							74.0		73.4		69.9		68.9		69.1		69.2		69.2
2016									59.4		57.6		57.1		56.6		56.6		56.5
2017											75.2		79.6		86.9		94.9		94.5
2018													89.2		93.1		95.1		96.9
2019															91.4		88.8		98.4
2020																	129.5		133.2
2021																			111.7
																	Total		$	911.0
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	70.1	$	97.2	$	98.0	$	98.2	$	98.4	$	98.4	$	98.7	$	98.6	$	98.6	$	97.4
2013			52.5		73.2		75.5		77.4		77.1		75.9		78.1		78.2		77.2
2014					51.6		73.1		75.7		76.4		76.3		76.4		76.1		76.0
2015							44.6		67.6		68.6		67.9		68.3		68.5		69.0
2016									39.4		55.2		55.8		56.1		56.4		56.3
2017											54.4		95.3		113.9		100.8		88.4
2018													61.3		126.7		107.0		98.8
2019															55.8		82.4		90.9
2020																	75.9		116.6
2021																			71.3
																	Total		841.9
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			(0.3)
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	68.8

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2012	$	97.4	$	6.3	15,005
2013	77.2		0.9		10,717
2014	76.0		0.5		8,559
2015	69.2		0.8		7,746
2016	56.5		2.0		7,999
2017	94.5		—		10,388
2018	96.9		(12.9)		11,145
2019	98.4		2.1		11,724
2020	133.2		(9.3)		11,504
2021	111.7		(0.6)		9,265

(1)Information presented for calendar years prior to 2021 is required supplementary information and is unaudited.

(2)During 2021, the Company revised the manner in which it measures reported claims. 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. During 2021, we implemented additional processes to consolidate multiple data sources for U.S. Operations reserving. As part of that process, the level of detail used to determine the number of reported claims for some of the business units in US Operations changed. As a result, the cumulative number of reported claims for each accident year presented above as of December 31, 2021 is not comparable to the cumulative number of reported claims disclosed in previously issued financial statements.

Reporting Segment: U.S. Operations 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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	7.5	$	6.7	$	4.9	$	4.3	$	4.0	$	3.9	$	3.5	$	3.6	$	3.3	$	3.3
2013			10.0		8.6		4.6		2.5		1.7		0.9		0.9		0.9		0.9
2014					13.1		13.1		8.9		6.0		4.8		4.6		4.6		4.1
2015							14.8		14.3		9.5		5.5		1.2		0.5		0.3
2016									15.0		15.0		11.2		6.2		4.7		3.3
2017											16.2		16.2		7.6		0.9		0.7
2018													20.9		17.4		3.3		3.5
2019															22.7		8.5		5.6
2020																	25.4		10.3
2021																			27.9
																	Total		$	59.9
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	3.6	$	3.3	$	3.3	$	3.3	$	3.3	$	3.4	$	3.3	$	3.4	$	3.4	$	3.4
2013			0.4		0.9		0.9		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		4.0		4.1
2015							0.2		0.1		0.2		0.3		0.3		0.3		0.3
2016									1.3		1.6		2.2		2.2		2.2		2.8
2017											0.3		0.1		—		0.1		0.2
2018													—		0.7		1.7		1.2
2019															0.7		0.7		3.2
2020																	0.3		7.6
2021																			0.3
																	Total		24.0
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			0.6
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	36.5

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2012	$	3.3	$	—	121
2013	0.9		0.1		47
2014	4.1		—		45
2015	0.3		—		24
2016	3.3		0.9		56
2017	0.7		1.0		106
2018	3.5		2.6		142
2019	5.6		0.6		233
2020	10.3		2.3		409
2021	27.9		26.5		427

(1)Information presented for calendar years prior to 2021 is required supplementary information and is unaudited.

(2)During 2021, the Company revised the manner in which it measures reported claims. 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. During 2021, we implemented additional processes to consolidate multiple data sources for U.S. Operations reserving. As part of that process, the level of detail used to determine the number of reported claims for some of the business units in US Operations changed. As a result, the cumulative number of reported claims for each accident year presented above as of December 31, 2021 is not comparable to the cumulative number of reported claims disclosed in previously issued financial statements.

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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	7.4	$	7.4	$	7.4	$	5.6	$	4.4	$	1.7	$	—	$	0.6	$	0.6	$	0.6
2013			8.5		8.5		8.5		8.5		4.9		2.2		5.3		5.3		6.0
2014					9.8		9.8		9.8		6.2		1.5		2.3		2.3		1.6
2015							11.3		14.3		24.8		35.4		45.4		45.1		51.3
2016									13.9		14.0		14.0		6.6		6.1		0.8
2017											17.1		17.3		26.9		30.3		37.3
2018													8.9		32.1		26.6		24.2
2019															13.3		13.6		13.8
2020																	23.3		24.9
2021																			12.3
																	Total		$	172.8
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		2.3		2.3		2.3		2.4		2.4
2014					—		—		0.1		0.1		1.2		1.2		1.4		1.4
2015							—		—		16.1		20.3		26.6		34.8		38.9
2016									—		—		—		0.1		0.1		0.2
2017											—		3.3		3.4		18.0		19.7
2018													—		13.8		18.3		18.5
2019															—		0.1		0.7
2020																	0.8		7.0
2021																			—
																	Total		$	88.8
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			—
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	84.0

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2012	$	0.6	$	0.5	1,392
2013	6.0		0.7		1,200
2014	1.6		(0.4)		1,350
2015	51.3		—		1,613
2016	0.8		0.5		1,943
2017	37.3		10.4		2,129
2018	24.2		5.2		1,110
2019	13.8		12.7		1,168
2020	24.9		16.6		1,267
2021	12.3		12.3		1,053

(1)Information presented for calendar years prior to 2021 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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		—		—		—		—		—
2014					—		—		—		—		—		—		—		—
2015							—		—		—		—		—		—		—
2016									—		—		—		—		—		—
2017											—		—		—		—		—
2018													17.8		19.6		19.5		19.9
2019															14.6		15.7		15.2
2020																	15.2		14.6
2021																			15.8
																	Total		$	65.5
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		—		—		—		—		—
2014					—		—		—		—		—		—		—		—
2015							—		—		—		—		—		—		—
2016									—		—		—		—		—		—
2017											—		—		—		—		—
2018													0.6		2.5		5.9		6.1
2019															1.4		4.6		5.2
2020																	1.1		1.5
2021																			0.2
																	Total		$	13.0
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			3.7
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	56.2

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims
2012	$	—	$	—
2013	—		—
2014	—		—
2015	—		—
2016	—		—
2017	—		—
2018	19.9		5.0
2019	15.2		5.3
2020	14.6		8.0
2021	15.8		12.7

(1)Information presented for calendar years prior to 2021 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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		—		—		—		—		—
2014					—		—		—		—		—		—		—		—
2015							—		—		—		—		—		—		—
2016									—		—		—		—		—		—
2017											—		—		—		—		—
2018													13.7		14.4		15.3		15.5
2019															19.5		20.9		20.2
2020																	25.0		25.0
2021																			24.9
																	Total		$	85.6
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		—		—		—		—		—
2014					—		—		—		—		—		—		—		—
2015							—		—		—		—		—		—		—
2016									—		—		—		—		—		—
2017											—		—		—		—		—
2018													0.1		1.8		4.5		4.6
2019															2.7		8.7		9.1
2020																	2.2		3.1
2021																			0.7
																	Total		$	17.5
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			10.5
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	78.6

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims
2012	$	—	$	—
2013	—		—
2014	—		—
2015	—		—
2016	—		—
2017	—		—
2018	15.5		4.6
2019	20.2		7.1
2020	25.0		12.0
2021	24.9		20.0

(1)Information presented for calendar years prior to 2021 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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		—		—		—		—		—
2014					—		—		—		—		—		—		—		—
2015							—		—		—		—		—		—		—
2016									—		—		—		—		—		—
2017											—		—		—		—		—
2018													19.7		21.8		21.7		22.1
2019															37.2		40.1		38.7
2020																	62.8		60.3
2021																			113.5
																	Total		$	234.6
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020(1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		—		—		—		—		—
2014					—		—		—		—		—		—		—		—
2015							—		—		—		—		—		—		—
2016									—		—		—		—		—		—
2017											—		—		—		—		—
2018													1.5		6.1		14.4		14.8
2019															9.5		31.9		36.0
2020																	20.0		29.1
2021																			15.6
																	Total		$	95.5
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			—
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	139.1

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims
2012	$	—	$	—
2013	—		—
2014	—		—
2015	—		—
2016	—		—
2017	—		—
2018	22.1		0.2
2019	38.7		1.2
2020	60.3		6.0
2021	113.5		68.1

(1)Information presented for calendar years prior to 2021 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,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		—		—		—		—		—
2014					—		—		—		—		—		—		—		—
2015							—		—		—		—		—		—		—
2016									—		—		—		—		—		—
2017											—		—		—		—		—
2018													43.8		53.8		55.0		53.0
2019															66.5		84.0		80.5
2020																	109.8		108.2
2021																			72.6
																	Total		$	314.3
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2012 (1)		2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013			—		—		—		—		—		—		—		—		—
2014					—		—		—		—		—		—		—		—
2015							—		—		—		—		—		—		—
2016									—		—		—		—		—		—
2017											—		—		—		—		—
2018													3.0		23.8		32.7		25.5
2019															31.3		65.8		65.8
2020																	27.7		42.9
2021																			9.7
																	Total		$	143.9
Outstanding liabilities for unpaid losses and ALAE prior to 2012, net of reinsurance																			—
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	170.4

	As of December 31, 2021
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims
2012	$	—	$	—
2013	—		—
2014	—		—
2015	—		—
2016	—		—
2017	—		—
2018	53.0		2.2
2019	80.5		5.1
2020	108.2		19.8
2021	72.6		37.8

(1)Information presented for calendar years prior to 2021 is required supplementary information and is unaudited.

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, 2021
Liabilities for unpaid losses and ALAE:
US Operations:
Liability	$	1,540.7
Professional	411.3
Property	68.8
Specialty	36.5
International Operations:
Argo Insurance Bermuda- Liability	84.0
Syndicate 1200 - Liability	56.2
Syndicate 1200 - Professional	78.6
Syndicate 1200 - Property	139.1
Syndicate 1200 - Specialty	170.4
Run-off Lines	183.4
Other lines	302.6
Total liabilities for unpaid losses and ALAE, net of reinsurance	3,071.6
Reinsurance recoverables on unpaid losses and LAE:
US Operations:
Liability	825.4
Professional	251.3
Property	206.9
Specialty	11.4
International Operations:
Argo Insurance Bermuda- Liability	207.6
Syndicate 1200 - Liability	30.8
Syndicate 1200 - Professional	74.6
Syndicate 1200 - Property	102.6
Syndicate 1200 - Specialty	103.3
Run-off Lines	82.5
Other lines	575.4
Total reinsurance recoverables on unpaid losses and LAE	2,471.8
Unallocated loss adjustment expenses	70.4
Unamortized reserve discount	(18.8)
Gross liability for unpaid losses and LAE	$	5,595.0

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, 2021:

	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	Year 10	Remainder
U.S. Operations:
US Liability	8.9%	17.6%	18.2%	18.3%	11.5%	8.3%	5.2%	3.6%	2.4%	1.7%	4.3%
US Professional	6.1%	19.1%	22.0%	18.6%	12.5%	8.9%	5.5%	3.2%	1.8%	1.0%	1.2%
US Property	58.4%	32.5%	5.7%	2.3%	0.7%	0.2%	0.1%	—%	—%	—%	—%
US Specialty	52.7%	22.8%	19.2%	3.4%	1.2%	0.4%	0.1%	0.1%	—%	—%	—%
International Operations:
Bermuda Insurance Liability	0.6%	14.2%	12.7%	13.2%	12.2%	10.5%	8.6%	6.8%	5.3%	4.0%	11.9%
S1200 Liability	6.3%	11.5%	13.4%	15.0%	16.0%	11.7%	6.9%	5.2%	3.7%	2.7%	7.6%
S1200 Professional	7.3%	12.5%	18.5%	17.6%	12.4%	8.7%	5.9%	4.5%	3.2%	2.3%	7.1%
S1200 Property	33.8%	39.2%	14.3%	8.4%	2.7%	0.8%	0.4%	0.2%	0.1%	—%	0.1%
S1200 Specialty	32.0%	36.4%	16.7%	9.2%	3.0%	1.5%	0.6%	0.3%	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)	2021		2020		2019		2021		2020		2019
US Operations:
Commercial Specialty - Liability	$	163.1	$	150.4	$	153.1	$	14.1	$	12.9	$	13.0
Run-off Lines	114.3		128.4		148.9		4.7		4.9		4.9
Total	$	277.4	$	278.8	$	302.0	$	18.8	$	17.8	$	17.9

	Interest Accretion (1)						Discount Rate
	For the Years Ended December 31,						As of December 31,
	2021		2020		2019		2021	2020	2019
US Operations:
Commercial Specialty - Liability	$	0.9	$	1.9	$	1.3	2.25%	2.25%	2.25%
Run-off Lines	0.2		—		0.2		3.50%	3.50%	3.50%
Total	$	1.1	$	1.9	$	1.5

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