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Reserves for Losses and Loss Adjustment Expenses
 12 Months Ended
Dec. 31, 2024
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”):
SuccessorPredecessor
For the Year EndedPeriod from Period fromFor the Year Ended
(in millions)December 31, 2024November 16, 2023 through December 31, 2023January 1, 2023 through November 15, 2023December 31, 2022
Net reserves beginning of the period$2,747.1 $2,734.6 $2,213.1 $3,123.2 
Add:
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year763.4 94.2 775.3 1,102.2 
Prior accident years254.9 — 267.9 64.7 
Losses and LAE incurred during calendar year, net of reinsurance1,018.3 94.2 1,043.2 1,166.9 
Deduct:
Losses and LAE payments made during current calendar year, net of reinsurance:
Current accident year91.4 33.5 100.6 171.5 
Prior accident years687.0 51.8 427.3 828.0 
Losses and LAE payments made during current calendar year, net of reinsurance:778.4 85.3 527.9 999.5 
Add/(Deduct):
Divestitures (1)
— — 24.4 (35.2)
Reclassified to liabilities held-for-sale (2)
— — — (313.0)
Net reserves ceded to Syndicate 1200 (2)
— — — (129.6)
Deferred gain on U.S. loss portfolio transfer, net of amortization— — (40.9)— 
Loss portfolio transfer:
U.S. (3)
— — — (472.6)
Syndicate 1200 (for years of account 2018 and 2019) (4)
— — — (144.0)
Retroactive reinsurance (5)
— — 21.7 — 
Change in participation interest (6)
— — — 34.3 
Purchase accounting adjustment (7)
19.4 — — — 
Total net reserve adjustments19.4 — 5.2 (1,060.1)
Foreign exchange adjustments(2.5)3.6 1.0 (17.4)
Net reserves - end of period3,003.9 2,747.1 2,734.6 2,213.1 
Add:
Reinsurance recoverables on unpaid losses and LAE, end of year2,794.7 2,797.4 2,791.8 2,838.5 
Gross reserves - end of period$5,798.6 $5,544.5 $5,526.4 $5,051.6 
(1)For the period ended November 15, 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 2, “Recent Acquisitions, Disposals & Other Transactions” in our 2023 Form 10-K for additional information. For the period ended December 31, 2022, refer to the sale of Argo Seguros and AGSE in Note 2, “Recent Acquisitions, Disposals & Other Transactions” in our 2023 Form 10-K for additional information.
(2)Refer to the sale of Argo Underwriting Agency Limited in Note 2, “Recent Acquisitions, Disposals & Other Transactions” in our 2023 Form 10-K for additional information. Additionally, the Company reduced net reserves in the amount of $129.6 million for reinsurance contracts with AUA subsidiaries, which were reclassified to held-for-sale.
(3)Loss portfolio transfer of the Company’s U.S. casualty insurance reserves for accident years 2011 to 2019. Refer to Note 2, “Recent Acquisitions, Disposals & Other Transactions” in our 2023 Form 10-K for additional information.
(4)Loss portfolio transfer on Syndicate 1200's reserves for the 2018 and 2019 years of account. Refer to Note 2, “Recent Acquisitions, Disposals & Other Transactions” in our 2023 Form 10-K for additional information.
(5)In connection with the sale of AUA, the Company entered into two retroactive reinsurance agreements with AUA subsidiaries.
(6)Amount represents the change in reserves due to changing our participation in Syndicates 1200 and 1910.
(7)Impact of measurement period adjustment in connection with the Merger. Refer to Note 2, “Recent Acquisitions, Disposals & Other Transactions” for additional information.
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.
The impact from the net unfavorable (favorable) development of prior accident years’ losses and LAE reserves on each reporting segment is presented below: 

Successor
For the Year EndedPeriod from
(in millions)December 31, 2024November 16, 2023 through December 31, 2023
Casualty Lines$87.7 $— 
Specialty Lines3.1 — 
Run-off Lines164.1 — 
Total (favorable) unfavorable prior-year development$254.9 $— 

Predecessor
Period from For the Year Ended
(in millions)January 1, 2023 through November 15, 2023December 31, 2022
U.S. Operations$246.3 $64.5 
International Operations21.4 (2.7)
Run-off Lines0.2 2.9 
Total (favorable) unfavorable prior-year development$267.9 $64.7 
The following describes the primary factors behind each segment’s net prior accident year reserve development for the year ended December 31, 2024, for the period January 1, 2023 through November 15, 2023 (Predecessor), and for the year ended December 31, 2022:
Year ended December 31, 2024:
•Casualty Lines: Net unfavorable development related to the recognition of higher-than-expected loss experience, primarily in construction segments, along with updates to the expectations for future loss experience and development for Bermuda Casualty.
•Specialty Lines: Net unfavorable development related to the recognition of higher-than-expected loss experience in Inland Marine, along with small offsetting amounts across other specialty segments.
•Run-off Lines: Net unfavorable development related to the recognition of higher-than-expected loss experience across several runoff segments, including U.S. and Bermuda professional lines, Trident, and assumed business from our former Malta operations sold in 2022, along with updates to the expectations for future loss experience and development for U.S. and Bermuda professional lines.
The Company did not recognize any development of prior accident years’ losses and LAE reserves for the period November 16, 2023 through December 31, 2023 (Successor).
Period ended January 1, 2023 through November 15, 2023 (Predecessor):
•U.S. Operations: Net unfavorable development primarily related to liability lines and professional lines, including the impact of large losses partially offset by favorable development in specialty lines. The liability lines movement was largely due to businesses we have exited. The professional lines movement largely impacted accident years 2019 through 2021.
•International Operations: Net unfavorable development primarily related to unfavorable development in professional and liability lines in Argo Insurance Bermuda.
•Run-off Lines: Net unfavorable development primarily related to asbestos and environmental lines largely offset by favorable loss reserve development in run-off workers compensation and liability losses excluding asbestos and environmental.
Year ended December 31, 2022:
•U.S. Operations: Net unfavorable development primarily related to liability lines, including the impact of large losses and claims alleging construction defect, and driven by businesses we have exited, partially offset by favorable development in specialty and professional lines. The net unfavorable prior year development relates to accident years 2019 and prior partially offset by favorable prior year development on accident years 2020 and 2021.
•International Operations: Net favorable development primarily related to favorable development in liability and specialty lines, partially offset by unfavorable development from professional and property lines. The professional lines development included large claim movements in Argo Insurance Bermuda.
•Run-off Lines: Net unfavorable development primarily related to asbestos and environmental lines partially offset by favorable loss reserve development in run-off liability losses excluding asbestos and environmental.
Our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, 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.
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, 2024. 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 three ongoing reporting segments, Casualty Lines, Specialty Lines, and Run-off. 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 15, “Segment Information,” for additional information regarding our three ongoing reporting segments.
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 actuarial techniques to analyze current claims costs, including frequency and severity data. These actuarial techniques consider variables such as past loss experience, current claims trends, and prevailing economic, social and legal environments. 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. 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. In comparing loss reserve methods and assumptions used at December 31, 2024 as compared with methods and assumptions used at December 31, 2023, management has not changed or adjusted methodologies or assumptions in any significant manner.
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, 2024.
Reporting Segment: Casualty Lines
(in millions, except number of claims reported)
 Incurred Losses & ALAE, Net of Reinsurance
Accident
Year		For the Years Ended December 31,
2015 (1)
2016 (1)
2017 (1)
2018 (1)
2019 (1)
2020 (1)
2021 (1)
2022 (1)
2023 (1)
2024 (1)
2015$186.8 $186.8 $187.3 $194.1 $191.2 $198.4 $212.1 $158.7 $185.3 $202.2 
2016205.6 204.9 191.6 179.6 178.7 184.5 162.4 157.1 159.4 
2017228.1 227.0 231.7 233.9 257.5 147.6 216.1 225.2 
2018253.4 261.2 245.9 241.3 194.3 174.4 190.3 
2019248.1 243.5 233.5 359.3 144.2 143.4 
2020235.4 213.3 190.2 203.3 233.2 
2021257.1 243.7 247.6 255.8 
2022306.7 302.4 300.4 
2023332.8 328.5 
2024331.4 
      Total$2,369.8 
 Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year		For the Years Ended December 31,
2015 (1)
2016 (1)
2017 (1)
2018 (1)
2019 (1)
2020 (1)
2021 (1)
2022 (1)
2023 (1)
2024 (1)
2015$11.7 $30.7 $70.5 $98.2 $119.4 $141.4 $161.4 $174.3 $174.9 $175.6 
201612.3 33.4 58.3 91.7 110.8 128.9 131.7 132.6 137.1 
201712.7 43.4 72.8 124.6 158.4 164.3 171.8 188.6 
201816.2 58.6 100.7 130 140.6 146.3 148.6 
201915.2 49.9 80.1 90.5 97.9 101.9 
202013.3 33.9 54.4 79.9 116.8 
202113.1 37.4 70.3 104.3 
202212.9 42.4 72.9 
202313.8 51.8 
202412.9 
     Total1,110.5 
Other Casualty outstanding liabilities including unpaid loss and ALAE prior to 2014, net of reinsurance54.2 
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance$1,313.5 
 As of December 31, 2024
Accident YearIncurred Losses & ALAE, Net of ReinsuranceIBNR & Expected Development on Reported Claims
Cumulative Number of Reported Claims (2)
2015$202.2 $14.9 5,764 
2016159.4 16.1 5,853 
2017225.2 30.1 8,831 
2018190.3 30.9 9,352 
2019143.4 21.6 9,210 
2020233.2 62.7 7,137 
2021255.8 103.8 7,591 
2022300.4 181.6 7,728 
2023328.5 238.1 6,341 
2024331.4 289.3 4,989 
(1)Information presented for calendar years prior to 2024 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 U.S. 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: Specialty Lines
(in millions, except number of claims reported)
 Incurred Losses & ALAE, Net of Reinsurance
Accident
Year		For the Years Ended December 31,
2015 (1)
2016 (1)
2017 (1)
2018 (1)
2019 (1)
2020 (1)
2021 (1)
2022 (1)
2023 (1)
2024 (1)
2015$49.2 $50.8 $45.9 $47.5 $47.8 $47.4 $47.5 $45.0 $45.0 $45.4 
201640.6 41.0 41.2 44.9 43.7 43.4 42.2 41.7 41.8 
201764.2 66.0 67.8 73.0 75.4 70.9 67.3 67.6 
201891.8 94.0 91.5 95.7 87.9 84.6 86.2 
2019104.9 98.4 96.0 83.6 85.4 86.5 
202098.3 106.5 135.0 144.7 143.3 
2021127.7 149.9 150.1 152.5 
2022191.0 193.6 198.3 
2023170.5 155.5 
2024155.4 
     Total$1,132.5 
 Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year		For the Years Ended December 31,
2015 (1)
2016 (1)
2017 (1)
2018 (1)
2019 (1)
2020 (1)
2021 (1)
2022 (1)
2023 (1)
2024 (1)
2015$19.4 $31.7 $36.9 $42.6 $44.6 $45.8 $45.9 $45.3 $45.4 $46.1 
201618.8 28.5 34.6 39.7 41.1 42.1 40.2 40.5 40.5 
201724.4 37.6 49.3 58.6 65.0 65.9 66.7 67.6 
201832.0 51.0 62.7 73.3 78.4 80.2 82.4 
201930.9 51.6 64.3 75.1 79.1 82.1 
202031.0 62.9 93.1 106.9 117.4 
202133.8 84.1 96.8 111.2 
202251.8 103.0 128.4 
202356.2 98.1 
202443.2 
     Total817.0 
Other Specialty outstanding liabilities including unpaid loss and ALAE prior to 2014, net of reinsurance(6.2)
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance$309.3 
 As of December 31, 2024
Accident YearIncurred Losses & ALAE, Net of ReinsuranceIBNR & Expected Development on Reported Claims
Cumulative Number of Reported Claims (2)
2015$45.4 $(0.8)3,354 
201641.8 1.2 4,559 
201767.6 — 7,835 
201886.2 3.7 8,398 
201986.5 3.0 9,194 
2020143.3 12.9 9,094 
2021152.5 28.4 9,903 
2022198.3 47.7 9,248 
2023155.5 35.8 8,417 
2024155.4 79.5 6,487 
(1)Information presented for calendar years prior to 2024 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 U.S. 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: Run-off Lines
(in millions, except number of claims reported)
 Incurred Losses & ALAE, Net of Reinsurance
Accident
Year		For the Years Ended December 31,
2015 (1)
2016 (1)
2017 (1)
2018 (1)
2019 (1)
2020 (1)
2021 (1)
2022 (1)
2023 (1)
2024 (1)
2015$402.4 $403.5 $399.4 $397.0 $408.8 $412.4 $420.4 $393.1 $391.7 $390.8 
2016440.8 442.6 459.0 458.3 457.0 471.6 444.9 448.9 449.8 
2017525.4 493.1 523.9 546.9 575.7 539.8 533.0 528.8 
2018460.2 563.3 556.0 578.9 584.6 599.6 609.5 
2019429.2 497.7 537.8 414.1 425.3 449.9 
2020461.0 448.1 403.5 474.7 516.6 
2021396.8 342.1 374.6 417.1 
2022288.1 303.9 317.1 
2023281.6 314.8 
2024238.4 
     Total$4,232.8 
 Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident
Year		For the Years Ended December 31,
2015 (1)
2016 (1)
2017 (1)
2018 (1)
2019 (1)
2020 (1)
2021 (1)
2022 (1)
2023 (1)
2024 (1)
2015$83.3 $146.3 $211.3 $272.0 $306.4 $325.6 $385.9 $386.0 $385.2 $388.8 
201694.1 113.7 275.9 353.1 374.2 428.0 430.2 436.0 432.0 
2017200.7 250.9 364.8 432.7 492.3 508.2 504.9 523.5 
2018104.0 298.2 366.4 430.3 493.7 510.2 552.8 
2019102.6 264.4 305.1 331.4 356.0 380.1 
2020186.0 194.6 248.5 312.0 374.7 
202172.0 125.6 177.2 248.2 
202230.0 82.2 114.2 
202320.5 93.4 
202427.7 
     Total3,135.4 
Other Runoff outstanding liabilities including unpaid loss and ALAE prior to 2014, net of reinsurance168.7 
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance$1,266.1 
 As of December 31, 2024
Accident YearIncurred Losses & ALAE, Net of ReinsuranceIBNR & Expected Development on Reported Claims
Cumulative Number of Reported Claims (2)
2015$390.8 $0.7 21,158 
2016449.8 15.6 19,828 
2017528.8 6.8 21,751 
2018609.5 47.9 23,784 
2019449.9 55.6 23,774 
2020516.6 68.8 22,592 
2021417.1 115.1 18,914 
2022317.1 132.9 17,526 
2023314.8 189.5 13,258 
2024238.4 152.1 9,260 
(1)Information presented for calendar years prior to 2024 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 U.S. 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.
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, 2024
Liabilities for unpaid losses and ALAE: 
Casualty Lines$1,313.5 
Specialty Lines309.3 
Run-off Lines1,266.1 
Other lines68.7 
Total liabilities for unpaid losses and ALAE, net of reinsurance2,957.6 
 
Reinsurance recoverables on unpaid losses and LAE: 
Casualty Lines1,046.0 
Specialty Lines214.3 
Run-off Lines1,042.2 
Other lines492.2 
Total reinsurance recoverables on unpaid losses and LAE2,794.7 
Unallocated LAE68.3 
Unamortized reserve discount(22.0)
Gross liability for unpaid losses and LAE$5,798.6 
Other lines in the table above are comprised of lines of business and operating divisions within our three 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, 2024:
 
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (1)
 Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10Remainder
Casualty Lines2.8%8.2%12.5%14.9%14.0%11.0%11.1%7.4%5.4%3.9%8.8%
Specialty Lines30.4%24.3%14.2%8.5%8.1%5.1%3.1%2.0%1.4%0.9%2.0%
Run-off Lines15.0%18.0%14.8%13.1%11.1%8.8%5.4%3.9%2.8%2.0%5.1%
(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 & LAEAggregate Amount of Discount
 As of December 31,As of December 31,
(in millions, except discount percentages)202420232022202420232022
Casualty Lines$197.1 $182.6 $168.0 $17.4 $16.1 $14.7 
Run-off Lines81.9 76.8 93.0 4.6 4.7 4.6 
Total$279.0 $259.4 $261.0 $22.0 $20.8 $19.3 
 
Interest Accretion (1)
Discount Rate
SuccessorPredecessor
 For the Year EndedPeriod from Period from For the Year EndedAs of December 31,
 December 31, 2024November 16, 2023 through December 31, 2023January 1, 2023 through November 15, 2023December 31, 2022202420232022
Casualty Lines$1.5 $0.1 $1.3 $1.7 2.25%2.25%2.25%
Run-off Lines0.1 — 0.1 0.1 3.50%3.50%3.50%
Total$1.6 $0.1 $1.4 $1.8 
(1) Interest accretion is recorded in the line item Losses and loss adjustment expenses in our Consolidated Statements of Income (Loss).