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RESERVE FOR LOSSES AND LOSS EXPENSES
 12 Months Ended
Dec. 31, 2022
Insurance Loss Reserves [Abstract]  
RESERVE FOR LOSSES AND LOSS EXPENSES
Reserving Methodology
Sources of Information
The Company's loss reserving process begins with the collection and analysis of paid and incurred claim data for each of the Company's segments. The segment data is disaggregated by line of business and further disaggregated by underwriting year and accident year. Underwriting year or accident year information is used to analyze the Company's business and to estimate reserves for losses and loss expenses. Lines of business are reviewed to ensure that the underlying contracts have homogeneous loss development characteristics, while remaining large enough to make the estimation of trends credible. The Company's lines of business are reviewed on a regular basis and adjusted over time as the Company's business evolves. The paid and incurred claim data serves as a key input to many of the methods employed by the Company's actuaries.
The following tables map the Company's lines of business to expected claim tails:
Insurance segment
 Expected claims tail
ShortMediumLong
Lines of business
PropertyX
Accident and healthX
Marine and aviationX
CyberX
Professional linesX
Credit and political riskX
LiabilityX
Reinsurance segment
Expected claims tail
ShortMediumLong
Lines of business
Accident and healthX
AgricultureX
Marine and aviationX
Professional linesX
Credit and suretyX
MotorX
LiabilityX
Run-off lines
CatastropheX
PropertyX
EngineeringX
Actuarial Analysis
Multiple actuarial methods are available to estimate ultimate losses. Each method has its own assumptions and its own advantages and disadvantages, with no single estimation method being better than the others in all situations and no one set of assumption variables being meaningful for all lines of business. The relative strengths and weaknesses of the particular estimation methods when applied to a particular group of claims can also change over time.
The following is a brief description of the reserve estimation methods commonly employed by the Company's actuaries including a discussion of their particular strengths and weaknesses: 
•Expected Loss Ratio Method ("ELR Method"): This method estimates ultimate losses for an accident year or underwriting year by applying an expected loss ratio ("ELR") to the earned or written premium for that year. Generally, expected loss ratios are based on one or more of (a) an analysis of historical loss experience to date, (b) pricing information and (c) industry data, adjusted as appropriate, to reflect changes in rates, loss and exposure trends, and terms and conditions. This method is insensitive to actual incurred losses for the accident year or underwriting year in question and is, therefore, often useful in the early stages of development when very few losses have been incurred. Conversely, the lack of sensitivity to incurred/paid losses for the accident year or underwriting year in question means that this method is usually inappropriate in later stages of an accident year or underwriting year’s development.
•Loss Development Method (also referred to as the "Chain Ladder Method" or "Link Ratio Method"): This method assumes that the losses incurred/paid for each accident year or underwriting year at a particular development stage follow a relatively similar pattern. It assumes that on average, every accident year or underwriting year will display the same percentage of ultimate losses incurred/paid at the same point in time after the inception of that year. The percentages incurred/paid are established for each development stage (e.g., 12 months, 24 months, etc.) after examining averages from historical loss development data and/or, in limited instances, external industry benchmark information. Ultimate losses are then estimated by multiplying the actual incurred/paid losses by the reciprocal of the established incurred/paid percentage. The strengths of this method are that it reacts to loss emergence/payments and that it makes full use of historical claim emergence/payment experience. However, this method has weaknesses when the underlying assumption of stable loss development/payment patterns is not valid. This could be the consequence of changes in business mix, claim inflation trends or claim reporting practices and/or the presence of large claims, among other things. Furthermore, this method tends to produce volatile estimates of ultimate losses where there is volatility in the underlying incurred/paid patterns. In particular, where the expected percentage of incurred/paid losses is low, small deviations between actual and expected claims can lead to very volatile estimates of ultimate losses. As a result, this method is often unsuitable at early development stages for an accident year or underwriting year.
•Bornhuetter-Ferguson Method ("BF Method"): This method can be seen as a combination of the ELR and Loss Development Methods, under which the Loss Development Method is given progressively more weight as an accident year or underwriting year matures. The main advantage of the BF Method is that it provides a more stable estimate of ultimate losses than the Loss Development Method at earlier stages of development, while remaining more responsive to emerging loss development than the ELR Method. In addition, the BF Method allows for the incorporation of external market information through the use of expected loss ratios, whereas the Loss Development Method does not incorporate such information.
As part of the loss reserving process, the Company's actuaries employ the estimation method(s) that they believe will produce the most reliable estimate of ultimate losses, at that particular evaluation date, for each line of business and accident year or underwriting year combination. Often, this is a blend (i.e., weighted average) of the results of two or more appropriate actuarial methods.
These ultimate loss estimates are generally utilized to evaluate the adequacy of ultimate loss estimates for previous accident or underwriting years, established in the prior reporting period. For the initial estimate of the current accident or underwriting year, the available claim data is typically insufficient to produce a reliable estimate of ultimate losses. As a result, initial estimates for an accident or underwriting year are generally based on the ELR Method for longer tailed lines and a BF Method for shorter tailed lines.
The initial ELR for each line of business is established by the Company's actuaries at the start of the year as part of the planning process, taking into consideration prior accident years’ or underwriting years' experience and industry benchmarks, adjusted after considering factors such as loss and exposure trends, rate differences, changes in contract terms and conditions, business mix changes and other known differences between the current year and prior accident or underwriting years. The initial expected loss ratios for a given accident or underwriting year may be modified over time if the underlying assumptions, such as loss development or premium rate changes, differ from the original assumptions.
Key Actuarial Assumptions
The use of the above actuarial methods requires the Company to make certain explicit assumptions, the most significant of which are: (1) expected loss ratios and (2) loss development patterns.
The Company relies on historical loss experience in establishing expected loss ratios and selecting loss development patterns. In establishing expected loss ratios for the insurance segment, consideration is given to a number of other factors, including exposure trends, rate adequacy on new and renewal business, ceded reinsurance costs, changes in claims emergence and the Company's underwriters’ view of terms and conditions in the market environment. For the reinsurance segment, expected loss ratios are based on a contract-by-contract review, which considers information provided by clients together with estimates provided by the Company's underwriters and actuaries about the impact of changes in pricing, terms and conditions and coverage. Market experience for some lines of business as compiled and analyzed by an independent actuarial firm is also considered, as appropriate.
Claim Tail Analysis
Short-tail Business
Short-tail business generally includes exposures for which losses are usually known and paid within a relatively short period of time after the underlying loss event has occurred. Short-tail business includes the underlying exposures in the property, accident and health, marine and aviation lines of business in the insurance segment, and the underlying exposures in the accident and health, agriculture, marine and aviation, and run-off (catastrophe, property and engineering) lines of business in the reinsurance segment.
The key actuarial assumptions for short-tail business are primarily developed with reference to the Company's historical loss experience for expected loss ratios and loss development patterns utilized to establish estimates of ultimate losses for an accident year or underwriting year. Due to the relatively short reporting and settlement patterns for short-tail business, more weight is generally placed on experience-based methods and other qualitative considerations in establishing reserves for recent and more mature accident years or underwriting years. The majority of development for an accident year or underwriting year is expected to be recognized in the subsequent one to three years.
Refer to 'Net incurred and Paid Claims Development Tables by Accident Year' for further details on key actuarial assumptions associated with these lines of business.
Medium-tail Business
Medium-tail business generally has claim reporting and settlement periods that are longer than those of short-tail lines of business. Medium-tail business includes the underlying exposures in the cyber, professional lines, and credit and political risk lines of business in the insurance segment, and professional lines, and credit and surety lines of business in the reinsurance segment. The Company considers credit and political risk business to have a medium-tail, due to the complex nature of claims and the potential additional time that may be required to realize subrogation assets.
With respect to key actuarial assumptions, the Company relies on its loss experience when establishing expected loss ratios and selecting loss development patterns. Loss reporting patterns for medium tail lines business tend to be volatile, causing instability in actuarial indications based on incurred loss data until an accident year or underwriting year matures. Consequently, initial reserves for losses and loss expenses for an accident year or underwriting year are generally based on an ELR Method and the consideration of relevant qualitative factors. As accident years and underwriting years mature, the Company increasingly gives more weight to methods that reflect its experience until its selections are based almost exclusively on experience-based methods. The Company evaluates the appropriateness of the transition to experience-based methods at the line of business level, commencing this transition when it believes that its incurred loss development is sufficient to produce meaningful actuarial indications. The rate at which the Company transitions fully to sole reliance on experience-based methods can vary by line of business and by year, depending on its assessment of the stability and relevance of such indications.
Refer to 'Net incurred and Paid Claims Development Tables by Accident Year' for further details on key actuarial assumptions associated with these lines of business.
Long-tail Business
In contrast to short and medium-tail business, the claim tail for long-tail business is expected to be notably longer, as claims are often reported and ultimately paid or settled years, or even decades, after the related loss events occur. Long-tail business includes the underlying exposures in the liability line of business in the insurance segment and the liability and motor line of business in the reinsurance segment.
As a general rule, estimates of accident year or underwriting year ultimate losses for long-tail business are notably more uncertain than those for short and medium-tail business. Key actuarial assumptions for long-tail business were derived from the Company's historical loss experience. Due to the length of the development tail for this business, reserve estimates for most accident years and underwriting years are predominantly based on the BF Method or ELR Method and the consideration of qualitative factors. A consequence of the claim development tail is that this line of business is particularly exposed, among a number of uncertainties, to the potential for unanticipated levels of claim inflation relative to that assumed when the contracts were written. Factors influencing claim inflation on this line of business can include, but are not limited to, underlying financial and medical inflation, judicial inflation, mass tort and changing social trends.
Refer to 'Net incurred and Paid Claims Development Tables by Accident Year' for further details on key actuarial assumptions associated with these lines of business.
Reserving for Catastrophic Events

The Company cannot estimate losses from widespread catastrophic events, such as hurricanes and earthquakes, using the traditional actuarial methods described above. The magnitude and complexity of losses associated with certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. As a result, actual losses for these events may ultimately differ materially from current estimates.
Net reserves for losses and loss expenses related to the COVID-19 pandemic represents the Company's best estimate of losses and loss expenses that have been incurred at December 31, 2022. The determination of these net reserves for losses and loss expenses was based on the Company's ground-up assessment of coverage from individual contracts and treaties across all lines of business, and included a review of modeling analyses and market information, where appropriate. In addition, the Company considered information received from clients, brokers and loss adjusters.
The estimate of net reserves for losses and loss expenses related to the COVID-19 pandemic is subject to significant uncertainty. This uncertainty is driven by the inherent difficulty in making assumptions around the impact of the COVID-19 pandemic due to the lack of comparable events, the ongoing nature of the event, and its far-reaching impacts on world-wide economies and the health of the population. These assumptions include:
•the nature and the duration of the pandemic;
•the effects on health, the economy and the Company's customers;
•the response of government bodies including legislative, regulatory or judicial actions and social influences that could alter the interpretation of the Company's contracts;
•the coverage provided under the Company's contracts;
•the coverage provided by the Company's ceded reinsurance; and
•the evaluation of the loss and impact of loss mitigation actions.
While the Company believes its estimate of net reserves for losses and loss expenses is adequate for losses and loss expenses that have been incurred at December 31, 2022 based on current facts and circumstances, the Company continues
to monitor the appropriateness of these assumptions as new information comes to light, and adjustments are made to the estimate of ultimate losses related to the COVID-19 pandemic if there are developments that are different from previous expectations. Adjustments are recorded in the period in which they are identified. Actual losses for this event may ultimately differ materially from the Company's current estimates.
Net reserves for losses and loss expenses related to catastrophes other than the COVID-19 pandemic represent the Company's best estimate of losses and loss expenses that have been incurred at December 31, 2022. The determination of these net reserves for losses and loss expenses is estimated by management after a catastrophe occurs by completing an in-depth analysis of individual contracts which may potentially have been impacted by the catastrophic event. This in-depth analysis may rely on several sources of information including:
•estimates of the size of insured industry losses from the catastrophic event and the Company's corresponding market share;
•a review of the Company's portfolio of contracts to identify those contracts which may be exposed to the catastrophic event;
•a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process;
•a review of the coverage provided by the Company's ceded reinsurance;
•discussions of the impact of the event with customers and brokers; and
•catastrophe bulletins published by various independent statistical reporting agencies.
A blend of these information sources is generally used to arrive at aggregate estimates of the ultimate losses arising from these catastrophic events.
While the Company believes its estimate of net reserves for losses and loss expenses is adequate for losses and loss expenses that have been incurred at December 31, 2022 based on current facts and circumstances, the Company monitors changes in paid and incurred losses in relation to each catastrophe in subsequent reporting periods and adjustments are made to estimates of ultimate losses for each event if there are developments that are different from previous expectations. Adjustments are recorded in the period in which they are identified. Actual losses for these events may ultimately differ materially from the Company's current estimates.
Selection of Reported Reserves – Management’s Best Estimate
The Company's loss reserving process involves the collaboration of its underwriting, claims, actuarial, ceded reinsurance and finance departments, including multiple committee meetings and culminates with the approval of a single point best estimate by the Company's Group Reserving Committee, which comprises senior management. In selecting this best estimate, management considers actuarial estimates and applies informed judgment regarding qualitative factors that may not be fully captured in these actuarial estimates. Such factors include, but are not limited to, the timing of the emergence of claims, volume and complexity of claims, social and judicial trends, potential severity of individual claims and the extent of Company historical loss data versus industry information. While these qualitative factors are considered in arriving at the point estimate, no specific provisions for qualitative factors are established.
Reserve for Losses and Loss Expenses

Reserve for losses and loss expenses comprise the following:
At December 31,20222021
Reserve for reported losses and loss expenses$5,555,865 $5,539,971 
Reserve for losses incurred but not reported9,612,998 9,113,123 
Reserve for losses and loss expenses$15,168,863 $14,653,094 
Reserve Roll-forward
The following table presents a reconciliation of the Company's beginning and ending gross reserves for losses and loss expenses and net reserves for unpaid losses and loss expenses:
Year ended December 31,202220212020
Gross reserve for losses and loss expenses, beginning of year$14,653,094 $13,926,766 $12,752,081 
Less reinsurance recoverable on unpaid losses, beginning of year(5,017,611)(4,496,641)(3,877,756)
Net reserve for unpaid losses and loss expenses, beginning of year9,635,483 9,430,125 8,874,325 
Net incurred losses and loss expenses related to:
Current year3,267,943 3,041,193 3,297,161 
Prior years(25,533)(32,410)(15,909)
 3,242,410 3,008,783 3,281,252 
Net paid losses and loss expenses related to:
Current year(457,857)(490,011)(571,442)
Prior years(2,397,213)(2,274,240)(2,365,959)
 (2,855,070)(2,764,251)(2,937,401)
Foreign exchange and other(685,132)(39,174)211,949 
Net reserve for unpaid losses and loss expenses, end of year9,337,691 9,635,483 9,430,125 
Reinsurance recoverable on unpaid losses, end of year5,831,172 5,017,611 4,496,641 
Gross reserve for losses and loss expenses, end of year$15,168,863 $14,653,094 $13,926,766 
The Company writes business with loss experience generally characterized as low frequency and high severity in nature, which can result in volatility in its financial results. During 2022, 2021 and 2020, the Company recognized catastrophe and weather-related losses, net of reinstatement premiums, of $403 million, $443 million and $774 million.
On December 9, 2022, the Company entered into loss portfolio transfer reinsurance agreements with a third-party reinsurer which were deemed to have met the established criteria for retroactive reinsurance accounting. At December 31, 2022, foreign exchange and other included an increase in reinsurance recoverable on unpaid losses of $422 million related to this transaction.
At December 31, 2021, foreign exchange and other included a decrease in reinsurance recoverable on unpaid losses of $49 million related to the Reinsurance to Close of the 2018 year of account of Syndicate 2007.
Estimates for Catastrophe Events
At December 31, 2022, net reserve for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and complexity of losses arising from certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. These events include Hurricane Ian, Winter Storm Elliot, June European Convective Storms, the Russia-Ukraine war and COVID-19 in 2022, Hurricane Ida, U.S. Winter Storms Uri and Viola, and July European Floods in 2021, and the COVID-19 pandemic, Hurricanes Laura, Sally, Zeta and Delta, Midwest derecho and wildfires across the West Coast of the United States in 2020. As a result, actual losses for these events may ultimately differ materially from current estimates.
Prior Year Reserve Development
The Company's net favorable prior year reserve development arises from changes to estimates for losses and loss expenses related to loss events that occurred in previous calendar years. The following table presents net prior year reserve development by segment:
Net Favorable Prior Year Reserve Development
Insurance ReinsuranceTotal
Year ended December 31, 2022$16,350 $9,183 $25,533 
Year ended December 31, 2021$18,360 $14,049 $32,410 
Year ended December 31, 2020$8,937 $6,972 $15,909 
The following sections provide further details on net prior year reserve development by segment, line of business and accident year.
Insurance Segment:
Favorable (Adverse)
Years ended December 31,202220212020
Property $52,512 $71,032 $44,054 
Accident and health(12,856)15,844 2,738 
Marine and aviation27,927 42,535 23,195 
Cyber8,416 (7,329)2,205 
Professional lines(29,093)(71,258)(37,866)
Credit and political risk24,361 10,363 (745)
Liability(54,917)(42,827)(24,644)
Total$16,350 $18,360 $8,937 

In 2022, we recognized $16 million of net favorable prior year reserve development, the principal components of which were:

•$53 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence attributable to 2018 and 2020 catastrophe events and decreases in loss estimates attributable to specific large claims related to 2012 and older accident years.

•$28 million of net favorable prior year reserve development on marine and aviation business primarily due to better than expected loss emergence attributable to the marine cargo and specie, and marine offshore energy books of business mainly related to the 2018, 2019 and 2021 accident years, and better than expected loss emergence attributable to aviation business mainly related to the 2021 accident year.
•$24 million of net favorable prior year reserve development on credit and political risk business primarily due to better than expected loss emergence mainly related to the 2017 through 2021 accident years.

•$8 million of net favorable prior year reserve development on cyber business primarily due to better than expected loss emergence mainly related to 2020 and older accident years, partially offset by reserve strengthening related to the 2021 accident year.

•$55 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. programs book of business mainly related to the 2016 through 2021 accident years, and the U.S. primary casualty book of business mainly related to the 2015 through 2018 and the 2021 accident years.

•$29 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the U.S. commercial management solutions book of business mainly related to the 2015, 2018 and 2019 accident years.

•$13 million of net adverse prior year development on accident and health business primarily due to reserve strengthening mainly related to the 2019 through 2021 accident years.

In 2021, we recognized $18 million of net favorable prior year reserve development, the principal components of which were:

•$71 million of net favorable prior year reserve development on property business primarily due to decreases in loss estimates attributable to specific large claims related to the 2011 and 2012 accident years, and better than expected loss emergence attributable to 2018 to 2020 catastrophe events, and the global property book of business related to the 2017 through 2019 accident years.

•$43 million of net favorable prior year reserve development on marine and aviation business primarily due to better than expected loss emergence attributable to marine cargo, marine offshore energy and marine specie books of business mainly related to the 2017, 2018 and 2020 accident years, decreases in loss estimates attributable to specific large marine claims related to the 2012 accident year, and better than expected loss emergence attributable to aviation business mainly related to the 2020 accident year.

•$16 million of net favorable prior year reserve development on accident and health business primarily due to better than expected loss emergence related to the 2019 and 2020 accident years.

•$10 million of net favorable prior year reserve development on credit and political risk business primarily due to better than expected loss emergence mainly related to the 2018 and 2019 accident years.

•$71 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within run-off lines of business mainly related to the 2016 through 2019 accident years and the U.S. commercial management solutions book of business mainly related to the 2017 and 2019 accident years.

•$43 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the program book of business mainly related to the 2018 and 2019 accident years.

•$7 million of net adverse prior year reserve development on cyber business primarily due to reserve strengthening within the global cyber and technology book of business mainly related to the 2019 accident year.
In 2020, we recognized $9 million of net favorable prior year reserve development, the principal components of which were:

•$44 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence mainly related to the 2018 and 2019 accident years, and better than expected loss emergence attributable to 2017 to 2019 catastrophe events.
 
•$23 million of net favorable prior year reserve development on marine and aviation business primarily due to better than expected loss emergence attributable to marine business mainly related to the 2018 accident year.

•$38 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the European professional indemnity and financial institutions books of business and the U.S. commercial management solutions book of business mainly related to the 2018 and 2019 accident years, and an increase in the loss estimate attributable to a specific large claim related to the 2009 accident year.

•$25 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. primary casualty, U.S. excess casualty and program books of business mainly related to the 2017 and 2018 accident years.
Reinsurance Segment:
Favorable (Adverse)
Years ended December 31,202220212020
Accident and health$14,199 $5,861 $7,373 
Agriculture11,703 423 5,606 
Marine and aviation2,597 (10,767)(12,664)
Professional lines(54,820)(23,718)(15,352)
Credit and surety43,567 3,436 36,828 
Motor18,161 43,968 21,086 
Liability(58,148)(17,919)(29,656)
Run-off lines
Catastrophe(504)(36)(3,547)
Property42,523 17,651 6,818 
Engineering(10,095)(4,850)(9,520)
Total run-off lines31,924 12,765 (6,249)
Total$9,183 $14,049 $6,972 
In 2022, we recognized $9 million of net favorable prior year reserve development, the principal components of which were:
•$44 million of net favorable development on credit and surety business primarily due to better than expected loss emergence mainly related to the 2015 through 2021 accident years, most notably within the mortgage book of business related to the 2020 and 2021 accident years.

•$18 million of net favorable prior year reserve development on motor business primarily due to better than expected loss emergence mainly related to the 2017 through 2020 accident years.

•$14 million of net favorable development on accident and health business primarily due to better than expected loss emergence mainly related to the 2019 through 2021 accident years.
•$12 million of net favorable development on agriculture business primarily due to better than expected loss emergence mainly related to the 2019 and 2021 accident years.

•$58 million of net adverse development on liability business primarily due to increases in loss estimates attributable to specific large claims related to the 2018 and 2021 accident years and reserve strengthening within the U.S. non-proportional books of business related to the 2016 through 2019 accident years.

•$55 million of net adverse prior year reserve development on professional lines business primarily due to increases in loss estimates attributable to one cedant related to several accident years, and reserve strengthening within the U.S. public D&O proportional books of business related to 2017 and older accident years.

Run-off lines

•$43 million of net favorable development on property business primarily due to better than expected loss emergence attributable to 2017 through 2021 catastrophe events and better than expected attritional loss emergence attributable to the 2021 accident year.

•$10 million of net adverse prior year reserve development on engineering business primarily due to increases in loss estimates attributable to specific large claims mainly related to the 2011, 2018 and 2019 accident years.

In 2021, we recognized $14 million of net favorable prior year reserve development, the principal components of which were:

•$44 million of net favorable prior year reserve development on motor business primarily due to proportional and non-proportional treaty business mainly related to 2016 and older accident years.

•$6 million of net favorable prior year development on accident and health business primarily due to better than expected loss emergence mainly related to the 2019 and 2020 accident years.

•$24 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the U.S. and European books of business related to the 2015 through 2018 accident years and increases in the loss estimates attributable to specific large claims related to the 2015 to 2017 accident years.

•$18 million of net adverse prior year reserve development on liability business primarily due to increases in loss estimates attributable to specific large claims related to the 2017 and 2018 accident years and reserve strengthening within the commercial auto liability and U.S. multiline/regional books of business related to the 2018 accident year.

•$11 million of net adverse prior year development on marine and aviation business primarily due to an increase in the loss estimate attributable to specific large claim mainly related to 2018 accident year.

Run-off lines

•$18 million of net favorable prior year reserve development on property business primarily due to decreases in loss estimates attributable to specific large claims related to the 2009, and 2017 through 2019 accident years, and better than expected loss emergence attributable to 2017 through 2019 catastrophe events, partially offset by reserve strengthening attributable to 2020 catastrophe events.

•$5 million of net adverse prior year development on engineering business primarily due to reserve strengthening mainly related to the 2016, 2017 and 2019 accident years, partially offset by decreases in loss estimates attributable to specific large claims related to the 2018 accident year.
In 2020, we recognized $7 million of net favorable prior year reserve development, the principal components of which were:
•$37 million of net favorable prior year reserve development on credit and surety business primarily due to better than expected loss emergence related to several accident years.

•$21 million of net favorable prior year reserve development on motor business primarily due to non-proportional treaty business mainly related to older accident years, partially offset by increases in loss estimates for proportional treaty business mainly related to the 2018 accident year.

•$7 million of net favorable prior year development on accident and health business primarily due to better than expected loss emergence mainly related to 2018 and 2019 accident years.

•$6 million of net favorable prior year development on agriculture business primarily due to better than expected loss emergence mainly related to 2018 and 2019 accident years.

•$30 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. casualty, the U.S. multiline/regional and the European books of business mainly related to the 2016 through 2019 accident years and an increase in the loss estimate attributable to a specific large claim related to the 2009 accident year.

•$15 million of net adverse prior year reserve development on professional lines business primarily due to an increase in the loss estimate attributable to a specific large claim related to the 2016 accident year and reserve strengthening within the European book of business mainly related to the 2016 to 2018 accident years.

•$13 million of net adverse prior year development on marine and aviation business primarily due to an increase in the loss estimate attributable to a specific large claim related to the 2019 accident year.

Run-off lines

•$7 million of net favorable prior year development on property business primarily due to better than expected loss emergence attributable to 2019 catastrophe events.

•$10 million of net adverse prior year development in engineering business primarily due to reserve strengthening mainly related to the 2016 through 2018 accident years.
Net Incurred and Paid Claims Development Tables by Accident Year
The following tables present net incurred and paid claims development by accident year, total incurred-but-not-reported liabilities plus expected development on reported claims, cumulative reported claims frequency and average annual percentage payout of incurred claims by age for each lines of business. The loss development tables are presented on an accident year basis for each line of business in the insurance and reinsurance segments. The Company does not discount reserves for losses and loss expenses.
Non-U.S. dollar denominated loss data is converted to U.S. dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in foreign currency exchange rates may cause material shifts in loss development. Reserves for losses and loss expenses disclosed in the consolidated balance sheets are also remeasured using the rates of exchange in effect at the balance sheet date.
There are many considerations in establishing net reserves for losses and loss expenses. An attempt to evaluate net reserves for losses and loss expenses using solely the paid losses and claim counts presented in these tables could be misleading. When projecting net reserves for losses and loss expenses, the Company relies on several inputs in addition to the information presented in this disclosure including case incurred loss projections, changes in mix of business, external trends, and additional qualitative information. The Company cautions against mechanical application of standard actuarial methodologies to project ultimate losses using data presented in this disclosure.
Insurance Segment
The reporting of cumulative claims frequency for the lines of business within the insurance segment has been measured by counting the number of unique claim references including claim references assigned to nil and nominal case reserves. Claim references are grouped by claimant by loss event for each lines of business. For certain insurance facilities and business produced by managing general agents where underlying data is reported to the Company in an aggregated format, the information necessary to provide cumulative claims frequency is not available therefore reporting of claims frequency is deemed to be impracticable.
Insurance Property
The property line of business provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This line of business includes primary and excess risks, some of which are catastrophe-exposed.
In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events.
Insurance property
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claimsCumulative number of reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$269,749 $263,335 $236,276 $232,389 $231,357 $241,593 $240,025 $239,742 $239,749 $239,662 $608 3,455
2014288,993 287,038 276,777 262,345 261,928 259,507 255,612 252,918 252,842 846 4,128
2015207,460 199,738 191,987 189,724 186,403 188,334 178,338 180,614 322 4,168
2016263,277 286,359 278,599 264,244 258,563 259,012 258,432 1,763 6,589
2017790,282 696,217 688,738 679,272 674,642 674,955 16,736 10,037
2018601,920 648,546 628,383 620,745 619,470 8,696 9,586
2019365,895 354,498 344,865 356,278 3,174 9,470
2020639,024 625,403 574,412 45,011 12,282
2021375,903 371,684 22,282 7,562
2022412,001 168,886 5,412
Total$3,940,350 
Insurance property
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$58,733 $167,580 $204,735 $214,480 $225,390 $228,191 $229,834 $233,526 $236,432 $236,997 
2014100,650 201,651 244,033 249,980 253,810 254,575 251,427 252,414 252,430 
201567,511 144,649 165,616 179,204 178,913 185,314 176,515 181,344 
201682,211 206,273 242,194 249,831 250,150 255,203 252,620 
2017190,341 509,810 617,753 645,828 640,919 630,476 
2018218,618 463,312 556,715 566,699 584,059 
2019145,706 251,353 297,493 334,179 
2020181,569 419,718 473,647 
2021133,811 284,795 
202297,207 
Total3,327,754 
All outstanding liabilities before 2013, net of reinsurance12,328 
Liabilities for claims and claim adjustment expenses, net of reinsurance$624,924 
Insurance property
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
32.9%41.6%13.9%4.7%1.4%1.1%(1.6%)1.5%0.6%0.2%
Insurance Accident and Health
The accident and health line of business includes accidental death, travel insurance and specialty health products for employer and affinity groups.
In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events. An increase in limited benefits medical business written in 2017 resulted in a significant increase in reported claims observed in that year.
Insurance accident and health
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claimsCumulative number of reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$38,763 $34,160 $34,413 $34,383 $35,045 $35,245 $33,026 $32,794 $33,916 $35,353 $1,220 49,549
201470,803 66,137 65,588 64,057 63,685 64,420 63,645 62,846 61,479 656 58,081
201569,643 67,991 64,511 62,720 63,278 62,966 62,298 62,958 1,495 44,138
201684,024 83,697 84,118 85,247 84,921 85,938 85,738 1,597 87,001
2017112,583 118,736 116,690 114,782 114,855 114,738 160 688,000
2018109,900 113,711 112,819 110,861 111,865 170 738,139
201972,971 74,084 64,586 68,074 (482)668,008
202069,316 63,476 66,975 1,475 713,198
202169,349 71,672 1,695 418,260
202298,419 46,362 227,274
Total$777,271 
Insurance accident and health
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$16,332 $29,732 $31,088 $32,330 $32,455 $32,675 $32,744 $32,902 $34,324 $34,385 
201431,094 55,506 59,416 60,571 61,226 61,556 61,428 60,364 60,773 
201530,760 55,604 58,702 59,574 60,585 60,461 61,116 61,208 
201640,548 77,102 80,888 81,731 82,791 83,188 83,896 
201762,112 106,988 112,172 113,583 114,694 113,874 
201860,816 104,196 106,590 110,259 111,146 
201944,546 60,783 62,277 67,232 
202036,155 51,948 60,375 
202139,096 61,291 
202246,279 
Total700,459 
All outstanding liabilities before 2013, net of reinsurance50 
Liabilities for claims and claim adjustment expenses, net of reinsurance$76,862 
Insurance accident and health
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
52.2%35.1%5.1%2.8%1.0%0.1%0.5%(0.4%)2.4%0.2%
Insurance Marine and Aviation
The marine line of business provides cover for traditional marine classes, including offshore energy, renewable offshore energy, cargo, liability including kidnap and ransom, fine art, specie, and hull war. Offshore energy coverage includes physical damage, business interruption, operators extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases.

The complex nature of claims arising under marine policies tends to result in reporting and payment patterns that are longer than those of the property line of business with marine liability exhibiting the longest marine reporting and payment patterns as claims involve passengers and third parties. Exposure to natural perils such as windstorm and earthquake can result in volatility.
The aviation line of business provides cover for hull and liability, and specific war cover primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers.
The claims reporting pattern varies by insurance coverage provided. Losses arising from war or terrorism and damage to hulls of aircraft are generally reported quickly compared with liability claims which involve passengers and third parties and generally exhibit longer reporting and payment patterns. To date, the claims reported to the Company have predominantly related to damage to hulls, therefore, reporting and payment patterns have typically exhibited a relatively short-tail.
Insurance marine and aviation
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claimsCumulative number of reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$94,098 $115,403 $109,330 $110,382 $95,998 $95,389 $95,565 $94,661 $95,315 $94,037 $618 3,401
201479,979 66,912 71,356 64,952 66,228 64,264 56,132 53,409 52,696 922 3,550
2015187,548 166,614 162,516 154,835 141,433 146,923 146,411 146,338 1,083 4,292
2016115,466 111,852 109,445 101,880 101,293 100,428 101,331 1,236 4,821
2017260,951 228,267 229,379 227,315 219,372 219,134 13,765 8,537
2018236,572 261,748 247,886 241,156 234,514 22,650 8,699
2019211,337 205,829 208,657 221,420 9,334 7,566
2020206,992 178,479 161,972 24,006 6,741
2021240,192 221,510 68,116 6,354
2022264,395 179,643 5,240
Total$1,717,347 
Insurance marine and aviation
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$22,659 $50,207 $62,893 $72,520 $77,260 $88,864 $89,309 $92,036 $93,247 $93,057 
201410,323 22,841 37,098 39,607 48,895 53,363 54,548 48,832 50,668 
201529,478 69,837 126,054 131,005 133,809 136,606 143,207 143,363 
201622,870 50,925 82,993 90,225 92,182 94,129 97,216 
201735,017 105,590 139,027 170,989 179,649 183,484 
201847,056 122,623 158,852 172,496 184,154 
201953,681 102,330 144,781 170,142 
202044,436 83,842 105,653 
202126,908 69,711 
202229,843 
Total1,127,291 
All outstanding liabilities before 2013, net of reinsurance15,112 
Liabilities for claims and claim adjustment expenses, net of reinsurance$605,168 
Insurance marine and aviation
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
19.8%26.5%21.8%8.2%5.9%5.3%2.6%(2.6%)2.4%(0.2%)
Insurance Cyber
The cyber line of business provides cover for cyber, technology errors and omissions, media and miscellaneous professional liability. Cover is provided for a range of risks including data recovery and bricking, cyber-crime, liability and regulatory actions, business interruption, extortion, reputational harm, Payment Card Industry Data Security Standard and media liability.

Typically, this line of business is anticipated to exhibit medium-tail claim reporting and payment patterns with specific first party coverages tending to develop more quickly, on average.
Insurance cyber
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claimsCumulative number of reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$67,211 $66,409 $65,870 $47,310 $42,557 $34,399 $33,537 $32,591 $32,557 $35,564 $5,447 1,335
201470,557 69,690 69,955 57,876 47,342 42,887 39,516 43,576 39,832 1,733 1,114
201565,231 63,595 63,066 51,250 50,357 50,758 52,526 49,795 5,857 1,337
201658,741 56,565 58,261 40,266 37,322 29,929 27,873 4,478 1,532
201753,187 50,794 56,910 52,058 51,050 49,327 6,722 1,623
201833,429 32,155 34,151 31,009 27,332 5,745 1,966
201954,671 58,702 81,757 81,402 16,951 2,796
2020113,744 105,868 102,606 22,194 2,821
2021124,596 133,673 50,583 2,356
2022127,970 110,682 1,341
Total$675,374 
Insurance cyber
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$2,179 $10,833 $18,990 $21,149 $24,114 $25,564 $28,104 $28,626 $28,745 $29,117 
20143,136 12,162 23,330 29,962 31,260 33,819 33,732 35,440 36,070 
20155,572 15,333 25,544 28,501 30,865 39,470 42,515 43,635 
20161,348 4,637 14,141 18,502 21,333 23,136 23,207 
20179,354 19,165 28,331 35,897 38,029 40,553 
20182,171 7,327 9,874 14,786 19,193 
20192,775 20,810 32,193 60,129 
202017,712 50,038 63,216 
202124,082 65,391 
20227,825 
Total388,336 
All outstanding liabilities before 2013, net of reinsurance9,363 
Liabilities for claims and claim adjustment expenses, net of reinsurance$296,401 
Insurance cyber
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
10.2%22.4%20.0%16.0%7.8%7.9%3.3%2.7%1.0%1.0%
Insurance Professional Lines
The professional lines line of business provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, medical malpractice and other financial insurance related covers for public and private commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers. This business is predominantly written on a claims-made basis.
Typically, this line of business is anticipated to exhibit medium to long-tail claim reporting and payment patterns. For some professional lines in the insurance segment, the Company also relies on the evaluation of the open claim inventory in addition to the commonly employed actuarial methods when establishing reserves.
Insurance professional lines
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claimsCumulative number of reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$314,230 $327,011 $326,531 $311,998 $305,212 $315,038 $294,284 $298,702 $295,366 $290,531 $23,664 8,148
2014335,549 335,403 344,642 327,693 317,641 304,932 302,187 301,754 299,310 39,805 8,759
2015307,130 307,995 314,890 301,324 287,955 270,904 269,672 281,916 24,939 9,211
2016286,248 291,012 295,253 313,363 325,816 335,757 338,634 32,529 10,424
2017335,706 338,031 371,629 371,589 388,973 389,053 72,532 12,380
2018322,911 338,625 387,583 417,600 445,652 93,119 14,996
2019342,656 358,459 373,074 408,585 121,148 14,335
2020319,015 317,999 299,008 166,308 9,128
2021374,828 366,258 305,139 7,766
2022456,192 436,877 6,263
Total$3,575,139 
Insurance professional lines
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$15,377 $61,522 $108,641 $151,750 $185,538 $212,579 $229,734 $241,651 $255,952 $257,104 
201420,125 56,706 103,662 158,890 188,401 204,705 214,481 236,458 242,244 
201514,049 51,053 110,009 138,047 169,213 198,709 211,058 222,361 
201614,319 65,614 130,415 170,747 208,400 232,648 273,693 
201711,370 51,064 107,837 165,575 196,308 266,468 
201818,191 74,216 141,868 202,837 262,939 
201924,826 75,955 131,776 203,957 
20208,631 43,796 97,171 
20219,697 38,372 
202210,715 
Total1,875,024 
All outstanding liabilities before 2013, net of reinsurance93,016 
Liabilities for claims and claim adjustment expenses, net of reinsurance$1,793,131 
Insurance professional lines
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
4.2%12.4%16.7%14.5%10.9%10.1%6.4%5.1%3.4%0.4%
Insurance Credit and Political Risk
The credit and political risk line of business provides credit and political risk insurance products for banks, commodity traders, corporations and multilateral and export credit agencies. Cover is provided for a range of risks including sovereign and corporate credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events.
The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers. In order to claim compensation under a credit insurance contract, the insured (most often a bank) cannot assign, without the Company's prior agreement, the insured contract (most often a loan) to any third party and is normally obliged to hold a material portion of insured asset on their books, unhedged and uninsured. Claims for this business tend to be characterized by their severity risk, as opposed to their frequency risk.
Claim reporting and payment patterns are anticipated to be volatile and are generally medium-tailed. Under the notification provisions of credit insurance policies issued by the Company, it anticipates being advised of an insured event within a relatively short time period. Consequently, the Company generally estimates ultimate losses based on a contract-by-contract analysis which considers the contracts’ terms, the facts and circumstances of underlying loss events and qualitative input from claims managers.
Insurance credit and political risk
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claimsCumulative number of reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$26,439 $25,684 $9,759 $9,880 $14,942 $14,067 $12,377 $12,739 $12,614 $12,151 $— 2
201438,825 70,712 67,109 68,323 69,589 71,274 70,748 69,112 69,677 — 6
201530,329 30,368 27,524 26,012 25,930 24,851 24,189 23,309 — 2
201644,175 45,485 42,995 43,566 27,352 26,371 25,291 — 1
201747,934 32,612 27,007 19,234 16,952 11,993 4,283 3
201842,588 35,296 34,240 26,231 22,577 9,191 2
201950,079 77,987 72,450 70,888 7,985 20
202059,758 68,347 59,519 25,535 39
202142,229 36,943 30,912 17
202245,231 40,828 13
Total$377,579 
Insurance credit and political risk
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$745 $2,235 $3,726 $5,216 $11,769 $13,828 $13,828 $13,828 $12,151 $12,151 
20141,924 39,951 61,108 57,857 57,857 64,050 70,223 70,223 69,677 
2015— 23,309 23,309 23,309 23,309 23,309 23,309 23,309 
2016— 25,291 25,291 25,291 25,291 25,291 25,291 
2017388 3,916 9,008 11,427 10,640 10,100 
20185,215 13,128 15,117 11,314 19,396 
201915,684 46,055 53,331 56,531 
20209,618 89,146 56,769 
20212,769 (382)
20222,797 
Total275,639 
All outstanding liabilities before 2013, net of reinsurance607 
Liabilities for claims and claim adjustment expenses, net of reinsurance$102,547 
Insurance credit and political risk
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
8.7%55.5%6.2%2.2%13.9%4.3%2.2%—%(7.3%)—%
Insurance Liability
The liability line of business primarily targets primary and low to mid-level excess and umbrella commercial liability risks in the U.S. wholesale markets in addition to primary and excess of loss employers, public and products liability business predominately in the U.K. Target industry sectors include construction, manufacturing, transportation and trucking and other services.
Typically, this line of business is anticipated to exhibit long-tail claim reporting and payment patterns.
Insurance liability
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claimsCumulative number of reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$93,230 $95,304 $95,170 $88,237 $93,677 $95,978 $91,938 $89,897 $94,196 $97,047 $12,187 3,737
2014107,115 124,264 129,725 130,659 132,006 131,461 132,551 132,029 132,659 12,691 5,531
2015128,435 127,236 137,385 164,915 182,612 187,927 186,853 188,577 22,972 6,574
2016124,307 130,127 128,782 127,366 120,116 120,101 125,644 21,537 7,417
2017166,717 165,415 184,847 200,470 204,612 215,101 21,746 8,629
2018166,973 167,808 190,809 204,879 216,530 29,705 8,473
2019190,645 191,683 221,266 236,959 43,102 7,936
2020223,579 223,996 230,421 113,650 5,848
2021231,189 244,972 150,924 5,965
2022322,048 282,198 4,657
Total$2,009,958 
Insurance liability
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$2,356 $23,276 $33,315 $42,046 $60,000 $66,959 $71,978 $73,309 $78,018 $82,483 
20141,409 18,623 49,818 71,582 84,362 93,562 103,033 106,197 113,142 
20155,437 22,303 39,522 92,535 120,061 140,732 150,562 158,924 
20166,308 23,237 36,336 56,367 66,237 79,464 95,688 
20175,395 29,335 58,801 115,213 142,927 168,012 
20189,321 34,803 72,091 118,945 158,358 
20197,791 39,746 83,533 138,832 
20208,138 25,129 75,820 
202113,388 51,815 
202213,199 
Total1,056,273 
All outstanding liabilities before 2013, net of reinsurance50,544 
Liabilities for claims and claim adjustment expenses, net of reinsurance$1,004,229 
Insurance liability
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
3.5%12.9%15.6%20.1%13.6%9.5%7.6%2.7%5.1%4.6%
Reinsurance Segment
The presentation of net incurred and paid claims development tables by accident year for the reinsurance segment is challenging due to the need to allocate loss information related to proportional treaties to the appropriate accident years. Information related to proportional treaty reinsurance contracts is generally submitted to the Company via quarterly bordereaux reporting by underwriting year, with a supplemental listing of large losses. Large losses can be allocated to the corresponding accident years accurately. The remaining losses can generally only be allocated to accident years based on estimated premiums earned and loss reporting patterns. To the extent management’s assumptions and allocation procedures differ from the actual loss development patterns, the actual loss development may differ materially from the net incurred and paid claims development presented in the tables below.
The reporting of cumulative claims frequency for the lines of business within the reinsurance segment is deemed to be impracticable as the information necessary to provide cumulative claims frequency for these reserve classes is not available to the Company.
Reinsurance Accident and Health
The accident and health line of business includes personal accident, specialty health, accidental death, travel, life and disability reinsurance products which are offered on a proportional and catastrophic or per life excess of loss basis.
In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events.
Reinsurance accident and health
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident Year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$108,977 $113,631 $113,009 $111,623 $111,155 $111,162 $111,162 $111,198 $111,277 $111,294 $757 
2014101,383 102,354 89,238 86,765 86,772 86,774 87,734 88,021 87,906 1,106 
201593,792 100,434 93,964 93,722 93,007 93,341 92,350 92,313 (1,876)
2016170,644 191,188 188,320 189,929 189,403 190,426 190,356 (613)
2017183,817 189,430 183,286 182,097 183,120 183,077 1,528 
2018193,667 200,269 198,105 200,854 200,190 4,693 
2019217,320 211,896 207,347 204,951 5,896 
2020226,549 220,334 213,230 (7,052)
2021231,754 226,659 26,816 
2022267,359 146,819 
Total$1,777,335 
Reinsurance accident and health
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident Year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$52,853 $103,977 $108,306 $110,927 $111,011 $111,018 $111,018 $111,090 $110,328 $110,537 
201436,558 79,933 85,870 86,266 86,466 86,553 87,239 86,319 86,702 
201523,404 77,264 88,667 91,872 91,981 92,441 93,864 93,677 
201650,036 149,883 180,978 187,142 189,128 188,726 189,679 
201779,209 157,032 171,864 178,605 179,117 179,772 
201872,863 165,053 191,605 191,161 194,276 
201967,728 169,257 195,575 196,306 
202081,657 171,632 210,006 
202168,381 179,025 
2022101,308 
Total1,541,288 
All outstanding liabilities before 2013, net of reinsurance47 
Liabilities for claims and claim adjustment expenses, net of reinsurance$236,094 
Reinsurance accident and health
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
36.0%48.3%11.5%1.9%0.6%0.2%0.7%(0.4%)(0.2%)0.2%
Reinsurance Agriculture
The agriculture line of business provides protection for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. This business is written on a proportional and aggregate stop loss reinsurance basis.
In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of extreme weather events and in some territories take longer to settle due to government involvement in the loss adjustment process.
Reinsurance agriculture
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident Year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$107,068 $117,467 $121,107 $120,795 $120,807 $120,799 $120,919 $121,805 $120,853 $121,752 $(330)
2014183,242 164,334 162,814 162,382 162,308 162,321 162,239 162,061 162,756 437 
2015103,172 95,592 95,334 95,320 95,326 95,504 95,490 95,621 (33)
2016123,798 117,507 110,630 109,218 109,457 108,647 108,599 (227)
2017151,649 144,281 138,357 139,427 138,898 137,431 (238)
2018140,936 147,271 140,806 140,538 139,907 1,412 
2019184,177 185,218 187,685 183,289 1,679 
202062,593 62,738 63,778 3,775 
202169,759 61,225 9,475 
2022100,872 77,550 
Total$1,175,230 
Reinsurance agriculture
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident Year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$3,609 $78,089 $118,317 $119,549 $120,144 $120,138 $120,204 $119,990 $120,258 $121,997 
201415,615 133,132 162,343 161,569 161,492 162,005 160,509 161,161 162,061 
20151,716 65,858 92,967 94,523 94,860 95,455 95,444 95,599 
20169,489 62,155 107,972 109,511 108,991 108,752 108,792 
20177,444 124,479 137,421 138,555 137,396 137,343 
20185,115 127,514 135,594 141,688 138,316 
201928,854 154,480 174,173 178,181 
202017,454 47,316 54,180 
20212,953 32,781 
202215,345 
Total1,044,595 
All outstanding liabilities before 2013, net of reinsurance734 
Liabilities for claims and claim adjustment expenses, net of reinsurance$131,369 
Reinsurance agriculture
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
9.5%65.1%19.8%1.6%(0.5%)0.1%(0.2%)0.1%0.4%1.4%
Reinsurance Marine and Aviation
The marine line of business includes specialty marine classes such as cargo, hull, pleasure craft, marine liability, inland marine and offshore energy. The principal perils covered by policies in this portfolio include physical loss, damage and/or liability arising from natural perils of the seas or land, man-made events including fire and explosion, stranding/sinking/salvage, pollution, shipowners and maritime employers liability. This business is written on a non-proportional and proportional basis.
The aviation line of business provides cover for airline, aerospace and general aviation exposures. This business is written on a proportional and non-proportional basis. The Company exited Aviation business effective January 1, 2023.
Losses arising from marine and aviation lines of business are generally reported quickly with the exception of marine and aviation liability claims which tend to exhibit longer reporting and payment patterns as claims involve passengers and third parties.
Reinsurance marine and aviation
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident Year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$11,961 $12,441 $6,676 $6,487 $6,560 $6,523 $6,226 $6,558 $6,575 $6,599 $(565)
201410,183 9,142 7,990 7,182 9,166 8,514 8,764 9,003 9,505 423 
201510,363 9,217 10,806 14,979 12,620 12,251 12,016 11,968 418 
201632,280 35,330 35,605 36,996 35,511 35,834 36,238 625 
201755,072 42,760 41,360 46,608 43,230 40,887 844 
201818,830 28,072 27,609 44,042 47,522 443 
201969,056 81,480 79,146 80,976 5,760 
202040,548 42,071 38,273 4,380 
202143,886 40,968 15,886 
202268,898 54,268 
Total$381,834 
Reinsurance marine and aviation
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident Year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$465 $2,502 $3,685 $4,180 $5,416 $5,845 $6,029 $6,574 $6,593 $6,698 
20141,117 2,301 4,377 5,244 6,308 6,486 6,990 7,357 7,549 
2015416 2,655 6,430 8,641 10,198 10,994 10,820 10,902 
20162,695 19,119 26,202 30,133 32,878 33,927 34,519 
20172,746 23,508 28,826 33,764 36,809 36,920 
20181,779 10,831 24,246 30,685 34,293 
201910,715 27,093 34,278 52,688 
20204,017 16,729 24,112 
20215,491 12,381 
20227,775 
Total227,837 
All outstanding liabilities before 2013, net of reinsurance2,076 
Liabilities for claims and claim adjustment expenses, net of reinsurance$156,073 
Reinsurance marine and aviation
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
8.9%27.5%20.0%13.5%10.9%3.7%2.1%4.3%1.2%1.6%
Reinsurance Professional Lines
The professional lines line of business provides protection for directors' and officers' liability, employment practices liability, medical malpractice, professional indemnity, environmental liability, cyber, and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. This business is written on a proportional and excess of loss basis.
Typically, this reserve class is anticipated to exhibit medium to long-tail claim reporting and payment patterns.
Reinsurance professional lines
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$208,838 $213,826 $214,632 $212,750 $212,039 $204,246 $180,269 $168,466 $164,383 $168,014 $5,422 
2014218,770 218,664 218,600 218,251 232,493 228,865 227,327 225,276 233,317 5,973 
2015211,463 211,312 213,463 224,028 230,650 227,545 234,298 240,255 12,860 
2016194,725 195,775 199,369 226,932 254,459 254,339 266,249 28,900 
2017154,457 154,910 161,029 176,930 186,713 209,111 31,256 
2018145,212 147,533 154,366 164,966 172,749 37,223 
2019136,846 136,277 140,144 144,336 48,864 
2020139,748 140,003 134,318 82,908 
2021147,961 139,493 112,421 
2022168,473 154,252 
Total$1,876,315 
Reinsurance professional lines
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$1,059 $12,023 $30,381 $64,795 $81,423 $104,549 $122,775 $128,090 $132,401 $138,470 
20142,019 13,047 48,700 74,330 108,767 146,520 157,828 177,465 189,224 
20153,134 13,502 41,493 79,172 111,527 131,056 151,873 169,963 
20161,758 20,414 52,455 94,853 124,553 153,251 180,770 
20172,812 14,785 39,764 62,498 88,494 115,904 
2018272 2,539 31,091 56,685 81,417 
2019365 13,549 33,395 52,849 
20203,822 13,845 26,664 
20214,337 11,343 
20223,233 
Total969,837 
All outstanding liabilities before 2013, net of reinsurance92,109 
Liabilities for claims and claim adjustment expenses, net of reinsurance$998,587 
Reinsurance professional lines
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
1.3%5.7%12.7%14.6%12.7%12.4%8.7%6.4%3.8%3.6%
Reinsurance Credit and Surety
The credit and surety line of business which provides reinsurance of trade credit insurance products and includes proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world. The Company also provides mortgage reinsurance to mortgage guaranty insurers and U.S. government sponsored entities for losses related to credit risk transfer into the private sector.
Initial and most recent underwriting year loss projections are generally based on the ELR Method, with consideration given to qualitative factors. Given that there is a quicker and more stable reporting pattern for trade credit and mortgage business, the Company generally commences the transition to experience-based methods sooner for these lines of business than for surety business.
Reinsurance credit and surety
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$162,254 $149,561 $140,520 $136,726 $132,814 $121,824 $122,035 $124,850 $123,641 $124,760 $1,647 
2014132,954 132,589 139,686 136,104 125,086 123,854 120,171 118,853 119,216 133 
2015157,589 161,881 156,701 152,946 134,568 135,496 136,667 131,093 1,530 
2016139,437 138,424 146,132 120,945 113,526 111,192 108,856 1,206 
2017136,280 129,727 123,877 115,202 112,679 112,383 2,461 
2018109,771 117,215 111,340 108,388 103,324 9,933 
201973,090 66,316 66,175 63,943 9,256 
202076,516 83,053 68,410 16,290 
202151,721 43,485 21,500 
202263,125 50,105 
Total$938,595 
Reinsurance credit and surety
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$32,161 $75,085 $89,348 $95,770 $103,368 $105,102 $110,064 $112,241 $110,508 $111,765 
201435,281 59,703 83,972 92,889 100,457 104,858 105,238 105,054 106,252 
201532,782 79,855 97,094 113,683 115,605 119,204 120,060 118,811 
201641,790 71,774 90,226 99,722 100,768 99,276 99,003 
201737,115 72,267 88,330 99,844 97,952 100,868 
201838,682 66,694 70,623 82,182 83,907 
201919,224 30,187 43,443 45,510 
202025,293 33,823 39,253 
20214,466 9,045 
20226,865 
Total721,279 
All outstanding liabilities before 2013, net of reinsurance14,199 
Liabilities for claims and claim adjustment expenses, net of reinsurance$231,515 
Reinsurance credit and surety
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
27.8%24.1%13.6%8.4%2.5%1.8%1.2%0.2%(0.2%)1.0%
Reinsurance Motor
The motor line of business provides protection to insurers for motor liability and motor property damage losses arising from any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. The Company offers traditional proportional and non-proportional reinsurance as well as structured solutions predominantly relating to European exposures.
The business written on a proportional basis has expanded significantly since 2010 and now represents the majority of the premium in this line of business. Most of the premium relates to a relatively small number of large United Kingdom ("U.K.") quota share reinsurance treaty contracts. The motor proportional business generally has a significantly shorter reported and payment pattern, relative to the motor non-proportional business.
The motor non-proportional business consists of standard excess of loss contracts written for cedants in several European countries with most of the premium related to two major markets, U.K. and France. Since 2009/2010, an increasing number of large bodily injury settlements in the U.K. market were settled using indexed annuities (Periodical Payment Orders "PPOs"). This led to a materially longer development tail on the older accident years for the U.K. non-proportional motor book. This also resulted in the inclusion of capitalization clauses on a number of U.K. motor treaties which allow reinsurers to settle claims arising under PPOs with a lump sum payment, to help mitigate the lengthening of the development tail on more recent accident years.
In 2017, the U.K. Ministry of Justice announced a decrease in the discount rate to be used to calculate lump sum awards in U.K. bodily injury cases, known as the Ogden Rate. Effective March 20, 2017, the Ogden rate changed from plus 2.5% to
minus 0.75%. This resulted in a trend toward a lower number of claims settlements using PPOs and an increase in projected ultimate losses, particularly related to recent accident years.
Effective August 5, 2019, the Ogden rate changed from minus 0.75% to minus 0.25%. This resulted in a decrease in projected ultimate losses, particularly related to recent accident years.
Reinsurance motor
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$154,629 $148,570 $137,357 $128,421 $125,052 $122,196 $113,999 $111,011 $107,275 $107,772 $5,350 
2014174,534 171,207 166,277 163,297 159,020 155,735 152,566 152,080 152,730 2,906 
2015214,064 204,962 208,365 210,117 199,861 198,653 196,003 196,266 6,881 
2016236,330 246,951 248,315 238,949 230,691 228,144 231,759 3,531 
2017347,985 350,773 340,571 341,108 342,097 337,372 12,195 
2018343,073 335,555 345,746 342,114 330,259 12,092 
2019328,062 325,918 325,792 317,512 23,908 
2020205,885 207,767 205,512 38,657 
2021173,077 173,409 36,756 
2022154,531 69,678 
Total$2,207,122 
Reinsurance motor
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$32,749 $49,088 $61,273 $70,288 $75,368 $80,462 $83,161 $74,002 $87,158 $88,695 
201441,942 68,998 86,680 93,883 103,115 111,744 106,510 126,822 129,313 
201556,617 88,152 106,450 122,679 137,554 137,597 159,792 164,738 
201659,225 98,649 120,556 137,362 149,042 172,139 179,208 
201770,213 126,902 155,191 188,658 209,638 231,594 
201882,020 134,503 196,187 204,301 227,538 
201989,709 180,671 195,770 216,677 
202043,190 92,231 110,939 
202141,457 73,915 
202234,696 
Total1,457,313 
All outstanding liabilities before 2013, net of reinsurance252,523 
Liabilities for claims and claim adjustment expenses, net of reinsurance$1,002,332 
Reinsurance motor
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
25.4%18.9%10.3%6.8%6.1%5.4%3.4%2.4%6.9%1.4%
Reinsurance Liability
The liability line of business provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability and excess casualty.
Typically, this line of business is anticipated to exhibit long-tail claim reporting and payment patterns.
Reinsurance liability
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$171,362 $175,116 $181,007 $183,051 $182,782 $176,171 $156,816 $155,720 $154,142 $157,106 $9,769 
2014198,852 201,764 203,470 199,379 198,098 195,959 186,489 182,375 188,328 16,201 
2015213,612 213,954 214,899 214,736 212,574 212,908 202,698 205,594 19,016 
2016239,071 244,275 249,096 252,359 262,011 265,953 273,312 33,727 
2017273,964 268,712 278,111 286,761 296,174 305,418 46,899 
2018262,831 267,501 272,753 285,643 305,168 61,173 
2019262,191 271,050 273,061 271,247 88,379 
2020282,871 283,457 277,697 146,037 
2021303,482 310,759 196,806 
2022346,385 298,804 
Total$2,641,014 
Reinsurance liability
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$5,966 $22,218 $52,304 $69,024 $88,217 $102,527 $113,053 $123,563 $127,966 $133,020 
20147,072 28,641 48,362 69,985 89,217 109,681 129,370 136,624 147,798 
20157,268 27,442 54,466 80,784 108,707 130,587 141,300 151,688 
201611,858 37,601 69,254 111,403 142,420 166,054 188,883 
201712,432 42,092 78,435 120,553 158,338 192,889 
201819,354 49,875 85,126 127,737 166,117 
201919,305 45,266 79,739 120,278 
202016,939 49,073 82,357 
202110,942 58,524 
202218,061 
Total1,259,615 
All outstanding liabilities before 2013, net of reinsurance123,029 
Liabilities for claims and claim adjustment expenses, net of reinsurance$1,504,428 
Reinsurance liability
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
4.8%10.8%12.8%13.3%12.1%10.1%7.7%5.2%4.4%3.2%
Reinsurance Run-off lines
Run-off lines include catastrophe, property, and engineering lines of business.
The catastrophe line of business provides protection for most catastrophic losses that are covered in the underlying insurance policies written by the Company's cedants. The underlying policies principally cover property-related exposures but other exposures including workers compensation and personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and an excess of loss basis. The Company exited this line of business in June 2022.
The property line of business provides protection for property damage and related losses resulting from natural and man-made perils that are covered in underlying personal and commercial lines insurance policies written by the Company's cedants. The predominant exposure is to property damage, but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis. The Company exited this line of business in June 2022.
The engineering line of business provides protection for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes coverage for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption. The Company exited this line of business in 2020.
In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events. Although short-tail in nature, losses from engineering exposures tend to develop slower than the other reinsurance run-off lines of business.
Reinsurance run-off
Incurred claims and allocated claim adjustment expenses, net of reinsuranceAt December 31, 2022
For the years ended December 31,Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$339,293 $308,714 $282,546 $265,575 $260,012 $259,488 $256,433 $254,589 $252,736 $251,472 $927 
2014241,052 245,246 235,489 226,620 223,003 222,835 218,807 218,620 217,746 1,354 
2015265,915 254,255 254,344 245,175 243,963 248,890 246,716 244,839 4,350 
2016284,047 284,044 280,767 275,463 278,910 279,338 279,384 5,861 
2017703,634 703,287 742,280 743,340 741,329 732,026 22,110 
2018523,856 617,378 632,623 618,695 604,626 14,356 
2019454,804 439,421 419,002 401,170 30,117 
2020517,487 548,722 542,837 60,793 
2021425,525 434,809 54,826 
2022263,372 139,192 
Total$3,972,281 
Reinsurance run-off
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
For the years ended December 31,
Accident year2013 unaudited2014 unaudited2015 unaudited2016 unaudited2017 unaudited2018 unaudited2019 unaudited2020 unaudited2021 unaudited2022
2013$50,430 $137,729 $207,125 $232,338 $239,868 $240,785 $241,051 $240,341 $244,594 $245,659 
201449,123 135,883 179,797 196,310 201,136 205,235 202,701 209,411 210,684 
201546,120 118,635 177,080 201,981 212,210 216,642 230,483 232,113 
201664,831 141,113 199,912 230,829 245,034 251,866 257,213 
2017163,361 419,474 532,087 590,316 614,420 649,936 
2018116,922 335,059 430,939 483,699 530,773 
201954,866 220,795 281,860 318,273 
2020105,210 240,691 323,592 
202187,885 233,487 
202250,148 
Total3,051,878 
All outstanding liabilities before 2013, net of reinsurance38,217 
Liabilities for claims and claim adjustment expenses, net of reinsurance$958,620 
Reinsurance run-off
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
19.9%33.6%19.3%9.2%4.3%2.3%1.6%1.2%1.2%0.4%
Reconciliation of Loss Development Tables to Consolidated Balance Sheet
The following table reconciles the reserve for losses and loss expenses at December 31, 2022, included in the loss development tables to the reserve for losses and loss expenses reported in the consolidated balance sheet:
Reconciliation of the disclosure of incurred and paid claims development to the liability
for unpaid claims and claim adjustment expenses
At December 31, 2022
Net outstanding liabilitiesReinsurance recoverable on unpaid claimsGross outstanding liabilities
Insurance segment
Property$624,924 $398,826 $1,023,750 
Accident and health76,862 6,518 83,380 
Marine and aviation605,168 278,976 884,144 
Cyber296,401 393,436 689,837 
Professional lines1,793,131 1,474,539 3,267,670 
Credit and political risk102,547 34,391 136,938 
Liability1,004,229 1,546,520 2,550,749 
Total insurance segment4,503,262 4,133,206 8,636,468 
Reinsurance segment
Accident and health236,094 38,647 274,741 
Agriculture131,369 10,018 141,387 
Marine and aviation156,073 57,692 213,765 
Professional lines998,587 303,849 1,302,436 
Credit and surety231,515 79,309 310,824 
Motor1,002,332 258,483 1,260,815 
Liability1,504,428 527,513 2,031,941 
Run-off lines958,620 422,455 1,381,075 
Total reinsurance segment5,219,018 1,697,966 6,916,984 
Total$9,722,280 $5,831,172 15,553,452 
Unallocated claims adjustment expenses168,308 
Foreign exchange and other(1)
21,972 
Ceded reserves related to retroactive transactions (574,869)
Total liability for unpaid claims and claims adjustment expense$15,168,863 
(1)    Non-U.S. dollar denominated loss data is converted to U.S dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in currency exchange rates may cause material shifts in loss development. Reserves for losses and loss expenses disclosed in the consolidated balance sheets are also remeasured using rates of exchange in effect at the balance sheet date.