Reserves for Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

Schedule of Reserves for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):

	Successor		Predecessor
(in millions)	Nine Months Ended September 30, 2024		Nine Months Ended September 30, 2023
Net reserves - beginning of the year	$	2,747.1	$	2,213.1
Add:
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year	583.8		680.9
Prior accident years	209.7		126.0
Losses and LAE incurred during calendar year, net of reinsurance	793.5		806.9
Deduct:
Losses and LAE payments made during current calendar year, net of reinsurance:
Current accident year	53.2		94.9
Prior accident years	552.6		361.6
Losses and LAE payments made during current calendar year, net of reinsurance:	605.8		456.5
Add/(Deduct):
Divestitures (1)	—		24.4
Retroactive reinsurance (2)	—		21.7
Deferred gain on U.S. loss portfolio transfer, net of amortization	—		(16.8)
Purchase accounting adjustment (3)	19.4		—
Total net reserve adjustments	19.4		29.3
Foreign exchange adjustments	(1.6)		0.9
Net reserves - end of period	2,952.6		2,593.7
Add:
Reinsurance recoverables on unpaid losses and LAE, end of period	2,840.3		2,735.0
Gross reserves - end of period	$	5,792.9	$	5,328.7

(1)For the nine months ended September 30, 2023, the adjustment relates to the year-to-date activity of Syndicate 1200 and on reinsurance contracts with AUA subsidiaries. Refer to the sale of Argo Underwriting Agency Limited in Note 1, “Business and Significant Accounting Policies” for additional information.

(2) In connection with the sale of AUA, the Company entered into two retroactive reinsurance agreements with AUA subsidiaries.

(3) Impact of measurement period adjustment in connection with the Merger. Refer to Note 1, “Business and Significant Accounting Policies” for additional information.

Schedule of Impact from (Favorable) Unfavorable Development of Prior Accident Years’ Loss and LAE Reserves on Each Reporting Segment

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

	Successor		Predecessor
(in millions)	Nine Months Ended September 30, 2024		Nine Months Ended September 30, 2023
U.S. Operations	$	125.1	$	111.7
International Operations	77.3		11.7
Run-off Lines	7.3		2.6
Total unfavorable (favorable) prior-year development	$	209.7	$	126.0