Unpaid Losses And Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2019

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)	2019			2018			2017
Net reserves for losses and loss adjustment expenses, beginning of year	$	9,214,443		$	8,964,945		$	8,108,717
Effect of foreign currency rate changes on beginning of year balance	18,857			(69,119		)	110,079
Adjusted net reserves for losses and loss adjustment expenses, beginning of year	9,233,300			8,895,826			8,218,796
Incurred losses and loss adjustment expenses:
Current accident year	3,426,441			3,371,699			3,367,223
Prior accident years	(535,307		)	(551,040		)	(497,627		)
Total incurred losses and loss adjustment expenses	2,891,134			2,820,659			2,869,596
Payments:
Current accident year	671,208			666,515			671,112
Prior accident years	1,979,032			1,835,027			1,513,580
Total payments	2,650,240			2,501,542			2,184,692
Effect of foreign currency rate changes on current year activity	1,067			(500		)	3,752
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	9,475,261			9,214,443			8,964,945
Reinsurance recoverables on unpaid losses	5,253,415			5,062,036			4,619,336
Gross reserves for losses and loss adjustment expenses, end of year	$	14,728,676		$	14,276,479		$	13,584,281

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

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

(dollars in millions)	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,
	As of December 31,																		(in thousands)
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		December 31, 2019
2012	$	1,370.8	$	1,613.2	$	1,491.6	$	1,430.2	$	1,397.8	$	1,364.1	$	1,350.7	$	1,330.5	$	101.3	128
2013			1,738.0		1,698.2		1,528.4		1,464.9		1,418.1		1,372.0		1,329.3		126.7		88
2014					1,866.0		1,700.1		1,632.2		1,574.2		1,525.7		1,505.3		138.6		80
2015							1,786.6		1,714.2		1,591.7		1,537.3		1,505.4		197.1		85
2016									1,875.3		1,872.1		1,770.8		1,716.5		297.3		90
2017											2,330.8		2,198.9		2,076.2		422.4		124
2018													2,457.3		2,354.8		904.0		173
2019															2,582.3		1,639.8		181
Total															$	14,400.3
	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		2019
2012	$	233.8	$	568.6	$	781.5	$	939.5	$	1,055.0	$	1,119.8	$	1,153.2	$	1,180.1
2013			271.8		572.1		780.0		950.5		1,038.9		1,101.3		1,125.1
2014					332.3		659.2		896.5		1,064.7		1,170.5		1,255.3
2015							322.8		666.0		877.7		1,041.9		1,151.9
2016									372.5		753.7		983.7		1,169.8
2017											438.8		992.8		1,286.7
2018													496.7		1,027.8
2019															527.9
Total															$	8,724.6
All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance															365.7
Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance															$	6,041.4

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,
(dollars in millions)	As of December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		December 31, 2019
2012	$	73.0	$	551.7	$	508.7	$	486.6	$	457.8	$	456.2	$	448.0	$	445.1	$	42.4
2013			588.0		580.3		548.3		534.7		544.8		507.5		489.4		42.7
2014					577.4		564.5		536.4		581.2		559.1		535.4		87.7
2015							527.9		514.0		532.4		523.5		511.9		143.4
2016									522.1		532.1		530.6		529.3		126.6
2017											905.3		938.1		943.1		276.1
2018													759.2		792.5		373.4
2019															678.2		483.1
Total															$	4,924.9
	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		2019
2012	$	4.1	$	64.7	$	129.1	$	184.3	$	232.0	$	264.4	$	289.5	$	309.5
2013			71.3		155.7		209.9		268.9		301.9		331.9		351.0
2014					98.0		158.1		226.4		274.5		311.8		346.0
2015							63.8		133.4		207.2		258.5		306.2
2016									79.7		170.4		241.5		298.3
2017											158.0		359.5		481.5
2018													87.5		256.7
2019															54.1
Total															$	2,403.3
All outstanding liabilities for unpaid losses and loss adjustment expenses before 2012, net of reinsurance															553.5
Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance															$	3,075.1

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, 2019 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		8
Insurance	20.8	%	23.5	%	14.8	%	11.5	%	7.4	%	5.1	%	2.2	%	2.0	%
Reinsurance	12.1	%	16.5	%	13.2	%	10.8	%	8.4	%	6.6	%	4.8	%	4.5	%

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 on the consolidated balance sheet.

(dollars in thousands)	December 31, 2019
Net outstanding liabilities
Insurance segment	$	6,041,424
Reinsurance segment	3,075,109
Other underwriting	134,299
Program services and other	2,224
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance	9,253,056
Reinsurance recoverable on unpaid losses
Insurance segment	1,838,552
Reinsurance segment	349,124
Other underwriting	155,714
Program services and other	2,910,025
Total reinsurance recoverable on unpaid losses	5,253,415
Unallocated loss adjustment expenses	264,029
Unamortized discount, net of acquisition fair value adjustments, included in unpaid losses and loss adjustment expenses	(41,824		)
	222,205
Total gross liability for unpaid losses and loss adjustment expenses	$	14,728,676