Reserves for Losses and Loss Adjustment Expenses (Tables)

6 Months Ended

Jun. 30, 2022

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 Six Months Ended June 30,
(in millions)	2022		2021
Net reserves beginning of the year	$	3,123.2	$	2,906.1
Add:
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year	539.9		579.4
Prior accident years	19.7		(0.2)
Losses and LAE incurred during calendar year, net of reinsurance	559.6		579.2
Deduct:
Losses and LAE payments made during current calendar year, net of reinsurance:
Current accident year	52.2		59.7
Prior accident years	454.7		376.0
Losses and LAE payments made during current calendar year, net of reinsurance:	506.9		435.7
Divestitures (1)	(35.2)		—
Net reserves ceded:
Loss portfolio transfer (for years of account 2019 and 2018) (2)	(181.2)		—
Reinsurance to close transaction (for years of account 2017 and prior) (3)	—		(207.8)
Change in participation interest (4)	28.6		12.8
Foreign exchange adjustments	1.2		6.1
Net reserves - end of period	2,989.3		2,860.7
Add:
Reinsurance recoverables on unpaid losses and LAE, end of period	2,606.2		2,377.9
Gross reserves - end of period	$	5,595.5	$	5,238.6

(1)Refer to the sale of Argo Seguros and AGSE in Note 1, “Business and Significant Accounting Policies” for additional information.

(2)Loss portfolio transfer on Syndicate 1200's reserves for the 2018 and 2019 years of account. Refer to Note 1, “Business and Significant Accounting Policies” for additional information.

(3)Amount represents reserves ceded under the reinsurance to close transaction with RiverStone for Lloyd’s years of account 2017 and prior, effective January 1, 2021.

(4)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 Six Months Ended June 30,
(in millions)	2022		2021
U.S. Operations	$	11.7	$	(0.9)
International Operations	5.2		(1.9)
Run-off Lines	2.8		2.6
Total (favorable) unfavorable prior-year development	$	19.7	$	(0.2)