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RESERVE FOR LOSSES AND LOSS EXPENSES
 9 Months Ended
Sep. 30, 2023
Insurance [Abstract]  
RESERVE FOR LOSSES AND LOSS EXPENSES RESERVE FOR LOSSES AND LOSS EXPENSES
Reserve Roll-Forward

The following table presents a reconciliation of the Company's beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses:
Nine months ended September 30,
20232022
Gross reserve for losses and loss expenses, beginning of period$15,168,863 $14,653,094 
Less reinsurance recoverable on unpaid losses and loss expenses, beginning of period(5,831,172)(5,017,611)
Net reserve for unpaid losses and loss expenses, beginning of period9,337,691 9,635,483 
Net incurred losses and loss expenses related to:
Current year2,253,958 2,461,828 
Prior years(13,118)(17,632)
 2,240,840 2,444,196 
Net paid losses and loss expenses related to:
Current year(272,260)(269,466)
Prior years(1,730,640)(1,900,366)
 (2,002,900)(2,169,832)
Foreign exchange and other(51,902)(501,914)
Net reserve for unpaid losses and loss expenses, end of period9,523,729 9,407,933 
Reinsurance recoverable on unpaid losses and loss expenses, end of period6,031,527 5,244,263 
Gross reserve for losses and loss expenses, end of period$15,555,256 $14,652,196 

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 the nine months ended September 30, 2023, the Company recognized catastrophe and weather-related losses, net of reinstatement premiums, of $112 million (2022: $339 million).

On September 22, 2023, the Company entered into a retrocession reinsurance agreement with a third-party reinsurer which was deemed to have met the established criteria for retroactive reinsurance accounting. At September 30, 2023, foreign exchange and other included an increase in reinsurance recoverable on unpaid losses of $76 million related to this transaction (refer to Note 3(f) 'Equity Method Investments', Note 4 'Fair Value Measurements' and Note 14 'Related Party Transactions').

Estimates for Significant Catastrophe Events

At September 30, 2023, net reserves 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 Cyclone Gabrielle, Earthquake in Turkey, Maui wildfires, New Zealand floods and Hurricane Idalia in 2023, 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, the 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 of 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:
  Three months ended September 30,Nine months ended September 30,
2023202220232022
Favorable (Adverse)Favorable (Adverse)Favorable (Adverse)Favorable (Adverse)
Insurance$1,609 $2,558 $5,433 $12,396 
Reinsurance1,153 2,177 7,685 5,236 
Total$2,762 $4,735 $13,118 $17,632 

The following sections provide further details on net prior year reserve development by segment, line of business and accident year:

Insurance Segment:

Prior year reserve development by line of business was as follows:
  Three months ended September 30,Nine months ended September 30,
  2023202220232022
Favorable (Adverse)Favorable (Adverse)Favorable (Adverse)Favorable (Adverse)
Property$(10,068)$12,888 $(4,376)$23,668 
Accident and health(5,213)(7,677)(5,765)(5,379)
Marine and aviation19,472 20,550 35,374 38,128 
Cyber10,869 (712)19,997 6,385 
Professional lines(4,383)(2,036)(20,475)(10,322)
Credit and political risk3,374 8,106 16,323 13,288 
Liability(12,442)(28,561)(35,645)(53,372)
Total$1,609 $2,558 $5,433 $12,396 

For the three months ended September 30, 2023, net favorable prior year reserve development of $2 million was recognized, the principal components of which were: 
•$19 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 liability and marine cargo books of business mainly related to recent accident years.
•$11 million of net favorable prior year reserve development on cyber business primarily due to better than expected loss emergence mainly related to the 2021 and 2022 accident years, partially offset by increases in loss estimates attributable to specific large claims related to the 2020 accident year.
•$12 million of net adverse prior year reserve development on liability business primarily due to increases in loss estimates attributable to specific large claims within the U.S. excess casualty general liability book of business related to the 2018 through 2021 accident years, and U.S. programs books of business mainly related to recent accident years.
•$10 million of net adverse prior year reserve development on property business primarily due to increases in loss estimates attributable to two specific large claims within the E&S property book of business related to the 2016 and 2022 accident years.
•$5 million of net adverse prior year reserve development on accident and health business primarily due to reserve strengthening within the international book of business mainly related to the 2021 and 2022 accident years.
For the three months ended September 30, 2022, net favorable prior year reserve development of $3 million was recognized, the principal components of which were: 
•$21 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, marine liability, and marine offshore energy books of business mainly related to the 2020 and 2021 accident years.
•$13 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence attributable to 2020 catastrophe events, partially offset by reserve strengthening within the U.S. programs book of business mainly related to the 2021 accident year.
•$8 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 2016 through 2020 accident years.
•$29 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 2018 and 2019 accident years, and the U.S. primary casualty and U.S. excess casualty books of business mainly related to the 2017 through 2021 accident years.
•$8 million of net adverse prior year reserve development on accident and health business primarily due to reserve strengthening mainly related to the 2020 and 2021 accident years.
For the nine months ended September 30, 2023, net favorable prior year reserve development of $5 million was recognized, the principal components of which were:
•$35 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 aviation books of business related to recent accident years.
•$20 million of net favorable prior year reserve development on cyber business primarily due to better than expected loss emergence related to most accident years, partially offset by increases in loss estimates attributable to specific large claims related to the 2020 accident year.
•$16 million of net favorable prior year reserve development on credit and political risk business primarily due to a decrease in the loss estimate attributable to a specific large claim related to the 2020 accident year and better than expected loss emergence related to recent accident years.
•$36 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. primary casualty book of business mainly related to the 2017 through 2019 accident years, and increases in loss estimates attributable to specific large claims within the U.S. excess casualty general liability book of business mainly related to the 2017 through 2021 accident years and U.S. programs book of business mainly related to recent accident years.
•$20 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the U.S. financial institutions book of business mainly related to the 2009 and 2018 accident years, U.S. commercial management solutions book of business mainly related the 2017 through 2019 accident years, and U.S. design professional and environmental book of business mainly related to the 2019 accident year.
•$6 million of net adverse prior year reserve development on accident and health business primarily due to reserve strengthening within the international book of business mainly related to the 2021 and 2022 accident years.
For the nine months ended September 30, 2022, net favorable prior year reserve development of $12 million was recognized, the principal components of which were: 
•$38 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, 2020 and 2021 accident years, and aviation business mainly related to the 2021 accident year.
•$24 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 the 2017 accident year.
•$13 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, 2018 and 2020 accident years.
•$6 million of net favorable prior year reserve development on cyber business primarily due to better than expected loss emergence mainly related to several accident years, partially offset by an increase in the loss estimate attributable to a specific large claim related to the 2021 accident year.
•$53 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 2017 through 2021 accident years and an increase in the loss estimate attributable to a specific large claim related to the 2017 accident year.
•$10 million of net adverse prior year reserve development on professional lines business primarily due to increases in loss estimates attributable to specific large claims related to the 2015 and 2019 accident years, and reserve strengthening within run-off lines of business mainly related to the 2018 accident year.
•$5 million of net adverse prior year reserve development on accident and health business primarily due to reserve strengthening mainly related to the 2019 and 2020 accident years.
Reinsurance Segment:

Prior year reserve development by line of business was as follows:
  Three months ended September 30,Nine months ended September 30,
  2023202220232022
Favorable
(Adverse)		Favorable
(Adverse)		Favorable
(Adverse)		Favorable
(Adverse)
Accident and health$5,842 $6,799 $20,115 $8,486 
Agriculture729 855 14,741 9,228 
Marine and aviation3,576 (785)8,523 (1,185)
Professional lines(9,044)(11,431)(22,772)(41,954)
Credit and surety9,625 5,905 8,498 16,953 
Motor(1,302)6,849 (23,248)8,979 
Liability(15,222)(11,940)(55,092)(22,868)
Total(5,796)(3,748)(49,235)(22,361)
Run-off lines
Catastrophe1,436 (1,452)39,982 (2,391)
Property3,421 9,145 12,568 33,738 
Engineering2,092 (1,768)4,370 (3,750)
Total run-off lines6,949 5,925 56,920 27,597 
Total$1,153 $2,177 $7,685 $5,236 

For the three months ended September 30, 2023, net favorable prior year reserve development of $1 million was recognized, the principal components of which were:
•$10 million of net favorable development on credit and surety business primarily due to better than expected loss emergence attributable to the international credit and mortgage books of business mainly related to recent accident years.
•$6 million of net favorable development on accident and health business primarily due to better than expected loss emergence mainly related to the 2022 accident year.
•$15 million of net adverse development on liability business primarily due to reserve strengthening within the U.S. books of business related to several accident years, partially offset by a decrease in the loss estimate attributable to a specific large claim within the international book of business related to the 2010 accident year.
•$9 million of net adverse development on professional lines business primarily due to reserve strengthening within the U.S. proportional book of business mainly related to the 2017 through 2019 accident years, and reserve strengthening attributable to two cedants within the U.S. proportional book of business related to 2019 and older accident years.
For the three months ended September 30, 2022, net favorable prior year reserve development of $2 million was recognized, the principal components of which were:
•$7 million of net favorable prior year reserve development on motor business primarily due to better than expected loss emergence mainly related to the 2017 and 2018 accident years.
•$7 million of net favorable prior year reserve development on accident and health business primarily due to better than expected loss emergence mainly related to the 2019 through 2021 accident years.
•$6 million of net favorable prior year reserve development on credit and surety business primarily due to better than expected loss emergence mainly related to the 2015, 2018 and 2019 accident years.
•$12 million of net adverse prior year development on liability business primarily due to reserve strengthening within the U.S. multiline and U.S. casualty books of business mainly related to 2016 and older accident years.
•$11 million of net adverse prior year development on professional lines business primarily due to reserve strengthening within the U.S. public D&O and U.S. proportional books of business mainly related to 2017 and older accident years.
Run-off lines
•$9 million of net favorable prior year development on property business primarily due to better than expected loss emergence attributable to 2018 catastrophe events and decreases in loss estimates attributable to specific large claims related to the 2019 through 2021 accident years.
For the nine months ended September 30, 2023, net favorable prior year reserve development of $8 million was recognized, the principal components of which were:
•$20 million of net favorable prior year development on accident and health business primarily due to better than expected loss emergence mainly related to the 2022 accident year.
•$15 million of net favorable prior year development on agriculture business primarily due to better than expected loss emergence mainly related to the 2022 accident year.
•$9 million of net favorable prior year development on marine and aviation business primarily due to better than expected loss emergence mainly related to the 2021 and 2022 accident years.
•$8 million of net favorable prior year development on credit and surety business primarily due to better than expected loss emergence attributable to international credit and mortgage books of business mainly related to the 2021 and 2022 accident years.
•$55 million of net adverse prior year development on liability business primarily due to reserve strengthening within the U.S. proportional, non-proportional and multiline books of business related to several accident years, partially offset by a decrease in the loss estimate attributable to a specific large claim within the international book of business related to the 2010 accident year.
•$23 million of net adverse prior year development on motor business primarily due to reserve strengthening to reflect increased estimates of future loss trend due to inflation and reserve strengthening attributable to the proportional book of business mainly related to the 2018 through 2022 accident years.
•$23 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the U.S. proportional book of business mainly related to the 2015 through 2018 accident years, and
reserve strengthening attributable to two cedants within the U.S. proportional book of business related to 2019 and older accident years.
Run-off lines
•$40 million of net favorable prior year development on catastrophe business primarily due to better than expected loss emergence.
•$13 million of net favorable prior year development on property business primarily due to better than expected loss emergence mainly related to catastrophe events.
For the nine months ended September 30, 2022, net favorable prior year reserve development of $5 million was recognized, the principal components of which were:
•$17 million of net favorable prior year reserve development on credit and surety business primarily due to better than expected loss emergence mainly related to the 2015, 2016, 2018 and 2019 accidents years.
•$9 million of net favorable prior year reserve development on agriculture business primarily due to better than expected loss emergence mainly related to the 2021 accident year.
•$9 million of net favorable prior year reserve development on motor business primarily due to better than expected loss emergence mainly related to the 2018 and 2019 accident years.
•$8 million of net favorable prior year reserve development on accident and health business primarily due to better than expected loss emergence mainly related to the 2019 through 2021 accident years.
•$42 million of net adverse prior year development on professional lines business primarily due to increases in loss estimates attributable to one cedant related to the 2016 to 2018 accident years, and a specific large claim related to the 2017 accident year, and reserve strengthening within the U.S. public D&O and U.S. proportional books of business related to 2017 and older accident years.
•$23 million of net adverse prior year development on liability business primarily due to worse than expected loss emergence within the U.S. book of business related to the 2016 and older accident years, and increases in loss estimates attributable to specific large claims related to the 2003, 2015, 2018 and 2021 accident years.
Run-off lines
•$34 million of net favorable prior year development on property business primarily due to better than expected loss emergence attributable to 2018 through 2021 catastrophe events.