Unpaid Losses And Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract]

Reconciliation Of Consolidated Reserves For Losses And Loss Adjustment Expenses

The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses.

	Years Ended December 31,
(dollars in thousands)	2018			2017			2016
Net reserves for losses and loss adjustment expenses, beginning of year	$	8,964,945		$	8,108,717		$	8,235,288
Foreign currency movements	(69,119		)	110,079			(129,692		)
Adjusted net reserves for losses and loss adjustment expenses, beginning of year	8,895,826			8,218,796			8,105,596
Incurred losses and loss adjustment expenses:
Current accident year	3,371,699			3,367,223			2,555,902
Prior accident years	(551,040		)	(497,627		)	(493,495		)
Total incurred losses and loss adjustment expenses	2,820,659			2,869,596			2,062,407
Payments:
Current accident year	666,515			671,112			532,140
Prior accident years	1,835,027			1,513,580			1,529,206
Total payments	2,501,542			2,184,692			2,061,346
Effect of foreign currency rate changes	(500		)	3,752			2,060
Net reserves for losses and loss adjustment expenses of acquired insurance companies	—			57,493			—
Net reserves for losses and loss adjustment expenses, end of year	9,214,443			8,964,945			8,108,717
Reinsurance recoverable on unpaid losses	5,062,036			4,619,336			2,006,945
Gross reserves for losses and loss adjustment expenses, end of year	$	14,276,479		$	13,584,281		$	10,115,662

Ultimate Incurred Losses And Cumulative Paid Losses And Allocated Loss Adjustment Expenses, Net Of Reinsurance

Reinsurance Segment

	Ultimate Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance														Total of Incurred-but-Not-Reported Liabilities, Net of Reinsurance
	Unaudited												As of December 31,
(in thousands)	As of December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018		December 31, 2018
2012	$	72,903	$	550,343	$	507,023	$	485,374	$	457,038	$	454,839	$	446,722	$	62,700
2013			586,074		578,994		547,828		534,148		543,963		506,609		78,266
2014					577,123		564,720		536,247		578,688		556,775		121,489
2015							528,076		514,050		531,854		522,783		197,446
2016									523,958		533,526		531,769		199,881
2017											906,216		939,604		403,107
2018													760,161		543,670
Total													$	4,264,423
	Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
	Unaudited												As of December 31,
	As of December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018
2012	$	4,049	$	64,460	$	128,769	$	183,943	$	231,541	$	263,811	$	288,772
2013			71,503		155,515		209,893		268,761		301,714		331,630
2014					97,918		158,105		226,883		275,278		312,296
2015							63,924		133,932		207,985		259,366
2016									79,383		169,877		241,072
2017											158,049		359,659
2018													87,614
Total													$	1,880,409
All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance													650,117
Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance													$	3,034,131

The Insurance segment table below also includes claim frequency information, by accident year. The Company defines a claim as a single claim incident, per policy, which may include multiple claimants and multiple coverages on a single policy. Claim counts include claims closed without a payment as well as claims where the Company is monitoring to determine if an exposure exists, even if a reserve has not been established.

All of the business contained within the Company's Reinsurance segment represents treaty business that is assumed from other insurance or reinsurance companies, for which the Company does not have access to the underlying claim counts. Further, this business includes both quota share and excess of loss treaty reinsurance, through which only a portion of each reported claim results in losses to the Company. As such, the Company has excluded claim count information from the Reinsurance segment disclosures.

In 2013, the Company completed the acquisition of Alterra Capital Holdings Limited (Alterra), the results of which are included in both of the Company's reportable segments. Ultimate incurred losses and loss adjustment expenses, net of reinsurance as of December 31, 2013 include outstanding liabilities for losses and loss adjustment expenses of Alterra as of the acquisition date, by accident year, and not in any prior periods. Pre-acquisition data is not available by segment and accident year due in part to the impact of significant intercompany reinsurance contracts. Additionally, Alterra reserves were historically determined on a policy year basis and pre-acquisition data does not exist in a format that can be used to determine accident year. Following the acquisition, ongoing business attributable to Alterra was integrated with the Company's other insurance operations and is not separately tracked.

Insurance Segment

	Ultimate Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance														Total of Incurred-but-Not-Reported Liabilities, Net of Reinsurance		Cumulative Number of Reported Claims
	Unaudited												As of December 31,
(in thousands)	As of December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018		December 31, 2018
2012	$	1,369,219	$	1,609,802	$	1,489,026	$	1,427,255	$	1,395,103	$	1,361,513	$	1,348,062	$	119,585	127
2013			1,735,667		1,694,879		1,525,750		1,462,652		1,428,733		1,387,804		200,744		87
2014					1,862,947		1,695,698		1,627,960		1,570,428		1,522,132		213,237		78
2015							1,783,064		1,710,271		1,585,447		1,530,354		291,364		84
2016									1,871,455		1,786,959		1,686,374		378,681		89
2017											2,326,966		2,160,771		691,736		116
2018													2,452,747		1,466,264		147
Total													$	12,088,244
	Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
	Unaudited												As of December 31,
	As of December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018
2012	$	233,371	$	567,450	$	780,067	$	937,643	$	1,052,859	$	1,117,221	$	1,150,793
2013			271,439		571,548		779,023		949,370		1,037,635		1,099,985
2014					331,626		657,742		894,470		1,062,211		1,167,598
2015							322,633		665,112		876,509		1,040,377
2016									372,182		752,606		981,920
2017											438,289		990,931
2018													496,812
Total													$	6,928,416
All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance													605,610
Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance													$	5,765,438

Average Annual Percentage Payout Of Incurred Losses By Age (in Years), Net Of Reinsurance

The following table presents supplementary information about average historical claims duration as of December 31, 2018 based on the cumulative incurred and paid losses and allocated loss adjustment expenses presented above.

	Average Annual Percentage Payout of Incurred Losses by Age (in Years), Net of Reinsurance
Unaudited	1		2		3		4		5		6		7
Insurance	20.3	%	23.1	%	14.7	%	11.4	%	7.3	%	4.6	%	2.5	%
Reinsurance	12.6	%	15.5	%	13.0	%	10.6	%	7.9	%	6.6	%	5.6	%

Reconciliation Of Net Incurred And Paid Loss Development Tables, By Segment, To The Liability For Losses And Loss Adjustment Expenses In The Consolidated Balance Sheet

The following table reconciles the net incurred and paid loss development tables to the liability for losses and loss adjustment expenses in the consolidated balance sheet.

(dollars in thousands)	December 31, 2018
Net outstanding liabilities
Insurance segment	$	5,765,438
Reinsurance segment	3,034,131
Other	204,069
Program services	2,561
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance	9,006,199
Reinsurance recoverable on unpaid losses
Insurance segment	1,965,565
Reinsurance segment	415,900
Other	166,505
Program services	2,514,066
Total reinsurance recoverable on unpaid losses	5,062,036
Unallocated loss adjustment expenses	239,753
Unamortized discount, net of acquisition fair value adjustments, included in unpaid losses and loss adjustment expenses	(31,509		)
	208,244
Total gross liability for unpaid losses and loss adjustment expenses	$	14,276,479

Reconciliation Of Asbestos And Environmental Reserves For Losses And Loss Adjustment Expenses

The following table provides a reconciliation of beginning and ending A&E reserves for losses and loss adjustment expenses, which are a component of consolidated unpaid losses and loss adjustment expenses. Amounts included in the following table are presented before consideration of reinsurance allowances.

	Years Ended December 31,
(dollars in thousands)	2018			2017			2016
Net reserves for A&E losses and loss adjustment expenses, beginning of year	$	104,661		$	111,604		$	132,869
Commutations and other	(305		)	6,827			—
Adjusted net reserves for A&E losses and loss adjustment expenses, beginning of year	104,356			118,431			132,869
Incurred losses and loss adjustment expenses	—			659			(5,277		)
Payments	(21,308		)	(14,429		)	(15,988		)
Net reserves for A&E losses and loss adjustment expenses, end of year	83,048			104,661			111,604
Reinsurance recoverable on unpaid losses	164,663			169,866			212,300
Gross reserves for A&E losses and loss adjustment expenses, end of year	$	247,711		$	274,527		$	323,904