QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
BERMUDA | N/A | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | |||||||||
LLC | |||||||||||
LLC | |||||||||||
Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Share, Series D, Par Value $1.00 Per Share | |||||||||||
LLC | |||||||||||
Perpetual Non-Cumulative Preferred Share, Series E, Par Value $1.00 Per Share |
þ | Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | Emerging growth company |
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. |
CONSOLIDATED FINANCIAL STATEMENTS | Page | ||||
September 30, 2020 | December 31, 2019 | ||||||||||
(expressed in thousands of U.S. dollars, except share data) | |||||||||||
ASSETS | |||||||||||
Short-term investments, trading, at fair value | $ | $ | |||||||||
Short-term investments, available-for-sale, at fair value (amortized cost: 2020 — $ | |||||||||||
Fixed maturities, trading, at fair value | |||||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2020 — $ | |||||||||||
Funds held - directly managed | |||||||||||
Equities, at fair value | |||||||||||
Other investments, at fair value | |||||||||||
Equity method investments | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash and cash equivalents | |||||||||||
Premiums receivable | |||||||||||
Reinsurance balances recoverable on paid and unpaid losses (net of allowance: 2020 — $ | |||||||||||
Funds held by reinsured companies | |||||||||||
Deferred acquisition costs | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES | |||||||||||
$ | $ | ||||||||||
Unearned premiums | |||||||||||
Insurance and reinsurance balances payable | |||||||||||
Other liabilities | |||||||||||
TOTAL LIABILITIES | |||||||||||
Ordinary shares (par value $ | |||||||||||
Voting Ordinary shares (issued and outstanding 2020: | |||||||||||
Non-voting convertible ordinary Series C Shares (issued and outstanding 2020 and 2019: | |||||||||||
Non-voting convertible ordinary Series E Shares (issued and outstanding 2020 and 2019: | |||||||||||
Preferred Shares: | |||||||||||
Series C Preferred Shares (issued and held in treasury 2020 and 2019: | |||||||||||
Series D Preferred Shares (issued and outstanding 2020 and 2019: | |||||||||||
Series E Preferred Shares (issued and outstanding 2020 and 2019: | |||||||||||
Treasury shares, at cost (Series C Preferred shares 2020 and 2019: | ( | ( | |||||||||
Joint Share Ownership Plan (voting ordinary shares, held in trust 2020: | ( | ||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained earnings | |||||||||||
Total Enstar Shareholders’ Equity | |||||||||||
TOTAL SHAREHOLDERS’ EQUITY | |||||||||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(expressed in thousands of U.S. dollars, except share and per share data) | |||||||||||||||||||||||
INCOME | |||||||||||||||||||||||
Net premiums earned | $ | $ | $ | $ | |||||||||||||||||||
Fees and commission income | |||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Net realized and unrealized gains | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Net incurred losses and loss adjustment expenses | |||||||||||||||||||||||
Acquisition costs | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Net foreign exchange (gains) losses | ( | ( | |||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Earnings from equity method investments | |||||||||||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | |||||||||||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | |||||||||||||||||||||||
NET EARNINGS | |||||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | ( | ||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR | |||||||||||||||||||||||
Dividends on preferred shares | ( | ( | ( | ( | |||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | $ | $ | $ | |||||||||||||||||||
Earnings per ordinary share attributable to Enstar: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Net earnings from discontinued operations | |||||||||||||||||||||||
Net earnings per ordinary share | $ | $ | $ | $ | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Net earnings from discontinued operations | |||||||||||||||||||||||
Net earnings per ordinary share | $ | $ | $ | $ | |||||||||||||||||||
Weighted average ordinary shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||||||||||||
NET EARNINGS | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of income taxes: | |||||||||||||||||||||||
Unrealized gains (losses) on fixed income available-for-sale investments arising during the period | ( | ||||||||||||||||||||||
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | ( | ||||||||||||||||||||||
Reclassification adjustment for net realized losses included in net earnings | ( | ( | ( | ( | |||||||||||||||||||
Unrealized gains (losses) arising during the period, net of reclassification adjustments | ( | ||||||||||||||||||||||
Cumulative currency translation adjustment | ( | ( | |||||||||||||||||||||
Increase in defined benefit pension liability | ( | ( | |||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interest | ( | ||||||||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSTAR | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||||||||||||
Share Capital — Voting Ordinary Shares | |||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Issue of shares | |||||||||||||||||||||||
Shares repurchased | ( | ( | |||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||||||||||
Share Capital — Non-Voting Convertible Ordinary Series C Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | $ | $ | $ | |||||||||||||||||||
Share Capital — Non-Voting Convertible Ordinary Series E Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | $ | $ | $ | |||||||||||||||||||
Share Capital — Series C Convertible Participating Non-Voting Preferred Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | $ | $ | $ | |||||||||||||||||||
Share Capital — Series D Preferred Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | $ | $ | $ | |||||||||||||||||||
Share Capital — Series E Preferred Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | $ | $ | $ | |||||||||||||||||||
Treasury Shares (Series C Preferred Shares) | |||||||||||||||||||||||
Balance, beginning and end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Joint Share Ownership Plan — Voting Ordinary Shares, Held in Trust | |||||||||||||||||||||||
Balance, beginning of period | $ | ( | $ | $ | $ | ||||||||||||||||||
Issue of shares | ( | ||||||||||||||||||||||
Balance, end of period | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Additional Paid-in Capital | |||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Issue of voting ordinary shares | ( | ||||||||||||||||||||||
Shares repurchased | ( | ( | |||||||||||||||||||||
Amortization of share-based compensation | |||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Currency translation adjustment | |||||||||||||||||||||||
Balance, beginning of period | |||||||||||||||||||||||
Change in currency translation adjustment | ( | ( | |||||||||||||||||||||
Balance, end of period | |||||||||||||||||||||||
Defined benefit pension liability | |||||||||||||||||||||||
Balance, beginning of period | ( | ( | ( | ( | |||||||||||||||||||
Change in defined benefit pension liability | ( | ( | |||||||||||||||||||||
Balance, beginning and end of period | ( | ( | ( | ( | |||||||||||||||||||
Unrealized gains (losses) on available-for-sale investments | |||||||||||||||||||||||
Balance, beginning of period | ( | ||||||||||||||||||||||
Change in unrealized gains (losses) on available-for-sale investments | ( | ||||||||||||||||||||||
Balance, end of period | |||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Net earnings | |||||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | ( | ||||||||||||||||||||||
Dividends on preferred shares | ( | ( | ( | ( | |||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | |||||||||||||||||||||||
Cumulative effect of change in accounting principle | ( | ||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||||||||||
Noncontrolling Interest (excludes Redeemable Noncontrolling Interest) | |||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Purchase of noncontrolling shareholders' interest in subsidiaries | ( | ||||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interest | |||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||||||||||
Total Shareholders' Equity | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net earnings | $ | $ | |||||||||
Net earnings from discontinued operations, net of income taxes | ( | ( | |||||||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | |||||||||||
Realized gains on sale of investments | ( | ( | |||||||||
Unrealized gains on investments | ( | ( | |||||||||
Depreciation and other amortization | |||||||||||
Earnings from equity method investments | ( | ( | |||||||||
Sales and maturities of trading securities | |||||||||||
Purchases of trading securities | ( | ( | |||||||||
Other non-cash items | |||||||||||
Changes in: | |||||||||||
Reinsurance balances recoverable on paid and unpaid losses | ( | ||||||||||
Funds held by reinsured companies | ( | ( | |||||||||
Losses and loss adjustment expenses | |||||||||||
Defendant asbestos and environmental liabilities | ( | ( | |||||||||
Insurance and reinsurance balances payable | |||||||||||
Unearned premiums | ( | ( | |||||||||
Premiums receivable | ( | ||||||||||
Other operating assets and liabilities | ( | ||||||||||
Net cash flows provided by operating activities | |||||||||||
INVESTING ACTIVITIES: | |||||||||||
Sales and maturities of available-for-sale securities | |||||||||||
Purchase of available-for-sale securities | ( | ( | |||||||||
Purchase of other investments | ( | ( | |||||||||
Proceeds from other investments | |||||||||||
Purchase of equity method investments | ( | ( | |||||||||
Other investing activities | ( | ||||||||||
Net cash flows used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Dividends on preferred shares | ( | ( | |||||||||
Dividends paid to redeemable noncontrolling interest | ( | ||||||||||
Purchase of noncontrolling shareholders' interest in subsidiaries | ( | ||||||||||
Repurchase of shares | ( | ||||||||||
Receipt of loans | |||||||||||
Repayment of loans | ( | ( | |||||||||
Net cash flows provided by financing activities | |||||||||||
DISCONTINUED OPERATIONS CASH FLOWS: | |||||||||||
Net cash flows provided by operating activities | |||||||||||
Net cash flows used in investing activities | ( | ( | |||||||||
Net cash flows from discontinued operations | ( | ||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH AND CASH EQUIVALENTS | ( | ||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | |||||||||||
NET CHANGE IN CASH OF BUSINESSES HELD FOR SALE | ( | ( | |||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | $ | |||||||||
Supplemental Cash Flow Information: | |||||||||||
Income taxes paid, net of refunds | $ | $ | ( | ||||||||
Interest paid | $ | $ | |||||||||
Reconciliation to Consolidated Balance Sheets: | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash and cash equivalents | |||||||||||
Cash, cash equivalents and restricted cash | $ | $ |
September 30, 2020 | |||||
ASSETS | |||||
Short-term investments, available-for-sale, at fair value | $ | ||||
Fixed maturities, trading, at fair value | |||||
Fixed maturities, available-for-sale, at fair value | |||||
Equities, at fair value | |||||
Other investments, at fair value | |||||
Total investments | |||||
Cash and cash equivalents | |||||
Restricted cash and cash equivalents | |||||
Premiums receivable | |||||
Deferred tax assets | |||||
Reinsurance balances recoverable on paid and unpaid losses | |||||
Funds held by reinsured companies | |||||
Deferred acquisition costs | |||||
Goodwill and intangible assets | |||||
Other assets | |||||
TOTAL ASSETS HELD-FOR-SALE | $ | ||||
LIABILITIES | |||||
Losses and loss adjustment expenses | $ | ||||
Unearned premiums | |||||
Insurance and reinsurance balances payable | |||||
Deferred tax liabilities | |||||
Other liabilities | |||||
TOTAL LIABILITIES HELD-FOR-SALE | $ | ||||
NET ASSETS HELD-FOR-SALE | $ |
September 30, 2020 | December 31, 2019 (1) | ||||||||||
ASSETS | |||||||||||
Fixed maturities, trading, at fair value | $ | $ | |||||||||
Fixed maturities, available-for-sale, at fair value | |||||||||||
Equities, at fair value | |||||||||||
Other investments, at fair value | |||||||||||
Total investments | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash and cash equivalents | |||||||||||
Premiums receivable | |||||||||||
Deferred tax assets | |||||||||||
Reinsurance balances recoverable on paid and unpaid losses | |||||||||||
Funds held by reinsured companies | |||||||||||
Deferred acquisition costs | |||||||||||
Goodwill and intangible assets | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS HELD-FOR-SALE | $ | $ | |||||||||
LIABILITIES | |||||||||||
Losses and loss adjustment expenses | $ | $ | |||||||||
Unearned premiums | |||||||||||
Insurance and reinsurance balances payable | |||||||||||
Other liabilities | |||||||||||
TOTAL LIABILITIES HELD-FOR-SALE | $ | $ | |||||||||
NET ASSETS HELD-FOR-SALE | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
INCOME | |||||||||||||||||||||||
Net premiums earned | $ | $ | $ | $ | |||||||||||||||||||
Fees and commission income | |||||||||||||||||||||||
Net investment income | |||||||||||||||||||||||
Net realized and unrealized gains | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Net incurred losses and loss adjustment expenses | |||||||||||||||||||||||
Acquisition costs | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Net foreign exchange (gains) losses | ( | ( | |||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES | |||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ( | |||||||||||||||||||
NET EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | $ | $ | $ | $ | |||||||||||||||||||
Net loss (earnings) from discontinued operations attributable to noncontrolling interest | ( | ( | ( | ( | |||||||||||||||||||
NET EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Operating activities | $ | $ | |||||||||
Investing activities | ( | ( | |||||||||
Change in cash and restricted cash of business held-for-sale | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Total income | $ | $ | $ | $ | |||||||||||||||||||
Total expenses (income) | ( | ( | ( | ||||||||||||||||||||
Net earnings (loss) | $ | $ | $ | $ | ( |
September 30, 2020 | |||||
Assets held-for-sale: | |||||
Northshore (Atrium and Arden Re) | $ | ||||
StarStone U.S. | |||||
Total | $ | ||||
Liabilities held-for-sale: | |||||
Northshore (Atrium and Arden Re) | $ | ||||
StarStone U.S. | |||||
Total | $ |
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Short-term investments, trading | Short-term investments, AFS | Fixed maturities, trading | Fixed maturities, AFS | Fixed maturities, funds held - directly managed | Total | ||||||||||||||||||||||||||||||
U.S. government and agency | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.K. government | |||||||||||||||||||||||||||||||||||
Other government | |||||||||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||||||||
Municipal | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||||
Total fixed maturity and short-term investments | $ | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Short-term investments, trading | Short-term investments, AFS | Fixed maturities, trading | Fixed maturities, AFS | Fixed maturities, funds held - directly managed | Total | ||||||||||||||||||||||||||||||
U.S. government and agency | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.K. government | |||||||||||||||||||||||||||||||||||
Other government | |||||||||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||||||||
Municipal | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | |||||||||||||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||||
Total fixed maturity and short-term investments | $ | $ | $ | $ | $ | $ |
As of September 30, 2020 | Amortized Cost | Fair Value | % of Total Fair Value | |||||||||||||||||
One year or less | $ | $ | % | |||||||||||||||||
More than one year through two years | % | |||||||||||||||||||
More than two years through five years | % | |||||||||||||||||||
More than five years through ten years | % | |||||||||||||||||||
More than ten years | % | |||||||||||||||||||
Residential mortgage-backed | % | |||||||||||||||||||
Commercial mortgage-backed | % | |||||||||||||||||||
Asset-backed | % | |||||||||||||||||||
$ | $ | % |
Amortized Cost | Fair Value | % of Total | AAA Rated | AA Rated | A Rated | BBB Rated | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | $ | % | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
U.K. government | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other government | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | % | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
% of total fair value | % | % | % | % | % | % |
Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
As of September 30, 2020 | Amortized Cost | Gross Unrealized Gains | Non-Credit Related Losses | Allowance for Credit Losses(1) | Fair Value | |||||||||||||||||||||||||||
U.S. government and agency | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
U.K. government | ( | |||||||||||||||||||||||||||||||
Other government | ( | |||||||||||||||||||||||||||||||
Corporate | ( | ( | ||||||||||||||||||||||||||||||
Municipal | ( | |||||||||||||||||||||||||||||||
Residential mortgage-backed | ( | ( | ||||||||||||||||||||||||||||||
Commercial mortgage-backed | ( | ( | ||||||||||||||||||||||||||||||
Asset-backed | ( | ( | ||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | ( | $ |
As of December 31, 2019 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses (Non-OTTI) | Fair Value | ||||||||||||||||||||||
U.S. government and agency | $ | $ | $ | ( | $ | |||||||||||||||||||||
U.K. government | ||||||||||||||||||||||||||
Other government | ( | |||||||||||||||||||||||||
Corporate | ( | |||||||||||||||||||||||||
Municipal | ( | |||||||||||||||||||||||||
Residential mortgage-backed | ( | |||||||||||||||||||||||||
Commercial mortgage-backed | ( | |||||||||||||||||||||||||
Asset-backed | ( | |||||||||||||||||||||||||
$ | $ | $ | ( | $ |
12 Months or Greater | Less Than 12 Months | Total | ||||||||||||||||||||||||||||||||||||
As of September 30, 2020 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
U.S. government and agency | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
U.K. government | ( | ( | ||||||||||||||||||||||||||||||||||||
Other government | ( | ( | ||||||||||||||||||||||||||||||||||||
Corporate | ( | ( | ||||||||||||||||||||||||||||||||||||
Municipal | ( | ( | ||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | ( | ( | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | ( | ( | ||||||||||||||||||||||||||||||||||||
Asset-backed | ( | ( | ||||||||||||||||||||||||||||||||||||
Total fixed maturity and short-term investments | $ | $ | $ | $ | ( | $ | $ | ( |
12 Months or Greater | Less Than 12 Months | Total | ||||||||||||||||||||||||||||||||||||
As of December 31, 2019 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
U.S. government and agency | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Other government | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Corporate | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Municipal | ( | ( | ||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | ( | ( | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | ( | ( | ||||||||||||||||||||||||||||||||||||
Asset-backed | ( | ( | ||||||||||||||||||||||||||||||||||||
Total fixed maturity and short-term investments | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Other government | Corporate | Residential mortgage-backed | Commercial mortgage backed | Asset-backed | Total | ||||||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $ | $ | ( | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Cumulative effect of change in accounting principle | |||||||||||||||||||||||||||||||||||
Allowances for credit losses on securities for which credit losses were not previously recorded | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Additions to the allowance for credit losses arising from purchases of securities accounted for as PCD assets | |||||||||||||||||||||||||||||||||||
Reductions for securities sold during the period | |||||||||||||||||||||||||||||||||||
Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis | |||||||||||||||||||||||||||||||||||
(Increase) decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | |||||||||||||||||||||||||||||||||||
Allowance for credit losses, end of period | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Other government | Corporate | Residential mortgage-backed | Commercial mortgage backed | Asset-backed | Total | ||||||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Allowances for credit losses on securities for which credit losses were not previously recorded | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Additions to the allowance for credit losses arising from purchases of securities accounted for as PCD assets | |||||||||||||||||||||||||||||||||||
Reductions for securities sold during the period | |||||||||||||||||||||||||||||||||||
Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis | |||||||||||||||||||||||||||||||||||
(Increase) decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | |||||||||||||||||||||||||||||||||||
Allowance for credit losses, end of period | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
September 30, 2020 | December 31, 2019 | ||||||||||
Publicly traded equity investments in common and preferred stocks | $ | $ | |||||||||
Exchange-traded funds | |||||||||||
Privately held equity investments in common and preferred stocks | |||||||||||
$ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||
Hedge funds | $ | $ | ||||||||||||
Fixed income funds | ||||||||||||||
Equity funds | ||||||||||||||
Private equity funds | ||||||||||||||
CLO equities | ||||||||||||||
CLO equity funds | ||||||||||||||
Private credit funds | ||||||||||||||
Other | ||||||||||||||
$ | $ |
Less than 1 Year | 1-2 years | 2-3 years | Not Eligible/ Restricted | Total | Redemption Frequency | ||||||||||||||||||||||||||||||
Hedge funds | $ | $ | $ | $ | $ | Monthly to Bi-annually | |||||||||||||||||||||||||||||
Fixed income funds | Daily to Quarterly | ||||||||||||||||||||||||||||||||||
Equity funds | Daily to Quarterly | ||||||||||||||||||||||||||||||||||
Private equity funds | N/A | ||||||||||||||||||||||||||||||||||
CLO equities | N/A | ||||||||||||||||||||||||||||||||||
CLO equity funds | Quarterly to Bi-annually | ||||||||||||||||||||||||||||||||||
Private credit funds | N/A | ||||||||||||||||||||||||||||||||||
Other | N/A | ||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Investment | Ownership % | Carrying Value | Investment | Ownership % | Carrying Value | |||||||||||||||||||||||||||||||||
Enhanzed Re | $ | % | $ | $ | % | $ | ||||||||||||||||||||||||||||||||
Citco | % | % | ||||||||||||||||||||||||||||||||||||
Monument Re (1) | % | % | ||||||||||||||||||||||||||||||||||||
Clear Spring | % | % | ||||||||||||||||||||||||||||||||||||
Other | ~ | ~ | ||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Fixed maturity investments, trading | $ | $ | |||||||||
Cash and cash equivalents | |||||||||||
Other assets | |||||||||||
$ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Funds held - Directly Managed - Fair Value Option | Funds held - Directly Managed - Variable Return | Total | Funds held - Directly Managed - Fair Value Option | Funds held - Directly Managed - Variable Return | Total | ||||||||||||||||||||||||||||||
Fixed maturity investments, at amortized cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net unrealized gains (losses): | |||||||||||||||||||||||||||||||||||
Change in fair value - fair value option accounting | |||||||||||||||||||||||||||||||||||
Change in fair value - embedded derivative accounting | |||||||||||||||||||||||||||||||||||
Fixed maturity investments within funds held - directly managed, at fair value | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Fixed maturity investments | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments and cash and cash equivalents | |||||||||||||||||||||||
Funds held | |||||||||||||||||||||||
Funds held - directly managed | |||||||||||||||||||||||
Investment income from fixed maturities and cash and cash equivalents | |||||||||||||||||||||||
Equity investments | |||||||||||||||||||||||
Other investments | |||||||||||||||||||||||
Investment income from equities and other investments | |||||||||||||||||||||||
Gross investment income | |||||||||||||||||||||||
Investment expenses | ( | ( | ( | ( | |||||||||||||||||||
Net investment income | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Net realized gains (losses) on sale: | ||||||||||||||||||||||||||
Gross realized gains on fixed maturity securities, AFS | $ | $ | $ | $ | ||||||||||||||||||||||
Gross realized losses on fixed maturity securities, AFS | ( | ( | ( | ( | ||||||||||||||||||||||
Credit recoveries (losses) on fixed maturity securities, AFS | ( | |||||||||||||||||||||||||
Net realized gains on fixed maturity securities, trading | ||||||||||||||||||||||||||
Net realized gains on funds held - directly managed | ||||||||||||||||||||||||||
Net realized gains (losses) on equity investments | ( | ( | ||||||||||||||||||||||||
Net realized investment gains (losses) on derivatives | ||||||||||||||||||||||||||
Total net realized gains on sale | $ | $ | $ | $ | ||||||||||||||||||||||
Net unrealized gains (losses): | ||||||||||||||||||||||||||
Fixed maturity securities, trading | $ | $ | $ | $ | ||||||||||||||||||||||
Fixed maturity securities in funds held - directly managed portfolios | ||||||||||||||||||||||||||
Equity investments | ( | |||||||||||||||||||||||||
Other Investments | ||||||||||||||||||||||||||
Total net unrealized gains | ||||||||||||||||||||||||||
Net realized and unrealized gains | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Included within continuing operations: | |||||||||||||||||||||||
Gross realized gains on fixed maturity securities, AFS | $ | $ | $ | $ | |||||||||||||||||||
Gross realized losses on fixed maturity securities, AFS | ( | ( | ( | ( | |||||||||||||||||||
Included within discontinued operations: | |||||||||||||||||||||||
Gross realized gains on fixed maturity securities, AFS | |||||||||||||||||||||||
Gross realized losses on fixed maturity securities, AFS | ( | ( | ( | ( | |||||||||||||||||||
Total reclassification adjustment | $ | $ | $ | $ | |||||||||||||||||||
Included within continuing operations: | |||||||||||||||||||||||
Credit recoveries (losses) on fixed maturity securities, AFS | $ | $ | $ | ( | $ | ||||||||||||||||||
Included within discontinued operations: | |||||||||||||||||||||||
Credit recoveries (losses) on fixed maturity securities, AFS | |||||||||||||||||||||||
Total reclassification adjustment | $ | $ | $ | ( | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||
Collateral in trust for third party agreements | $ | $ | ||||||||||||
Assets on deposit with regulatory authorities | ||||||||||||||
Collateral for secured letter of credit facilities | ||||||||||||||
Funds at Lloyd's (1) | ||||||||||||||
$ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||
Gross Notional Amount | Assets | Liabilities | Gross Notional Amount | Assets | Liabilities | |||||||||||||||||||||||||||||||||
Foreign currency forward - AUD | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Foreign currency forward - EUR | ||||||||||||||||||||||||||||||||||||||
Foreign currency forward - GBP | ||||||||||||||||||||||||||||||||||||||
Total qualifying hedges | $ | $ | $ | $ | $ | $ |
Amount of Gains (Losses) Deferred in AOCI | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Foreign currency forward - AUD | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Foreign currency forward - EUR | ( | ( | ||||||||||||||||||||||||
Foreign currency forward - GBP | ( | |||||||||||||||||||||||||
Net gains (losses) on qualifying derivative hedges | $ | ( | $ | $ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||
Gross Notional Amount | Assets | Liabilities | Gross Notional Amount | Assets | Liabilities | |||||||||||||||||||||||||||||||||
Foreign currency forward - AUD | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Foreign currency forward - CAD | ||||||||||||||||||||||||||||||||||||||
Foreign currency forward - EUR | ||||||||||||||||||||||||||||||||||||||
Foreign currency forward - GBP | ||||||||||||||||||||||||||||||||||||||
Total non-qualifying hedges | $ | $ | $ | $ | $ | $ |
Gains (Losses) on non-qualifying-hedges included in net earnings | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Foreign currency forward - AUD | $ | $ | $ | ( | $ | |||||||||||||||||||||
Foreign currency forward - CAD | ( | ( | ||||||||||||||||||||||||
Foreign currency forward - EUR | ( | |||||||||||||||||||||||||
Foreign currency forward - GBP | ( | ( | $ | |||||||||||||||||||||||
Net gains (losses) on non-qualifying hedges | $ | ( | $ | $ | $ |
September 30, 2020 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Gross Notional Amount | Assets | Liabilities | ||||||||||||||||||
Credit default swaps | $ | $ | $ | |||||||||||||||||
Futures contracts - long positions | ||||||||||||||||||||
Futures contracts - short positions | ( | |||||||||||||||||||
Currency forward contracts - long positions | ||||||||||||||||||||
Currency forward contracts - short positions | ( | |||||||||||||||||||
Total | $ | $ | $ |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | ||||||||||
Credit default swaps | $ | $ | |||||||||
Futures contracts | ( | ( | |||||||||
Currency forward contracts | ( | ||||||||||
Total net gains | $ | $ |
September 30, 2020 | ||||||||||||||||||||
Non-life Run-off | StarStone | Total | ||||||||||||||||||
Recoverable from reinsurers on unpaid: | ||||||||||||||||||||
Outstanding losses | $ | $ | $ | |||||||||||||||||
IBNR | ||||||||||||||||||||
ULAE | ||||||||||||||||||||
Fair value adjustments - acquired companies | ( | ( | ( | |||||||||||||||||
Fair value adjustments - fair value option | ( | ( | ||||||||||||||||||
Total reinsurance reserves recoverable | ||||||||||||||||||||
Paid losses recoverable | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
Reconciliation to Consolidated Balance Sheet: | ||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses | $ | $ | $ | |||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses - fair value option | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Total | |||||||||||||||||||||||
Recoverable from reinsurers on unpaid: | ||||||||||||||||||||||||||
Outstanding losses | $ | $ | $ | $ | ||||||||||||||||||||||
IBNR | ||||||||||||||||||||||||||
Fair value adjustments - acquired companies | ( | ( | ( | |||||||||||||||||||||||
Fair value adjustments - fair value option | ( | ( | ||||||||||||||||||||||||
Total reinsurance reserves recoverable | ||||||||||||||||||||||||||
Paid losses recoverable | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||
Reconciliation to Consolidated Balance Sheet: | ||||||||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses | $ | $ | $ | $ | ||||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses - fair value option | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2020 | |||||||||||||||||||||||
Non-life Run-off | StarStone | Total | % of Total | ||||||||||||||||||||
Top 10 reinsurers | $ | $ | $ | % | |||||||||||||||||||
Other reinsurers > $1 million | % | ||||||||||||||||||||||
Other reinsurers < $1 million | % | ||||||||||||||||||||||
Total | $ | $ | $ | % |
December 31, 2019 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Total | % of Total | |||||||||||||||||||||||||
Top 10 reinsurers | $ | $ | $ | $ | % | ||||||||||||||||||||||||
Other reinsurers > $1 million | % | ||||||||||||||||||||||||||||
Other reinsurers < $1 million | % | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | % |
September 30, 2020 | December 31, 2019 | ||||||||||
Information regarding top ten reinsurers: | |||||||||||
Number of top 10 reinsurers rated A- or better | |||||||||||
Number of top 10 non-rated reinsurers (1) | |||||||||||
Reinsurers rated A- or better in top 10 | $ | $ | |||||||||
Non-rated reinsurers in top 10 (1) | |||||||||||
Total top 10 reinsurance recoverables | $ | $ | |||||||||
Single reinsurers that represent 10% or more of total reinsurance balance recoverables as of September 30, 2020: | |||||||||||
Hannover Ruck SE (2) | $ | $ | |||||||||
Lloyd's Syndicates (3) | $ | $ |
September 30, 2020 | |||||||||||||||||||||||
Gross | Allowance for estimated uncollectible reinsurance | Net | Provisions as a % of Gross | ||||||||||||||||||||
Reinsurers rated A- or above | $ | $ | $ | % | |||||||||||||||||||
Reinsurers rated below A-, secured | % | ||||||||||||||||||||||
Reinsurers rated below A-, unsecured | % | ||||||||||||||||||||||
Total | $ | $ | $ | % |
December 31, 2019 | |||||||||||||||||||||||
Gross | Allowance for estimated uncollectible reinsurance | Net | Provisions as a % of Gross | ||||||||||||||||||||
Reinsurers rated A- or above | $ | $ | $ | % | |||||||||||||||||||
Reinsurers rated below A-, secured | % | ||||||||||||||||||||||
Reinsurers rated below A-, unsecured | % | ||||||||||||||||||||||
Total | $ | $ | $ | % |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2020 | September 30, 2020 | ||||||||||
Allowance for estimated uncollectible reinsurance, beginning of period | $ | $ | |||||||||
Cumulative effect of change in accounting principle | ( | ||||||||||
Effect of exchange rate movement | ( | ||||||||||
Current period change in the allowance | ( | ||||||||||
Write-offs charged against the allowance | ( | ( | |||||||||
Recoveries collected | ( | ( | |||||||||
Allowance for estimated uncollectible reinsurance, end of period | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Beginning carrying value | $ | $ | $ | $ | |||||||||||||||||||
Recorded during the period | |||||||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||
Ending carrying value | $ | $ | $ | $ |
September 30, 2020 | |||||||||||||||||||||||
Non-life Run-off | StarStone | Other | Total | ||||||||||||||||||||
Outstanding losses | $ | $ | $ | $ | |||||||||||||||||||
IBNR | |||||||||||||||||||||||
Fair value adjustments - acquired companies | ( | ( | ( | ||||||||||||||||||||
Fair value adjustments - fair value option | ( | ( | |||||||||||||||||||||
ULAE | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Reconciliation to Consolidated Balance Sheet: | |||||||||||||||||||||||
Loss and loss adjustment expenses | $ | $ | $ | $ | |||||||||||||||||||
Loss and loss adjustment expenses, at fair value | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Outstanding losses | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
IBNR | |||||||||||||||||||||||||||||
Fair value adjustments - acquired companies | ( | ( | ( | ||||||||||||||||||||||||||
Fair value adjustments - fair value option | ( | ( | |||||||||||||||||||||||||||
ULAE | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Reconciliation to Consolidated Balance Sheet: | |||||||||||||||||||||||||||||
Loss and loss adjustment expenses | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loss and loss adjustment expenses, at fair value | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Balance as of beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Less: reinsurance reserves recoverable | |||||||||||||||||||||||
Less: deferred charge assets on retroactive reinsurance | |||||||||||||||||||||||
Less: cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible reinsurance balances (1) | |||||||||||||||||||||||
Net balance as of beginning of period | |||||||||||||||||||||||
Net incurred losses and LAE: | |||||||||||||||||||||||
Current period | |||||||||||||||||||||||
Prior periods | |||||||||||||||||||||||
Total net incurred losses and LAE | |||||||||||||||||||||||
Net paid losses: | |||||||||||||||||||||||
Current period | ( | ( | ( | ( | |||||||||||||||||||
Prior periods | ( | ( | ( | ( | |||||||||||||||||||
Total net paid losses | ( | ( | ( | ( | |||||||||||||||||||
Effect of exchange rate movement | ( | ( | ( | ||||||||||||||||||||
Acquired on purchase of subsidiaries | |||||||||||||||||||||||
Assumed business | |||||||||||||||||||||||
Reclassification to assets and liabilities held-for-sale | ( | ( | |||||||||||||||||||||
Net balance as of September 30 | |||||||||||||||||||||||
Plus: reinsurance reserves recoverable (2) | |||||||||||||||||||||||
Plus: deferred charge assets on retroactive reinsurance | |||||||||||||||||||||||
Balance as of September 30 | $ | $ | $ | $ |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | |||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | ( | ||||||||||||||||||||||||||
Increase in estimates of net ultimate losses | |||||||||||||||||||||||||||||
Reduction in provisions for unallocated LAE | ( | ( | ( | ( | |||||||||||||||||||||||||
Amortization of deferred charge assets | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | ( | ( | |||||||||||||||||||||||||||
Changes in fair value - fair value option | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ( | |||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | ( | ( | |||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | ( | ||||||||||||||||||||||||||||
Reduction in provisions for unallocated LAE | ( | ( | ( | ||||||||||||||||||||||||||
Amortization of deferred charge assets | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | ( | ||||||||||||||||||||||||||||
Changes in fair value - fair value option | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | |||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | ( | ||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | ( | ( | ( | ||||||||||||||||||||||||||
Amortization of deferred charge assets | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | ( | ( | |||||||||||||||||||||||||||
Changes in fair value - fair value option | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | ( | ||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | ( | ||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | ( | ( | |||||||||||||||||||||||||||
Amortization of deferred charge assets | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | |||||||||||||||||||||||||||||
Changes in fair value - fair value option | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Balance as of beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Less: reinsurance reserves recoverable | |||||||||||||||||||||||
Less: deferred charge assets on retroactive insurance | |||||||||||||||||||||||
Plus: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (1) | |||||||||||||||||||||||
Net balance as of beginning of period | |||||||||||||||||||||||
Net incurred losses and LAE: | |||||||||||||||||||||||
Current period | |||||||||||||||||||||||
Prior periods | |||||||||||||||||||||||
Total net incurred losses and LAE | |||||||||||||||||||||||
Net paid losses: | |||||||||||||||||||||||
Current period | ( | ( | ( | ( | |||||||||||||||||||
Prior periods | ( | ( | ( | ( | |||||||||||||||||||
Total net paid losses | ( | ( | ( | ( | |||||||||||||||||||
Effect of exchange rate movement | ( | ( | ( | ||||||||||||||||||||
Acquired on purchase of subsidiaries | |||||||||||||||||||||||
Assumed business | |||||||||||||||||||||||
Reclassification to assets and liabilities held-for-sale | |||||||||||||||||||||||
Net balance as of September 30 | |||||||||||||||||||||||
Plus: reinsurance reserves recoverable (2) | |||||||||||||||||||||||
Plus: deferred charge assets on retroactive reinsurance | |||||||||||||||||||||||
Balance as of September 30 | $ | $ | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | ( | ( | |||||||||||||||||||||||||||||||||
Reduction in provisions for unallocated LAE | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Amortization of deferred charge assets | |||||||||||||||||||||||||||||||||||
Amortization of fair value adjustments | |||||||||||||||||||||||||||||||||||
Changes in fair value - fair value option | |||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | $ | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of deferred charge assets | |||||||||||||||||||||||||||||||||||
Amortization of fair value adjustments | |||||||||||||||||||||||||||||||||||
Changes in fair value - fair value option | |||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | $ | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Balance as of beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Less: reinsurance reserves recoverable | |||||||||||||||||||||||
Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (1) | |||||||||||||||||||||||
Net balance as of beginning of period | |||||||||||||||||||||||
Net incurred losses and LAE: | |||||||||||||||||||||||
Current period | |||||||||||||||||||||||
Prior periods | ( | ( | ( | ||||||||||||||||||||
Total net incurred losses and LAE | |||||||||||||||||||||||
Net paid losses: | |||||||||||||||||||||||
Current period | ( | ( | ( | ( | |||||||||||||||||||
Prior periods | ( | ( | ( | ( | |||||||||||||||||||
Total net paid losses | ( | ( | ( | ( | |||||||||||||||||||
Effect of exchange rate movement | ( | ( | ( | ||||||||||||||||||||
Reclassification to assets and liabilities held-for-sale | ( | ( | |||||||||||||||||||||
Net balance as of September 30 | |||||||||||||||||||||||
Plus: reinsurance reserves recoverable (2) | |||||||||||||||||||||||
Balance as of September 30 | $ | $ | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ||||||||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | |||||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | ( | ||||||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of fair value adjustments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | ( | $ | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ||||||||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | ( | ||||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | ( | ( | |||||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of fair value adjustments | ( | ( | |||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | ( | $ | $ | $ | ( | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Balance as of beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Less: reinsurance reserves recoverable | |||||||||||||||||||||||
Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (1) | |||||||||||||||||||||||
Net balance as of beginning of period | |||||||||||||||||||||||
Net incurred losses and LAE: | |||||||||||||||||||||||
Current period | |||||||||||||||||||||||
Prior periods | ( | ( | |||||||||||||||||||||
Total net incurred losses and LAE | |||||||||||||||||||||||
Net paid losses: | |||||||||||||||||||||||
Current period | ( | ( | ( | ( | |||||||||||||||||||
Prior periods | ( | ( | ( | ( | |||||||||||||||||||
Total net paid losses | ( | ( | ( | ( | |||||||||||||||||||
Effect of exchange rate movement | ( | ( | |||||||||||||||||||||
Net balance as of September 30 | |||||||||||||||||||||||
Plus: reinsurance reserves recoverable (2) | |||||||||||||||||||||||
Balance as of September 30 | $ | $ | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Increase in estimates of net ultimate losses | |||||||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Amortization of fair value adjustments | ( | ( | |||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | $ | $ | $ | ( | $ | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net change in case and LAE reserves | ( | ( | ( | ||||||||||||||||||||||||||||||||
Net change in IBNR reserves | ( | ( | |||||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | ( | ||||||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of fair value adjustments | ( | ( | |||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | ( | $ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Defendant asbestos and environmental liabilities: | |||||||||||
Defendant asbestos liabilities | $ | $ | |||||||||
Defendant environmental liabilities | |||||||||||
Estimated future expenses | |||||||||||
Fair value adjustments | ( | ( | |||||||||
Defendant asbestos and environmental liabilities | $ | $ | |||||||||
Insurance balances recoverable: | |||||||||||
Insurance recoveries related to defendant asbestos and environmental liabilities (net of allowance: 2020 - $ | |||||||||||
Fair value adjustments | ( | ( | |||||||||
Insurance balances recoverable | $ | $ | |||||||||
Net liabilities relating to defendant asbestos and environmental exposures | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Balance as of beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Less: Insurance balances recoverable | |||||||||||||||||||||||
Plus: Cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible insurance balances (1) | |||||||||||||||||||||||
Net balance as of beginning of period | |||||||||||||||||||||||
Total net paid claims | ( | ( | |||||||||||||||||||||
Amounts recorded in other (income) expense: | |||||||||||||||||||||||
Reduction in estimates of ultimate net liabilities | ( | ( | ( | ||||||||||||||||||||
Reduction in estimated future expenses | ( | ( | ( | ( | |||||||||||||||||||
Amortization of fair value adjustments | |||||||||||||||||||||||
Total other (income) expense | ( | ( | ( | ( | |||||||||||||||||||
Net balance as at September 30 | |||||||||||||||||||||||
Plus: Insurance balances recoverable (2) | |||||||||||||||||||||||
Balance as at September 30 | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2020 | September 30, 2020 | ||||||||||
Allowance for estimated uncollectible insurance balances, beginning of period | $ | $ | |||||||||
Cumulative effect of change in accounting principle | |||||||||||
Current period change in the allowance | ( | ( | |||||||||
Allowance for estimated uncollectible insurance balances, end of period | $ | $ |
September 30, 2020 | ||||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Based on NAV as Practical Expedient | Total Fair Value | ||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Short-term and fixed maturity investments: | ||||||||||||||||||||||||||||||||
U.S. government and agency | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
U.K. government | — | |||||||||||||||||||||||||||||||
Other government | — | |||||||||||||||||||||||||||||||
Corporate | — | |||||||||||||||||||||||||||||||
Municipal | — | |||||||||||||||||||||||||||||||
Residential mortgage-backed | — | |||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | |||||||||||||||||||||||||||||||
Asset-backed | — | |||||||||||||||||||||||||||||||
$ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
Other assets included within funds held - directly managed | — | |||||||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||||||
Publicly traded equity investments | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Exchange-traded funds | — | |||||||||||||||||||||||||||||||
Privately held equity investments | — | |||||||||||||||||||||||||||||||
$ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||||||||
Hedge funds | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Fixed income funds | ||||||||||||||||||||||||||||||||
Equity funds | ||||||||||||||||||||||||||||||||
Private equity funds | ||||||||||||||||||||||||||||||||
CLO equities | ||||||||||||||||||||||||||||||||
CLO equity funds | ||||||||||||||||||||||||||||||||
Private credit funds | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Total Investments | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses: | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Other Assets: | ||||||||||||||||||||||||||||||||
Derivatives qualifying as hedges | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Derivatives not qualifying as hedges | — | |||||||||||||||||||||||||||||||
Derivative instruments | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Losses and LAE: | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Other Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives qualifying as hedges | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Derivatives not qualifying as hedges | — | |||||||||||||||||||||||||||||||
Derivative instruments | $ | $ | $ | $ | — | $ |
December 31, 2019 | ||||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Based on NAV as Practical Expedient | Total Fair Value | ||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Short-term and fixed maturity investments: | ||||||||||||||||||||||||||||||||
U.S. government and agency | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
U.K government | — | |||||||||||||||||||||||||||||||
Other government | — | |||||||||||||||||||||||||||||||
Corporate | — | |||||||||||||||||||||||||||||||
Municipal | — | |||||||||||||||||||||||||||||||
Residential mortgage-backed | — | |||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | |||||||||||||||||||||||||||||||
Asset-backed | — | |||||||||||||||||||||||||||||||
$ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
Other assets included within funds held - directly managed | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||||||
Publicly traded equity investments | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Exchange-traded funds | — | |||||||||||||||||||||||||||||||
Privately held equity investments | — | |||||||||||||||||||||||||||||||
$ | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||||||||
Hedge funds | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Fixed income funds | ||||||||||||||||||||||||||||||||
Equity funds | ||||||||||||||||||||||||||||||||
Private equity funds | ||||||||||||||||||||||||||||||||
CLO equities | ||||||||||||||||||||||||||||||||
CLO equity funds | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Total Investments | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses: | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Other Assets: | ||||||||||||||||||||||||||||||||
Derivatives qualifying as hedges | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Derivatives not qualifying as hedges | — | |||||||||||||||||||||||||||||||
Derivative instruments | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Losses and LAE: | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Other Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives qualifying as hedges | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Derivatives not qualifying as hedges | — | |||||||||||||||||||||||||||||||
Derivative instruments | $ | $ | $ | $ | — | $ |
Three Months Ended September 30, 2020 | ||||||||||||||||||||
Privately-held Equities | Other Investments | Total | ||||||||||||||||||
Beginning fair value | $ | $ | $ | |||||||||||||||||
Purchases | ||||||||||||||||||||
Sales | ||||||||||||||||||||
Total realized and unrealized gains | ||||||||||||||||||||
Transfer out of Level 3 into Level 2 | ||||||||||||||||||||
Ending fair value | $ | $ | $ |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturity investments | Privately-held Equities | Other Investments | Total | ||||||||||||||||||||||||||||||||||||||
Corporate | Residential mortgage-backed | Commercial mortgage-backed | Asset-backed | ||||||||||||||||||||||||||||||||||||||
Beginning fair value | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Purchases | |||||||||||||||||||||||||||||||||||||||||
Sales | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Transfer into Level 3 from Level 2 | |||||||||||||||||||||||||||||||||||||||||
Transfer out of Level 3 into Level 2 | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Ending fair value | $ | $ | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||
Privately-held Equities | Other Investments | Total | ||||||||||||||||||
Beginning fair value | $ | $ | $ | |||||||||||||||||
Purchases | ||||||||||||||||||||
Sales | ( | ( | ||||||||||||||||||
Total realized and unrealized gains (losses) | ( | ( | ||||||||||||||||||
Transfer into Level 3 from Level 2 | ||||||||||||||||||||
Transfer out of Level 3 into Level 2 | ( | ( | ||||||||||||||||||
Ending fair value | $ | $ | $ |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity investments | Privately-held Equities | Other Investments | Total | |||||||||||||||||||||||||||||||||||||||||
Corporate | Residential mortgage-backed | Commercial mortgage-backed | Asset-backed | |||||||||||||||||||||||||||||||||||||||||
Beginning fair value | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Purchases | ||||||||||||||||||||||||||||||||||||||||||||
Sales | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Transfer into Level 3 from Level 2 | ||||||||||||||||||||||||||||||||||||||||||||
Transfer out of Level 3 into Level 2 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Ending fair value | $ | $ | $ | $ | $ | $ | $ |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||||||
Fair Value as of September 30, 2020 | Valuation Techniques | Unobservable Input | Range (Average) (1) | |||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||
$ | Transactional value | Implied price per share at recent purchase transaction | ||||||||||||||||||
$ | Cost as approximation of fair value | Cost as approximation of fair value | ||||||||||||||||||
$ |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Liability for losses and LAE | Reinsurance balances recoverable | Net | Liability for losses and LAE | Reinsurance balances recoverable | Net | ||||||||||||||||||||||||||||||
Beginning fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Assumed business | ( | ||||||||||||||||||||||||||||||||||
Incurred losses and LAE: | |||||||||||||||||||||||||||||||||||
Reduction in estimates of ultimate losses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Reduction in unallocated LAE | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Change in fair value | ( | ||||||||||||||||||||||||||||||||||
Total incurred losses and LAE | ( | ( | |||||||||||||||||||||||||||||||||
Paid losses | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Effect of exchange rate movements | ( | ( | ( | ||||||||||||||||||||||||||||||||
Ending fair value | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Changes in fair value due to changes in: | ||||||||||||||
Duration | $ | $ | ||||||||||||
Corporate bond yield | ||||||||||||||
Change in fair value | $ | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Liability for losses and LAE | Reinsurance balances recoverable on paid and unpaid losses | Net | Liability for losses and LAE | Reinsurance balances recoverable on paid and unpaid losses | Net | ||||||||||||||||||||||||||||||
Beginning fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Assumed business | ( | ||||||||||||||||||||||||||||||||||
Incurred losses and LAE: | |||||||||||||||||||||||||||||||||||
Reduction in estimates of ultimate losses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Reduction in unallocated LAE | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Change in fair value | |||||||||||||||||||||||||||||||||||
Total incurred losses and LAE | ( | ||||||||||||||||||||||||||||||||||
Paid losses | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Effect of exchange rate movements | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Ending fair value | $ | $ | $ | $ | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Changes in fair value due to changes in: | ||||||||||||||
Duration | $ | $ | ||||||||||||
Corporate bond yield | ||||||||||||||
Weighted cost of capital | ( | |||||||||||||
Risk cost of capital | ||||||||||||||
Change in fair value | $ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||
Valuation Technique | Unobservable (U) and Observable (O) Inputs | Weighted Average | Weighted Average | |||||||||||||||||
Internal model | Corporate bond yield (O) | A rated | A rated | |||||||||||||||||
Internal model | Credit spread for non-performance risk (U) | |||||||||||||||||||
Internal model | Risk cost of capital (U) | |||||||||||||||||||
Internal model | Weighted average cost of capital (U) | |||||||||||||||||||
Internal model | Duration - liability (U) | |||||||||||||||||||
Internal model | Duration - reinsurance balances recoverable (U) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Premiums Written | Premiums Earned | Premiums Written | Premiums Earned | Premiums Written | Premiums Earned | Premiums Written | Premiums Earned | ||||||||||||||||||||||||||||||||||||||||
Non-life Run-off | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | $ | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Ceded | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Net | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Atrium | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Ceded | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
StarStone | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Ceded | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Ceded | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Net | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Ceded | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
Intangible assets | |||||||||||||||||||||||||||||
Goodwill | Intangible assets with a definite life | Intangible assets with an indefinite life | Total | Total | |||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Impairment losses (StarStone International) | ( | ( | ( | ( | |||||||||||||||||||||||||
Amortization | — | ( | — | ( | ( | ||||||||||||||||||||||||
Reclassification to assets held-for-sale (Atrium) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance as of September 30, 2020 | $ | $ | $ | $ | $ |
Non-life Run-Off | Atrium | StarStone | Total | ||||||||||||||||||||
Balance as of December 31, 2019: | $ | $ | $ | $ | |||||||||||||||||||
Impairment losses (StarStone International) | ( | ( | |||||||||||||||||||||
Reclassification to assets held-for-sale (Atrium) | ( | ( | |||||||||||||||||||||
Balance as of September 30, 2020: | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Accumulated impairment losses | ( | ( | |||||||||||||||||||||
$ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||||||||||||||||||||||
Atrium segment: | |||||||||||||||||||||||||||||||||||
Intangible assets with a definite life: | |||||||||||||||||||||||||||||||||||
Distribution channel | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Brand | ( | ||||||||||||||||||||||||||||||||||
Intangible assets with an indefinite life: | |||||||||||||||||||||||||||||||||||
Lloyd’s syndicate capacity | — | — | |||||||||||||||||||||||||||||||||
Management contract | — | — | |||||||||||||||||||||||||||||||||
Total Atrium segment intangible assets | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
StarStone segment: | |||||||||||||||||||||||||||||||||||
Intangible assets with an indefinite life: | |||||||||||||||||||||||||||||||||||
Lloyd’s syndicate capacity | ( | ||||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Intangible asset amortization | $ | $ | $ | $ |
Facility | Origination Date | Term | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
March 10, 2017 | $ | $ | ||||||||||||||||||||||||
May 28, 2019 | ||||||||||||||||||||||||||
Total Senior Notes | ||||||||||||||||||||||||||
August 26, 2020 | ||||||||||||||||||||||||||
EGL Revolving Credit Facility | August 16, 2018 | |||||||||||||||||||||||||
2018 EGL Term Loan Facility | December 27, 2018 | |||||||||||||||||||||||||
Total debt obligations | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Interest expense on debt obligations | $ | $ | $ | $ | |||||||||||||||||||
Amortization of debt issuance costs | |||||||||||||||||||||||
Funds withheld balances and other | |||||||||||||||||||||||
Total interest expense | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | ||||||||||||||||||||||
Dividends paid | ( | |||||||||||||||||||||||||
Net earnings (losses) attributable to RNCI | ( | ( | ( | |||||||||||||||||||||||
Accumulated other comprehensive earnings attributable to RNCI | ( | |||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
Change in redemption value of RNCI | ( | ( | ( | ( | ||||||||||||||||||||||
Cumulative effect of change in accounting principle attributable to RNCI (1) | ||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
Dividend per: | ||||||||||||||||||||||||||||||||||||||
Preferred Share Series | Date Declared | Record Date | Date Paid or Payable | Preferred Share | Depositary Share | Total dividends paid in the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(in U.S. dollars) | (in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||||
Series D | February 4, 2020 | February 15, 2020 | March 2, 2020 | $ | $ | $ | ||||||||||||||||||||||||||||||||
Series E | February 4, 2020 | February 15, 2020 | March 2, 2020 | $ | $ | |||||||||||||||||||||||||||||||||
Series D | May 5, 2020 | May 15, 2020 | June 1, 2020 | $ | $ | |||||||||||||||||||||||||||||||||
Series E | May 5, 2020 | May 15, 2020 | June 1, 2020 | $ | $ | |||||||||||||||||||||||||||||||||
Series D | August 5, 2020 | August 15, 2020 | September 1, 2020 | $ | $ | |||||||||||||||||||||||||||||||||
Series E | August 5, 2020 | August 15, 2020 | September 1, 2020 | $ | $ | |||||||||||||||||||||||||||||||||
Series D | November 5, 2020 | November 15, 2020 | December 1, 2020 | $ | $ | |||||||||||||||||||||||||||||||||
Series E | November 5, 2020 | November 15, 2020 | December 1, 2020 | $ | $ | |||||||||||||||||||||||||||||||||
$ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Earnings (losses) attributable to Enstar ordinary shareholders: | |||||||||||||||||||||||
Net earnings from continuing operations (1) | $ | $ | $ | $ | |||||||||||||||||||
Net earnings from discontinued operations (2) | |||||||||||||||||||||||
Net earnings attributable to Enstar ordinary shareholders: | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average ordinary shares outstanding — basic (3) | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Share-based compensation plans (4) | |||||||||||||||||||||||
Warrants | |||||||||||||||||||||||
Weighted-average ordinary shares outstanding — diluted | |||||||||||||||||||||||
Earnings (loss) per ordinary share attributable to Enstar: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Net earnings from discontinued operations | |||||||||||||||||||||||
Net earnings per ordinary share | $ | $ | $ | $ | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Net earnings from discontinued operations | |||||||||||||||||||||||
Net earnings per ordinary share | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Share-based compensation plans: | |||||||||||||||||||||||
Restricted shares and restricted share units | $ | $ | $ | $ | |||||||||||||||||||
Performance share units | |||||||||||||||||||||||
Cash-settled stock appreciation rights | ( | ||||||||||||||||||||||
Joint share ownership plan expense | |||||||||||||||||||||||
Other share-based compensation plans: | |||||||||||||||||||||||
Northshore incentive plan | |||||||||||||||||||||||
StarStone incentive plan | ( | ||||||||||||||||||||||
Deferred compensation and ordinary share plan for non-employee directors | |||||||||||||||||||||||
Employee share purchase plan | |||||||||||||||||||||||
Total share-based compensation | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Redeemable Noncontrolling Interest | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Short-term investments, AFS, at fair value | $ | $ | |||||||||
Fixed maturities, trading, at fair value | |||||||||||
Fixed maturities, AFS, at fair value | |||||||||||
Equities, at fair value | |||||||||||
Other investments, at fair value: | |||||||||||
Hedge funds | |||||||||||
Fixed income funds | |||||||||||
Private equity funds | |||||||||||
CLO equities | |||||||||||
CLO equity funds | |||||||||||
Private Debt | |||||||||||
Real estate fund | |||||||||||
Total investments | |||||||||||
Cash and cash equivalents | |||||||||||
Other assets | |||||||||||
Other liabilities | |||||||||||
Net investment | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net investment income | $ | $ | $ | $ | |||||||||||||||||||
Net realized and unrealized (losses) gains | ( | ( | |||||||||||||||||||||
Total net (losses) earnings | $ | $ | ( | $ | ( | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Investments in funds managed by AnglePoint, held by Enhanzed Re | $ | $ | |||||||||
Our ownership of equity method investments | % | % | |||||||||
Our share of Investments in funds managed by AnglePoint held by Enhanzed Re (through our ownership of equity method investments) | $ | $ | |||||||||
Investment in other funds managed by Hillhouse Capital and AnglePoint: | |||||||||||
InRe Fund | $ | $ | |||||||||
Other funds | |||||||||||
$ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Investment in Monument Re | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Investment in Clear Spring | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Balances under StarStone ceding quota share included, in assets or liabilities held-for-sale: | |||||||||||
Reinsurance balances recoverable | $ | $ | |||||||||
Prepaid insurance premiums | |||||||||||
Ceded payable | |||||||||||
Ceded acquisition costs | |||||||||||
Balances under assuming quota share: | |||||||||||
Losses and LAE | |||||||||||
Unearned reinsurance premiums | |||||||||||
Funds held |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Transactions under StarStone ceding quota share, included in net earnings (loss) from discontinued operations: | |||||||||||||||||||||||
Ceded premium earned | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Ceded incurred losses and LAE | ( | ( | |||||||||||||||||||||
Ceded acquisition costs | ( | ( | |||||||||||||||||||||
Transactions under assuming quota share: | |||||||||||||||||||||||
Premium earned | ( | ( | |||||||||||||||||||||
Net incurred losses and LAE | ( | ( | |||||||||||||||||||||
Acquisition costs | ( | ( | |||||||||||||||||||||
Total net earnings (loss) | $ | ( | $ | ( | $ | ( | $ | ( |
September 30, 2020 | December 31, 2019 | ||||||||||
Investment in AmTrust | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net investment income | $ | $ | $ | $ | |||||||||||||||||||
Net realized and unrealized gains | |||||||||||||||||||||||
Total net earnings | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Investment in Citco | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Investment in Enhanzed Re | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Balances under ceding quota share: | |||||||||||
Insurance balances payables | $ | $ | |||||||||
Reinsurance balances recoverable | |||||||||||
Funds held | |||||||||||
Other assets |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Amounts under ceding quota share: | |||||||||||||||||||||||
Net incurred losses and LAE | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Acquisition costs | ( | ( | |||||||||||||||||||||
Net investment income | ( | ( | |||||||||||||||||||||
Net realized and unrealized gains | ( | ( | |||||||||||||||||||||
Other income | |||||||||||||||||||||||
Fees and commission income | |||||||||||||||||||||||
Total Net earnings | ( | ||||||||||||||||||||||
Change in realized gain (losses) on available-for-sale investments | ( | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Lease cost: | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Short-term lease cost(1) | |||||||||||||||||||||||
Total lease cost | |||||||||||||||||||||||
Sub-lease income(2) | ( | ( | ( | ( | |||||||||||||||||||
Total net lease cost | $ | $ | $ | $ | |||||||||||||||||||
Other information: | |||||||||||||||||||||||
Operating cash paid for amounts included in the measurement of lease liabilities | $ | $ | $ | $ | |||||||||||||||||||
Non-cash activity: right-of-use assets relating to leases | ( | ||||||||||||||||||||||
Weighted-average remaining lease term | |||||||||||||||||||||||
Weighted-average discount rate | % | % |
Balance sheet classification | September 30, 2020 | December 31, 2019 | |||||||||||||||
Right-of-use assets (1) (2) | Other assets | $ | $ | ||||||||||||||
Current lease liabilities (2) | Other liabilities | ||||||||||||||||
Non-current lease liabilities (2) | Other liabilities |
September 30, 2020 | ||||||||
2020 | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 and beyond | ||||||||
Total lease payments (1) | ||||||||
Less: Imputed interest | ( | |||||||
Present value of lease liabilities | $ |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Gross premiums written | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net premiums written | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net premiums earned | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net incurred losses and LAE | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Acquisition costs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
Underwriting income (loss) | ( | ( | |||||||||||||||||||||||||||
Net investment income (loss) | ( | ||||||||||||||||||||||||||||
Net realized and unrealized gains | |||||||||||||||||||||||||||||
Fees and commission income | |||||||||||||||||||||||||||||
Other income | |||||||||||||||||||||||||||||
Corporate expenses | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Interest income (expense) | ( | ( | ( | ||||||||||||||||||||||||||
Net foreign exchange gains (losses) | ( | ( | ( | ( | |||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES | ( | ||||||||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Earnings from equity method investments | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS | ( | ||||||||||||||||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) | ( | ||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest | ( | ( | ( | ( | |||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR | ( | ||||||||||||||||||||||||||||
Dividends on preferred shares | ( | ( | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Underwriting ratios: | |||||||||||||||||||||||||||||
Loss ratio | % | % | |||||||||||||||||||||||||||
Acquisition expense ratio | % | % | |||||||||||||||||||||||||||
Operating expense ratio | % | % | |||||||||||||||||||||||||||
Combined ratio | % | % |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Gross premiums written | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Net premiums written | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||
Net premiums earned | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net incurred losses and LAE | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Acquisition costs | ( | ( | ( | ( | |||||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
Underwriting income (loss) | ( | ( | ( | ( | |||||||||||||||||||||||||
Net investment income (loss) | ( | ||||||||||||||||||||||||||||
Net realized and unrealized gains | |||||||||||||||||||||||||||||
Fees and commission income (expense) | ( | ||||||||||||||||||||||||||||
Other income (expense) | ( | ||||||||||||||||||||||||||||
Corporate expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
Interest income (expense) | ( | ( | |||||||||||||||||||||||||||
Net foreign exchange gains (losses) | ( | ||||||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES | ( | ( | ( | ||||||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ||||||||||||||||||||||||||
Earnings from equity method investments | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS | ( | ( | ( | ||||||||||||||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) | ( | ( | ( | ||||||||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | ( | ||||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR | ( | ( | ( | ||||||||||||||||||||||||||
Dividend on preferred shares | ( | ( | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||
Underwriting ratios: | |||||||||||||||||||||||||||||
Loss ratio | % | % | |||||||||||||||||||||||||||
Acquisition expense ratio | % | % | |||||||||||||||||||||||||||
Operating expense ratio | % | % | |||||||||||||||||||||||||||
Combined ratio | % | % |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Non-Life Run-Off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Gross premiums written | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net premiums written | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net premiums earned | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net incurred losses and LAE | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Acquisition costs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
Underwriting income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Net investment income (loss) | ( | ||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) | ( | ||||||||||||||||||||||||||||
Fees and commission income | |||||||||||||||||||||||||||||
Other income (expense) | ( | ||||||||||||||||||||||||||||
Corporate expenses | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Interest income (expense) | ( | ( | ( | ||||||||||||||||||||||||||
Net foreign exchange gains (losses) | ( | ( | |||||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES | ( | ( | |||||||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Earnings from equity method investments | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS | ( | ( | |||||||||||||||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) | ( | ( | |||||||||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | ( | ||||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR | ( | ( | |||||||||||||||||||||||||||
Dividends on preferred shares | ( | ( | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Underwriting ratios: | |||||||||||||||||||||||||||||
Loss ratio | % | % | |||||||||||||||||||||||||||
Acquisition expense ratio | % | % | |||||||||||||||||||||||||||
Operating expense ratio | % | % | |||||||||||||||||||||||||||
Combined ratio | % | % |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Non-Life Run-Off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Gross premiums written | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||
Net premiums written | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||
Net premiums earned | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net incurred losses and LAE | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Acquisition costs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Operating expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
Underwriting income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Net investment income (loss) | ( | ||||||||||||||||||||||||||||
Net realized and unrealized gains | |||||||||||||||||||||||||||||
Fees and commission income (expense) | ( | ||||||||||||||||||||||||||||
Other income (expense) | ( | ||||||||||||||||||||||||||||
Corporate expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
Interest income (expense) | ( | ( | ( | ||||||||||||||||||||||||||
Net foreign exchange gains (losses) | ( | ( | ( | ||||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES | ( | ( | |||||||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ( | |||||||||||||||||||||||||
Earnings (loss) from equity method investments | ( | ||||||||||||||||||||||||||||
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS | ( | ( | |||||||||||||||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) | ( | ( | |||||||||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | ( | ( | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR | ( | ( | |||||||||||||||||||||||||||
Dividends on preferred shares | ( | ( | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Underwriting ratios: | |||||||||||||||||||||||||||||
Loss ratio | % | % | |||||||||||||||||||||||||||
Acquisition expense ratio | % | % | |||||||||||||||||||||||||||
Operating expense ratio | % | % | |||||||||||||||||||||||||||
Combined ratio | % | % |
September 30, 2020 | December 31, 2019 | ||||||||||
Assets by Segment: | |||||||||||
Non-life Run-off (1) | $ | $ | |||||||||
Atrium (2) | |||||||||||
StarStone (3) | |||||||||||
Other | ( | ( | |||||||||
Total assets | $ | $ |
Section | Page | |||||||
September 30, 2020 | December 31, 2019 | Change | |||||||||||||||
(expressed in thousands of U.S. dollars, except share and per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Total Enstar shareholder's equity | $ | 5,820,885 | $ | 4,842,183 | $ | 978,702 | |||||||||||
Less: Series D and E preferred shares | 510,000 | 510,000 | — | ||||||||||||||
Total Enstar ordinary shareholders' equity (A) | 5,310,885 | 4,332,183 | 978,702 | ||||||||||||||
Proceeds from assumed conversion of warrants(1) | 20,229 | 20,229 | — | ||||||||||||||
Numerator for fully diluted book value per ordinary share calculations (B) | $ | 5,331,114 | $ | 4,352,412 | $ | 978,702 | |||||||||||
Denominator: | |||||||||||||||||
Ordinary shares outstanding (C) (2) | 21,503,814 | 21,511,505 | (7,691) | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Share-based compensation plans (3) | 317,073 | 302,565 | 14,508 | ||||||||||||||
Warrants(1) | 175,901 | 175,901 | — | ||||||||||||||
Fully diluted ordinary shares outstanding (D) | 21,996,788 | 21,989,971 | 6,817 | ||||||||||||||
Book value per ordinary share: | |||||||||||||||||
Basic book value per ordinary share = (A) / (C) | $ | 246.97 | $ | 201.39 | $ | 45.58 | |||||||||||
Fully diluted book value per ordinary share = (B) / (D) | $ | 242.36 | $ | 197.93 | $ | 44.43 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(expressed in thousands of U.S. dollars, except share and per share data) | |||||||||||||||||||||||
Net earnings attributable to Enstar ordinary shareholders | $ | 615,013 | $ | 117,743 | $ | 896,745 | $ | 708,336 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Net realized and unrealized (gains) on fixed maturity investments and funds held - directly managed (1) | (67,294) | (135,005) | (207,097) | (558,755) | |||||||||||||||||||
Change in fair value of insurance contracts for which we have elected the fair value option | 21,042 | 41,374 | 96,848 | 135,377 | |||||||||||||||||||
Net (earnings) from discontinued operations | (4,031) | (7,916) | (810) | (12,041) | |||||||||||||||||||
Tax effects of adjustments (2) | 5,771 | 12,042 | 19,070 | 50,841 | |||||||||||||||||||
Adjustments attributable to noncontrolling interest (3) | 3,881 | 4,500 | (536) | 17,397 | |||||||||||||||||||
Non-GAAP operating income attributable to Enstar ordinary shareholders (4) | $ | 574,382 | $ | 32,738 | $ | 804,220 | $ | 341,155 | |||||||||||||||
Diluted net earnings per ordinary share | $ | 28.24 | $ | 5.42 | $ | 41.14 | $ | 32.58 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Net realized and unrealized (gains) on fixed maturity investments and funds held - directly managed (1) | (3.09) | (6.21) | (9.50) | (25.71) | |||||||||||||||||||
Change in fair value of insurance contracts for which we have elected the fair value option | 0.97 | 1.90 | 4.44 | 6.23 | |||||||||||||||||||
Net (earnings) from discontinued operations | (0.19) | (0.36) | (0.04) | (0.55) | |||||||||||||||||||
Tax effects of adjustments (2) | 0.26 | 0.55 | 0.87 | 2.34 | |||||||||||||||||||
Adjustments attributable to noncontrolling interest (3) | 0.18 | 0.21 | (0.02) | 0.80 | |||||||||||||||||||
Diluted non-GAAP operating income per ordinary share (4) | $ | 26.37 | $ | 1.51 | $ | 36.89 | $ | 15.69 | |||||||||||||||
Weighted average ordinary shares outstanding: | |||||||||||||||||||||||
Basic | 21,578,106 | 21,488,216 | 21,564,447 | 21,476,586 | |||||||||||||||||||
Diluted | 21,778,729 | 21,720,497 | 21,799,627 | 21,741,499 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 161,724 | $ | 175,802 | $ | (14,078) | $ | 463,946 | $ | 618,711 | $ | (154,765) | |||||||||||||||||||||||
Fees and commission income | 10,787 | 6,437 | 4,350 | 28,325 | 18,931 | 9,394 | |||||||||||||||||||||||||||||
Net investment income | 72,130 | 81,502 | (9,372) | 241,287 | 231,424 | 9,863 | |||||||||||||||||||||||||||||
Net realized and unrealized gains (1) | 500,005 | 145,060 | 354,945 | 838,552 | 858,489 | (19,937) | |||||||||||||||||||||||||||||
Other income | 48,404 | 822 | 47,582 | 67,761 | 15,368 | 52,393 | |||||||||||||||||||||||||||||
793,050 | 409,623 | 383,427 | 1,639,871 | 1,742,923 | (103,052) | ||||||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | 109,686 | 163,258 | (53,572) | 339,678 | 566,111 | (226,433) | |||||||||||||||||||||||||||||
Acquisition costs | 37,708 | 33,310 | 4,398 | 132,818 | 162,192 | (29,374) | |||||||||||||||||||||||||||||
General and administrative expenses | 115,828 | 97,365 | 18,463 | 359,086 | 296,304 | 62,782 | |||||||||||||||||||||||||||||
Interest expense | 15,003 | 14,950 | 53 | 42,436 | 39,022 | 3,414 | |||||||||||||||||||||||||||||
Net foreign exchange (gains) losses | 8,156 | (13,665) | 21,821 | 1,375 | (20,097) | 21,472 | |||||||||||||||||||||||||||||
286,381 | 295,218 | (8,837) | 875,393 | 1,043,532 | (168,139) | ||||||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 506,669 | 114,405 | 392,264 | 764,478 | 699,391 | 65,087 | |||||||||||||||||||||||||||||
Income tax expense | (13,915) | (13,465) | (450) | (25,295) | (25,265) | (30) | |||||||||||||||||||||||||||||
Earnings from equity method investments | 149,065 | 17,703 | 131,362 | 152,725 | 44,188 | 108,537 | |||||||||||||||||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 641,819 | 118,643 | 523,176 | 891,908 | 718,314 | 173,594 | |||||||||||||||||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | 4,031 | 7,916 | (3,885) | 810 | 12,041 | (11,231) | |||||||||||||||||||||||||||||
NET EARNINGS | 645,850 | 126,559 | 519,291 | 892,718 | 730,355 | 162,363 | |||||||||||||||||||||||||||||
Net loss (earnings) attributable to noncontrolling interest | (21,912) | 109 | (22,021) | 30,802 | 4,970 | 25,832 | |||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 623,938 | 126,668 | 497,270 | 923,520 | 735,325 | 188,195 | |||||||||||||||||||||||||||||
Dividends on preferred shares | (8,925) | (8,925) | — | (26,775) | (26,989) | 214 | |||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | 615,013 | $ | 117,743 | $ | 497,270 | $ | 896,745 | $ | 708,336 | $ | 188,409 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Segment split of net earnings attributable to Enstar ordinary shareholders: | |||||||||||||||||||||||||||||||||||
Non-life Run-off | $ | 623,805 | $ | 141,321 | $ | 482,484 | $ | 1,001,104 | $ | 819,878 | $ | 181,226 | |||||||||||||||||||||||
Atrium | 4,389 | (1,765) | 6,154 | 10,098 | 8,811 | 1,287 | |||||||||||||||||||||||||||||
StarStone | 7,369 | (2,704) | 10,073 | (55,052) | (66,880) | 11,828 | |||||||||||||||||||||||||||||
Other | (20,550) | (19,109) | (1,441) | (59,405) | (53,473) | (5,932) | |||||||||||||||||||||||||||||
Net earnings attributable to Enstar ordinary shareholders | $ | 615,013 | $ | 117,743 | $ | 497,270 | $ | 896,745 | $ | 708,336 | $ | 188,409 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 3,535 | $ | 301 | $ | 3,234 | $ | 1,707 | $ | (24,785) | $ | 26,492 | |||||||||||||||||||||||
Net premiums written | $ | 3,424 | $ | (3,808) | $ | 7,232 | $ | 2,397 | $ | (26,395) | $ | 28,792 | |||||||||||||||||||||||
Net premiums earned | $ | 17,476 | $ | 16,837 | $ | 639 | $ | 44,023 | $ | 141,981 | $ | (97,958) | |||||||||||||||||||||||
Net incurred losses and LAE (1) | (34,258) | (30,583) | (3,675) | (63,698) | (135,517) | 71,819 | |||||||||||||||||||||||||||||
Acquisition costs | (2,730) | 4,634 | (7,364) | (13,226) | (40,033) | 26,807 | |||||||||||||||||||||||||||||
Operating expenses | (50,345) | (51,395) | 1,050 | (147,117) | (139,595) | (7,522) | |||||||||||||||||||||||||||||
Underwriting income (loss) (1) | (69,857) | (60,507) | (9,350) | (180,018) | (173,164) | (6,854) | |||||||||||||||||||||||||||||
Net investment income | 66,918 | 73,752 | (6,834) | 223,425 | 206,337 | 17,088 | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) (2) | 486,671 | 138,174 | 348,497 | 838,483 | 815,902 | 22,581 | |||||||||||||||||||||||||||||
Fees and commission income | 3,637 | 4,196 | (559) | 12,588 | 13,673 | (1,085) | |||||||||||||||||||||||||||||
Other income (expense) | 48,023 | (285) | 48,308 | 68,087 | 15,136 | 52,951 | |||||||||||||||||||||||||||||
Corporate expenses | (22,494) | (11,983) | (10,511) | (48,014) | (47,287) | (727) | |||||||||||||||||||||||||||||
Interest expense | (16,705) | (17,964) | 1,259 | (48,785) | (45,699) | (3,086) | |||||||||||||||||||||||||||||
Net foreign exchange gains (losses) | (9,663) | 13,056 | (22,719) | 385 | 20,426 | (20,041) | |||||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 486,530 | 138,439 | 348,091 | 866,151 | 805,324 | 60,827 | |||||||||||||||||||||||||||||
Income tax expense | (9,271) | (13,382) | 4,111 | (18,276) | (23,501) | 5,225 | |||||||||||||||||||||||||||||
Earnings from equity method investments | 149,065 | 17,703 | 131,362 | 152,725 | 44,406 | 108,319 | |||||||||||||||||||||||||||||
NET EARNINGS | 626,324 | 142,760 | 483,564 | 1,000,600 | 826,229 | 174,371 | |||||||||||||||||||||||||||||
Net loss (earnings) attributable to noncontrolling interest | (2,519) | (1,439) | (1,080) | 504 | (6,351) | 6,855 | |||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | 623,805 | $ | 141,321 | $ | 482,484 | $ | 1,001,104 | $ | 819,878 | $ | 181,226 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 3,535 | $ | 301 | $ | 3,234 | $ | 1,707 | $ | (24,785) | $ | 26,492 | |||||||||||||||||||||||
Ceded reinsurance premiums written | (111) | (4,109) | 3,998 | 690 | (1,610) | 2,300 | |||||||||||||||||||||||||||||
Net premiums written | $ | 3,424 | $ | (3,808) | $ | 7,232 | $ | 2,397 | $ | (26,395) | $ | 28,792 | |||||||||||||||||||||||
Gross premiums earned | $ | 20,426 | $ | 27,190 | $ | (6,764) | $ | 52,899 | $ | 166,707 | $ | (113,808) | |||||||||||||||||||||||
Ceded reinsurance premiums earned | (2,950) | (10,353) | 7,403 | (8,876) | (24,726) | 15,850 | |||||||||||||||||||||||||||||
Net premiums earned | $ | 17,476 | $ | 16,837 | $ | 639 | $ | 44,023 | $ | 141,981 | $ | (97,958) |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Periods | Current Period | Total | Prior Periods | Current Period | Total | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net losses paid | $ | 283,143 | $ | 739 | $ | 283,882 | $ | 274,071 | $ | 14,374 | $ | 288,445 | |||||||||||||||||||||||
Net change in case and LAE reserves (1) | (49,854) | (33) | (49,887) | (175,830) | 2,726 | (173,104) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2) | (229,312) | 7,512 | (221,800) | (155,315) | 6,794 | (148,521) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | 3,977 | 8,218 | 12,195 | (57,074) | 23,894 | (33,180) | |||||||||||||||||||||||||||||
Reduction in provisions for unallocated LAE | (14,605) | — | (14,605) | (12,109) | (49) | (12,158) | |||||||||||||||||||||||||||||
Amortization of deferred charge assets | 10,316 | — | 10,316 | 17,009 | — | 17,009 | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | 5,310 | — | 5,310 | 17,538 | — | 17,538 | |||||||||||||||||||||||||||||
Changes in fair value - fair value option | 21,042 | — | 21,042 | 41,374 | — | 41,374 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | 26,040 | $ | 8,218 | $ | 34,258 | $ | 6,738 | $ | 23,845 | $ | 30,583 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Periods | Current Period | Total | Prior Periods | Current Period | Total | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net losses paid | $ | 824,473 | $ | 1,777 | $ | 826,250 | $ | 913,352 | $ | 53,265 | $ | 966,617 | |||||||||||||||||||||||
Net change in case and LAE reserves (1) | (301,382) | 809 | (300,573) | (394,780) | 24,141 | (370,639) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2) | (603,546) | 21,567 | (581,979) | (649,053) | 29,405 | (619,648) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (80,455) | 24,153 | (56,302) | (130,481) | 106,811 | (23,670) | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | (34,509) | — | (34,509) | (38,709) | 480 | (38,229) | |||||||||||||||||||||||||||||
Amortization of deferred charge assets | 36,008 | — | 36,008 | 28,006 | — | 28,006 | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | 21,653 | — | 21,653 | 34,033 | — | 34,033 | |||||||||||||||||||||||||||||
Changes in fair value - fair value option | 96,848 | — | 96,848 | 135,377 | — | 135,377 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | 39,545 | $ | 24,153 | $ | 63,698 | $ | 28,226 | $ | 107,291 | $ | 135,517 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Operating expenses | $ | 50,345 | $ | 51,395 | $ | (1,050) | $ | 147,117 | $ | 139,595 | $ | 7,522 | |||||||||||||||||||||||
Corporate expenses | 22,494 | 11,983 | 10,511 | 48,014 | 47,287 | 727 | |||||||||||||||||||||||||||||
General and administrative expenses | $ | 72,839 | $ | 63,378 | $ | 9,461 | $ | 195,131 | $ | 186,882 | $ | 8,249 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 49,083 | $ | 48,746 | $ | 337 | $ | 155,551 | $ | 146,519 | $ | 9,032 | |||||||||||||||||||||||
Net premiums written | $ | 46,503 | $ | 43,785 | $ | 2,718 | $ | 136,093 | $ | 127,246 | $ | 8,847 | |||||||||||||||||||||||
Net premiums earned | $ | 42,426 | $ | 42,913 | $ | (487) | $ | 128,183 | $ | 119,865 | $ | 8,318 | |||||||||||||||||||||||
Net incurred losses and LAE | (21,995) | (28,400) | 6,405 | (66,003) | (58,662) | (7,341) | |||||||||||||||||||||||||||||
Acquisition costs | (14,242) | (14,466) | 224 | (43,235) | (41,023) | (2,212) | |||||||||||||||||||||||||||||
Operating expenses | (3,008) | (3,742) | 734 | (8,757) | (9,968) | 1,211 | |||||||||||||||||||||||||||||
Underwriting income | 3,181 | (3,695) | 6,876 | 10,188 | 10,212 | (24) | |||||||||||||||||||||||||||||
Net investment income | 1,778 | 1,736 | 42 | 4,382 | 5,500 | (1,118) | |||||||||||||||||||||||||||||
Net realized and unrealized gains (1) | 1,533 | 582 | 951 | 3,392 | 5,464 | (2,072) | |||||||||||||||||||||||||||||
Fees and commission income | 7,150 | 2,391 | 4,759 | 15,737 | 5,773 | 9,964 | |||||||||||||||||||||||||||||
Other income | 72 | 35 | 37 | 105 | 106 | (1) | |||||||||||||||||||||||||||||
Corporate expenses | (6,084) | (2,896) | (3,188) | (14,494) | (10,186) | (4,308) | |||||||||||||||||||||||||||||
Net foreign exchange gains (losses) | 2,275 | (924) | 3,199 | 1,115 | (1) | 1,116 | |||||||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES | 9,905 | (2,771) | 12,676 | 20,425 | 16,868 | 3,557 | |||||||||||||||||||||||||||||
Income tax expense | (2,520) | (222) | (2,298) | (3,303) | (1,930) | (1,373) | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) | 7,385 | (2,993) | 10,378 | 17,122 | 14,938 | 2,184 | |||||||||||||||||||||||||||||
Net loss (earnings) attributable to noncontrolling interest | (2,996) | 1,228 | (4,224) | (7,024) | (6,127) | (897) | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | 4,389 | $ | (1,765) | $ | 6,154 | $ | 10,098 | $ | 8,811 | $ | 1,287 | |||||||||||||||||||||||
Underwriting ratios(2): | |||||||||||||||||||||||||||||||||||
Loss ratio | 51.8 | % | 66.2 | % | (14.4) | % | 51.5 | % | 48.9 | % | 2.6 | % | |||||||||||||||||||||||
Acquisition cost ratio | 33.6 | % | 33.7 | % | (0.1) | % | 33.7 | % | 34.2 | % | (0.5) | % | |||||||||||||||||||||||
Operating expense ratio | 7.1 | % | 8.7 | % | (1.6) | % | 6.9 | % | 8.4 | % | (1.5) | % | |||||||||||||||||||||||
Combined ratio | 92.5 | % | 108.6 | % | (16.1) | % | 92.1 | % | 91.5 | % | 0.6 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Marine, Aviation and Transit | $ | 12,290 | $ | 11,691 | $ | 599 | $ | 41,678 | $ | 35,361 | $ | 6,317 | |||||||||||||||||||||||
Binding Authorities | 22,679 | 21,915 | 764 | 65,080 | 57,563 | 7,517 | |||||||||||||||||||||||||||||
Reinsurance | 3,618 | 4,389 | (771) | 14,659 | 16,293 | (1,634) | |||||||||||||||||||||||||||||
Accident and Health | 2,120 | 4,633 | (2,513) | 11,758 | 18,382 | (6,624) | |||||||||||||||||||||||||||||
Non-Marine Direct and Facultative | 8,376 | 6,118 | 2,258 | 22,376 | 18,920 | 3,456 | |||||||||||||||||||||||||||||
Total | $ | 49,083 | $ | 48,746 | $ | 337 | $ | 155,551 | $ | 146,519 | $ | 9,032 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Marine, Aviation and Transit | $ | 10,476 | $ | 9,524 | $ | 952 | $ | 31,452 | $ | 25,302 | $ | 6,150 | |||||||||||||||||||||||
Binding Authorities | 20,436 | 19,771 | 665 | 58,850 | 55,191 | 3,659 | |||||||||||||||||||||||||||||
Reinsurance | 3,550 | 4,591 | (1,041) | 9,942 | 11,253 | (1,311) | |||||||||||||||||||||||||||||
Accident and Health | 2,212 | 4,036 | (1,824) | 10,587 | 13,960 | (3,373) | |||||||||||||||||||||||||||||
Non-Marine Direct and Facultative | 5,752 | 4,991 | 761 | 17,352 | 14,159 | 3,193 | |||||||||||||||||||||||||||||
Total | $ | 42,426 | $ | 42,913 | $ | (487) | $ | 128,183 | $ | 119,865 | $ | 8,318 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Periods | Current Period | Total | Prior Periods | Current Period | Total | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net losses paid | $ | 9,472 | $ | 7,717 | $ | 17,189 | $ | 10,618 | $ | 9,387 | $ | 20,005 | |||||||||||||||||||||||
Net change in case and LAE reserves (1) | (2,292) | 4,993 | 2,701 | (2,860) | 2,769 | (91) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2) | (8,110) | 10,496 | 2,386 | (6,235) | 14,937 | 8,702 | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (930) | 23,206 | 22,276 | 1,523 | 27,093 | 28,616 | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | 48 | (77) | (29) | — | — | — | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | (252) | — | (252) | (216) | — | (216) | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (1,134) | $ | 23,129 | $ | 21,995 | $ | 1,307 | $ | 27,093 | $ | 28,400 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Periods | Current Period | Total | Prior Periods | Current Period | Total | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net losses paid | $ | 31,412 | $ | 17,004 | $ | 48,416 | $ | 35,564 | $ | 24,531 | $ | 60,095 | |||||||||||||||||||||||
Net change in case and LAE reserves (1) | (9,517) | 13,152 | 3,635 | (13,032) | 12,787 | (245) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2) | (25,769) | 39,996 | 14,227 | (27,787) | 25,871 | (1,916) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (3,874) | 70,152 | 66,278 | (5,255) | 63,189 | 57,934 | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | 48 | (77) | (29) | — | — | — | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | (246) | — | (246) | 728 | — | 728 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (4,072) | $ | 70,075 | $ | 66,003 | $ | (4,527) | $ | 63,189 | $ | 58,662 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
Gross premiums written | $ | 58,566 | $ | 110,586 | $ | (52,020) | $ | 300,135 | $ | 363,352 | $ | (63,217) | |||||||||||||||||||||||
Net premiums written | $ | 43,338 | $ | 76,020 | $ | (32,682) | $ | 227,066 | $ | 291,083 | $ | (64,017) | |||||||||||||||||||||||
Net premiums earned | $ | 96,116 | $ | 111,749 | $ | (15,633) | $ | 276,566 | $ | 339,993 | $ | (63,427) | |||||||||||||||||||||||
Net incurred losses and LAE | (48,390) | (100,628) | 52,238 | (197,259) | (358,864) | 161,605 | |||||||||||||||||||||||||||||
Acquisition costs | (20,608) | (23,301) | 2,693 | (76,026) | (80,582) | 4,556 | |||||||||||||||||||||||||||||
Operating expenses | (20,440) | (14,525) | (5,915) | (66,385) | (53,217) | (13,168) | |||||||||||||||||||||||||||||
Underwriting income (loss) | 6,678 | (26,705) | 33,383 | (63,104) | (152,670) | 89,566 | |||||||||||||||||||||||||||||
Net investment income | 6,298 | 8,161 | (1,863) | 21,625 | 25,865 | (4,240) | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) (1) | 11,801 | 6,034 | 5,767 | (3,323) | 31,274 | (34,597) | |||||||||||||||||||||||||||||
Fees and commission expense | — | (150) | 150 | — | (515) | 515 | |||||||||||||||||||||||||||||
Other income | 99 | 72 | 27 | 216 | 445 | (229) | |||||||||||||||||||||||||||||
Corporate expenses | (3,137) | — | (3,137) | (39,153) | — | (39,153) | |||||||||||||||||||||||||||||
Interest expense | (510) | — | (510) | (1,611) | (475) | (1,136) | |||||||||||||||||||||||||||||
Net foreign exchange losses (gains) | (761) | 1,509 | (2,270) | (5,509) | (326) | (5,183) | |||||||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES | 20,468 | (11,079) | 31,547 | (90,859) | (96,402) | 5,543 | |||||||||||||||||||||||||||||
Income tax benefit (expense) | (733) | 139 | (872) | (2,325) | 251 | (2,576) | |||||||||||||||||||||||||||||
Loss from equity method investments | — | — | — | — | (218) | 218 | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS | 19,735 | (10,940) | 30,675 | (93,184) | (96,369) | 3,185 | |||||||||||||||||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | 4,031 | 7,916 | (3,885) | 810 | 12,041 | (11,231) | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) | 23,766 | (3,024) | 26,790 | (92,374) | (84,328) | (8,046) | |||||||||||||||||||||||||||||
Net loss (earnings) attributable to noncontrolling interest | (16,397) | 320 | (16,717) | 37,322 | 17,448 | 19,874 | |||||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | 7,369 | $ | (2,704) | $ | 10,073 | $ | (55,052) | $ | (66,880) | $ | 11,828 | |||||||||||||||||||||||
Underwriting ratios(2): | |||||||||||||||||||||||||||||||||||
Loss ratio | 50.3 | % | 90.0 | % | (39.7) | % | 71.3 | % | 105.6 | % | (34.3) | % | |||||||||||||||||||||||
Acquisition cost ratio | 21.4 | % | 20.9 | % | 0.5 | % | 27.5 | % | 23.7 | % | 3.8 | % | |||||||||||||||||||||||
Operating expense ratio | 21.4 | % | 13.0 | % | 8.4 | % | 24.0 | % | 15.6 | % | 8.4 | % | |||||||||||||||||||||||
Combined ratio | 93.1 | % | 123.9 | % | (30.8) | % | 122.8 | % | 144.9 | % | (22.1) | % |
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, 2020 | September 30, 2020 | |||||||||||||
Description: | Results of Operations Line Item: | (in millions of U.S. dollars) | ||||||||||||
Provision for unallocated LAE (run-off basis) | Net incurred losses and LAE | $ | 4.4 | $ | (23.7) | |||||||||
Provision for employee severance-related costs | Corporate expenses | (2.6) | (10.6) | |||||||||||
Goodwill impairment | Corporate expenses | — | (8.0) | |||||||||||
Capitalized software write-down | Corporate expenses | — | (7.6) | |||||||||||
Earnings acceleration of prepaid reinsurance premiums | Net premiums earned | — | (4.1) | |||||||||||
Intangible asset impairment | Corporate expenses | — | (4.0) | |||||||||||
Operating leases right-of-use asset write-down | Corporate expenses | — | (3.5) | |||||||||||
Other asset write-downs | Corporate expenses | — | (2.9) | |||||||||||
Valuation allowance on deferred tax assets | Income tax expense | — | (2.3) | |||||||||||
Sub-total | Net (loss) earnings | 1.8 | (66.7) | |||||||||||
Redeemable non-controlling interest | Net loss (earnings) attributable to noncontrolling interest | (0.7) | 25.3 | |||||||||||
Total (increase) reduction in StarStone net earnings attributable to the StarStone International Run-Off | Net (loss) earnings attributable to Enstar ordinary shareholders | $ | 1.1 | $ | (41.4) |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||
StarStone Segment | Noncontrolling Interests' Share | Enstar's share of StarStone Segment | StarStone Segment | Noncontrolling Interests' Share | Enstar's share of StarStone Segment | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
StarStone International (1) | $ | (891) | $ | 80 | $ | (811) | $ | 38,933 | $ | (12,274) | $ | 26,659 | |||||||||||||||||||||||
StarStone U.S. (Discontinued Operations) | 2,500 | (1,025) | 1,475 | 10,000 | (4,100) | 5,900 | |||||||||||||||||||||||||||||
Total StarStone Segment COVID-19 net underwriting losses | $ | 1,609 | $ | (945) | $ | 664 | $ | 48,933 | $ | (16,374) | $ | 32,559 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2020 | ||||||||||||||||||||||||||||||||||
Subtotal Before Exit Costs | Exit Costs | Total | Subtotal Before Exit Costs | Exit Costs | Total | ||||||||||||||||||||||||||||||
A | B | C=A+B | D | E | F=D+E | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 96,116 | $ | — | $ | 96,116 | $ | 280,712 | $ | (4,146) | $ | 276,566 | |||||||||||||||||||||||
Net incurred losses and LAE | (52,800) | 4,410 | (48,390) | (173,556) | (23,703) | (197,259) | |||||||||||||||||||||||||||||
Acquisition costs | (20,608) | — | (20,608) | (76,026) | — | (76,026) | |||||||||||||||||||||||||||||
Operating expenses | (20,440) | — | (20,440) | (66,285) | (100) | (66,385) | |||||||||||||||||||||||||||||
Underwriting income (loss) | 2,268 | 4,410 | 6,678 | (35,155) | (27,949) | (63,104) | |||||||||||||||||||||||||||||
Underwriting ratios(1): | |||||||||||||||||||||||||||||||||||
Loss ratio | 54.9 | % | 50.3 | % | 61.8 | % | 71.3 | % | |||||||||||||||||||||||||||
Acquisition cost ratio | 21.4 | % | 21.4 | % | 27.1 | % | 27.5 | % | |||||||||||||||||||||||||||
Operating expense ratio | 21.3 | % | 21.4 | % | 23.6 | % | 24.0 | % | |||||||||||||||||||||||||||
Combined ratio | 97.6 | % | 93.1 | % | 112.5 | % | 122.8 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Casualty | $ | 12,576 | $ | 25,002 | $ | (12,426) | $ | 68,418 | $ | 77,645 | $ | (9,227) | |||||||||||||||||||||||
Marine | 24,363 | 40,699 | (16,336) | 132,721 | 168,657 | (35,936) | |||||||||||||||||||||||||||||
Property | 5,611 | 29,757 | (24,146) | 64,970 | 80,671 | (15,701) | |||||||||||||||||||||||||||||
Aerospace | 15,598 | 12,397 | 3,201 | 32,105 | 33,648 | (1,543) | |||||||||||||||||||||||||||||
Workers' Compensation | 418 | 2,731 | (2,313) | 1,921 | 2,731 | (810) | |||||||||||||||||||||||||||||
Total | $ | 58,566 | $ | 110,586 | $ | (52,020) | $ | 300,135 | $ | 363,352 | $ | (63,217) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Casualty | $ | 20,471 | $ | 22,314 | $ | (1,843) | $ | 66,419 | $ | 66,733 | $ | (314) | |||||||||||||||||||||||
Marine | 39,424 | 46,747 | (7,323) | 113,016 | 147,542 | (34,526) | |||||||||||||||||||||||||||||
Property | 28,800 | 32,710 | (3,910) | 73,370 | 92,186 | (18,816) | |||||||||||||||||||||||||||||
Aerospace | 6,886 | 8,280 | (1,394) | 21,365 | 32,944 | (11,579) | |||||||||||||||||||||||||||||
Workers' Compensation | 535 | 1,698 | (1,163) | 2,396 | 588 | 1,808 | |||||||||||||||||||||||||||||
Total | $ | 96,116 | $ | 111,749 | $ | (15,633) | $ | 276,566 | $ | 339,993 | $ | (63,427) |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Periods | Current Period | Total | Prior Periods | Current Period | Total | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net losses paid | $ | 48,972 | $ | 7,755 | $ | 56,727 | $ | 111,195 | $ | 11,653 | $ | 122,848 | |||||||||||||||||||||||
Net change in case and LAE reserves (1) | (20,068) | 25,524 | 5,456 | (8,866) | (8,994) | (17,860) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2) | (24,755) | 16,176 | (8,579) | (101,938) | 97,225 | (4,713) | |||||||||||||||||||||||||||||
Increase in estimates of net ultimate losses | 4,149 | 49,455 | 53,604 | 391 | 99,884 | 100,275 | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | (299) | (4,721) | (5,020) | (2,112) | 1,924 | (188) | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | (194) | — | (194) | 541 | — | 541 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | 3,656 | $ | 44,734 | $ | 48,390 | $ | (1,180) | $ | 101,808 | $ | 100,628 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Prior Periods | Current Period | Total | Prior Periods | Current Period | Total | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net losses paid | $ | 206,058 | $ | 12,142 | $ | 218,200 | $ | 301,641 | $ | 27,624 | $ | 329,265 | |||||||||||||||||||||||
Net change in case and LAE reserves (1) | (85,798) | 24,911 | (60,887) | (22,538) | 36,046 | 13,508 | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2) | (130,738) | 147,770 | 17,032 | (192,034) | 207,076 | 15,042 | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (10,478) | 184,823 | 174,345 | 87,069 | 270,746 | 357,815 | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE | (116) | 23,591 | 23,475 | (2,585) | 3,324 | 739 | |||||||||||||||||||||||||||||
Amortization of fair value adjustments | (561) | — | (561) | 310 | — | 310 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (11,155) | $ | 208,414 | $ | 197,259 | $ | 84,794 | $ | 274,070 | $ | 358,864 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||
StarStone U.S. Group net earnings (loss) before Intra-Group Cessions | $ | 6,192 | $ | 15,146 | $ | 24,386 | $ | (24,510) | |||||||||||||||
Intra-Group Cessions | (2,161) | (7,230) | (23,576) | 36,551 | |||||||||||||||||||
StarStone U.S. net earnings, net of income taxes | $ | 4,031 | $ | 7,916 | $ | 810 | $ | 12,041 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 5,706 | $ | 4,303 | $ | 1,403 | $ | 15,174 | $ | 16,872 | $ | (1,698) | |||||||||||||||||||||||
Net incurred losses and LAE | (5,043) | (3,647) | (1,396) | (12,718) | (13,068) | 350 | |||||||||||||||||||||||||||||
Acquisition costs | (128) | (177) | 49 | (331) | (554) | 223 | |||||||||||||||||||||||||||||
Underwriting income | 535 | 479 | 56 | 2,125 | 3,250 | (1,125) | |||||||||||||||||||||||||||||
Net investment losses | (2,864) | (2,147) | (717) | (8,145) | (6,278) | (1,867) | |||||||||||||||||||||||||||||
Net realized and unrealized gains | — | 270 | (270) | — | 5,849 | (5,849) | |||||||||||||||||||||||||||||
Other income (expense) | 210 | 1,000 | (790) | (647) | (319) | (328) | |||||||||||||||||||||||||||||
Corporate expenses | (10,320) | (12,824) | 2,504 | (35,166) | (36,051) | 885 | |||||||||||||||||||||||||||||
Interest Income | 2,212 | 3,014 | (802) | 7,960 | 7,152 | 808 | |||||||||||||||||||||||||||||
Net foreign exchange gains (losses) | (7) | 24 | (31) | 2,634 | (2) | 2,636 | |||||||||||||||||||||||||||||
LOSS BEFORE INCOME TAXES | (10,234) | (10,184) | (50) | (31,239) | (26,399) | (4,840) | |||||||||||||||||||||||||||||
Income tax expense | (1,391) | — | (1,391) | (1,391) | (85) | (1,306) | |||||||||||||||||||||||||||||
NET LOSS ATTRIBUTABLE TO ENSTAR | (11,625) | (10,184) | (1,441) | (32,630) | (26,484) | (6,146) | |||||||||||||||||||||||||||||
Dividends on preferred shares | (8,925) | (8,925) | — | (26,775) | (26,989) | 214 | |||||||||||||||||||||||||||||
NET LOSS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (20,550) | $ | (19,109) | $ | (1,441) | $ | (59,405) | $ | (53,473) | $ | (5,932) |
September 30, 2020 | |||||||||||||||||||||||
Non-life Run-off | StarStone | Other | Total | ||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||
Short-term investments, trading, at fair value | $ | 7,133 | $ | — | $ | — | $ | 7,133 | |||||||||||||||
Short-term investments, AFS, at fair value | 276,005 | 2,170 | — | 278,175 | |||||||||||||||||||
Fixed maturities, trading, at fair value | 4,494,177 | 505,465 | — | 4,999,642 | |||||||||||||||||||
Fixed maturities, AFS, at fair value | 2,661,649 | 221,823 | — | 2,883,472 | |||||||||||||||||||
Funds held - directly managed | 1,066,639 | — | — | 1,066,639 | |||||||||||||||||||
Equities, at fair value | 581,136 | 72,023 | — | 653,159 | |||||||||||||||||||
Other investments, at fair value | 3,610,498 | 94,372 | — | 3,704,870 | |||||||||||||||||||
Equity method investments | 516,795 | — | — | 516,795 | |||||||||||||||||||
Total investments | 13,214,032 | 895,853 | — | 14,109,885 | |||||||||||||||||||
Cash and cash equivalents (including restricted cash) | 941,051 | 234,966 | 21,305 | 1,197,322 | |||||||||||||||||||
Funds held by reinsured companies | 560,772 | 88,888 | 7,830 | 657,490 | |||||||||||||||||||
Total investable assets | $ | 14,715,855 | $ | 1,219,707 | $ | 29,135 | $ | 15,964,697 | |||||||||||||||
Duration (in years) (1) | 5.27 | 2.17 | — | 4.97 | |||||||||||||||||||
Average credit rating (2) | A+ | AA- | AAA | A+ |
December 31, 2019 | |||||||||||||||||||||||||||||
Non-life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||
Short-term investments, trading, at fair value | $ | 50,268 | $ | 1,222 | $ | — | $ | — | $ | 51,490 | |||||||||||||||||||
Short-term investments, AFS, at fair value | 121,780 | — | 6,555 | — | 128,335 | ||||||||||||||||||||||||
Fixed maturities, trading, at fair value | 5,378,533 | 155,510 | 609,292 | — | 6,143,335 | ||||||||||||||||||||||||
Fixed maturities, AFS, at fair value | 1,446,912 | 15,310 | 75,830 | — | 1,538,052 | ||||||||||||||||||||||||
Funds held - directly managed | 1,187,552 | — | — | — | 1,187,552 | ||||||||||||||||||||||||
Equities, at fair value | 576,893 | 22,079 | 127,749 | — | 726,721 | ||||||||||||||||||||||||
Other investments, at fair value | 2,386,776 | 7,417 | 123,838 | — | 2,518,031 | ||||||||||||||||||||||||
Equity method investments | 326,277 | — | — | — | 326,277 | ||||||||||||||||||||||||
Total investments | 11,474,991 | 201,538 | 943,264 | — | 12,619,793 | ||||||||||||||||||||||||
Cash and cash equivalents (including restricted cash) | 666,705 | 58,369 | 241,708 | 4,567 | 971,349 | ||||||||||||||||||||||||
Funds held by reinsured companies | 336,470 | 27,451 | 103,191 | 8,620 | 475,732 | ||||||||||||||||||||||||
Total investable assets | $ | 12,478,166 | $ | 287,358 | $ | 1,288,163 | $ | 13,187 | $ | 14,066,874 | |||||||||||||||||||
Duration (in years) (1) | 5.24 | 1.86 | 2.07 | — | 4.86 | ||||||||||||||||||||||||
Average credit rating (2) | A+ | AA- | A+ | AAA | A+ |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
AAA Rated | AA Rated | A Rated | BBB Rated | Non-investment Grade | Not Rated | Total | % | |||||||||||||||||||||||||||||||||||||||||||
(in thousands of U.S. dollars, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term and fixed maturity investments, trading and AFS and funds held - directly managed | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government & agency | $ | 789,630 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 789,630 | 5.6 | % | ||||||||||||||||||||||||||||||||||
U.K. government | — | 102,624 | 8,739 | — | — | 3,414 | 114,777 | 0.8 | % | |||||||||||||||||||||||||||||||||||||||||
Other government | 242,097 | 150,005 | 43,003 | 45,884 | 9,458 | — | 490,447 | 3.5 | % | |||||||||||||||||||||||||||||||||||||||||
Corporate | 206,345 | 583,595 | 2,704,861 | 1,912,857 | 267,765 | 4,486 | 5,679,909 | 40.2 | % | |||||||||||||||||||||||||||||||||||||||||
Municipal | 7,137 | 83,519 | 51,538 | 19,645 | — | — | 161,839 | 1.1 | % | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 517,915 | — | 2,154 | 1,612 | 5,251 | 2,307 | 529,239 | 3.7 | % | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 576,643 | 111,720 | 77,391 | 64,898 | 5,308 | 7,159 | 843,119 | 6.0 | % | |||||||||||||||||||||||||||||||||||||||||
Asset-backed | 249,237 | 99,942 | 145,494 | 96,960 | 21,780 | 250 | 613,663 | 4.3 | % | |||||||||||||||||||||||||||||||||||||||||
Total | 2,589,004 | 1,131,405 | 3,033,180 | 2,141,856 | 309,562 | 17,616 | 9,222,623 | 65.2 | % | |||||||||||||||||||||||||||||||||||||||||
Other assets included within funds held - directly managed | 12,438 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Equities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Publicly traded equities | 303,932 | 2.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Exchange-traded funds | 78,182 | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Privately held equities | 271,045 | 1.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 653,159 | 4.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | 2,087,091 | 14.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed income funds | 684,031 | 4.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Equity funds | 290,129 | 2.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Private equity funds | 320,455 | 2.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||
CLO equities | 84,532 | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
CLO equity funds | 140,458 | 1.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Private credit funds | 90,476 | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 7,698 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 3,704,870 | 26.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | 516,795 | 3.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total investments | $ | 2,589,004 | $ | 1,131,405 | $ | 3,033,180 | $ | 2,141,856 | $ | 309,562 | $ | 17,616 | $ | 14,109,885 | 100.0 | % |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
AAA Rated | AA Rated | A Rated | BBB Rated | Non-investment Grade | Not Rated | Total | % | ||||||||||||||||||||||||||||||||||||||||
(in thousands of U.S. dollars, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity and short-term investments, trading and AFS and funds held - directly managed | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government & agency | $ | 696,077 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 696,077 | 5.5 | % | |||||||||||||||||||||||||||||||
U.K. government | — | 161,772 | — | — | — | — | 161,772 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||
Other government | 316,150 | 154,072 | 63,270 | 144,557 | 24,807 | — | 702,856 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||
Corporate | 140,889 | 600,081 | 2,759,671 | 1,634,572 | 311,167 | 1,890 | 5,448,270 | 43.2 | % | ||||||||||||||||||||||||||||||||||||||
Municipal | 10,088 | 56,389 | 50,938 | 23,272 | — | — | 140,687 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 310,595 | 47,474 | 2,295 | 1,882 | 34,055 | 4,613 | 400,914 | 3.2 | % | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 567,453 | 80,517 | 87,081 | 63,565 | 5,556 | 9,574 | 813,746 | 6.4 | % | ||||||||||||||||||||||||||||||||||||||
Asset-backed | 304,542 | 79,930 | 159,087 | 110,201 | 15,694 | 781 | 670,235 | 5.3 | % | ||||||||||||||||||||||||||||||||||||||
Total | 2,345,794 | 1,180,235 | 3,122,342 | 1,978,049 | 391,279 | 16,858 | 9,034,557 | 71.6 | % | ||||||||||||||||||||||||||||||||||||||
Other assets included within funds held - directly managed | 14,207 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Equities | |||||||||||||||||||||||||||||||||||||||||||||||
Publicly traded equities | 327,875 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Exchange-traded funds | 133,047 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Privately held equities | 265,799 | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total | 726,721 | 5.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||||||||
Hedge funds | 1,121,904 | 8.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Fixed income funds | 481,039 | 3.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
Equity funds | 410,149 | 3.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
Private equity funds | 323,496 | 2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
CLO equities | 87,555 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
CLO equity funds | 87,509 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
Private credit funds | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||
Other | 6,379 | — | % | ||||||||||||||||||||||||||||||||||||||||||||
Total | 2,518,031 | 19.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | 326,277 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total investments | $ | 2,345,794 | $ | 1,180,235 | $ | 3,122,342 | $ | 1,978,049 | $ | 391,279 | $ | 16,858 | $ | 12,619,793 | 100.0 | % |
Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
As of September 30, 2020 | Amortized Cost | Gross Unrealized Gains | Non-Credit Related Losses | Allowance for Credit Losses(1) | Fair Value | |||||||||||||||||||||||||||
U.S. government and agency | $ | 769,544 | $ | 20,612 | $ | (526) | $ | — | $ | 789,630 | ||||||||||||||||||||||
U.K. government | 111,169 | 3,882 | (274) | — | 114,777 | |||||||||||||||||||||||||||
Other government | 466,575 | 24,927 | (1,055) | — | 490,447 | |||||||||||||||||||||||||||
Corporate | 5,339,160 | 357,069 | (15,536) | (784) | 5,679,909 | |||||||||||||||||||||||||||
Municipal | 146,087 | 16,023 | (271) | — | 161,839 | |||||||||||||||||||||||||||
Residential mortgage-backed | 521,383 | 9,223 | (1,365) | (2) | 529,239 | |||||||||||||||||||||||||||
Commercial mortgage-backed | 821,995 | 36,811 | (15,606) | (81) | 843,119 | |||||||||||||||||||||||||||
Asset-backed | 631,133 | 2,962 | (20,387) | (45) | 613,663 | |||||||||||||||||||||||||||
$ | 8,807,046 | $ | 471,509 | $ | (55,020) | $ | (912) | $ | 9,222,623 |
As of December 31, 2019 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses (Non-OTTI) | Fair Value | ||||||||||||||||||||||
U.S. government and agency | $ | 690,343 | $ | 6,663 | $ | (929) | $ | 696,077 | ||||||||||||||||||
U.K. government | 155,261 | 6,628 | (117) | 161,772 | ||||||||||||||||||||||
Other government | 684,116 | 24,994 | (6,254) | 702,856 | ||||||||||||||||||||||
Corporate | 5,231,512 | 235,406 | (18,648) | 5,448,270 | ||||||||||||||||||||||
Municipal | 131,130 | 9,595 | (38) | 140,687 | ||||||||||||||||||||||
Residential mortgage-backed | 396,331 | 5,981 | (1,398) | 400,914 | ||||||||||||||||||||||
Commercial mortgage-backed | 796,730 | 20,673 | (3,657) | 813,746 | ||||||||||||||||||||||
Asset-backed | 674,250 | 1,806 | (5,821) | 670,235 | ||||||||||||||||||||||
$ | 8,759,673 | $ | 311,746 | $ | (36,862) | $ | 9,034,557 |
Fair Value | Average Credit Rating | ||||||||||
(in thousands of U.S. dollars) | |||||||||||
Bank of America Corp | $ | 107,601 | A | ||||||||
Citigroup Inc | 103,749 | A- | |||||||||
Morgan Stanley | 100,296 | A- | |||||||||
JPMorgan Chase & Co | 93,385 | A | |||||||||
Wells Fargo & Co | 86,810 | A | |||||||||
Comcast Corp | 85,102 | A- | |||||||||
Apple Inc | 79,948 | AA+ | |||||||||
AT&T Inc | 59,322 | BBB | |||||||||
HSBC Holdings PLC | 54,328 | A- | |||||||||
Walmart Inc | 50,813 | AA | |||||||||
$ | 821,354 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Non-Life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||||||
Fixed income securities (1) | $ | 56,646 | $ | 1,151 | $ | 5,675 | $ | — | $ | 63,472 | |||||||||||||||||||
Cash and restricted cash | 88 | 535 | 53 | 2 | 678 | ||||||||||||||||||||||||
Other investments, including equities | 12,028 | 102 | 1,507 | (2,866) | 10,771 | ||||||||||||||||||||||||
Less: Investment expenses | (1,844) | (10) | (937) | — | (2,791) | ||||||||||||||||||||||||
Total net investment income (expense) | $ | 66,918 | $ | 1,778 | $ | 6,298 | $ | (2,864) | $ | 72,130 | |||||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities (1) | $ | 42,761 | $ | 31 | $ | 2,364 | $ | — | $ | 45,156 | |||||||||||||||||||
Other investments, including equities | 8,287 | 4 | 41 | — | 8,332 | ||||||||||||||||||||||||
Total net realized gains | $ | 51,048 | $ | 35 | $ | 2,405 | $ | — | $ | 53,488 | |||||||||||||||||||
Net unrealized gains: | |||||||||||||||||||||||||||||
Fixed income securities, trading (1) | $ | 18,900 | $ | 242 | $ | 2,996 | $ | — | $ | 22,138 | |||||||||||||||||||
Other investments, including equities | 416,723 | 1,256 | 6,400 | — | 424,379 | ||||||||||||||||||||||||
Total net unrealized gains | $ | 435,623 | $ | 1,498 | $ | 9,396 | $ | — | $ | 446,517 | |||||||||||||||||||
Total investment return included in earnings (A) | $ | 553,589 | $ | 3,311 | $ | 18,099 | $ | (2,864) | $ | 572,135 | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||
Unrealized gains (losses), on fixed income securities, AFS, net of reclassification adjustments excluding foreign exchange (B) (1) | $ | 127 | $ | (35) | $ | 499 | $ | — | $ | 591 | |||||||||||||||||||
Total investment return = (A) + (B) | $ | 553,716 | $ | 3,276 | $ | 18,598 | $ | (2,864) | $ | 572,726 | |||||||||||||||||||
Annualized income from fixed income assets (2) | $ | 226,936 | $ | 6,744 | $ | 22,912 | $ | 8 | $ | 256,600 | |||||||||||||||||||
Average aggregate fixed income assets, at cost (2)(3) | 9,655,624 | 261,074 | 1,046,616 | 21,478 | 10,984,792 | ||||||||||||||||||||||||
Annualized investment book yield | 2.35 | % | 2.58 | % | 2.19 | % | 0.04 | % | 2.34 | % | |||||||||||||||||||
Average aggregate invested assets, at fair value (3) | $ | 13,988,360 | $ | 303,793 | $ | 1,215,379 | $ | 21,478 | $ | 15,529,010 | |||||||||||||||||||
Investment return included in net earnings | 3.96 | % | 1.09 | % | 1.49 | % | (13.33) | % | 3.68 | % | |||||||||||||||||||
Total investment return | 3.96 | % | 1.08 | % | 1.53 | % | (13.33) | % | 3.69 | % |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Non-Life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||||||
Fixed income securities (1) | $ | 63,565 | $ | 956 | $ | 2,918 | $ | (394) | $ | 67,045 | |||||||||||||||||||
Cash and restricted cash | 5,484 | 696 | 3,476 | 382 | 10,038 | ||||||||||||||||||||||||
Other investments, including equities | 7,113 | 154 | 1,960 | (2,169) | 7,058 | ||||||||||||||||||||||||
Less: Investment expenses | (2,410) | (70) | (193) | 34 | (2,639) | ||||||||||||||||||||||||
Total net investment income (expense) | $ | 73,752 | $ | 1,736 | $ | 8,161 | $ | (2,147) | $ | 81,502 | |||||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities (1) | $ | 26,143 | $ | (42) | $ | 1,168 | $ | 1 | $ | 27,270 | |||||||||||||||||||
Other investments, including equities | (3,960) | 37 | 42 | — | (3,881) | ||||||||||||||||||||||||
Total net realized gains (losses) | $ | 22,183 | $ | (5) | $ | 1,210 | $ | 1 | $ | 23,389 | |||||||||||||||||||
Net unrealized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities, trading (1) | $ | 103,948 | $ | 606 | $ | 3,181 | $ | — | $ | 107,735 | |||||||||||||||||||
Other investments, including equities | 12,043 | (19) | 1,643 | 269 | 13,936 | ||||||||||||||||||||||||
Total net unrealized gains | $ | 115,991 | $ | 587 | $ | 4,824 | $ | 269 | $ | 121,671 | |||||||||||||||||||
Total investment return included in earnings (A) | $ | 211,926 | $ | 2,318 | $ | 14,195 | $ | (1,877) | $ | 226,562 | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||
Unrealized gains (losses), on fixed income securities, AFS, net of reclassification adjustments excluding foreign exchange (B) (1) | $ | 21 | $ | 18 | $ | (26) | $ | — | $ | 13 | |||||||||||||||||||
Total investment return = (A) + (B) | $ | 211,947 | $ | 2,336 | $ | 14,169 | $ | (1,877) | $ | 226,575 | |||||||||||||||||||
Annualized income from fixed income assets (2) | $ | 276,196 | $ | 6,608 | $ | 25,576 | $ | (48) | $ | 308,332 | |||||||||||||||||||
Average aggregate fixed income assets, at cost (2)(3) | 8,632,415 | 251,305 | 1,210,051 | 15,279 | 10,109,050 | ||||||||||||||||||||||||
Annualized investment book yield | 3.20 | % | 2.63 | % | 2.11 | % | (0.31) | % | 3.05 | % | |||||||||||||||||||
Average aggregate invested assets, at fair value (3) | $ | 11,662,416 | $ | 264,029 | $ | 1,419,869 | $ | 18,293 | $ | 13,364,607 | |||||||||||||||||||
Investment return included in net earnings | 1.82 | % | 0.88 | % | 1.00 | % | (10.26) | % | 1.70 | % | |||||||||||||||||||
Total investment return | 1.82 | % | 0.88 | % | 1.00 | % | (10.26) | % | 1.70 | % |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Non-Life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||||||
Fixed income securities (1) | $ | 192,998 | $ | 3,792 | $ | 17,340 | $ | — | $ | 214,130 | |||||||||||||||||||
Cash and restricted cash | 2,229 | 322 | 892 | 103 | 3,546 | ||||||||||||||||||||||||
Other investments, including equities | 36,455 | 420 | 5,253 | (8,248) | 33,880 | ||||||||||||||||||||||||
Less: Investment expenses | (8,257) | (152) | (1,860) | — | (10,269) | ||||||||||||||||||||||||
Total net investment income (expense) | $ | 223,425 | $ | 4,382 | $ | 21,625 | $ | (8,145) | $ | 241,287 | |||||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities (1) | $ | 102,588 | $ | (338) | $ | 3,433 | $ | — | $ | 105,683 | |||||||||||||||||||
Other investments, including equities | 7,579 | 135 | 1,497 | — | 9,211 | ||||||||||||||||||||||||
Total net realized gains (losses) | $ | 110,167 | $ | (203) | $ | 4,930 | $ | — | $ | 114,894 | |||||||||||||||||||
Net unrealized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities, trading (1) | $ | 105,787 | $ | 3,658 | $ | (8,031) | $ | — | $ | 101,414 | |||||||||||||||||||
Other investments, including equities | 622,529 | (63) | (222) | — | 622,244 | ||||||||||||||||||||||||
Total net unrealized gains (losses) | $ | 728,316 | $ | 3,595 | $ | (8,253) | $ | — | $ | 723,658 | |||||||||||||||||||
Total investment return included in earnings (A) | $ | 1,061,908 | $ | 7,774 | $ | 18,302 | $ | (8,145) | $ | 1,079,839 | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||
Unrealized gains (losses), on fixed income securities, AFS, net of reclassification adjustments excluding foreign exchange (B) (1) | $ | 41,683 | $ | 9 | $ | 2,037 | $ | — | $ | 43,729 | |||||||||||||||||||
Total investment return = (A) + (B) | $ | 1,103,591 | $ | 7,783 | $ | 20,339 | $ | (8,145) | $ | 1,123,568 | |||||||||||||||||||
Annualized income from fixed income assets (2) | $ | 260,303 | $ | 5,485 | $ | 24,309 | $ | 137 | $ | 290,235 | |||||||||||||||||||
Average aggregate fixed income assets, at cost (2)(3) | 9,421,717 | 259,825 | 1,036,768 | 17,168 | 10,735,478 | ||||||||||||||||||||||||
Annualized investment book yield | 2.76 | % | 2.11 | % | 2.34 | % | 0.80 | % | 2.70 | % | |||||||||||||||||||
Average aggregate invested assets, at fair value (3) | $ | 13,055,657 | $ | 294,798 | $ | 1,223,575 | $ | 17,168 | $ | 14,591,198 | |||||||||||||||||||
Investment return included in net earnings | 8.13 | % | 2.64 | % | 1.50 | % | (47.44) | % | 7.40 | % | |||||||||||||||||||
Total investment return | 8.45 | % | 2.64 | % | 1.66 | % | (47.44) | % | 7.70 | % |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Non-Life Run-off | Atrium | StarStone | Other | Total | |||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||||||
Fixed income securities (1) | $ | 187,471 | $ | 4,146 | $ | 18,094 | $ | 567 | $ | 210,278 | |||||||||||||||||||
Cash and restricted cash | 7,383 | 708 | 3,568 | 382 | 12,041 | ||||||||||||||||||||||||
Other investments, including equities | 19,542 | 891 | 5,401 | (7,357) | 18,477 | ||||||||||||||||||||||||
Less: Investment expenses | (8,059) | (245) | (1,198) | 130 | (9,372) | ||||||||||||||||||||||||
Total net investment income (expense) | $ | 206,337 | $ | 5,500 | $ | 25,865 | $ | (6,278) | $ | 231,424 | |||||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities (1) | $ | 44,764 | $ | 41 | $ | 1,500 | $ | 4,151 | $ | 50,456 | |||||||||||||||||||
Other investments, including equities | (1,600) | 140 | 247 | — | (1,213) | ||||||||||||||||||||||||
Total net realized gains | $ | 43,164 | $ | 181 | $ | 1,747 | $ | 4,151 | $ | 49,243 | |||||||||||||||||||
Net unrealized gains: | |||||||||||||||||||||||||||||
Fixed income securities, trading (1) | $ | 477,098 | $ | 4,297 | $ | 26,904 | $ | — | $ | 508,299 | |||||||||||||||||||
Other investments, including equities | 295,640 | 986 | 2,623 | 1,698 | 300,947 | ||||||||||||||||||||||||
Total net unrealized gains | $ | 772,738 | $ | 5,283 | $ | 29,527 | $ | 1,698 | $ | 809,246 | |||||||||||||||||||
Total investment return included in earnings (A) | $ | 1,022,239 | $ | 10,964 | $ | 57,139 | $ | (429) | $ | 1,089,913 | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||
Unrealized gains (losses), on fixed income securities, AFS, net of reclassification adjustments excluding foreign exchange (B) (1) | $ | 1,522 | $ | 307 | $ | (26) | $ | (1,072) | $ | 731 | |||||||||||||||||||
Total investment return = (A) + (B) | $ | 1,023,761 | $ | 11,271 | $ | 57,113 | $ | (1,501) | $ | 1,090,644 | |||||||||||||||||||
Annualized income from fixed income assets (2) | $ | 259,805 | $ | 6,472 | $ | 28,883 | $ | 1,265 | $ | 296,425 | |||||||||||||||||||
Average aggregate fixed income assets, at cost (2)(3) | 8,621,207 | 255,591 | 1,180,412 | 87,240 | 10,144,450 | ||||||||||||||||||||||||
Annualized investment book yield | 3.01 | % | 2.53 | % | 2.45 | % | 1.45 | % | 2.92 | % | |||||||||||||||||||
Average aggregate invested assets, at fair value (3) | $ | 11,314,815 | $ | 266,108 | $ | 1,345,180 | $ | 97,396 | $ | 13,023,499 | |||||||||||||||||||
Investment return included in net earnings | 9.03 | % | 4.12 | % | 4.25 | % | (0.44) | % | 8.37 | % | |||||||||||||||||||
Total investment return | 9.05 | % | 4.24 | % | 4.25 | % | (1.54) | % | 8.37 | % |
September 30, 2020 | December 31, 2019 | Change | ||||||||||||||||||
(in thousands of U.S. dollars) | ||||||||||||||||||||
Ordinary shareholders' equity | $ | 5,310,885 | $ | 4,332,183 | $ | 978,702 | ||||||||||||||
Series D and E Preferred Shares | 510,000 | 510,000 | — | |||||||||||||||||
Total Enstar Shareholders' Equity (A) | 5,820,885 | 4,842,183 | 978,702 | |||||||||||||||||
Noncontrolling interest | 14,468 | 14,168 | 300 | |||||||||||||||||
Total Shareholders' Equity (B) | 5,835,353 | 4,856,351 | 979,002 | |||||||||||||||||
Senior Notes | 843,095 | 842,216 | 879 | |||||||||||||||||
Junior Subordinated Notes | 344,813 | — | 344,813 | |||||||||||||||||
Revolving credit facility | 260,000 | — | 260,000 | |||||||||||||||||
Term loan facility | — | 348,991 | (348,991) | |||||||||||||||||
Total debt (C) | 1,447,908 | 1,191,207 | 256,701 | |||||||||||||||||
Redeemable noncontrolling interest (D) | 376,731 | 438,791 | (62,060) | |||||||||||||||||
Total capitalization = (B) + (C) + (D) | $ | 7,659,992 | $ | 6,486,349 | $ | 1,173,643 | ||||||||||||||
Total capitalization attributable to Enstar = (A) + (C) | $ | 7,268,793 | $ | 6,033,390 | $ | 1,235,403 | ||||||||||||||
Debt to total capitalization | 18.9 | % | 18.4 | % | 0.5 | % | ||||||||||||||
Debt and Series D and E Preferred Shares to total capitalization | 25.6 | % | 26.2 | % | (0.6) | % | ||||||||||||||
Debt to total capitalization attributable to Enstar | 19.9 | % | 19.7 | % | 0.2 | % | ||||||||||||||
Debt and Series D and E Preferred Shares to total capitalization available to Enstar | 26.9 | % | 28.2 | % | (1.3) | % |
Dividend per: | ||||||||||||||||||||||||||||||||||||||
Preferred Share Series | Date Declared | Record Date | Date Paid or Payable | Preferred Share | Depositary Share | Total dividends paid in the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(in U.S. dollars) | (in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||||
Series D | February 4, 2020 | February 15, 2020 | March 2, 2020 | $ | 437.50 | $ | 0.43750 | $ | 7,000 | |||||||||||||||||||||||||||||
Series E | February 4, 2020 | February 15, 2020 | March 2, 2020 | $ | 437.50 | $ | 0.43750 | 1,925 | ||||||||||||||||||||||||||||||
Series D | May 5, 2020 | May 15, 2020 | June 1, 2020 | $ | 437.50 | $ | 0.43750 | 7,000 | ||||||||||||||||||||||||||||||
Series E | May 5, 2020 | May 15, 2020 | June 1, 2020 | $ | 437.50 | $ | 0.43750 | 1,925 | ||||||||||||||||||||||||||||||
Series D | August 5, 2020 | August 15, 2020 | September 1, 2020 | $ | 437.50 | $ | 0.43750 | 7,000 | ||||||||||||||||||||||||||||||
Series E | August 5, 2020 | August 15, 2020 | September 1, 2020 | $ | 437.50 | $ | 0.43750 | 1,925 | ||||||||||||||||||||||||||||||
Series D | November 5, 2020 | November 15, 2020 | December 1, 2020 | $ | 437.50 | $ | 0.43750 | — | ||||||||||||||||||||||||||||||
Series E | November 5, 2020 | November 15, 2020 | December 1, 2020 | $ | 437.50 | $ | 0.43750 | — | ||||||||||||||||||||||||||||||
$ | 26,775 |
Nine Months Ended September 30, | ||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||
(in thousands of U.S. dollars) | ||||||||||||||||||||
Cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 2,104,030 | $ | 429,568 | $ | 1,674,462 | ||||||||||||||
Investing activities | (2,011,034) | (573,708) | (1,437,326) | |||||||||||||||||
Financing activities | 202,623 | 309,642 | (107,019) | |||||||||||||||||
Discontinued operations cash flows: | ||||||||||||||||||||
Net cash flows provided by operating activities | 114,024 | 210,666 | (96,642) | |||||||||||||||||
Net cash flows used in investing activities | (134,759) | (5,332) | (129,427) | |||||||||||||||||
Net cash flows from discontinued operations | (20,735) | 205,334 | (226,069) | |||||||||||||||||
Effect of exchange rate changes on cash | 1,727 | (12,507) | 14,234 | |||||||||||||||||
Net increase in cash and cash equivalents | 276,611 | 358,329 | (81,718) | |||||||||||||||||
Cash and cash equivalents, beginning of period | 971,349 | 901,996 | 69,353 | |||||||||||||||||
Net change in cash of businesses held-for-sale | (50,638) | (205,333) | 154,695 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 1,197,322 | $ | 1,054,992 | $ | 142,330 |
Facility | Origination Date | Term | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
4.50% Senior Notes due 2022 | March 10, 2017 | 5 years | $ | 349,155 | $ | 348,616 | ||||||||||||||||||||
4.95% Senior Notes due 2029 | May 28, 2019 | 10 years | 493,940 | 493,600 | ||||||||||||||||||||||
Total Senior Notes | 843,095 | 842,216 | ||||||||||||||||||||||||
5.75% Junior Subordinated Notes due 2040 | August 26, 2020 | 20 years | 344,813 | — | ||||||||||||||||||||||
EGL Revolving Credit Facility | August 16, 2018 | 5 years | 260,000 | — | ||||||||||||||||||||||
2018 EGL Term Loan Facility | December 27, 2018 | 3 years | — | 348,991 | ||||||||||||||||||||||
Total debt obligations | $ | 1,447,908 | $ | 1,191,207 |
Total | Less than or equal to 1 year | More than 1 year - less than or equal to 3 years | More than 3 years - less than or equal to 5 years | More than 5 years - less than or equal to 10 years | More than 10 years | ||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||||||||||||||
Estimated gross reserves for losses and LAE (1) | |||||||||||||||||||||||||||||||||||
Asbestos | $ | 1,779.2 | $ | 153.8 | $ | 266.0 | $ | 219.6 | $ | 350.5 | $ | 789.3 | |||||||||||||||||||||||
Environmental | 318.6 | 35.7 | 61.3 | 49.0 | 69.7 | 102.9 | |||||||||||||||||||||||||||||
General Casualty | 1,710.4 | 207.5 | 289.5 | 305.2 | 682.4 | 225.8 | |||||||||||||||||||||||||||||
Workers' compensation/personal accident | 2,014.2 | 164.1 | 265.9 | 326.4 | 457.8 | 800.0 | |||||||||||||||||||||||||||||
Marine, aviation and transit | 348.3 | 105.2 | 108.4 | 50.7 | 44.7 | 39.3 | |||||||||||||||||||||||||||||
Construction defect | 123.1 | 34.7 | 45.0 | 21.8 | 12.9 | 8.7 | |||||||||||||||||||||||||||||
Professional indemnity/ Directors & Officers | 979.8 | 200.5 | 257.4 | 154.1 | 237.9 | 129.9 | |||||||||||||||||||||||||||||
Motor | 1,009.3 | 366.6 | 303.6 | 112.6 | 88.8 | 137.7 | |||||||||||||||||||||||||||||
Property | 145.1 | 59.2 | 46.4 | 18.6 | 12.2 | 8.7 | |||||||||||||||||||||||||||||
Other | 393.9 | 107.5 | 85.6 | 53.2 | 63.1 | 84.5 | |||||||||||||||||||||||||||||
Total Non-Life Run-off | 8,821.9 | 1,434.8 | 1,729.1 | 1,311.2 | 2,020.0 | 2,326.8 | |||||||||||||||||||||||||||||
StarStone International (Non-U.S.) | 1,310.1 | 448.4 | 466.9 | 207.3 | 152.1 | 35.4 | |||||||||||||||||||||||||||||
Other | 26.3 | 6.4 | 8.5 | 3.4 | 8.0 | — | |||||||||||||||||||||||||||||
ULAE | 371.7 | 67.5 | 83.4 | 53.9 | 70.1 | 96.8 | |||||||||||||||||||||||||||||
Estimated gross reserves for losses and LAE (1) | 10,530.0 | 1,957.1 | 2,287.9 | 1,575.8 | 2,250.2 | 2,459.0 | |||||||||||||||||||||||||||||
Held-for-sale liabilities: StarStone U.S. gross reserves for losses and LAE(2) | 830.5 | 246.2 | 289.4 | 152.3 | 107.0 | 35.6 | |||||||||||||||||||||||||||||
Held-for-sale liabilities : Atrium gross reserves for losses and LAE (3) | 245.1 | 96.4 | 89.0 | 35.9 | 19.9 | 3.9 | |||||||||||||||||||||||||||||
Operating lease obligations(4) | 45.5 | 10.2 | 15.8 | 10.2 | 7.3 | 2.0 | |||||||||||||||||||||||||||||
Atrium operating lease obligations (5) | 1.0 | 0.6 | 0.4 | — | — | — | |||||||||||||||||||||||||||||
Investing Activities | |||||||||||||||||||||||||||||||||||
Investment commitments to other investments | 792.2 | 418.8 | 182.0 | 111.8 | 79.6 | — | |||||||||||||||||||||||||||||
Investment commitments to fixed maturities | 15.0 | 15.0 | — | — | — | — | |||||||||||||||||||||||||||||
Investment commitments to equity method investments | 68.7 | 68.7 | — | — | — | — | |||||||||||||||||||||||||||||
Financing Activities | |||||||||||||||||||||||||||||||||||
Loan repayments (including estimated interest payments) | 2,126.9 | 67.4 | 718.9 | 89.8 | 699.6 | 551.2 | |||||||||||||||||||||||||||||
Total | $ | 14,654.9 | $ | 2,880.4 | $ | 3,583.4 | $ | 1,975.8 | $ | 3,163.6 | $ | 3,051.7 |
Interest Rate Shift in Basis Points | ||||||||||||||||||||||||||||||||
As of September 30, 2020 | -100 | -50 | — | +50 | +100 | |||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||
Total Market Value | $ | 10,551 | $ | 10,266 | $ | 9,985 | $ | 9,712 | $ | 9,453 | ||||||||||||||||||||||
Market Value Change from Base | 5.7 | % | 2.8 | % | — | % | (2.7) | % | (5.3) | % | ||||||||||||||||||||||
Change in Unrealized Value | $ | 566 | $ | 281 | $ | — | $ | (273) | $ | (532) | ||||||||||||||||||||||
As of December 31, 2019 | -100 | -50 | — | +50 | +100 | |||||||||||||||||||||||||||
Total Market Value | $ | 10,141 | $ | 9,893 | $ | 9,648 | $ | 9,415 | $ | 9,193 | ||||||||||||||||||||||
Market Value Change from Base | 5.1 | % | 2.5 | % | — | % | (2.4) | % | (4.7) | % | ||||||||||||||||||||||
Change in Unrealized Value | $ | 493 | $ | 245 | $ | — | $ | (233) | $ | (455) |
Credit Spread Shift in Basis Points | ||||||||||||||||||||
As at September 30, 2020 | — | +50 | +100 | |||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||
Total Market Value | $ | 9,985 | $ | 9,718 | $ | 9,466 | ||||||||||||||
Market Value Change from Base | (2.7) | % | (5.2) | % | ||||||||||||||||
Change in Unrealized Value | $ | (267) | $ | (519) | ||||||||||||||||
As at December 31, 2019 | — | +50 | +100 | |||||||||||||||||
Total Market Value | $ | 9,648 | $ | 9,429 | $ | 9,218 | ||||||||||||||
Market Value Change from Base | (2.3) | % | (4.5) | % | ||||||||||||||||
Change in Unrealized Value | $ | (219) | $ | (430) |
Credit rating | September 30, 2020 | December 31, 2019 | Change | ||||||||||||||
AAA | 28.1 | % | 26.0 | % | 2.1 | % | |||||||||||
AA | 12.3 | % | 13.1 | % | (0.8) | % | |||||||||||
A | 32.9 | % | 34.5 | % | (1.6) | % | |||||||||||
BBB | 23.2 | % | 21.9 | % | 1.3 | % | |||||||||||
Non-investment grade | 3.3 | % | 4.3 | % | (1.0) | % | |||||||||||
Not rated | 0.2 | % | 0.2 | % | — | % | |||||||||||
Total | 100.0 | % | 100.0 | % | |||||||||||||
Average credit rating | A+ | A+ |
September 30, 2020 | December 31, 2019 | Change | |||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||
Publicly traded equity investments in common and preferred stocks | $ | 303.9 | $ | 327.9 | $ | (24.0) | |||||||||||
Privately held equity investments in common and preferred stocks | 271.0 | 265.8 | 5.2 | ||||||||||||||
Private equity funds | 320.5 | 323.5 | (3.0) | ||||||||||||||
Equity funds | 290.1 | 410.1 | (120.0) | ||||||||||||||
Call options on equity | — | 0.1 | (0.1) | ||||||||||||||
Fair value of equities at risk | $ | 1,185.5 | $ | 1,327.4 | $ | (141.9) | |||||||||||
Impact of 10% decline in fair value | $ | 118.6 | $ | 132.7 | $ | (14.1) |
AUD | CAD | EUR | GBP | Other | Total | |||||||||||||||||||||||||||||||||
As of September 30, 2020 | (in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||
Total net foreign currency exposure | $ | 0.7 | $ | 9.5 | $ | 72.0 | $ | (26.4) | $ | 0.5 | $ | 56.3 | ||||||||||||||||||||||||||
Pre-tax impact of a 10% movement of the U.S. dollar(1) | $ | 0.1 | $ | 1.0 | $ | 7.2 | $ | (2.6) | $ | 0.1 | $ | 5.6 | ||||||||||||||||||||||||||
As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Total net foreign currency exposure | $ | 20.2 | $ | (10.6) | $ | 12.9 | $ | (11.9) | $ | 0.6 | $ | 11.2 | ||||||||||||||||||||||||||
Pre-tax impact of a 10% movement of the U.S. dollar(1) | $ | 2.0 | $ | (1.1) | $ | 1.3 | $ | (1.2) | $ | 0.1 | $ | 1.1 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Program (2) | ||||||||||||||||||||||
Beginning dollar amount available to be repurchased | $ | 137,474 | ||||||||||||||||||||||||
July 1, 2020 - July 31, 2020 (1) | 103 | $ | 151.66 | — | — | |||||||||||||||||||||
August 1, 2020 - August 31, 2020 | — | $ | — | — | — | |||||||||||||||||||||
September 1, 2020 - September 30, 2020 | 81,954 | $ | 156.96 | 81,954 | (12,864) | |||||||||||||||||||||
82,057 | 81,954 | $ | 124,610 |
Exhibit No. | Description | |||||||
Memorandum of Association of Enstar Group Limited (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-K/A filed on May 2, 2011). | ||||||||
Fifth Amended and Restated Bye-Laws of Enstar Group Limited (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on June 13, 2019). | ||||||||
Certificate of Designations of Series C Participating Non-Voting Perpetual Preferred Stock (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on June 17, 2016). | ||||||||
Certificate of Designations of 7.00% fixed-to-floating rate perpetual non-cumulative preference shares, Series D (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed on June 27, 2018). | ||||||||
Certificate of Designations of 7.00% perpetual non-cumulative preference shares, Series E (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed on November 21, 2018). | ||||||||
Junior Subordinated Indenture dated as of August 26, 2020, among Enstar Finance LLC, Enstar Group Limited and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed on August 26, 2020). | ||||||||
First Supplemental Indenture dated as of August 26, 2020, among Enstar Finance LLC, Enstar Group Limited and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.2 of the Company’s Form 8-K filed on August 26, 2020). | ||||||||
10.1* | Amendment No. 1 to North Bay Voting and Shareholders Agreement, dated as of July 14, 2020, among Kenmare Holdings Ltd., Trident V, L.P., Trident V Parallel Fund, L.P. and Trident V Professionals Fund, L.P. | |||||||
Transition Agreement, dated July 17, 2020, by and between Enstar Group Limited and Guy Bowker (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on July 17, 2020). | ||||||||
Recapitalization Agreement, dated as of August 13, 2020, among North Bay Holdings Limited, Enstar Group Limited, Kenmare Holdings Ltd., Trident V, L.P., Trident V Parallel Fund, L.P., Trident V Professionals Fund, L.P., Dowling Capital Partners I, L.P., Capital City Partners LLC and StarStone Specialty Holdings Limited (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 17, 2020). | ||||||||
22.1* | Subsidiary Guarantors and Issuers of Guaranteed Securities. | |||||||
31.1* | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted under Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
31.2* | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted under Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
32.1** | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
32.2** | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | XBRL Taxonomy Extension Schema | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||||
104 | Cover page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101) |
ENSTAR GROUP LIMITED | |||||
By: | /S/ GUY BOWKER | ||||
Guy Bowker Chief Financial Officer, Authorized Signatory, Principal Financial Officer and Principal Accounting Officer |
$350 million of 5.750% Fixed-Rate Reset Junior Subordinated Notes due 2040 | Issuer | Guarantor | ||||||
Enstar Finance LLC | x | |||||||
Enstar Group Limited | x |
/S/ DOMINIC F. SILVESTER | ||
Dominic F. Silvester | ||
Chief Executive Officer |
/S/ GUY BOWKER | ||
Guy Bowker | ||
Chief Financial Officer |
/S/ DOMINIC F. SILVESTER | ||
Dominic F. Silvester | ||
Chief Executive Officer |
/S/ GUY BOWKER | ||
Guy Bowker | ||
Chief Financial Officer |
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
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands |
Total |
Ordinary Shares
Voting Ordinary Shares
|
Ordinary Shares
Series C Non-Voting Convertible Ordinary Shares
|
Ordinary Shares
Series E Non-Voting Convertible Ordinary Shares
|
Preferred Stock
Series C Preferred Shares
|
Preferred Stock
Series D Preferred Stock
|
Preferred Stock
Series E Preferred Stock
|
Treasury Shares (Series C Preferred Shares) |
Joint Share Ownership Plan — Voting Ordinary Shares, Held in Trust |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Currency translation adjustment |
Defined benefit pension liability |
Unrealized gains (losses) on available-for-sale investments |
Retained Earnings |
Retained Earnings
Cumulative effect of change in accounting principle
|
Noncontrolling Interest (excludes Redeemable Noncontrolling Interest) |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance, beginning of period at Dec. 31, 2018 | $ 17,950 | $ 2,600 | $ 910 | $ 389 | $ 400,000 | $ 110,000 | $ (421,559) | $ 0 | $ 1,804,664 | $ 10,440 | $ 10,986 | $ (987) | $ 441 | $ 1,976,539 | $ 0 | $ 12,056 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issue of shares | 31 | 0 | 1,497 | ||||||||||||||
Shares repurchased | 0 | 0 | |||||||||||||||
Amortization of share-based compensation | 24,346 | ||||||||||||||||
Change in other comprehensive income (loss) | $ (4,893) | (4,399) | 400 | ||||||||||||||
Change in defined benefit pension liability | (952) | (951) | |||||||||||||||
Net earnings | 708,336 | 730,355 | |||||||||||||||
Net loss (earnings) attributable to noncontrolling interest | 4,970 | 4,970 | 681 | ||||||||||||||
Dividend on preferred shares | (26,989) | ||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 6,607 | ||||||||||||||||
Purchase of noncontrolling shareholders' interest in subsidiaries | (47) | ||||||||||||||||
Balance, end of period at Sep. 30, 2019 | 4,650,490 | 17,981 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | 0 | 1,830,507 | 5,490 | 6,587 | (1,938) | 841 | 2,691,482 | 12,690 | |
Balance, beginning of period at Jun. 30, 2019 | 17,975 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | 0 | 1,822,202 | 9,196 | 9,147 | (987) | 1,036 | 2,573,117 | 0 | 12,609 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issue of shares | 6 | 0 | 576 | ||||||||||||||
Shares repurchased | 0 | 0 | |||||||||||||||
Amortization of share-based compensation | 7,729 | ||||||||||||||||
Change in other comprehensive income (loss) | (3,804) | (2,560) | (195) | ||||||||||||||
Change in defined benefit pension liability | (952) | (951) | |||||||||||||||
Net earnings | 117,743 | 126,559 | |||||||||||||||
Net loss (earnings) attributable to noncontrolling interest | 109 | 109 | 81 | ||||||||||||||
Dividend on preferred shares | (8,925) | ||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 622 | ||||||||||||||||
Purchase of noncontrolling shareholders' interest in subsidiaries | 0 | ||||||||||||||||
Balance, end of period at Sep. 30, 2019 | 4,650,490 | 17,981 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | 0 | 1,830,507 | 5,490 | 6,587 | (1,938) | 841 | 2,691,482 | 12,690 | |
Balance, beginning of period at Dec. 31, 2019 | 4,856,351 | 18,002 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | 0 | 1,836,778 | 7,171 | 8,548 | (945) | (432) | 2,887,892 | (6,148) | 14,168 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issue of shares | 732 | (566) | (857) | ||||||||||||||
Shares repurchased | (174) | (25,215) | |||||||||||||||
Amortization of share-based compensation | 21,424 | ||||||||||||||||
Change in other comprehensive income (loss) | 61,542 | 753 | 53,949 | ||||||||||||||
Change in defined benefit pension liability | 0 | 0 | |||||||||||||||
Net earnings | 896,745 | 892,718 | |||||||||||||||
Net loss (earnings) attributable to noncontrolling interest | 30,802 | 30,802 | 300 | ||||||||||||||
Dividend on preferred shares | (26,775) | ||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 38,059 | ||||||||||||||||
Purchase of noncontrolling shareholders' interest in subsidiaries | 0 | ||||||||||||||||
Balance, end of period at Sep. 30, 2020 | 5,835,353 | 18,560 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | (566) | 1,832,130 | 61,873 | 9,301 | (945) | 53,517 | 3,816,548 | 14,468 | |
Balance, beginning of period at Jun. 30, 2020 | 18,635 | 2,600 | 910 | 389 | 400,000 | 110,000 | (421,559) | (566) | 1,835,115 | 51,285 | 6,824 | (945) | 45,406 | 3,190,104 | $ 0 | 13,553 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issue of shares | 6 | 0 | 503 | ||||||||||||||
Shares repurchased | (81) | (12,782) | |||||||||||||||
Amortization of share-based compensation | 9,294 | ||||||||||||||||
Change in other comprehensive income (loss) | 11,222 | 2,477 | 8,111 | ||||||||||||||
Change in defined benefit pension liability | 0 | 0 | |||||||||||||||
Net earnings | 615,013 | 645,850 | |||||||||||||||
Net loss (earnings) attributable to noncontrolling interest | (21,912) | (21,912) | 915 | ||||||||||||||
Dividend on preferred shares | (8,925) | ||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 11,431 | ||||||||||||||||
Purchase of noncontrolling shareholders' interest in subsidiaries | 0 | ||||||||||||||||
Balance, end of period at Sep. 30, 2020 | $ 5,835,353 | $ 18,560 | $ 2,600 | $ 910 | $ 389 | $ 400,000 | $ 110,000 | $ (421,559) | $ (566) | $ 1,832,130 | $ 61,873 | $ 9,301 | $ (945) | $ 53,517 | $ 3,816,548 | $ 14,468 |
Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation These unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements reflect all adjustments consisting of normal recurring items considered necessary for a fair presentation under U.S. GAAP. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019. All significant inter-company transactions and balances have been eliminated. In these notes, the terms "we," "us," "our," "Enstar," or "the Company" refer to Enstar Group Limited and its consolidated subsidiaries. Certain prior period amounts have been reclassified to conform to the current period presentation as described in further detail in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations." These reclassifications had no impact on net earnings. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our actual results may differ materially from these estimates. Results of changes in estimates are reflected in earnings in the period in which the change is made. Accounting policies that we believe are most dependent on assumptions and estimates are considered to be our critical accounting policies and are related to the determination of: •liability for losses and loss adjustment expenses ("LAE"); •reinsurance balances recoverable on paid and unpaid losses; •defendant asbestos and environmental liabilities and related insurance balances recoverable; •valuation allowances on reinsurance balances recoverable and deferred tax assets; •impairment charges, including credit allowances on investment securities classified as available-for-sale ("AFS"), and impairments on goodwill, intangible assets and deferred charge assets; •gross and net premiums written and net premiums earned; •fair value measurements of investments; •fair value estimates associated with accounting for acquisitions; •fair value estimates associated with loss portfolio transfer reinsurance agreements for which we have elected the fair value option; and •redeemable noncontrolling interests. Updated Accounting Policies The following accounting policies have been updated to reflect our adoption of Accounting Standards Update ("ASU") 2016-13 - Financial Instruments - Credit losses - Measurement of Credit Losses on Financial Instruments, effective January 1, 2020 as described in detail below under "New Accounting Standards Adopted in 2020." Short-term investments and fixed maturity investments We perform a detailed analysis every reporting period to identify any credit losses on our investment portfolios not measured at fair value through net earnings. Some of the factors that we consider when assessing whether an allowance for credit losses is required on our debt securities include: (1) the extent to which the fair value has been less than the amortized cost; (2) the financial condition, near-term and long-term prospects of the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices; (3) the likelihood of the recoverability of principal and interest; and (4) whether it is more likely than not that we will be required to sell the security prior to an anticipated recovery in value. With effect from January 1, 2020, credit losses on our AFS debt securities are recognized through an allowance account which is deducted from the amortized cost basis of the security, with the net carrying value of the security presented on the consolidated balance sheet at the amount expected to be collected. To calculate the amount of the credit loss, we compare the present value of the expected future cash flows with the amortized cost basis of the AFS debt security, with the amount of the credit loss recognized being limited to the excess of the amortized cost basis over the fair value of the AFS debt security, effectively creating a “fair value floor”. See "New Accounting Standards Adopted in 2020" below for the discussion on our adoption of the credit losses standard. For our AFS debt securities that we do not intend to sell or for which it is more likely than not that we will not be required to sell before an anticipated recovery in value, we separate the credit loss component of any unrealized losses from the amount related to all other factors and report the credit loss component in net realized investment gains (losses) in our consolidated statements of earnings. The unrealized losses related to non-credit factors is reported in other comprehensive income. The allowance for credit losses account is adjusted for any additional credit losses, write-offs and subsequent recoveries. For our AFS debt securities where we record a credit loss, a determination is made as to the cause of the credit loss and whether we expect a recovery in the fair value of the security. For our AFS debt securities where we expect a recovery in fair value, the constant effective yield method is utilized, and the investment is amortized to par. For our AFS debt securities that we intend to sell or for which it is more likely than not that we will be required to sell before an anticipated recovery in fair value, the full amount of the unrealized loss is included in net realized investment gains (losses). The new cost basis of the investment is the previous amortized cost basis less the credit loss recognized in net realized investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair value. We report the investment income accrued on our AFS debt securities within other assets and therefore separately from the underlying AFS debt securities. In addition, due to the short-term period during which accrued investment income remains unpaid, which is typically six months, since the coupon on our AFS debt securities is paid semi-annually, we have elected not to establish an allowance for credit losses on our accrued investment income balances. Accrued investment income is written off through net realized investment gains (losses) at the time the issuer of the debt security defaults or is expected to default on payments. Uncollectible debt securities are written off when we determine that no additional payments of principal or interest will be received. Reinsurance Balances Recoverable on Paid and Unpaid Losses Amounts recoverable from reinsurers are estimated in a manner consistent with the underlying liability for losses and loss adjustment expenses. We report our reinsurance balances recoverable on paid and unpaid losses net of an allowance for estimated uncollectible amounts. The allowance is based upon our ongoing review of the outstanding balances and reflects factors such as the duration of the collection period, credit quality, changes in reinsurer credit standing, default rates specific to the individual reinsurer, the geographical location of the reinsurer, contractual disputes with reinsurers over individual contentious claims, contract language or coverage issues, industry analyst reports and consensus economic forecasts. A probability-of-default methodology that reflects current and forecasted economic conditions is used to estimate the allowance for uncollectible reinsurance due to credit-related factors. See "New Accounting Standards Adopted in 2020" below for the discussion on our adoption of the credit losses standard. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers. Amounts deemed to be uncollectible, including amounts due from known insolvent reinsurers, are written off against the allowance. Changes in the allowance, as well as any subsequent collections of amounts previously written off, are reported as part of the net incurred losses and loss adjustment expenses in our consolidated statements of earnings. On an ongoing basis, we also evaluate and monitor the financial condition of our reinsurers under voluntary schemes of arrangement to minimize our exposure to significant losses from potential insolvencies. Premiums Receivable and Unearned Premium Reserves Premiums are recognized as revenues on a pro-rata basis over the coverage period. Unearned premium reserves represent the unexpired portion of policy premiums. For retrospectively rated contracts as well as those whose written premium amounts are recorded based on premium estimates at inception, accrued premiums arising from changes to these estimates are included in premium balances receivable where appropriate. Premium balances receivable are reported net of an allowance for expected credit losses as appropriate. The allowance is based upon our ongoing review of amounts outstanding, historical loss data, including delinquencies and write-offs, current and forecasted economic conditions and other relevant factors. However, the credit risk on our premiums receivable balances is substantially reduced where we have the ability to cancel the underlying policy if the policyholder does not pay the related premium. New Accounting Standards Adopted in 2020 ASU 2020-04 – Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04 – Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which is codified in Accounting Standards Codification ("ASC") 848 and which provides entities with temporary optional expedients and exceptions to the existing US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Inter-bank Offered Rate ("LIBOR") and other inter-bank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate ("SOFR"). Under the provisions of this guidance, entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients for hedging relationships affected by reference rate reform, if certain criteria are met. In addition, entities can make a one-time election to sell, transfer or both sell and transfer debt securities classified as held-to-maturity (“HTM”) that refer to a rate affected by reference rate reform, to AFS or to trading. However, such debt securities must have been classified as HTM before January 1, 2020. Once elected, the amendments in this guidance must be applied prospectively for all eligible contract modifications. The ASU was effective upon issuance and can be applied through to December 31, 2022. We adopted the ASU upon its issuance and as we transition from LIBOR to alternative reference rates, we will elect the temporary optional expedients and exceptions to the existing US GAAP guidance on contract modifications and hedge accounting permitted by the ASU, as appropriate. The adoption of this standard did not have any impact on our consolidated financial statements and disclosures. ASU 2020-03 – Codification Improvements to Financial Instruments In March 2020, the FASB issued ASU 2020-03, which makes narrow-scope improvements to various topics within the codification relating to financial instruments, including the new credit losses standard. The amendments related to certain specific issues covered by the ASU were effective immediately upon the issuance of the ASU, while certain specific issues covered by the ASU and affecting the credit losses standard in ASU 2016-13 are effective in 2020 for those entities that have already adopted ASU 2016-13. We adopted the amendments in this ASU upon its issuance and that adoption did not have a material impact on our consolidated financial statements and the related disclosures. ASUs 2016-13, 2018-19, 2019-04, 2019-05, 2019-10 and 2019-11, Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, which is codified in ASC 326 - Financial Instruments - Credit Losses, amending the guidance on the impairment of financial instruments and significantly changing how entities measure credit losses for most financial assets and certain other financial instruments, including reinsurance balances recoverable on paid and unpaid losses that are not measured at fair value through net earnings. The ASU replaced the “incurred loss” approach that was previously applied to determine credit losses with an “expected loss” model for financial instruments measured at amortized cost. Under the "expected loss" model, the estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses and subsequent adjustments to such losses are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. ASU 2016-13 also amends the other-than-temporary impairment ("OTTI") model that was previously applicable to AFS debt securities, with the new approach now requiring the recognition of impairments relating to credit losses through an allowance account and limiting the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. This revised approach records the full effect of reversals of any credit losses in current period earnings, compared to previous guidance where this reversal was amortized over the lifetime of the security. Under this revised approach, the length of time a security has been in an unrealized loss position will no longer be considered in determining whether to record a credit loss. In addition, the historical and implied volatility of the fair value of a security and recoveries or declines in fair value after the balance sheet date will no longer be considered when making a determination of whether a credit loss exists. We adopted and all the related amendments on January 1, 2020 using the modified retrospective approach for our financial instruments carried at amortized cost, and prospectively for our AFS debt securities as required by the standard, resulting in an overall reduction in retained earnings of $6.1 million as summarized below: •A cumulative effect adjustment of $3.0 million relating to our financial instruments carried at amortized cost, which primarily relates to our insurance balances recoverable on paid and unpaid losses. We already carried significant specific allowances for credit losses of $147.6 million on our reinsurance balances recoverable on paid and unpaid losses, relating primarily to our Non-life Run-off segment and therefore the adoption of this standard did not have a material impact on our balance sheet; and •$3.1 million related to our AFS debt securities whose fair values were less than their amortized cost basis. Recently Issued Accounting Pronouncements Not Yet Adopted Note 2 - "Significant Accounting Policies" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019 describes accounting pronouncements that were not adopted as of December 31, 2019. Those pronouncements have not yet been adopted unless discussed above in "New Accounting Standards Adopted in 2020." In addition, we are yet to adopt the following accounting pronouncements that the FASB issued during and subsequent to the nine months ended September 30, 2020. ASU 2020-09 – Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 In October 2020, the FASB issued ASU 2020-09, which amends and supersedes various SEC paragraphs in ASC 270, ASC 460, ASC 470 and ASC 505 pursuant to the issuance of the SEC's Release No. 33-10762. Through Release No. 33-10762, the SEC made amendments to the financial disclosure requirements in Regulation S-X for guarantors and issuers of guaranteed securities registered or being registered, and issuers’ affiliates whose securities collateralize securities registered or being registered, to improve those requirements for both investors and registrants. The changes made by the SEC are intended to provide investors with material information given the specific facts and circumstances, make the disclosures easier to understand, and reduce the costs and burdens to registrants. In addition, by reducing the costs and burdens of compliance, issuers may be encouraged to offer guaranteed or collateralized securities on a registered basis, thereby affording investors protection they may not be provided in offerings conducted on an unregistered basis. Finally, by making it less burdensome and less costly for issuers to include guarantees or pledges of affiliate securities as collateral when they structure debt offerings, the revisions may increase the number of registered offerings that include these credit enhancements, which could result in a lower cost of capital and an increased level of investor protection. The amended rules in Release No. 33-10762 are effective on January 4, 2021 although early compliance is permitted, hence we elected early compliance with the new rules. Because the amendments made by the FASB in this ASU are to ensure alignment of the relevant SEC paragraphs in ASC 270, ASC 460, ASC 470 and ASC 505 with the amended rules in Release No. 33-10762, the amendments made by the FASB to these SEC paragraphs will not have a material impact on our disclosures, since we already elected early compliance with the amended rules in Release No. 33-10762. ASU 2020-08 – Codification Improvements to Subtopic 310-20 - Receivables - Nonrefundable Fees and Other Costs In October 2020, the FASB issued ASU 2020-08 to clarify that an entity should re-evaluate whether a callable debt security is within the scope of ASC 310-20-35-33 during each reporting period. All entities are required to apply the amendments in this ASU on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The amendments in this ASU are effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is not permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and the related disclosures. ASU 2020-06 – Accounting for Convertible Instruments and Contracts in an Entity's Own Equity In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. For convertible instruments, the ASU eliminates two of the three accounting models in ASC 470-20 that require separate accounting for embedded conversion features. The ASU also simplifies an issuer's application of the derivatives scope exception in ASC 815-40 for contracts in its own equity and removes some of the conditions that preclude a freestanding contract from being classified in equity, thereby allowing more of such contracts to qualify for equity classification. The amendments in this ASU are effective for interim and annual reporting periods beginning after December 15, 2021 and, although early adoption is permitted, the amendments may not be adopted earlier than during interim and annual reporting periods beginning after December 15, 2020. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and the related disclosures.
|
Acquisitions |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 2. ACQUISITIONS Morse TEC On October 30, 2019, we completed the acquisition of Morse TEC LLC ("Morse TEC"). For further details, refer to Note 3 - "Acquisitions" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019.
|
Significant New Business |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SIGNIFICANT NEW BUSINESS | 3. SIGNIFICANT NEW BUSINESS Hannover Re On August 6, 2020, we completed a novation agreement with Hannover Reück SE and an affiliate (“Hannover Re”), pursuant to which we assumed certain legacy asbestos, environmental and workers' compensation exposures. In the transaction, we assumed loss reserves of $209.7 million in exchange for net novation consideration of $182.5 million. We elected the fair value option for this novation agreement and recorded an initial fair value adjustment of $27.2 million on the assumed loss reserves. Refer to Note 11 - "Fair Value Measurements" for a description of the fair value process and the assumptions made. Munich Re On July 1, 2020, we completed a business transfer transaction with Great Lakes Insurance SE and HSB Engineering Insurance Limited, both subsidiaries of Munich Reinsurance Company ("Munich Re"), pursuant to which we assumed certain portfolios from their Australian branches. In the transaction, we assumed net loss reserves of AUD$142.2 million ($98.0 million), which primarily relate to public and products liability, property and engineering exposures, in exchange for net consideration of an equal amount. AXA Group On June 1, 2020, we completed a loss portfolio transfer reinsurance agreement with AXA XL, a division of AXA SA, to reinsure specified legacy construction general liability multi-year policies. We assumed gross loss reserves of $179.7 million, which was equal to the net reinsurance premium consideration received in the transaction. In addition, we provided additional collateral of $24.5 million to support our obligations to AXA XL per the terms of the reinsurance agreement. Effective October 1, 2020, we have ceded 10% of this transaction to Enhanzed Reinsurance Ltd. ("Enhanzed Re"), in which we have an investment, on the same terms and conditions as those received by Enstar. Aspen On June 1, 2020, we completed an adverse development cover reinsurance transaction with Aspen Insurance Holdings Limited. In the transaction, we assumed $781.6 million of gross reserves for losses incurred on or prior to December 31, 2019 on a diversified mix of property, liability and specialty lines of business across the U.S., U.K. and Europe, in exchange for reinsurance premium consideration of $770.0 million and recorded a deferred charge asset of $11.7 million. Pursuant to the agreement, we provide $770.0 million of cover in excess of a $3.8 billion retention, and an additional $250.0 million of cover in excess of a $4.8 billion retention. Lyft On March 31, 2020, we entered into a novation agreement with affiliates of Lyft, Inc. (“Lyft”) and certain underwriting companies of Zurich North America (“Zurich”). In the transaction, in exchange for premium consideration of $465.0 million, we reinsured legacy automobile business underwritten by Zurich between October 1, 2015 and September 30, 2018 and which previously had been reinsured by Lyft’s wholly owned subsidiary, Pacific Valley Insurance Company ("PVIC"). Under a separate but related agreement, PVIC provides retrocession reinsurance coverage to us on the Lyft business reinsured in excess of an $816.0 million limit. The transaction was effective on March 31, 2020.
|
Divestitures, Held-For-Sale Businesses and Discontinued Operations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DIVESTITURES, HELD-FOR-SALE BUSINESSES AND DISCONTINUED OPERATIONS | 4. DIVESTITURES, HELD-FOR-SALE BUSINESSES AND DISCONTINUED OPERATIONS Atrium Exchange Transaction On August 13, 2020, we announced an exchange transaction with Trident V, L.P., Trident V Parallel Fund, L.P. and Trident V Professionals Fund, L.P. (collectively, the "Trident V Funds") managed by Stone Point Capital LLC ("Stone Point"). As part of the exchange, we entered into a recapitalization agreement with the Trident V Funds, Dowling Capital Partners I, L.P. and Capital City Partners LLC (collectively, the "Dowling Funds"), North Bay Holdings Limited ("North Bay"), and StarStone Specialty Holdings Limited ("SSHL"). Enstar currently owns an indirect 59.0% interest in North Bay and the Trident V Funds and the Dowling Funds currently own 39.3% and 1.7%, respectively. North Bay owns 100.0% of SSHL, the holding company for the StarStone group, which includes StarStone's U.S. operations, including StarStone U.S. Holdings, Inc. and its subsidiaries ("StarStone U.S.") and its non-U.S. operations ("StarStone International"). North Bay also owns approximately 92.1% of Northshore Holdings Limited ("Northshore"), the holding company that owns Atrium Underwriting Group Limited and its subsidiaries (collectively, "Atrium") and Arden Reinsurance Company Ltd. ("Arden"). The remaining share ownership of Northshore is held on behalf of certain Atrium employees. Pursuant to the terms of the recapitalization agreement, we agreed to exchange a portion of our indirect interest in Northshore for all of the Trident V Funds’ indirect interest in StarStone U.S. (the “Exchange Transaction”). The Exchange Transaction is conditioned on the closing of the sale of StarStone U.S. to Core Specialty Insurance Holdings, Inc. ("Core Specialty"), as described further below, and is subject to regulatory approval and other closing conditions. The exchange transaction is expected to close in the first quarter of 2021. Upon completion of the sale of StarStone U.S. to Core Specialty and the Exchange Transaction with the Trident V Funds, we expect to own indirectly approximately 26.1% of Core Specialty, which will then own StarStone U.S., and approximately 11.0% of Northshore, which will continue to own Atrium and Arden. Our ultimate ownership in Northshore at the closing of the Exchange Transaction may vary based on, among other things, the final valuation of StarStone U.S. in its sale to Core Specialty and if, and to the extent, certain employees of Atrium elect to defer the payout of certain long-term equity awards. Upon the closing of the Exchange Transaction, the Trident V Funds will not own any interest in Core Specialty and are expected to own approximately 80.0% of Northshore, and the Dowling Funds will own approximately 0.5% of Core Specialty and retain their approximately 1.6% interest in Northshore. The Exchange Transaction will have no impact on the ultimate ownership of SSHL, which will own StarStone International, with us, the Trident V Funds and the Dowling Funds retaining our and their current ownership interests in SSHL of 59.0%, 39.3% and 1.7%, respectively. Upon completion of the Exchange Transaction, our investment in Northshore will be accounted for as a privately held equity investment and will be carried at fair value. We have classified the assets and liabilities of Northshore as held-for-sale as of September 30, 2020. The impending disposal of Enstar's majority equity interest in Northshore does not represent a strategic shift that will have a major effect on our operations and financial results, and therefore the disposal is not reported as a discontinued operation during the current or prior periods. The following table summarizes the components of Northshore's assets and liabilities held-for-sale on our consolidated balance sheets as of September 30, 2020:
As of September 30, 2020, included in the table above were restricted investments of $117.6 million. The unrealized gains (losses) on AFS investments in accumulated other comprehensive income (loss) ("AOCI"), a component of shareholders' equity, included ($0.3) million as at September 30, 2020 related to Northshore. Upon completion of the Exchange Transaction, the balance at closing will be included in earnings as a component of the gain on sale. Recapitalization of StarStone U.S. On June 10, 2020, we announced an agreement to recapitalize StarStone U.S. and appoint a new management team and Board. As part of the recapitalization, we entered into a definitive agreement to sell StarStone U.S. to Core Specialty, a newly formed entity with equity backing from funds managed by SkyKnight Capital, L.P., Dragoneer Investment Group and Aquiline Capital Partners LLC. We currently have a 59.0% interest in StarStone U.S. The purchase price will be based on a $30.0 million premium to the GAAP tangible book value of StarStone U.S. to be determined on the month end prior to the closing date and will consist of $235.0 million of common shares of Core Specialty and cash. The $235.0 million of common shares of Core Specialty is expected to represent an estimated 26.1% interest in Core Specialty after certain co-investments and management equity awards. Our investment in Core Specialty will be accounted for as an equity method investment. Given the proposed transaction, we have classified the StarStone U.S. results as discontinued operations for the periods presented. In connection with the sale, one of our Non-life Run-off subsidiaries will enter into a loss portfolio transfer reinsurance agreement with StarStone U.S. pursuant to which we will reinsure all of the net loss reserves of StarStone U.S. in respect of premium earned prior to the calendar month end prior to the closing date. We will receive a reinsurance premium equal to the assumed reserves, plus approximately $16.0 million. The reinsurance agreement will contain an aggregate limit on our liability equal to $130.0 million in excess of the assumed reserves, and our subsidiary's obligations under the reinsurance agreement will be guaranteed by Enstar. The closing of the transaction is subject to regulatory approvals and other closing conditions and is expected to occur in the fourth quarter of 2020. StarStone U.S. comprises a substantial portion of the StarStone segment. We have classified the assets and liabilities of StarStone U.S. as held-for-sale as of September 30, 2020. The following table summarizes the components of StarStone U.S.'s assets and liabilities held-for-sale on our consolidated balance sheets as of September 30, 2020 and December 31, 2019:
(1) In accordance with U.S. GAAP, the assets and liabilities of StarStone U.S. as of December 31, 2019 have been reclassified to held-for-sale as a result of the business qualifying as a discontinued operation. As of September 30, 2020 and December 31, 2019, included in the table above were restricted investments of $146.5 million and $131.0 million, respectively. The unrealized gains (losses) on AFS investments balance in accumulated other comprehensive income (loss) ("AOCI"), a component of shareholders' equity, included $16.1 million and $(1.0) million as at September 30, 2020 and December 31, 2019, respectively, related to StarStone U.S. Upon completion of the sale, the balance at closing will be included in earnings as a component of the gain on sale. The StarStone U.S. business qualifies as a discontinued operation. The following table summarizes the components of net earnings (loss) from discontinued operations, net of income taxes, related to StarStone U.S., on the consolidated statements of earnings for the three and nine months ended September 30, 2020 and 2019:
The following table presents the cash flows of StarStone U.S. for the nine months ended September 30, 2020 and 2019:
Intercompany transactions between StarStone U.S. (Discontinued Operations) and Continuing Operations The table below presents a summary of the total income and expenses recognized in continuing operations for the three and nine months ended September 30, 2020 and 2019, relating to intercompany transactions, primarily intragroup reinsurances, between StarStone U.S. and our other subsidiaries:
Run-off of StarStone International (non-U.S.) On June 10, 2020, we also announced that we placed StarStone International into an orderly run-off (the "StarStone International Run-Off"). The liabilities associated with the StarStone International Run-Off vary in duration, and the run-off is expected to occur over a number of years. Steps to reduce the size of StarStone International's operations have begun and will involve several phases to occur over time. As a result, we cannot anticipate with certainty the expected completion date of the StarStone International Run-Off. We continue to evaluate additional strategic options for StarStone International's operations and business. Consequently, such options could have the effect of mitigating costs associated with placing the business into run-off. The remaining StarStone International operations will continue to serve the needs of policyholders and ensure that the companies continue to meet all regulatory requirements. The results of StarStone International are included within continuing operations in the StarStone segment. Recent developments relating to StarStone International include: •On October 14, 2020, we completed the sale of Vander Haeghen & Co. SA ("VdH"), a Belgium-based insurance agency majority owned by two StarStone International entities, for a purchase price of €3.8 million ($4.5 million). We expect to recognize a gain on the sale of $3.6 million in the fourth quarter of 2020. •On October 2, 2020, StarStone International sold the renewal rights for its financial lines portfolio for consideration of approximately $0.5 million. Reconciliation to the Consolidated Balance Sheet The following table provides a reconciliation of the assets and liabilities of Northshore and StarStone U.S. held-for-sale on our consolidated balance sheet:
|
Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | 5. INVESTMENTS We hold: (i) trading portfolios of short-term and fixed maturity investments and equities, carried at fair value; (ii) AFS portfolios of short-term and fixed maturity investments, carried at fair value; (iii) other investments, carried at fair value; (iv) equity method investments; and (v) funds held - directly managed. Short-Term and Fixed Maturity InvestmentsAsset Types The fair values of the underlying asset categories comprising our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance were as follows:
Included within residential and commercial mortgage-backed securities as of September 30, 2020 were securities issued by U.S. governmental agencies with a fair value of $458.8 million (December 31, 2019: $333.3 million). Included within corporate securities as of September 30, 2020 were senior secured loans of $nil (December 31, 2019: $31.4 million). Contractual Maturities The contractual maturities of our short-term and fixed maturity investments, classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
Credit Ratings The following table sets forth the credit ratings of our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance as of September 30, 2020:
Unrealized Gains and Losses on AFS Short-term and Fixed Maturity Investments The amortized cost, unrealized gains and losses, allowance for credit losses and fair values of our short-term and fixed maturity investments classified as AFS as of September 30, 2020 were as follows:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. The amortized cost, unrealized gains and losses and fair values of our short-term and fixed maturity investments classified as AFS as of December 31, 2019 were as follows:
Gross Unrealized Losses on AFS Short-term and Fixed Maturity Investments The following table summarizes our short-term and fixed maturity investments classified as AFS that were in a gross unrealized loss position, for which an allowance for credit losses has not been recorded, as of September 30, 2020, aggregated by major security type and length of time in continuous unrealized loss position:
The following table summarizes our short-term and fixed maturity investments classified as AFS that are in a gross unrealized loss position as of December 31, 2019, aggregated by major security type and length of time in continuous unrealized loss position:
As of September 30, 2020 and December 31, 2019, the number of securities classified as AFS in an unrealized loss position for which an allowance for credit loss is not recorded was 721 and 479, respectively. Of these securities, the number of securities that had been in an unrealized loss position for twelve months or longer was 0 and 12, respectively. The contractual terms of a majority of these investments do not permit the issuers to settle the securities at a price less than the amortized cost basis of the security. While credit spreads have increased, and in certain cases credit ratings were downgraded, we currently do not expect the issuers of these fixed income securities to settle them at a price less than their amortized cost basis and therefore it is expected that we will recover the entire amortized cost basis of each security. Furthermore, we do not intend to sell the securities that are currently in an unrealized loss position, and it is also not more likely than not that we will be required to sell the securities before the recovery of their amortized cost bases.Allowance for Credit Losses on AFS Fixed Maturity Investments We adopted and the related amendments on January 1, 2020 prospectively, and recognized an allowance for credit losses of $3.1 million on initial adoption of the guidance. Our allowance for credit losses is derived based on various data sources, multiple key inputs and forecast scenarios. These include default rates specific to the individual security, vintage of the security, geography of the issuer of the security, industry analyst reports, credit ratings and consensus economic forecasts. To determine the credit losses on our AFS securities, we use the probability of default ("PD") and loss given default ("LGD") methodology through a third-party proprietary tool which calculates the expected credit losses based on a discounted cash flow method. The tool uses effective interest rates to discount the expected cash flows associated with each AFS security to determine its fair value, which is then compared with its amortized cost basis to derive the credit loss on the security. The methodology and inputs used to determine the credit loss by security type are as follows: •Corporate and Government: Expected cashflows are derived that are specific to each security. The PD is based on a quantitative model that converts agency ratings to term structures that vary by country, industry and the state of the credit cycle. This is used along with macroeconomic forecasts to produce scenario conditioned PDs. The LGD is based on default studies provided by a third party which we use along with macroeconomic forecasts to produce scenario conditioned LGDs. •Municipals: Expected cash flows are derived that are specific to each security. The PD model produces scenario conditioned PD output over the lifetime of the municipal security. These PDs are based on key macroeconomic and instrument specific risk factors. The LGD is derived based on a model which uses assumptions specific to the municipal securities. For corporates, government and municipal securities, we use an explicit reversion and a three year forecast period, which we consider to be a reasonable duration during which an economic forecast could continue to be reliable. •Asset backed, Commercial and Residential mortgaged-backed: Expected cash flows are derived that are specific to each security. The PD and LGD for each security is based on a quantitative model that generates scenario conditioned PD and LGD term structures based on the underlying collateral type, waterfall and other trustee information. This model also considers prepayments. For these security types, there is no explicit reversion and the forecasts are deemed reasonable and supportable over the life of the portfolio. Due to the short-term period during which accrued investment income remains unpaid, which is typically six months since the coupon on our debt securities is paid semi-annually, we elected not to establish an allowance for credit losses on our accrued investment income balances. Accrued investment income is written off through net realized investment gains (losses) at the time the issuer of the debt security defaults or is expected to default on payments. The following tables provide a reconciliation of the beginning and ending allowance for credit losses on our AFS debt securities:
During the three and nine months ended September 30, 2020 we did not have any write-offs charged against the allowance for credit losses or any recoveries of amounts previously written-off. Our allowance for credit losses decreased during the three months ended September 30, 2020 primarily due to improved market conditions. Our modeling process for determining credit losses remained the same as the prior quarter and took into account the adverse impact that the COVID-19 pandemic still has on capital markets and the global economy in general. Other-Than-Temporary Impairment on AFS Fixed Maturity Investments For the three and nine months ended September 30, 2019, we did not recognize any other-than-temporary impairment losses on our AFS securities. We determined that no other-than-temporary credit losses existed as of December 31, 2019. A description of our other-than-temporary impairment process is included in Note 2 - "Significant Accounting Policies" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019. As discussed in detail in Note 1 - "Significant Accounting Policies" above, we adopted ASU 2016-13 and the related amendments on January 1, 2020 with this new guidance replacing the OTTI model that was previously applicable to our AFS debt securities. The new approach now requires the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. Equity Investments The following table summarizes our equity investments classified as trading:
Equity investments include publicly traded common and preferred stocks, exchange-traded funds and privately held common and preferred stocks. Our publicly traded equity investments in common and preferred stocks predominantly trade on major exchanges and are managed by our external advisors. Our investments in exchange-traded funds also trade on major exchanges. Our privately held equity investments in common and preferred stocks are direct investments in companies that we believe offer attractive risk adjusted returns and/or offer other strategic advantages. Each investment may have its own unique terms and conditions and there may be restrictions on disposals. There is no active market for these investments. Included within the above balance as of September 30, 2020 and December 31, 2019 is an investment in the parent company of AmTrust Financial Services, Inc. ("AmTrust"), with a fair value of $245.4 million and $240.1 million, respectively. Refer to Note 20 - "Related Party Transactions" for further information.Other Investments, at fair value The following table summarizes our other investments carried at fair value:
The valuation of our other investments is described in Note 11 - "Fair Value Measurements." Due to a lag in the valuations of certain funds reported by the managers, we may record changes in valuation with up to a three-month lag. We regularly review and discuss fund performance with the fund managers to corroborate the reasonableness of the reported net asset values and to assess whether any events have occurred within the lag period that would affect the valuation of the investments. The following is a description of the nature of each of these investment categories: •Hedge funds may invest in a wide range of instruments, including debt and equity securities, and utilize various sophisticated strategies, including derivatives, to achieve their objectives. We invest in a mixture of fixed income, equity and multi-strategy hedge funds. •Fixed income funds comprise a number of positions in diversified fixed income funds that are managed by third-party managers. Underlying investments vary from high-grade corporate bonds to non-investment grade senior secured loans and bonds, in both liquid and illiquid markets. The liquid fixed income funds have regularly published prices. •Equity funds invest in a diversified portfolio of U.S. and international publicly-traded equity securities. •Private equity funds invest primarily in the financial services industry. •CLO equities comprise investments in the equity tranches of term-financed securitizations of diversified pools of corporate bank loans. •CLO equity funds invest primarily in the equity tranches of term-financed securitizations of diversified pools of corporate bank loans. •Private credit funds invest in direct senior or collateralized loans. •Others comprise various investments including real estate debt funds that invest primarily in European commercial real estate equity and a fund that provides loans to educational institutions throughout the U.S. and its territories. The increase in our other investments carried at fair value between September 30, 2020 and December 31, 2019 was primarily attributable to unrealized gains of $670.7 million and net additional subscriptions of $530.3 million to hedge funds, fixed income funds, private credit funds, CLO equities and CLO equity funds. As of September 30, 2020, we had unfunded commitments of $792.2 million to other investments. Certain of our other investments are subject to restrictions on redemptions and sales that are determined by the governing documents, which limits our ability to liquidate those investments. These restrictions may include lock-ups, redemption gates, restricted share classes or side pockets, restrictions on the frequency of redemption and notice periods. A gate is the ability to deny or delay a redemption request, whereas a side-pocket is a designated account for which the investor loses its redemption rights. Certain other investments may not have any restrictions governing their sale, but there is no active market and no guarantee that we will be able to execute a sale in a timely manner. In addition, even if certain other investments are not eligible for redemption or sales are restricted, we may still receive income distributions from those other investments. The table below details the estimated date by which proceeds would be received if we had provided notice of our intent to redeem or initiated a sales process as of September 30, 2020:
Refer to Note 20 - "Related Party Transactions" for further information regarding certain of our other investments. Equity Method Investments The following table summarizes our equity method investments:
(1) We own 20.0% of the common shares in Monument Re as well as different classes of preferred shares which have fixed dividend yields. Refer to Note 20 - "Related Party Transactions" for further information regarding our investments in Enhanzed Re, Citco, Monument Re and Clear Spring. As of September 30, 2020, we had unfunded commitments of $68.7 million related to equity method investments. Funds Held Under funds held arrangements, the reinsured company has retained funds that would otherwise have been remitted to our reinsurance subsidiaries. We either have (i) funds held by reinsured companies, which are carried at amortized cost and on which we receive a fixed crediting rate, or (ii) funds held - directly managed, which are carried at fair value and on which we receive the underlying return on the portfolio. The investment returns on both categories of funds held are recognized in net investment income and net realized and unrealized gains (losses). The funds held balance is credited with investment income and losses payable are deducted. Funds Held - Directly Managed Funds held - directly managed, where we receive the underlying return on the investment portfolio, are carried at fair value, either because we elected the fair value option at the inception of the reinsurance contract, or because it represents the aggregate of funds held at amortized cost and the fair value of an embedded derivative. The embedded derivative relates to our contractual right to receive the return on the underlying investment portfolio supporting the reinsurance contract. We include the estimated fair value of these embedded derivatives in the consolidated balance sheets with the host contract in order to reflect the expected settlement of these features with the host contract. The change in the fair value of the embedded derivative is included in net unrealized gains (losses). The following table summarizes the components of the funds held - directly managed:
The following table summarizes the fixed maturity investment components of funds held - directly managed:
Refer to the sections above for details of the fixed maturity investments within our funds held - directly managed portfolios. Funds Held by Reinsured Companies Funds held by reinsured companies, where we received a fixed crediting rate, are carried at cost on our consolidated balance sheets. As of September 30, 2020 and December 31, 2019, we had funds held by reinsured companies of $657.5 million and $475.7 million, respectively. The increase related to $204.2 million of additional funds held balances related to the AXA Group transactionNet Investment Income Major categories of net investment income are summarized as follows:
Net Realized and Unrealized Gains Components of net realized and unrealized gains were as follows:
The gross realized gains and losses on AFS investments included in the table above resulted from sales of $409.6 million and $7.6 million for the three months ended September 30, 2020 and 2019, respectively, and $1,455.9 million and $91.2 million for the nine months ended September 30, 2020 and 2019, respectively. Reconciliation to the Consolidated Statements of Comprehensive Income The following table provides a reconciliation of the gross realized gains and losses and credit recoveries (losses) on our AFS fixed maturity debt securities that arose during the three and nine months ended September 30, 2020 within our continuing and discontinued operations and the offsetting reclassification adjustments included within our consolidated statements of comprehensive income:
Restricted Assets We utilize trust accounts to collateralize business with our insurance and reinsurance counterparties. We are also required to maintain investments and cash and cash equivalents on deposit with regulatory authorities and Lloyd's to support our insurance and reinsurance operations. The investments and cash and cash equivalents on deposit are available to settle insurance and reinsurance liabilities. Collateral generally takes the form of assets held in trust, letters of credit or funds held. The assets used as collateral are primarily highly rated fixed maturity securities. The carrying value of our restricted assets, including restricted cash of $556.7 million and $346.9 million, as of September 30, 2020 and December 31, 2019, respectively, was as follows:
(1) Our businesses include three Lloyd's syndicates. Lloyd's determines the required capital principally through the annual business plan of each syndicate. This capital is referred to as "Funds at Lloyd's" and will be drawn upon in the event that a syndicate has a loss that cannot be funded from other sources. We also utilize unsecured letters of credit for Funds at Lloyd's, as described in Note 14 - "Debt Obligations and Credit Facilities." The increase in restricted assets during the nine months ended September 30, 2020 primarily related to new business as described in Note 3 - "Significant New Business," partially offset by reductions due to paid losses and other releases of collateral.
|
Derivative and Hedging Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE AND HEDGING INSTRUMENTS | 6. DERIVATIVES AND HEDGING INSTRUMENTS Foreign Currency Hedging of Net Investments in Foreign Operations We use foreign currency forward exchange rate contracts in qualifying hedging relationships to hedge the foreign currency exchange rate risk associated with certain of our net investments in foreign operations. As of September 30, 2020 and December 31, 2019, we had forward currency contracts in place, which we had designated as hedges of our net investments in foreign operations. The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our qualifying foreign currency forward exchange rate contracts:
The following table presents the net gains and losses deferred in the cumulative translation adjustment ("CTA") account, which is a component of AOCI, in shareholders' equity, relating to our foreign currency forward exchange rate contracts:
Derivatives Not Designated or Not Qualifying as Net Investments Hedging Instruments From time to time, we may also utilize foreign currency forward contracts as part of our overall foreign currency risk management strategy or to obtain exposure to a particular financial market, as well as for yield enhancement in non-qualifying hedging relationships. We may also utilize equity call option instruments either to obtain exposure to a particular equity instrument or for yield enhancement in non-qualifying hedging relationships. Foreign Currency Forward Contracts The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our non-qualifying foreign currency forward exchange rate hedging relationships:
The following table presents the net gains (losses) included in earnings related to our non-qualifying foreign currency forward contracts:
Investments in Call Options on Equities During the three and nine months ended September 30, 2020, we recorded unrealized losses of $nil and less than $0.1 million, respectively, in net earnings on the call options on equities that we had purchased in 2018 at a cost of $10.0 million. During the three and nine months ended September 30, 2019, we had recorded unrealized gains of less than $0.1 million and $1.3 million, respectively, in net earnings on these call options on equities. These call options on equities had a fair value of less than $0.1 million as at December 31, 2019 and expired without being exercised during the nine months ended September 30, 2020. Forward Interest Rate Swaps In October 2019, we entered into a forward interest rate swap, with a notional amount of AUD$120.0 million, to partially mitigate the risk associated with declining interest rates until the completion of the Munich Re transaction which closed on July 1, 2020, as described in Note 3 - "Significant New Business." During the three and nine months ended September 30, 2020, we recorded unrealized gains included within net earnings of $nil and $0.8 million, respectively, on the forward interest rate swap. This forward interest rate swap was terminated on April 7, 2020, for an inception-to-date net realized gain of $0.5 million. The carrying value of the forward interest rate swap, recorded in other liabilities as of December 31, 2019, was $0.3 million. Credit Default Swaps, Futures and Currency Forward Contracts From time to time we may also utilize (i) credit default swaps to both hedge and replicate credit exposure, (ii) government bond futures contracts for interest rate management, and (iii) foreign currency forward contracts for currency hedging, to collectively manage credit and duration risk, as well as for yield enhancement on some of our fixed income portfolios. The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our credit default swaps, government bond futures contracts and currency forward contracts:
We initially entered into these credit default swaps, government bond futures contracts and currency forward contracts during the nine month period ended September 30, 2020 and therefore we did not have any of these contracts in place as of December 31, 2019. The following table presents the amounts of the net gains included in earnings related to our credit default swaps, government bond futures contracts and currency forward contracts:
We initially entered into these credit default swaps, government bond futures contracts and currency forward contracts during the nine month period ended September 30, 2020 and therefore we did not have any of these contracts in place during the three and nine months ended September 30, 2019.
|
Reinsurance Balances Recoverable on Paid and Unpaid Losses |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REINSURANCE BALANCES RECOVERABLE ON PAID AND UNPAID LOSSES | 7. REINSURANCE BALANCES RECOVERABLE ON PAID AND UNPAID LOSSES The following tables provide the total reinsurance balances recoverable on paid and unpaid losses:
Our insurance and reinsurance run-off subsidiaries and assumed portfolios, prior to acquisition, used retrocessional agreements to reduce their exposure to the risk of insurance and reinsurance assumed. On an annual basis, StarStone purchases a tailored outwards reinsurance program designed to manage its risk profile. The majority of StarStone's third-party reinsurance cover is with highly rated reinsurers or is collateralized by pledged assets or letters of credit. The fair value adjustments, determined on acquisition of insurance and reinsurance subsidiaries, are based on the estimated timing of loss and LAE recoveries and an assumed interest rate equivalent to a risk free rate for securities with similar duration to the acquired reinsurance balances recoverable on paid and unpaid losses plus a spread for credit risk, and are amortized over the estimated recovery period, as adjusted for accelerations in timing of payments as a result of commutation settlements. The determination of the fair value adjustments on the retroactive reinsurance contracts for which we have elected the fair value option is described in Note 11 - "Fair Value Measurements." As of September 30, 2020 and December 31, 2019, we had reinsurance balances recoverable on paid and unpaid losses of $1.9 billion and $2.2 billion, respectively. The decrease of $299.5 million in reinsurance balances recoverable on paid and unpaid losses was primarily due to the Hannover Re transaction, cash collections in the first nine months of 2020 and the classification of Atrium as held-for-sale at September 30, 2020; partially offset by reserve increases on StarStone International, which includes estimated recoverables on losses related to the COVID-19 pandemic.Top Ten Reinsurers
(1) The reinsurance balances recoverable from the two non-rated top 10 reinsurers was comprised of: •$183.4 million and $190.8 million as of September 30, 2020 and December 31, 2019 respectively, due from a US state backed reinsurer that is supported by assessments on active auto writers operating within the state; and •$78.8 million and $81.4 million as of September 30, 2020 and December 31, 2019 respectively, due from a reinsurer who has provided us with security in the form of pledged assets in trust for the full amount of the recoverable balance. (2) Hannover Ruck SE is rated AA- by Standard & Poor’s and A+ by A.M. Best. The transaction described in Note 3 - "Significant New Business" had the effect of moving this reinsurer to be less than 10%. (3) Lloyd's Syndicates are rated A+ by Standard & Poor's and A by A.M. Best. Allowance for Estimated Uncollectible Reinsurance Balances Recoverable on Paid and Unpaid Losses We evaluate and monitor the credit risk related to our reinsurers, and an allowance for estimated uncollectible reinsurance balances recoverable on paid and unpaid losses ("allowance for estimated uncollectible reinsurance") is established for amounts considered potentially uncollectible. With respect to our process for determining the allowances for estimated uncollectible reinsurance, we adopted and the related amendments on January 1, 2020 and recorded a cumulative effect adjustment of $0.2 million to increase the opening retained earnings on the initial adoption of the guidance. Our allowance for estimated uncollectible reinsurance is derived based on various data sources, multiple key inputs and forecast scenarios. These include the duration of the collection period, credit quality, changes in reinsurer credit standing, default rates specific to the individual reinsurer, the geographical location of the reinsurer, contractual disputes with reinsurers over individual contentious claims, contract language or coverage issues, industry analyst reports and consensus economic forecasts. To determine the allowance for estimated uncollectible reinsurance, we use the PD and LGD methodology whereby each reinsurer is allocated an appropriate PD percentage based on the expected payout duration by portfolio. This PD percentage is then multiplied by an appropriate LGD percentage to arrive at an overall credit allowance percentage which is then applied to the reinsurance balance recoverable for each reinsurer, net of any specific bad debt provisions, collateral or other contract related offsets, to arrive at the overall allowance for estimated uncollectible reinsurance by reinsurer. The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Non-life Run-off segment.
The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible reinsurance balances for the three and nine months ended September 30, 2020:
Past-Due Status: We consider a reinsurance recoverable asset to be past due when it is 90 days past due and record a credit allowance when there is reasonable uncertainty about the collectability of a disputed amount during the reporting period. We did not have significant past due balances older than one year for any of the periods presented. 12. PREMIUMS WRITTEN AND EARNED The following table provides a summary of premiums written and earned by segment and for our other activities:
Gross premiums written for the three months ended September 30, 2020 and 2019 were $111.5 million and $157.1 million, respectively, a decrease of $45.7 million. The decrease was primarily due to a decrease in gross premiums written in our StarStone segment of $52.0 million, partially offset by an increase Non-life Run-off segment of $3.2 million. The decrease in the StarStone segment was due to StarStone International being placed into an orderly run-off. Gross premiums written for the nine months ended September 30, 2020 and 2019 were $460.6 million and $483.9 million, respectively, a decrease of $23.3 million. The decrease was primarily due to a decrease in gross premiums written in our StarStone segment of $63.2 million, partially offset by a reduction in negative gross premiums written in our Non-life Run-off segment of $26.5 million and an increase in the Atrium segment of $9.0 million. The decrease in the StarStone segment was primarily due to StarStone International being placed into an orderly run-off. The negative gross premium written in the Non-life Run-off segment for the nine months ended September 30, 2019 was due to premium adjustments on the acquired unearned premium primarily related to the run-off business assumed as a result of the AmTrust RITC transactions and the acquisition of Maiden Re North America. The increase in the Atrium segment was driven by increases in the binding authorities, marine, aviation and transit and non-marine direct and facultative lines of business. The binding authorities line of business benefited from new opportunities to write new business, while the marine, aviation and non-marine direct and facultative lines of business continued to benefit from an increase in rates and new opportunities in the U.S.
|
Deferred Charge Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEFERRED CHARGE ASSETS | 8. DEFERRED CHARGE ASSETS Deferred charge assets relate to retroactive reinsurance policies providing indemnification of losses and LAE with respect to past loss events in the Non-life Run-off segment. For insurance and reinsurance contracts for which we do not elect the fair value option, a deferred charge asset is recorded for the excess, if any, of the estimated ultimate losses payable over the premiums received at the initial measurement. The premium consideration that we charge the ceding companies may be lower than the undiscounted estimated ultimate losses payable due to the time value of money. After receiving the premium consideration in full from our cedents at the inception of the contract, we invest the premium received over an extended period of time thereby generating investment income. We expect to generate profits from these retroactive reinsurance policies when taking into account the premium received and expected investment income, less contractual obligations and expenses. Deferred charge assets are included in other assets on our consolidated balance sheets. The following table presents a reconciliation of the deferred charge assets:
Deferred charge assets are amortized over the estimated claim payment period of the related contract with the periodic amortization reflected in earnings as a component of losses and LAE. Deferred charge assets amortization is adjusted at each reporting period to reflect new estimates of the amount and timing of remaining loss payments. Changes in the estimated amount and the timing of payments of unpaid losses may have an effect on the unamortized deferred charge assets and the amount of periodic amortization. Deferred charge assets are assessed at each reporting period for impairment. If the asset is determined to be impaired, it is written down in the period in which the determination is made. For the nine months ended September 30, 2020, we completed our assessment for impairment of deferred charge assets and concluded that there had been no impairment of our carried deferred charge assets amount. Further information on deferred charge assets recorded during the three and nine months ended September 30, 2020 is included in Note 3 - "Significant New Business."
|
Losses and Loss Adjustment Expenses |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOSSES AND LOSS ADJUSTMENT EXPENSES | 9. LOSSES AND LOSS ADJUSTMENT EXPENSES The liability for losses and loss adjustment expenses ("LAE"), also referred to as loss reserves, represents our gross estimates before reinsurance for unpaid reported losses and includes losses that have been incurred but not reported ("IBNR") for our Non-life Run-off, Atrium and StarStone segments using a variety of actuarial methods. We recognize an asset for the portion of the liability that we expect to recover from reinsurers. LAE reserves include allocated loss adjustment expenses ("ALAE"), and unallocated loss adjustment expenses ("ULAE"). ALAE are linked to the settlement of an individual claim or loss, whereas ULAE are based on our estimates of future costs to administer the claims. IBNR represents reserves for loss and LAE that have been incurred but not yet reported to us. This includes amounts for unreported claims, development on known claims and reopened claims. Our loss reserves cover multiple lines of business, which include asbestos, environmental, general casualty, workers' compensation/personal accident, marine, aviation and transit, construction defect, professional indemnity/directors and officers, motor, property and other non-life lines of business. Refer to Note 10 - "Losses and Loss Adjustment Expenses" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019 for more information on establishing the liability for losses and LAE. The following tables summarize the liability for losses and LAE by segment and for our other activities:
The table below provides a consolidated reconciliation of the beginning and ending liability for losses and LAE:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. This amount excludes $0.4 million related to the adoption impact of on StarStone U.S., which has been classified as a discontinued operation with the related assets and liabilities disclosed as held-for-sale on our consolidated balance sheets. (2) Net of allowance for estimated uncollectible reinsurance. The tables below provide the components of net incurred losses and LAE by segment and for our other activities:
Non-life Run-off Segment The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the Non-life Run-off segment:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. (2) Net of allowance for estimated uncollectible reinsurance. Net incurred losses and LAE in the Non-life Run-off segment were as follows:
Net change in case and LAE reserves comprises the movement during the period in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. Net change in IBNR represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. Three Months Ended September 30, 2020 The increase in net incurred losses and LAE for the three months ended September 30, 2020 of $34.3 million included net incurred losses and LAE of $8.2 million related to current period net earned premium, primarily in respect of the run-off business acquired with the AmTrust RITC transactions. Excluding current period net incurred losses and LAE of $8.2 million, the increase in net incurred losses and LAE relating to prior periods was $26.0 million, which was primarily attributable to an increase in the fair value of liabilities of $21.0 million related to our assumed retroactive reinsurance agreements for which we have elected the fair value option primarily due to narrowing credit spreads on corporate bond yields in the period, amortization of the deferred charge assets of $10.3 million, amortization of fair value adjustments over the estimated payout period relating to companies acquired of $5.3 million, and an increase in estimates of net ultimate losses of $4.0 million, partially offset by a reduction in provisions for unallocated LAE of $14.6 million relating to 2020 run-off activity. Net ultimate losses relating to prior periods were relatively unchanged with an increase in estimates of net ultimate losses of $4.0 million for the three months ended September 30, 2020 and included net losses paid of $283.1 million, partially offset by a net reduction in case and IBNR reserves of $279.2 million. Unfavorable development of approximately $128.4 million within our motor line of business, was offset by favorable development across workers compensation and other lines of business. Three Months Ended September 30, 2019 Net incurred losses and LAE for the three months ended September 30, 2019 of $30.6 million included net incurred losses and LAE of $23.8 million related to current period net earned premium, primarily for the run-off business acquired with the AmTrust RITC transactions and the acquisition of Maiden Reinsurance North America, Inc. ("Maiden Re North America"). Excluding current period net incurred losses and LAE of $23.8 million, the increase in net incurred losses and LAE relating to prior periods was $6.7 million, which was attributable to an increase in the fair value of liabilities of $41.4 million related to our assumed retroactive reinsurance agreements for which we have elected the fair value option primarily as a result of a decrease in corporate bond yields, amortization of fair value adjustments over the estimated payout period relating to companies acquired of $17.5 million and amortization of the deferred charge assets of $17.0 million, partially offset by a reduction in estimates of net ultimate losses of $57.1 million and a reduction in provisions for unallocated LAE of $12.1 million relating to 2019 run-off activity. The reduction in estimates of net ultimate losses relating to prior periods of $57.1 million for the three months ended September 30, 2019 included a net reduction in case and IBNR reserves of $331.1 million, partially offset by net losses paid of $274.1 million.
Nine Months Ended September 30, 2020 The increase in net incurred losses and LAE for the nine months ended September 30, 2020 of $63.7 million included net incurred losses and LAE of $24.2 million related to current period net earned premium, primarily for the run-off business acquired with the AmTrust RITC transactions. Excluding current period net incurred losses and LAE of $24.2 million, the increase in net incurred losses and LAE liabilities relating to prior periods was $39.5 million, which was attributable to an increase in the fair value of liabilities of $96.8 million related to our assumed retroactive reinsurance agreements for which we have elected the fair value option primarily due to declining interest rates on corporate bond yields in the period, amortization of the deferred charge assets of $36.0 million and amortization of fair value adjustments over the estimated payout period relating to companies acquired of $21.7 million, partially offset by a reduction in estimates of net ultimate losses of $80.5 million and a reduction in provisions for unallocated LAE of $34.5 million relating to 2020 run-off activity. For the nine months ended September 30, 2020, the change in net ultimate losses relating to prior periods was favorable with a reduction of $80.5 million, which included a net change in case and IBNR reserves of $904.9 million, partially offset by net losses paid of $824.5 million. The favorable development was largely attributed to workers compensation as well as other lines of business, partially offset by unfavorable development of $122.4 million within our motor line of business. Nine Months Ended September 30, 2019 The increase in net incurred losses and LAE for the nine months ended September 30, 2019 of $135.5 million included net incurred losses and LAE of $107.3 million related to current period net earned premium, primarily for the run-off business acquired with the AmTrust RITC transactions and the acquisition of Maiden Re North America. Excluding current period net incurred losses and LAE of $107.3 million, the increase in net incurred losses and LAE liabilities relating to prior periods was $28.2 million, which was attributable to an increase in the fair value of liabilities of $135.4 million related to our assumed retroactive reinsurance agreements for which we have elected the fair value option primarily as a result of a decrease in corporate bond yields, amortization of fair value adjustments over the estimated payout period relating to companies acquired of $34.0 million and amortization of the deferred charge assets of $28.0 million, partially offset by a reduction in estimates of net ultimate losses of $130.5 million and a reduction in provisions for unallocated LAE of $38.7 million relating to 2019 run-off activity. The reduction in estimates of net ultimate losses of $130.5 million for the nine months ended September 30, 2019 included a net change in case and IBNR reserves of $1,043.8 million, partially offset by net losses paid of $913.4 million. Atrium The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the Atrium segment:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. (2) Net of allowance for estimated uncollectible reinsurance. Net incurred losses and LAE in the Atrium segment were as follows:
Net change in case and LAE reserves comprises the movement during the period in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. Net change in IBNR represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. Three Months Ended September 30, 2020 and 2019 Net incurred losses and LAE for the three months ended September 30, 2020 and 2019 were $22.0 million and $28.4 million, respectively. Net favorable prior period loss development was $1.1 million for the three months ended September 30, 2020 compared to net unfavorable prior period loss development of $1.3 million for the three months ended September 30, 2019. Excluding prior period loss development, net incurred losses and LAE for the three months ended September 30, 2020 were $23.1 million and included $1.5 million of losses related to the COVID-19 pandemic. Excluding prior period loss development, net incurred losses and LAE for the three months ended September 30, 2019 were $27.1 million.
Nine Months Ended September 30, 2020 and 2019 Net incurred losses and LAE for the nine months ended September 30, 2020 and 2019 were $66.0 million and $58.7 million, respectively. Net favorable prior year loss development was $4.1 million and $4.5 million for the nine months ended September 30, 2020 and 2019, respectively. The current period net favorable prior period loss development was driven by favorable development across several lines of business. Excluding prior period loss development, net incurred losses and LAE for the nine months ended September 30, 2020 were $70.1 million and included $14.3 million of losses related to the COVID-19 pandemic. Excluding prior period loss development, net incurred losses and LAE for the nine months ended September 30, 2019 were $63.2 million. StarStone The table below provides a reconciliation of the beginning and ending liability for losses and LAE for our StarStone segment:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. This amount excludes $0.4 million related to the adoption impact of on StarStone U.S., which has been classified as a discontinued operation with the related assets and liabilities disclosed as held-for-sale on our consolidated balance sheets. (2) Net of allowance for estimated uncollectible reinsurance. Net incurred losses and LAE in the StarStone segment were as follows:
Net change in case and LAE reserves comprises the movement during the period in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims. Net change in IBNR represents the gross change in our actuarial estimates of IBNR, less amounts recoverable. Three Months Ended September 30, 2020 and 2019 Net incurred losses and LAE for the three months ended September 30, 2020 and 2019 were $48.4 million and $100.6 million, respectively. Net unfavorable prior period loss development was $3.7 million for the three months ended September 30, 2020 compared to net favorable prior period loss development of $1.2 million for the three months ended September 30, 2019. Net unfavorable prior period loss development for the three months ended September 30, 2020 was driven by adverse development in the casualty and property lines of business. Net favorable prior period loss development for the three months ended September 30, 2019 was primarily related to development on lines of business that we had either exited or had been subject to remediation as part of our underwriting repositioning initiatives before our decision to place StarStone International into run-off. Excluding prior period net loss development, net incurred losses and LAE for the three months ended September 30, 2020 were $44.7 million and included a $4.4 million reduction in exit costs associated with the StarStone International Run-Off, partially offset by $1.4 million in net incurred losses and LAE related to the COVID-19 pandemic. Excluding prior period net loss development, net incurred losses and LAE for the three months ended September 30, 2019 were $101.8 million.
Nine Months Ended September 30, 2020 and 2019 Net incurred losses and LAE for the nine months ended September 30, 2020 and 2019 were $197.3 million and $358.9 million, respectively. Net favorable prior period loss development was $11.2 million for the nine months ended September 30, 2020 compared to net unfavorable prior period loss development of $84.8 million for the nine months ended September 30, 2019. Net favorable prior period loss development for the nine months ended September 30, 2020 was driven by favorable development in the workers compensation and casualty lines of business. Net unfavorable prior period loss development for the nine months ended September 30, 2019 was primarily related to development on lines of business that we had either exited or had been subject to remediation as part of our underwriting repositioning initiatives before our decision to place StarStone International into run-off. Excluding prior period loss development, net incurred losses and LAE for the nine months ended September 30, 2020 were $208.4 million and included $22.8 million of COVID-19 related losses and $23.7 million of exit costs associated with the StarStone International Run-Off. Excluding prior period loss development, net incurred losses and LAE for the nine months ended September 30, 2019 were $274.1 million.
|
Defendant Asbestos and Environmental Liabilities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Asbestos and Environmental Claims [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEFENDANT ASBESTOS AND ENVIRONMENTAL LIABILITIES | 10. DEFENDANT ASBESTOS AND ENVIRONMENTAL LIABILITIES We acquired DCo LLC ("DCo") on December 30, 2016, and Morse TEC on October 30, 2019, as described in Note 3 - "Acquisitions" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019. DCo and Morse TEC hold liabilities associated with personal injury asbestos claims and environmental claims arising from their legacy manufacturing operations. These companies continue to process asbestos personal injury claims in the normal course of business. Defendant asbestos liabilities on our consolidated balance sheets include amounts for loss payments and defense costs for pending and future asbestos-related claims, determined using standard actuarial techniques for asbestos exposures. Defendant environmental liabilities include estimated clean-up costs associated with the acquired companies' former operations based on engineering reports. For further details on the methodologies used for determining liabilities, refer to Note 11 - "Defendant Asbestos and Environmental Liabilities" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019. Insurance balances recoverable on our consolidated balance sheets include estimated insurance recoveries relating to these liabilities. The recorded asset represents our assessment of the capacity of the insurance agreements to indemnify our subsidiaries for the anticipated defense and loss payments for pending claims and projected future claims. The recognition of these recoveries is based on an assessment of the right to recover under the respective contracts and on the financial strength of the insurers. The recorded asset does not represent the limits of our insurance coverage, but rather the amount we would expect to recover if the accrued and projected loss and defense costs were paid in full. Included within insurance balances recoverable and defendant asbestos and environmental liabilities are the fair value adjustments that were initially recognized upon acquisition. These fair value adjustments are amortized in proportion to the actual payout of claims and recoveries. The carrying value of the asbestos and environmental liabilities, insurance recoveries, future estimated expenses and the fair value adjustments related to DCo and Morse TEC as of September 30, 2020 and December 31, 2019 were as follows:
The table below provides a consolidated reconciliation of the beginning and ending liability for defendant asbestos and environmental exposures for the three and nine months ended September 30, 2020 and 2019:
(1) The Company adopted and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. (2) Net of allowance for estimated uncollectible insurance balances. Allowance for Estimated Uncollectible Insurance Balances Recoverable on Defendant Asbestos Liabilities We evaluate and monitor the credit risk related to our insurers and an allowance for estimated uncollectible insurance balances recoverable on our defendant asbestos liabilities ("allowance for estimated uncollectible insurance") is established for amounts considered potentially uncollectible. Our allowance for estimated uncollectible insurance is derived based on various data sources, multiple key inputs and forecast scenarios. These include the duration of the collection period, credit quality, changes in insurer credit standing, default rates specific to the individual insurer, the geographical location of the insurer, contractual disputes with insurers over individual contentious claims, contract language or coverage issues, industry analyst reports and consensus economic forecasts. To determine the allowance for estimated uncollectible insurance, we use the PD and LGD methodology as described in Note 7 - "Reinsurance Balances Recoverable on Paid and Unpaid Losses" above. The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible insurance balances related to our defendant asbestos liabilities, for the three and nine months ended September 30, 2020:
During the three and nine months ended September 30, 2020, we did not have any write-offs charged against the allowance for estimated uncollectible insurance or any recoveries of amounts previously written off. We did not have significant past due balances receivable from our insurers related to our defendant asbestos liabilities, that were older than one year for any of the periods presented.
|
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | 11. FAIR VALUE MEASUREMENTS Fair Value Hierarchy Fair value is defined as the price at which to sell an asset or transfer a liability (i.e. the "exit price") in an orderly transaction between market participants. We use a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The hierarchy is broken down into three levels as follows: •Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. •Level 2 - Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or for which significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. •Level 3 - Valuations based on unobservable inputs where there is little or no market activity. Unadjusted third party pricing sources or management's assumptions and internal valuation models may be used to determine the fair values. In addition, certain of our other investments are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and have not been classified within the fair value hierarchy above. We have categorized our assets and liabilities that are recorded at fair value on a recurring basis among levels based on the observability of inputs, or at fair value using NAV per share (or its equivalent) as follows:
Short-term and Fixed Maturity Investments The fair values for all securities in the short-term and fixed maturity investments and funds held - directly managed portfolios are independently provided by the investment accounting service providers, investment managers and investment custodians, each of which utilize internationally recognized independent pricing services. We record the unadjusted price provided by the investment accounting service providers, investment managers or investment custodians and validate this price through a process that includes, but is not limited to: (i) comparison of prices against alternative pricing sources; (ii) quantitative analysis (e.g. comparing the quarterly return for each managed portfolio to its target benchmark); (iii) evaluation of methodologies used by external parties to estimate fair value, including a review of the inputs used for pricing; and (iv) comparing the price to our knowledge of the current investment market. Our internal price validation procedures and review of fair value methodology documentation provided by independent pricing services have not historically resulted in adjustment in the prices obtained from the pricing service. The independent pricing services used by the investment accounting service providers, investment managers and investment custodians obtain actual transaction prices for securities that have quoted prices in active markets. Where we utilize single unadjusted broker-dealer quotes, they are generally provided by market makers or broker-dealers who are recognized as market participants in the markets for which they are providing the quotes. For determining the fair value of securities that are not actively traded, in general, pricing services use "matrix pricing" in which the independent pricing service uses observable market inputs including, but not limited to, reported trades, benchmark yields, broker-dealer quotes, interest rates, prepayment speeds, default rates and other such inputs as are available from market sources to determine a reasonable fair value. The following describes the techniques generally used to determine the fair value of our short-term and fixed maturity investments by asset class, including the investments underlying the funds held - directly managed. •U.S. government and agency securities consist of securities issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and other agencies. Non-U.S. government securities consist of bonds issued by non-U.S. governments and agencies along with supranational organizations. The significant inputs used to determine the fair value of these securities include the spread above the risk-free yield curve, reported trades and broker-dealer quotes. These are considered to be observable market inputs and, therefore, the fair values of these securities are classified as Level 2. •Corporate securities consist primarily of investment-grade debt of a wide variety of corporate issuers and industries. The fair values of these securities are determined using the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark yields, and industry and market indicators. These are considered observable market inputs and, therefore, the fair values of these securities are classified as Level 2. Where pricing is unavailable from pricing services, such as in periods of low trading activity or when transactions are not orderly, we obtain non-binding quotes from broker-dealers. Where significant inputs are unable to be corroborated with market observable information, we classify the securities as Level 3. •Municipal securities consist primarily of bonds issued by U.S.-domiciled state and municipal entities. The fair values of these securities are determined using the spread above the risk-free yield curve, reported trades, broker-dealer quotes and benchmark yields. These are considered observable market inputs and, therefore, the fair values of these securities are classified as Level 2. •Asset-backed securities consist primarily of investment-grade bonds backed by pools of loans with a variety of underlying collateral. Residential and commercial mortgage-backed securities include both agency and non-agency originated securities. Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. The significant inputs used to determine the fair value of these securities include the spread above the risk-free yield curve, reported trades, benchmark yields, prepayment speeds and default rates. The fair values of these securities are classified as Level 2 if the significant inputs are market observable. Where significant inputs are unable to be corroborated with market observable information, we classify the securities as Level 3. Equities Our investments in equities consist of a combination of publicly and privately traded investments. Our publicly traded equity investments in common and preferred stocks predominantly trade on major exchanges and are managed by our external advisors. Our exchange-traded funds also trade on major exchanges. Our publicly traded equities are widely diversified and there is no significant concentration in any specific industry. We use an internationally recognized pricing service to estimate the fair value of our publicly traded equities and exchange-traded funds. We have categorized the majority of our publicly traded equity investments, other than preferred stock, and our exchange-traded funds as Level 1 investments because the fair values of these investments are based on unadjusted quoted prices in active markets for identical assets. One equity security is trading in an inactive market and, as a result has been classified as Level 2. The fair value estimates of our investments in publicly traded preferred stock are based on observable market data and, as a result, have been categorized as Level 2. Our privately held equity investments in common and preferred stocks are direct investments in companies that we believe offer attractive risk adjusted returns and/or offer other strategic advantages. Each investment may have its own unique terms and conditions and there may be restrictions on disposals. The market for these investments is illiquid and there is no active market. We use a combination of cost, internal models, reported values from co-investors/managers and observable inputs, such as capital raises and capital transactions between new and existing shareholders to calculate the fair value of the privately held equity investments. The fair value estimates of our investments in privately held equities are based on unobservable market data and, as a result, have been categorized as Level 3.Other investments, at fair value We have ongoing due diligence processes with respect to the other investments carried at fair value in which we invest and their managers. These processes are designed to assist us in assessing the quality of information provided by, or on behalf of, each fund and in determining whether such information continues to be reliable or whether further review is warranted. Certain funds do not provide full transparency of their underlying holdings; however, we obtain the audited financial statements for funds annually, and regularly review and discuss the fund performance with the fund managers to corroborate the reasonableness of the reported net asset values ("NAV"). The use of NAV as an estimate of the fair value for investments in certain entities that calculate NAV is a permitted practical expedient. Due to the time lag in the NAV reported by certain fund managers we adjust the valuation for capital calls and distributions. Other investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. Other investments for which we do not use NAV as a practical expedient have been valued using prices from independent pricing services, investment managers and broker-dealers. The following describes the techniques generally used to determine the fair value of our other investments. •For our investments in hedge funds, we measure fair value by obtaining the most recently available NAV as advised by the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy. •Our investments in fixed income funds and equity funds are valued based on a combination of prices from independent pricing services, external fund managers or third-party administrators. For the publicly available prices we have classified the investments as Level 2. For the non-publicly available prices we are using NAV as a practical expedient and therefore these have not been categorized within the fair value hierarchy. •For our investments in private equity funds, we measure fair value by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy. •We measure the fair value of our direct investment in CLO equities based on valuations provided by independent pricing services, our external CLO equity manager, and valuations provided by the broker or lead underwriter of the investment (the "broker"). The fair values measured using prices provided by independent pricing services have been classified as Level 2 and fair values using prices from brokers have been classified as Level 3 due to the use of unobservable inputs in the valuation and the limited number of relevant trades in secondary markets. •For our investments in the CLO equity funds, we measure fair value by obtaining the most recently available NAV as advised by the external fund manager or third party administrator. The fair value of these investments is measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy. •For our investments in private credit funds, we measure fair value by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy. •Included within other is an investment in a real estate debt fund, for which we measure fair value by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair value of this investment is measured using the NAV as a practical expedient and therefore has not been categorized within the fair value hierarchy. Cash and Cash Equivalents Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of changes in value due to changes in interest rates. Included within cash and cash equivalents are money market funds, fixed interest deposits and highly liquid fixed maturity investments purchased with an original maturity of three months or less. The majority of our cash and cash equivalents included within the fair value hierarchy are comprised of money market and liquid reserve funds which have been categorized as Level 1. Fixed interest deposits and highly liquid fixed maturity investments with an original maturity of three months or less have been categorized as Level 2. Operating cash balances are not subject to the recurring fair value measurement guidance and are therefore excluded from the fair value hierarchy. Insurance Contracts - Fair Value Option The Company uses an internal model to calculate the fair value of the liability for losses and loss adjustment expenses and reinsurance balances recoverable on paid and unpaid losses for certain retroactive reinsurance contracts where we have elected the fair value option in our Non-life Run-off segment. The fair value was calculated as the aggregate of discounted cash flows plus a risk margin. The discounted cash flow approach uses (i) estimated nominal cash flows based upon an appropriate payment pattern developed in accordance with standard actuarial techniques and (ii) a discount rate based upon a high quality rated corporate bond plus a credit spread for non-performance risk. The model uses corporate bond rates across the yield curve depending on the estimated timing of the future cash flows and specific to the currency of the risk. The risk margin was calculated using the present value of the cost of capital. The cost of capital approach uses (i) projected capital requirements, (ii) multiplied by the risk cost of capital representing the return required for non-hedgeable risk based upon the weighted average cost of capital less investment income and (iii) discounted using the weighted average cost of capital. Derivative Instruments The fair values of our derivative instruments, as described in Note 6 - "Derivatives and Hedging Instruments" are classified as Level 2. The fair values are based upon prices in active markets for identical contracts. Level 3 Measurements and Changes in Leveling Transfers into or out of levels are recorded at their fair values as of the end of the reporting period, consistent with the date of determination of fair value. Investments The following tables present a reconciliation of the beginning and ending balances for all investments measured at fair value on a recurring basis using Level 3 inputs:
Net realized and unrealized gains related to Level 3 assets in the tables above are included in net realized and unrealized gains (losses) in our unaudited condensed consolidated statements of earnings. The securities transferred from Level 2 to Level 3 were transferred due to insufficient market observable inputs for the valuation of the specific assets. The transfers from Level 3 to Level 2 were based upon obtaining market observable information regarding the valuations of the specific assets. Valuations Techniques and Inputs The table below presents the quantitative information related to the fair value measurements for our privately held equity investments measured at fair value on a recurring basis using Level 3 inputs:
(1) The average represents the arithmetic average of the inputs and is not weighted by the relative fair value. Insurance Contracts - Fair Value OptionThe following table presents a reconciliation of the beginning and ending balances for all insurance contracts measured at fair value on a recurring basis using Level 3 inputs:
The net assumed business of $182.5 million in the current period relates to the Hannover Re novation transaction disclosed in Note 3 - "Significant New Business." Changes in fair value in the table above are included in net incurred losses and LAE in our consolidated statements of earnings. The following table presents the components of the net change in fair value:
Changes in fair value in the table above are included in net incurred losses and LAE in our consolidated statements of earnings. The following table presents the components of the net change in fair value:
Below is a summary of the quantitative information regarding the significant observable and unobservable inputs used in the internal model to determine fair value on a recurring basis:
The fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses may increase or decrease due to changes in the corporate bond rate, the credit spread for non-performance risk, the risk cost of capital, the weighted average cost of capital and the estimated payment pattern as described below: •An increase in the corporate bond rate or credit spread for non-performance risk would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the corporate bond rate or credit spread for non-performance risk would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. •An increase in the weighted average cost of capital would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the weighted average cost of capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. •An increase in the risk cost of capital would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the risk cost of capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. •The duration of the liability and recoverable is adjusted every period to reflect actual net payments during the period and expected future payments. An acceleration of the estimated payment pattern, a decrease in duration, would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a deceleration of the estimated payment pattern, an increase in duration, would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. In addition, the estimate of the capital required to support the liabilities is based upon current industry standards for capital adequacy. If the required capital per unit of risk increases, then the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses would increase. Conversely, a decrease in required capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Disclosure of Fair Values for Financial Instruments Carried at Cost Senior Notes As of September 30, 2020, our 4.50% Senior Notes due 2022 (the "2022 Senior Notes") and our 4.95% Senior Notes due 2029 (the "2029 Senior Notes" and, together with the 2022 Senior Notes, the "Senior Notes") were carried at amortized cost of $349.2 million and $493.9 million, respectively, while the fair value based on observable market pricing from a third party pricing service was $363.2 million and $556.8 million, respectively. The Senior Notes are classified as Level 2. Junior Subordinated Notes As of September 30, 2020, our 5.75% Fixed-Rate Reset Junior Subordinated Notes due 2040 (the “Junior Subordinated Notes”) were carried at amortized cost of $344.8 million, while the fair value based on observable market pricing from a third party pricing service was $357.7 million. The Junior Subordinated Notes are classified as Level 2. Insurance Contracts Disclosure of fair value of amounts relating to insurance contracts is not required, except those for which we elected the fair value option, as described above. Remaining Assets and Liabilities Our remaining assets and liabilities were generally carried at cost or amortized cost, which due to their short-term nature approximates fair value as of September 30, 2020 and December 31, 2019.
|
Premiums Written and Earned |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREMIUMS WRITTEN AND EARNED | 7. REINSURANCE BALANCES RECOVERABLE ON PAID AND UNPAID LOSSES The following tables provide the total reinsurance balances recoverable on paid and unpaid losses:
Our insurance and reinsurance run-off subsidiaries and assumed portfolios, prior to acquisition, used retrocessional agreements to reduce their exposure to the risk of insurance and reinsurance assumed. On an annual basis, StarStone purchases a tailored outwards reinsurance program designed to manage its risk profile. The majority of StarStone's third-party reinsurance cover is with highly rated reinsurers or is collateralized by pledged assets or letters of credit. The fair value adjustments, determined on acquisition of insurance and reinsurance subsidiaries, are based on the estimated timing of loss and LAE recoveries and an assumed interest rate equivalent to a risk free rate for securities with similar duration to the acquired reinsurance balances recoverable on paid and unpaid losses plus a spread for credit risk, and are amortized over the estimated recovery period, as adjusted for accelerations in timing of payments as a result of commutation settlements. The determination of the fair value adjustments on the retroactive reinsurance contracts for which we have elected the fair value option is described in Note 11 - "Fair Value Measurements." As of September 30, 2020 and December 31, 2019, we had reinsurance balances recoverable on paid and unpaid losses of $1.9 billion and $2.2 billion, respectively. The decrease of $299.5 million in reinsurance balances recoverable on paid and unpaid losses was primarily due to the Hannover Re transaction, cash collections in the first nine months of 2020 and the classification of Atrium as held-for-sale at September 30, 2020; partially offset by reserve increases on StarStone International, which includes estimated recoverables on losses related to the COVID-19 pandemic.Top Ten Reinsurers
(1) The reinsurance balances recoverable from the two non-rated top 10 reinsurers was comprised of: •$183.4 million and $190.8 million as of September 30, 2020 and December 31, 2019 respectively, due from a US state backed reinsurer that is supported by assessments on active auto writers operating within the state; and •$78.8 million and $81.4 million as of September 30, 2020 and December 31, 2019 respectively, due from a reinsurer who has provided us with security in the form of pledged assets in trust for the full amount of the recoverable balance. (2) Hannover Ruck SE is rated AA- by Standard & Poor’s and A+ by A.M. Best. The transaction described in Note 3 - "Significant New Business" had the effect of moving this reinsurer to be less than 10%. (3) Lloyd's Syndicates are rated A+ by Standard & Poor's and A by A.M. Best. Allowance for Estimated Uncollectible Reinsurance Balances Recoverable on Paid and Unpaid Losses We evaluate and monitor the credit risk related to our reinsurers, and an allowance for estimated uncollectible reinsurance balances recoverable on paid and unpaid losses ("allowance for estimated uncollectible reinsurance") is established for amounts considered potentially uncollectible. With respect to our process for determining the allowances for estimated uncollectible reinsurance, we adopted and the related amendments on January 1, 2020 and recorded a cumulative effect adjustment of $0.2 million to increase the opening retained earnings on the initial adoption of the guidance. Our allowance for estimated uncollectible reinsurance is derived based on various data sources, multiple key inputs and forecast scenarios. These include the duration of the collection period, credit quality, changes in reinsurer credit standing, default rates specific to the individual reinsurer, the geographical location of the reinsurer, contractual disputes with reinsurers over individual contentious claims, contract language or coverage issues, industry analyst reports and consensus economic forecasts. To determine the allowance for estimated uncollectible reinsurance, we use the PD and LGD methodology whereby each reinsurer is allocated an appropriate PD percentage based on the expected payout duration by portfolio. This PD percentage is then multiplied by an appropriate LGD percentage to arrive at an overall credit allowance percentage which is then applied to the reinsurance balance recoverable for each reinsurer, net of any specific bad debt provisions, collateral or other contract related offsets, to arrive at the overall allowance for estimated uncollectible reinsurance by reinsurer. The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Non-life Run-off segment.
The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible reinsurance balances for the three and nine months ended September 30, 2020:
Past-Due Status: We consider a reinsurance recoverable asset to be past due when it is 90 days past due and record a credit allowance when there is reasonable uncertainty about the collectability of a disputed amount during the reporting period. We did not have significant past due balances older than one year for any of the periods presented. 12. PREMIUMS WRITTEN AND EARNED The following table provides a summary of premiums written and earned by segment and for our other activities:
Gross premiums written for the three months ended September 30, 2020 and 2019 were $111.5 million and $157.1 million, respectively, a decrease of $45.7 million. The decrease was primarily due to a decrease in gross premiums written in our StarStone segment of $52.0 million, partially offset by an increase Non-life Run-off segment of $3.2 million. The decrease in the StarStone segment was due to StarStone International being placed into an orderly run-off. Gross premiums written for the nine months ended September 30, 2020 and 2019 were $460.6 million and $483.9 million, respectively, a decrease of $23.3 million. The decrease was primarily due to a decrease in gross premiums written in our StarStone segment of $63.2 million, partially offset by a reduction in negative gross premiums written in our Non-life Run-off segment of $26.5 million and an increase in the Atrium segment of $9.0 million. The decrease in the StarStone segment was primarily due to StarStone International being placed into an orderly run-off. The negative gross premium written in the Non-life Run-off segment for the nine months ended September 30, 2019 was due to premium adjustments on the acquired unearned premium primarily related to the run-off business assumed as a result of the AmTrust RITC transactions and the acquisition of Maiden Re North America. The increase in the Atrium segment was driven by increases in the binding authorities, marine, aviation and transit and non-marine direct and facultative lines of business. The binding authorities line of business benefited from new opportunities to write new business, while the marine, aviation and non-marine direct and facultative lines of business continued to benefit from an increase in rates and new opportunities in the U.S.
|
Goodwill and Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 13. GOODWILL AND INTANGIBLE ASSETS The following table presents a reconciliation of the beginning and ending goodwill and intangible assets for the nine months ended September 30, 2020:
Goodwill The changes in the goodwill by segment were as follows for the nine months ended September 30, 2020:
On August 13, 2020, we announced the Atrium Exchange Transaction, which resulted in the assets and liabilities of the Atrium segment being classified as held-for-sale as of September 30, 2020. On June 10, 2020, we announced the StarStone International Run-Off. During the three and nine months ended September 30, 2020, we recognized impairment losses of $nil and $8.0 million respectively, related to the goodwill allocated to StarStone International. Intangible Assets The gross carrying value, accumulated amortization and net carrying value of intangible assets by segment and by type as of September 30, 2020 and December 31, 2019 was as follows:
Atrium As described above, the assets and liabilities related to the Atrium segment have been classified as held-for-sale as of September 30, 2020. The following table presents the amortization recorded on the intangible assets prior to the reclassification to held-for-sale:
StarStone During the three and nine months ended September 30, 2020, we recognized impairment losses of $nil and $4.0 million respectively, on StarStone's Lloyd's syndicate capacity following our decision to place StarStone International into run-off.
|
Debt Obligations and Credit Facilities |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT OBLIGATIONS AND CREDIT FACILITIES | 14. DEBT OBLIGATIONS AND CREDIT FACILITIES We utilize debt financing and credit facilities primarily for funding acquisitions and significant new business, investment activities and, from time to time, for general corporate purposes. Our debt obligations were as follows:
During the nine months ended September 30, 2020, the EGL Revolving Credit Facility was utilized for funding (i) significant new business as described in Note 3 - "Significant New Business," (ii) investment opportunities and (iii) to provide additional liquidity in the first half of the year during the financial disruption associated with the COVID-19 pandemic. In addition, we issued the Junior Subordinated Notes and used the proceeds to repay the 2018 EGL Term Loan Facility. The table below provides a summary of the total interest expense:
Senior Notes 4.50% Senior Notes due 2022 On March 10, 2017, we issued the 2022 Senior Notes for an aggregate principal amount of $350.0 million. The 2022 Senior Notes pay 4.50% interest semi-annually and mature on March 10, 2022. We incurred costs of $2.9 million in issuing the 2022 Senior Notes. The unamortized costs as of September 30, 2020 and December 31, 2019 were $0.8 million and $1.4 million, respectively. Refer to Note 15 - "Debt Obligations and Credit Facilities" in our 10-K for the year ended December 31, 2019 for further information regarding the 2022 Senior Notes. 4.95% Senior Notes due 2029 On May 28, 2019, we issued the 2029 Senior Notes for an aggregate principal amount of $500.0 million. The 2029 Senior Notes pay 4.95% interest semi-annually and mature on June 1, 2029. We incurred costs of $6.8 million in issuing the 2029 Senior Notes. The unamortized costs as of September 30, 2020 and December 31, 2019 were $6.1 million and $6.4 million, respectively. Refer to Note 15 - "Debt Obligations and Credit Facilities" in our 10-K for the year ended December 31, 2019 for further information regarding the 2029 Senior Notes. Junior Subordinated Notes 5.75% Junior Subordinated Notes due 2040 On August 26, 2020, our wholly-owned subsidiary, Enstar Finance LLC ("Enstar Finance") issued the Junior Subordinated Notes for an aggregate principal amount of $350.0 million. The Junior Subordinated Notes pay interest (i) from the date of original issue to August 30, 2025 at the fixed rate of 5.75% per annum and (ii) from September 1, 2025, during each five-year period thereafter, at a rate per annum equal to the five-year treasury rate as of two business days prior to the beginning of such five-year period plus 5.468%, as reset at the beginning of each such five-year period. Absent certain conditions, interest on the Junior Subordinated Notes is payable semi-annually, commencing on March 1, 2021, and the Junior Subordinated Notes are scheduled to mature on September 1, 2040. The Junior Subordinated Notes are rated BB+ and are unsecured junior subordinated obligations of Enstar Finance. The Junior Subordinated Notes are fully and unconditionally guaranteed by us on an unsecured and junior subordinated basis. These debt securities of Enstar Finance are effectively subordinate to the obligations of our other subsidiaries. We incurred costs of $5.2 million in issuing the Junior Subordinated Notes. These costs included underwriters’ fees, legal and accounting fees, and other fees, and are capitalized and presented as a direct deduction from the principal amount of debt obligations in the consolidated balance sheets. These costs are amortized over the term of the Junior Subordinated Notes and are included in interest expense in our consolidated statements of earnings. The unamortized costs as of September 30, 2020 were $5.2 million. The net proceeds of $344.8 million, plus cash on hand, were used to repay $350.0 million of borrowings under our 2018 EGL Term Loan Facility, discussed further below. EGL Revolving Credit Facility As of September 30, 2020, we were permitted to borrow up to an aggregate of $600.0 million under the revolving credit facility. As of September 30, 2020, there was $340.0 million of available unutilized capacity under the facility. Subsequent to September 30, 2020, we have neither borrowed nor repaid any additional amounts under the facility, as such the unutilized capacity remains at $340.0 million. We have the option to increase the commitments under the facility by up to an aggregate amount of $400.0 million from the existing lenders, or through the addition of new lenders, subject to the terms of the agreement. Borrowings under the facility bear interest at a rate based on the Company's long term senior unsecured debt ratings. Interest is payable at least every month at either the alternate base rate ("ABR") or LIBOR plus a margin as set forth in the revolving credit agreement. 2018 EGL Term Loan Facility On December 27, 2018, we entered into and fully utilized a three-year $500.0 million unsecured term loan (the "2018 EGL Term Loan Facility"). During 2019, we repaid principal of $150.0 million, and during the three months ended September 30, 2020, we repaid the remaining $350.0 million of principal on the facility. As of September 30, 2020, there was no amount outstanding on the 2018 EGL Term Loan Facility. We incurred costs of $1.5 million associated with closing the 2018 EGL Term Loan Facility. These costs were amortized over the term of the facility and are included in general and administrative expenses in our consolidated statements of earnings. The unamortized costs as of September 30, 2020 and December 31, 2019 were $nil and $1.0 million, respectively. Letters of Credit We utilize unsecured and secured letters of credit to support certain of our insurance and reinsurance performance obligations. Funds at Lloyd's We had an unsecured letter of credit agreement for Funds at Lloyd's ("FAL Facility") as of September 30, 2020, to issue up to $375.0 million of letters of credit, with provision to increase the facility by an additional $25.0 million up to an aggregate amount of $400.0 million, subject to lenders approval. On November 5, 2020, we amended and restated the FAL Facility to reduce its capacity to $275.0 million (with provision to increase the facility by an additional $75.0 million) and extend its term by two years. The FAL Facility is available to satisfy our Funds at Lloyd's requirements and expires in 2025. As of September 30, 2020 and December 31, 2019, our combined Funds at Lloyd's were comprised of cash and investments of $547.0 million and $639.3 million, respectively, and unsecured letters of credit of $252.0 million as of both dates. $120.0 million Letter of Credit Facility We use this facility to support certain reinsurance collateral obligations of our subsidiaries. Pursuant to the facility agreement, we have the option to increase commitments under the facility by an additional $60.0 million. As of September 30, 2020 and December 31, 2019, we had issued an aggregate amount of letters of credit under this facility of $120.0 million and $115.3 million, respectively. $800.0 million Syndicated Letter of Credit Facility During 2019, we entered into an unsecured $760.0 million letter of credit facility agreement, most recently amended on June 3, 2020. On August 4, 2020, we exercised our option to increase the commitments available under the facility by an aggregate amount of $40.0 million, bringing the total size of the facility to $800.0 million. The facility is used to collateralize certain reinsurance obligations, including $456.8 million relating to the reinsurance transaction with Maiden Reinsurance Ltd. As of September 30, 2020 and December 31, 2019, we had issued an aggregate amount of letters of credit under this facility of $619.8 million and $608.0 million, respectively. $65.0 million Letter of Credit Facility On August 4, 2020, we entered into a $65.0 million secured letter of credit facility agreement pursuant to which we issued a letter of credit to collateralize a portion of our reinsurance performance obligations relating to our novation transaction with Hannover Re, which we completed on August 6, 2020, as discussed in Note 3 - "Significant New Business". As of September 30, 2020, we had issued an aggregate amount of letters of credit under this facility of $61.0 million. Refer to Note 15 - "Debt Obligations and Credit Facilities" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the terms of the above letter of credit facilities.
|
Noncontrolling Interests |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NONCONTROLLING INTERESTS | 15. NONCONTROLLING INTERESTSWe have both redeemable noncontrolling interest ("RNCI") and noncontrolling interest ("NCI") on our consolidated balance sheets. RNCI with redemption features that are not solely within our control are classified within temporary equity in the consolidated balance sheets and carried at redemption value, which is fair value. The change in fair value is recognized through retained earnings as if the balance sheet date were also the redemption date. In addition, we also have NCI, which does not have redemption features and is classified within equity in the consolidated balance sheets. Redeemable Noncontrolling Interest RNCI as of September 30, 2020 and December 31, 2019 comprised the ownership interests held by the Trident V Funds ("Trident") (39.3%) and funds advised by Dowling Capital Partners, L.P. ("Dowling") (1.7%) in our subsidiary North Bay Holdings Limited ("North Bay"). North Bay owns our investments in Atrium and StarStone. The following is a reconciliation of the beginning and ending carrying amount of the equity attributable to the RNCI:
(1) The Company adopted and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. We carried the RNCI at its estimated redemption value, which is fair value, as of September 30, 2020 and December 31, 2019. The increase in the three months ended September 30, 2020 was attributable to $21.0 million of net earnings primarily related to StarStone due to higher underwriting income in the period; partially offset by, an $11.4 million reduction in redemption value. The redemption value decreased as a result of the agreement to sell Northshore. The decrease in the nine months ended September 30, 2020 was attributable to $31.1 million of net losses related to StarStone resulting from exit costs associated with the decision to place StarStone International into run-off; and $38.1 million due to change in redemption value. The redemption value decreased as a result of the StarStone International Run-Off decision and the agreement to sell both StarStone U.S and Northshore. Refer to Note 21 - "Commitments and Contingencies" for additional information regarding RNCI.Noncontrolling Interest As of September 30, 2020 and December 31, 2019, we had $14.5 million and $14.2 million, respectively, of NCI related to external interests in three of our subsidiaries. A reconciliation of the beginning and ending carrying amount of the equity attributable to NCI is included in the unaudited condensed consolidated statement of changes in shareholders equity.
|
Share Capital |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE CAPITAL | 16. SHARE CAPITAL Refer to Note 17 - "Share Capital" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information on our share capital. Dividends Declared and Paid The following table details the dividends that have been declared and paid on our Series D and E Preferred Shares for the period from January 1, 2020 to November 6, 2020:
Share Repurchases On March 9, 2020, our Board of Directors adopted a stock trading plan for the purpose of repurchasing a limited number of our Company’s ordinary shares, not to exceed $150.0 million in aggregate (the "Repurchase Program"). On March 23, 2020, we suspended our Repurchase Program due to uncertainty in the global financial markets resulting from the COVID-19 pandemic. The Repurchase Program resumed on September 21, 2020 and expires on March 1, 2021. From inception to September 30, 2020, we repurchased 174,464 ordinary shares at an average price of $145.53, for an aggregate price of $25.4 million under the Repurchase Program. As of September 30, 2020, the remaining capacity under the Repurchase Program was $124.6 million. Subsequent to September 30, 2020, we repurchased 3,816 ordinary shares for an aggregate price of $0.6 million under the Repurchase program. Joint Share Ownership Plan On January 21, 2020, 565,630 Voting Ordinary Shares were issued to the trustee of the Enstar Group Limited Employee Benefit Trust (the "EB Trust"). Voting rights in respect of shares held in the EB Trust have been contractually waived. We have consolidated the EB Trust, and shares held in the EB Trust are classified like treasury shares as contra-equity in our consolidated balance sheet. The EB Trust supports awards made under our Joint Share Ownership Plan, a sub-plan to our Amended and Restated 2016 Equity Incentive Plan (the "JSOP"). An award of 565,630 shares was made to our Chief Executive Officer on January 21, 2020, which cliff-vests after 3 years from grant. The accounting for stock-settled JSOP awards is similar to options, whereby the grant date fair value of $13.6 million is expensed over the life of the award. To determine the grant date fair value of $24.13 per share, we utilized a Monte-Carlo valuation model with the following assumptions: (i) volatility of 18.66%; (ii) dividend yield of 0.00%; and (iii) risk-free interest rate of 1.55%. For further information on the EB Trust and JSOP award, including the vesting conditions, refer to Note 17 - "Share Capital" and Note 19 - "Share-Based Compensation and Pensions" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019.
|
Earnings Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | 17. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net earnings per ordinary share:
(1) Net earnings (loss) from continuing operations attributable to Enstar ordinary shareholders equals net earnings (loss) from continuing operations, plus net loss (earnings) from continuing operations attributable to noncontrolling interest, less dividends on preferred shares. (2) Net earnings (loss) from discontinued operations attributable to Enstar ordinary shareholders equals net earnings (loss) from discontinued operations, net of income taxes, plus net loss (earnings) from discontinued operations attributable to noncontrolling interest; refer to Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for a breakdown by period. (3) Weighted-average ordinary shares for basic earnings per share includes ordinary shares (voting and non-voting) but excludes ordinary shares held in the EB Trust in respect of JSOP awards. (4) Share-based dilutive securities include restricted shares, restricted share units, and performance share units. Certain share-based compensation awards, including the ordinary shares held in the EB Trust in respect of JSOP awards, were excluded from the calculation for the three and nine months ended September 30, 2020 because they were anti-dilutive.
|
Share-Based Compensation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | 18. SHARE-BASED COMPENSATION We provide various employee benefits including share-based compensation, an employee share purchase plan and an annual incentive compensation program. These are described in Note 19 - "Share-Based Compensation and Pensions" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019. The table below provides a summary of the compensation costs for all of our share-based compensation plans:
|
Income Taxation |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXATION | 19. INCOME TAXATION Interim Tax Calculation Method We use the estimated annual effective tax rate method for computing our interim tax provision. This method applies our best estimate of the effective tax rate expected for the full year to our year-to-date earnings before income taxes. We provide for income tax expense or benefit based upon our pre-tax earnings and the provisions of currently enacted tax laws. Certain items deemed to be unusual, infrequent or not reliably estimated are excluded from the estimated annual effective tax rate. In the event such items are identified, the actual tax expense or benefit is reported in the same period as the related item. Certain other items are not included in the estimated annual effective tax rate, such as changes in the assessment of valuation allowance on deferred tax assets and uncertain tax positions, if any. Interim Tax Expense The effective tax rates on income for the three months ended September 30, 2020 and 2019 were 2.1% and 10.2%, respectively. The effective tax rates on income for the nine months ended September 30, 2020 and 2019 were 2.8% and 3.4%, respectively. The effective tax rate on income differs from the statutory rate of 0% due to tax on foreign operations, primarily the U.S. and the U.K. We have foreign operating subsidiaries and branch operations principally located in the U.S., U.K., Continental Europe and Australia that are subject to federal, foreign, state and local taxes in those jurisdictions. Deferred tax liabilities have not been accrued with respect to the undistributed earnings of our foreign subsidiaries. If the earnings were to be distributed, as dividends or other distributions, withholding taxes may be imposed by the jurisdiction of the paying subsidiary. For our U.S. subsidiaries, we have not currently accrued any withholding taxes with respect to unremitted earnings as management has indefinitely reinvested these earnings. For our U.K. subsidiaries, there are no withholding taxes imposed. For our other foreign subsidiaries, it would not be practicable to compute such amounts due to a variety of factors, including the amount, timing, and manner of any repatriation. Because we operate in many jurisdictions, our net earnings are subject to risk due to changing tax laws and tax rates around the world. The current, rapidly changing economic environment may increase the likelihood of substantial changes to tax laws in the jurisdictions in which we operate.Assessment of Valuation Allowance on Deferred Tax Assets We have estimated the future taxable income of our foreign subsidiaries and have provided a valuation allowance in respect of loss carryforwards where we do not expect to realize a benefit. We have considered all available evidence using a "more likely than not" standard in determining the amount of the valuation allowance. During the three and nine months ended September 30, 2020, we have maintained a valuation allowance for deferred tax assets which management does not believe meet the "more likely than not" criteria. Unrecognized Tax Benefits There were no unrecognized tax benefits as of September 30, 2020 and December 31, 2019. Tax Examinations Our operating subsidiaries may be subject to audit by various tax authorities and may have different statutes of limitations expiration dates. With limited exceptions, our major subsidiaries that operate in the U.S., U.K. and Australia are no longer subject to tax examinations for years before 2015.
|
Related Party Transactions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS | 20. RELATED PARTY TRANSACTIONSStone Point Capital LLC Through several private transactions occurring from May 2012 to July 2012 and an additional private transaction that closed in May 2018, investment funds managed by Stone Point Capital LLC ("Stone Point") have acquired an aggregate of 1,635,986 of our Voting Ordinary Shares (which constitutes approximately 8.8% of our outstanding Voting Ordinary Shares). On November 6, 2013, we appointed James D. Carey to our Board of Directors. Mr. Carey is the sole member of an entity that is one of four general partners of the entities serving as general partners for Trident, is a member of the investment committees of such general partners, and is a member and senior principal of Stone Point, the manager of the Trident funds. Our interests in StarStone and Atrium are held through North Bay, which is a joint venture between us and the Trident V Funds that are advised by Stone Point. We currently own an indirect 59.0% interest in North Bay and the Trident V Funds and the Dowling Funds currently own 39.3% and 1.7%, respectively. North Bay owns 100% of SSHL, the holding company for the StarStone group, which includes StarStone U.S. and StarStone International. North Bay also owns approximately 92% of Northshore, the holding company that owns Atrium and Arden. North Bay also owns the preferred equity of three segregated cells of Fitzwilliam Insurance Limited (the “Fitzwilliam Cells”) that have provided reinsurance to StarStone and are considered part of StarStone International. On June 10, 2020, North Bay and one of its subsidiaries entered into an agreement to sell StarStone U.S. to Core Specialty in a recapitalization transaction described in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations". Pursuant to the terms of a Recapitalization Agreement entered into on August 13, 2020 among us, the Trident V Funds and the Dowling Funds (the "Recapitalization Agreement"), we agreed to exchange a portion of our indirect interest in Northshore for all of the Trident V Funds’ indirect interest in StarStone U.S. (the “Exchange Transaction”), which is described in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations". In addition to the terms described in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations", the Recapitalization Agreement also provides for a preferred return to us of any cash received upon the sale of StarStone U.S. to reimburse us for certain funding provided to one of the Fitzwilliam Cells. To the extent the cash received upon the sale of StarStone U.S. exceeds the amount needed to reimburse us for the funding provided to the Fitzwilliam Cell, the portion of such cash that would otherwise be allocated to the Trident V Funds will be paid to us instead, and we would receive fewer shares in Northshore in the Exchange Transaction. In connection with the closing of the Exchange Transaction, we will enter into amended and restated shareholders’ agreements with the Trident V Funds and the Dowling Funds with respect to our investment in SSHL and Northshore. With respect to SSHL, we will have the right to designate three of five members of the SSHL board of directors and the Trident V Funds will have the right to designate the other two members. The Trident V Funds will also have certain customary rights as a minority shareholder to approve certain material matters and transactions. Each shareholder of SSHL will provide us and the Trident V Funds with a right of first offer to acquire its shares in SSHL if such shareholder wishes to sell them. Each shareholder will also have certain rights to participate in sales of SSHL shares by the other shareholders, and we will have certain rights to cause the Trident V Funds and the Dowling Funds to sell their SSHL shares if we wish to sell control of SSHL or the StarStone International business. Also pursuant to the terms of the proposed shareholders’ agreement for SSHL, at any time after December 31, 2022, the Trident V Funds will have the right to cause us to purchase their shares in SSHL at their fair market value, and the Dowling Funds will have the right to participate in any such sale transaction initiated by the Trident V Funds. We will be entitled to pay the purchase price for such SSHL shares in cash or in unrestricted ordinary shares of Enstar that are then listed or admitted to trading on a national securities exchange. At any time after March 31, 2023, we will have the right to cause the Trident V Funds and the Dowling Funds to sell their shares in SSHL to us at their fair market value. We would be obligated to pay the purchase price for such SSHL shares in cash. Pursuant to the terms of the proposed shareholders’ agreement for Northshore, for so long as we own 50% or more of the Northshore shares we acquire upon the closing of the Exchange Transaction, we will have the right to designate one member to the board of directors of Northshore and each of its material subsidiaries. Our shares in Northshore will be subject to an 18-month restriction on transfer following the closing of the Exchange Transaction, after which the Trident V Funds will have a right of first offer to acquire our shares in Northshore if we wish to sell them. We will have certain rights to participate in sales of Northshore shares by the Trident V Funds, and the Trident V Funds will have certain rights to cause us to sell our Northshore shares if the Trident V Funds wish to sell control of Northshore or the Atrium business. Pursuant to the terms of the existing shareholders’ agreements related to StarStone and Atrium, Mr. Carey serves as a representative of the Trident V Funds on the boards of the holding companies, including North Bay, established in connection with the Atrium/Arden and StarStone co-investment transactions. Trident also has a second representative on these boards who is a Stone Point employee. We, in partnership with StarStone's other shareholders, have previously completed two transactions to provide capital support to StarStone in the form of: (i) a contribution to its contributed surplus account and a loss portfolio transfer, effective October 1, 2018. To fund the transaction, the North Bay shareholders contributed an aggregate amount of $135.0 million to North Bay in proportion to their ownership interests. Trident’s proportionate contribution of $53.1 million was temporarily funded by North Bay and was reimbursed in the first quarter of 2019; and (ii) a loss portfolio transfer, effective April 1, 2019, for which shareholders agreed to contribute an aggregate amount of $48.0 million. In addition, Enstar has separately entered into a loss portfolio transfer and adverse development cover with StarStone effective October 1, 2019, whereby StarStone transferred $189.4 million in loss reserves and unearned premium to a wholly-owned Enstar subsidiary in exchange for premium of $189.4 million. Enstar also provided an additional $59.0 million adverse development cover in excess of the $189.4 million. The RNCI on our balance sheet relating to these Trident co-investment transactions was as follows:
As of September 30, 2020, we had the following additional relationships with Stone Point and its affiliates: •Investments in funds (carried within other investments) managed by Stone Point, with respect to which we recognized net unrealized gains (losses); •Investments in registered investment companies affiliated with entities owned by Trident or otherwise affiliated with Stone Point, with respect to which we recognized net unrealized gains (losses) and interest income; •Separate accounts managed by Eagle Point Credit Management, PRIMA Capital Advisors and SKY Harbor Capital Management, which are affiliates of entities owned by Trident, with respect to which we incurred management fees; •Investments in funds (carried within other investments) managed by Sound Point Capital, an entity in which Mr. Carey has an indirect minority ownership interest and serves as a director, with respect to which we recognized net unrealized gains (losses); •Sound Point Capital has acted as collateral manager for certain of our direct investments in CLO debt and equity securities, with respect to which we recognized net unrealized gains (losses) and interest income; •Marble Point Capital, which is an affiliate of an entity owned by Trident, has acted as collateral manager for certain of our direct investments in CLO debt and equity securities, with respect to which we recognized net unrealized gains (losses) and interest income; •A separate account managed by Sound Point Capital, with respect to which we incurred management fees in prior periods; •In the fourth quarter of 2018, we invested $25.0 million in Mitchell TopCo Holdings, the parent company of Mitchell International and Genex Services, as a co-investor alongside certain Trident funds; and •In the second quarter of 2020, we invested $10.0 million in a 2 year senior secured unrated floating rate term loan facility with an extension option which was arranged and managed by Sound Point Capital. The facility's borrower, Amplify U.S. Inc., is a subsidiary of Evergreen (as defined below) and has used the proceeds to purchase AmTrust's preferred stock. The facility ranks senior to all other claims of the borrower, the purchased preferred stock and cash flows therefrom serve as collateral, and AmTrust has provided an unsecured guarantee for the facility. For further information on our relationships with Evergreen and AmTrust, refer to the AmTrust section below. The following table presents the amounts included in our consolidated balance sheet related to our related party transactions with Stone Point and its affiliated entities:
The following table presents the amounts included in net earnings related to our related party transactions with Stone Point and its affiliated entities:
We have made direct investments in funds (the “Hillhouse Funds”) managed by Hillhouse Capital Management, Ltd. and Hillhouse Capital Advisors, Ltd. (together, “Hillhouse Capital”) and AnglePoint Asset Management Ltd. ("AnglePoint"). As of September 30, 2020, our carrying value of our direct investment the InRe Fund, L.P. (the "InRe Fund"), which is managed by AnglePoint, was $1.8 billion with the InRe Fund's assets being invested in approximately (1)% in net short fixed income securities, 22% in North American equities, 49% in international equities and 30% in financing, derivatives and other items. As of September 30, 2020 and December 31, 2019 our equity method investee, Enhanzed Reinsurance Ltd. ("Enhanzed Re"), had investments in a fund managed by AnglePoint, as set forth in the table below. Our consolidated balance sheet included the following balances related to transactions with Hillhouse Capital and AnglePoint (as applicable):
The increase in the investment in the Hillhouse Funds was primarily due to additional subscriptions of $300.0 million and unrealized gains for the nine months ended September 30, 2020. We incurred management and performance fees of approximately $263.3 million, included within the Hillhouse Funds' reported NAV, for the nine months ended September 30, 2020 in relation to the investment in funds managed by Hillhouse Capital and AnglePoint as described above. Monument ReMonument Insurance Group Limited ("Monument Re") was established in October 2016 and Enstar has invested a total of $59.6 million in the common and preferred shares of Monument Re as at September 30, 2020 (December 31, 2019: $26.6 million). We own 20% of the common shares of Monument Re, as well as different classes of preferred shares which have fixed dividend yields, and which collectively represented a total economic interest of 23.0% as at September 30, 2020 (December 31, 2019: 23.5%). In connection with our investment in Monument Re, we entered into a Shareholders Agreement with the other shareholders and have accounted for our equity interest in Monument Re as an equity method investment since we have significant influence over its operating and financial policies. On May 31, 2019, we completed the transfer of our remaining life assurance policies written by our wholly-owned subsidiary Alpha Insurance SA to a subsidiary of Monument Re. In this transaction, we transferred policy benefits for life and annuity contracts with a carrying value of €88.8 million (or $99.1 million) and total assets with a fair value of €91.1 million (or $101.6 million) to a subsidiary of Monument Re. Our investment in the common and preferred shares of Monument Re, which is included in equity method investments on our consolidated balance sheet, was as follows:
During the three and nine months ended September 30, 2020 we received director fees from Monument Re of less than $0.1 million and $0.1 million, respectively, in connection with one of our representatives serving on Monument Re's board of directors. Clear Spring (formerly SeaBright) Effective January 1, 2017, we sold SeaBright Insurance Company (“SeaBright Insurance”) to Clear Spring PC Acquisition Corp., a subsidiary of Delaware Life Insurance Company ("Delaware Life"). Following the sale, SeaBright Insurance was capitalized with $56.0 million of equity, with Enstar retaining a 20% indirect equity interest in SeaBright Insurance. Subsequently, SeaBright Insurance was renamed Clear Spring Property and Casualty Company ("Clear Spring"). We have accounted for our equity interest in Clear Spring as an equity method investment as we have significant influence over its operating and financial policies. Our investment in the common shares of Clear Spring which is included in equity method investments on our consolidated balance sheet, was as follows:
Effective January 1, 2017, StarStone National Insurance Company (“StarStone National”) entered into a ceding quota share treaty with Clear Spring pursuant to which Clear Spring reinsures 33.3% of core workers' compensation business written by StarStone National. This agreement was terminated as of December 31, 2018. Effective January 1, 2017, we also entered into an assuming quota share treaty with Clear Spring pursuant to which an Enstar subsidiary reinsures 25% of all workers' compensation business written by Clear Spring. This is recorded as other activities. Our consolidated balance sheet included the following balances between us and Clear Spring:
Our consolidated statement of earnings included the following amounts between us and Clear Spring:
AmTrust In November 2018, pursuant to a Subscription Agreement with Evergreen Parent L.P. ("Evergreen"), K-Z Evergreen, LLC and Trident Pine Acquisition LP ("Trident Pine"), we purchased equity in Evergreen in the aggregate amount of $200.0 million. Evergreen is an entity formed by private equity funds managed by Stone Point and the Karfunkel-Zyskind family that acquired the approximately 45% of the issued and outstanding shares of common stock of AmTrust that the Karfunkel-Zyskind Family and certain of its affiliates and related parties did not already own or control. The equity interest was in the form of three separate classes of equity securities issued at the same price and in the same proportion as the equity interest purchased by Trident Pine. In a second transaction in December 2019, Enstar acquired an additional $25.9 million of Evergreen securities from another investor. Following the closing of the second transaction, Enstar owns approximately 8.5% of the equity interest in Evergreen and Trident Pine owns approximately 21.8%. Evergreen owns all of the equity interest in AmTrust. In addition, upon the successful closing of the transaction we received a fee of $3.3 million, half of which was payable upon closing and the other on the first anniversary of the closing. The fee was recorded in full in other income within our consolidated statements of earnings for the year ended December 31, 2018.Our indirect investment in the shares of AmTrust, carried in equities on our consolidated balance sheet was as follows:
The following table presents the amounts included in net earnings related to our related party transactions with AmTrust:
In June 2018, we made a $50.0 million indirect investment in the shares of Citco III Limited ("Citco"), a fund administrator with global operations. Pursuant to an investment agreement and in consideration for participation therein, a related party of Hillhouse Capital provided us with investment support. In a private transaction that preceded our co-investment opportunity, certain Citco shareholders, including Trident, agreed to sell all or a portion of their interests in Citco. As of September 30, 2020, Trident owned an approximate 3.4% interest in Citco. Mr. Carey currently serves as an observer to the board of directors of Citco in connection with Trident's investment therein. Our indirect investment in the shares of Citco, which is included in equity method investments on our consolidated balance sheet, was as follows:
Enhanzed Re. Enstar owns 47.4% of the entity, Allianz owns 24.9% and an affiliate of Hillhouse Capital owns 27.7%. As of September 30, 2020, Enstar contributed $154.1 million of its total capital commitment to Enhanzed Re and had an uncalled amount of $68.7 million. We have accounted for our equity interest in Enhanzed Re as an equity method investment as we have significant influence over its operating and financial policies. Enstar acts as the (re)insurance manager for Enhanzed Re, for which it receives fee income recorded within other income, AnglePoint acts as the primary investment manager, and an affiliate of Allianz provides investment management services. Enhanzed Re writes business from affiliates of its operating sponsors, Allianz SE and Enstar. It also underwrites other business to maximize diversification by risk and geography. Our investment in the common shares of Enhanzed Re, which is included in equity method investments on our consolidated balance sheet, was as follows:
We have ceded 10% of the Zurich transaction, as discussed in Note 4 - "Significant New Business" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019, to Enhanzed Re on the same terms and conditions as those received by Enstar. Effective October 1, 2020, we have ceded 10% of the AXA Group transaction, as described in Note 3 - "Significant New Business," to Enhanzed Re on the same terms and conditions as those received by Enstar. Our consolidated balance sheet included the following balances between us and Enhanzed Re:
Our consolidated statement of earnings included the following amounts between us and Enhanzed Re:
|
Commitments and Contingencies |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES Concentration of Credit Risk We believe that there are no significant concentrations of credit risk associated with our cash and cash equivalents, fixed maturity investments, or other investments. Our cash and investments are managed pursuant to guidelines that follow prudent standards of diversification and liquidity, and limit the allowable holdings of a single issue and issuers. We are also subject to custodial credit risk on our investments, which we manage by diversifying our holdings amongst large financial institutions that are highly regulated. We have exposure to credit risk on certain of our assets pledged to ceding companies under insurance contracts. In addition, we are potentially exposed should any insurance intermediaries be unable to fulfill their contractual obligations with respect to payments of balances owed to and by us. Credit risk exists in relation to insurance and reinsurance balances recoverable on paid and unpaid losses. We remain liable to the extent that counterparties do not meet their contractual obligations and, therefore, we evaluate and monitor concentration of credit risk among our insurers and reinsurers. We are also subject to credit risk in relation to funds held by reinsured companies. Under funds held arrangements, the reinsured company has retained funds that would otherwise have been remitted to our reinsurance subsidiaries. The funds may be placed into trust or subject to other security arrangements. However, we generally have the contractual ability to offset any shortfall in the payment of the funds held balances with amounts owed by us. As of September 30, 2020, we had a significant funds held concentration of $948.3 million to one reinsured company which has financial strength credit ratings of A+ from A.M. Best and AA from S&P. We limit the amount of credit exposure to any one counterparty, and none of our counterparty credit exposures, excluding U.S. government instruments and the counterparty noted above, exceeded 10% of shareholders’ equity as of September 30, 2020. Our credit exposure to the U.S. government was $1.2 billion as of September 30, 2020. Legal Proceedings We are, from time to time, involved in various legal proceedings in the ordinary course of business, including litigation and arbitration regarding claims. Estimated losses relating to claims arising in the ordinary course of business, including the anticipated outcome of any pending arbitration or litigation, are included in the liability for losses and LAE in our consolidated balance sheets. In addition to claims litigation, we may be subject to other lawsuits and regulatory actions in the normal course of business, which may involve, among other things, allegations of underwriting errors or omissions, employment claims or regulatory activity. We do not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material effect on our business, results of operations or financial condition. We anticipate that, similar to the rest of the insurance and reinsurance industry, we will continue to be subject to litigation and arbitration proceedings in the ordinary course of business, including litigation generally related to the scope of coverage with respect to asbestos and environmental and other claims. Unfunded Investment Commitments As of September 30, 2020, we had unfunded commitments of $792.2 million to other investments, $68.7 million to equity method investments and $15.0 million to fixed maturity investments. Guarantees As of September 30, 2020 and December 31, 2019, parental guarantees and capital instruments supporting subsidiaries' insurance obligations were $1.4 billion and $1.0 billion, respectively. We also guarantee the Junior Subordinated Notes and the FAL facility, which are described in Note 14 - "Debt Obligations and Credit Facilities." In connection with the sale of StarStone U.S., the net loss reserves of StarStone U.S. will be reinsured to an Enstar Non-life Run-off entity upon completion of the sale which is expected to occur in the fourth quarter of 2020. The obligations under the loss portfolio transfer reinsurance agreement will be guaranteed by Enstar. Refer to Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for further details. Redeemable Noncontrolling Interest We have the right to purchase the RNCI interests from the RNCI holders at certain times in the future (each such right, a "call right") and the RNCI holders have the right to sell their RNCI interests to us at certain times in the future (each such right, a "put right"). Pursuant to the Exchange Transaction described in Note 20 - "Related Party Transactions" we have agreed to exchange a portion of our indirect interest in Northshore for all of the Trident V Funds' indirect interest in StarStone U.S. Following the closing of the Exchange Transaction, we will maintain a call right over the portion of SSHL owned by the Trident V Funds and the Dowling Funds, and they will maintain put rights to transfer those interests to us. Leases Our leases are all currently classified as operating leases whereby the related lease expense is recognized within general and administrative expenses in our consolidated statements of earnings on a straight-line basis over the term of the lease. We also recognize a right-of-use asset and an offsetting lease liability within other assets and other liabilities, respectively, in our consolidated balance sheets, for each operating lease that we enter into. Our leases are primarily related to office space and facilities used to conduct business operations and have remaining lease terms of one year to 37 years; some of which include options to extend the lease term for up to five years, and some of which include options to terminate the lease within one year. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Since a majority of our leases do not provide an implicit discount rate, we use our collateralized incremental borrowing rate based on the information available at the commencement date of the lease in determining the present value of lease payments. For more information on our leasing arrangements and the related accounting, refer to Note 23 - "Commitments and Contingencies" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019. The table below provides the lease cost and other information relating to our operating leases:
(1) Leases with an initial lease term of twelve months or less are not recognized within our consolidated balance sheets. (2) Sub-lease income consists of rental income received from third parties to whom we have sub-leased some of our leased office spaces and is included within other income in our consolidated statements of earnings. The table below provides a summary of the operating leases recorded on our consolidated balance sheets:
(1) Following our decision to put the StarStone International operations into orderly run-off effective June 10, 2020, we recorded total impairment charges of $3.5 million on the right-of-use assets relating to certain StarStone International operating leases as of September 30, 2020. (2) The right-of-use assets and the total lease liability balances exclude balances of $1.5 million and $1.0 million respectively, related to Atrium which have been reclassified to held-for-sale balances on our consolidated balance sheet as of September 30, 2020. The table below provides a summary of the contractual maturities of our operating lease liabilities:
|
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | 22. SEGMENT INFORMATION We have three reportable segments of business that are each managed, operated and separately reported: (i) Non-life Run-off; (ii) Atrium; and (iii) StarStone. Our other activities, which do not qualify as a reportable segment, include our corporate expenses, debt servicing costs, holding company income and expenses, foreign exchange and other miscellaneous items. These segments are described in Note 1 - "Description of Business" to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019.The following tables set forth selected and unaudited condensed consolidated statement of earnings results by segment and for our other activities:
Assets by Segment Invested assets are managed on a subsidiary basis, and investment income and realized and unrealized gains (losses) on investments are recognized in each segment as earned. Our total assets by segment and for our other activities were as follows:
(1) The total assets within the Non-life Run-off segment include assets of $12.4 million related to Arden's operations that have been included within Northshore's held-for-sale assets in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations." (2) The total assets within the Atrium segment are all included within Northshore's held-for-sale assets in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations." (3) The total assets within the StarStone segment include assets of $1.5 billion related to StarStone U.S. which are disclosed as held-for-sale assets in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations."
|
Significant Accounting Policies (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Preparation | These unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. |
Basis of Consolidation | Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements reflect all adjustments consisting of normal recurring items considered necessary for a fair presentation under U.S. GAAP. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019. All significant inter-company transactions and balances have been eliminated. In these notes, the terms "we," "us," "our," "Enstar," or "the Company" refer to Enstar Group Limited and its consolidated subsidiaries. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation as described in further detail in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations." These reclassifications had no impact on net earnings. |
Use of Estimates | The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our actual results may differ materially from these estimates. Results of changes in estimates are reflected in earnings in the period in which the change is made. Accounting policies that we believe are most dependent on assumptions and estimates are considered to be our critical accounting policies and are related to the determination of: •liability for losses and loss adjustment expenses ("LAE"); •reinsurance balances recoverable on paid and unpaid losses; •defendant asbestos and environmental liabilities and related insurance balances recoverable; •valuation allowances on reinsurance balances recoverable and deferred tax assets; •impairment charges, including credit allowances on investment securities classified as available-for-sale ("AFS"), and impairments on goodwill, intangible assets and deferred charge assets; •gross and net premiums written and net premiums earned; •fair value measurements of investments; •fair value estimates associated with accounting for acquisitions; •fair value estimates associated with loss portfolio transfer reinsurance agreements for which we have elected the fair value option; and •redeemable noncontrolling interests.
|
Short-term investments and fixed maturity investments | Short-term investments and fixed maturity investments We perform a detailed analysis every reporting period to identify any credit losses on our investment portfolios not measured at fair value through net earnings. Some of the factors that we consider when assessing whether an allowance for credit losses is required on our debt securities include: (1) the extent to which the fair value has been less than the amortized cost; (2) the financial condition, near-term and long-term prospects of the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices; (3) the likelihood of the recoverability of principal and interest; and (4) whether it is more likely than not that we will be required to sell the security prior to an anticipated recovery in value. With effect from January 1, 2020, credit losses on our AFS debt securities are recognized through an allowance account which is deducted from the amortized cost basis of the security, with the net carrying value of the security presented on the consolidated balance sheet at the amount expected to be collected. To calculate the amount of the credit loss, we compare the present value of the expected future cash flows with the amortized cost basis of the AFS debt security, with the amount of the credit loss recognized being limited to the excess of the amortized cost basis over the fair value of the AFS debt security, effectively creating a “fair value floor”. See "New Accounting Standards Adopted in 2020" below for the discussion on our adoption of the credit losses standard. For our AFS debt securities that we do not intend to sell or for which it is more likely than not that we will not be required to sell before an anticipated recovery in value, we separate the credit loss component of any unrealized losses from the amount related to all other factors and report the credit loss component in net realized investment gains (losses) in our consolidated statements of earnings. The unrealized losses related to non-credit factors is reported in other comprehensive income. The allowance for credit losses account is adjusted for any additional credit losses, write-offs and subsequent recoveries. For our AFS debt securities where we record a credit loss, a determination is made as to the cause of the credit loss and whether we expect a recovery in the fair value of the security. For our AFS debt securities where we expect a recovery in fair value, the constant effective yield method is utilized, and the investment is amortized to par. For our AFS debt securities that we intend to sell or for which it is more likely than not that we will be required to sell before an anticipated recovery in fair value, the full amount of the unrealized loss is included in net realized investment gains (losses). The new cost basis of the investment is the previous amortized cost basis less the credit loss recognized in net realized investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair value. We report the investment income accrued on our AFS debt securities within other assets and therefore separately from the underlying AFS debt securities. In addition, due to the short-term period during which accrued investment income remains unpaid, which is typically six months, since the coupon on our AFS debt securities is paid semi-annually, we have elected not to establish an allowance for credit losses on our accrued investment income balances. Accrued investment income is written off through net realized investment gains (losses) at the time the issuer of the debt security defaults or is expected to default on payments. Uncollectible debt securities are written off when we determine that no additional payments of principal or interest will be received.
|
Reinsurance Balances Recoverable on Paid and Unpaid Losses | Reinsurance Balances Recoverable on Paid and Unpaid Losses Amounts recoverable from reinsurers are estimated in a manner consistent with the underlying liability for losses and loss adjustment expenses. We report our reinsurance balances recoverable on paid and unpaid losses net of an allowance for estimated uncollectible amounts. The allowance is based upon our ongoing review of the outstanding balances and reflects factors such as the duration of the collection period, credit quality, changes in reinsurer credit standing, default rates specific to the individual reinsurer, the geographical location of the reinsurer, contractual disputes with reinsurers over individual contentious claims, contract language or coverage issues, industry analyst reports and consensus economic forecasts. A probability-of-default methodology that reflects current and forecasted economic conditions is used to estimate the allowance for uncollectible reinsurance due to credit-related factors. See "New Accounting Standards Adopted in 2020" below for the discussion on our adoption of the credit losses standard. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers. Amounts deemed to be uncollectible, including amounts due from known insolvent reinsurers, are written off against the allowance. Changes in the allowance, as well as any subsequent collections of amounts previously written off, are reported as part of the net incurred losses and loss adjustment expenses in our consolidated statements of earnings. On an ongoing basis, we also evaluate and monitor the financial condition of our reinsurers under voluntary schemes of arrangement to minimize our exposure to significant losses from potential insolvencies.
|
Premiums Receivable and Unearned Premium Reserves | Premiums Receivable and Unearned Premium Reserves Premiums are recognized as revenues on a pro-rata basis over the coverage period. Unearned premium reserves represent the unexpired portion of policy premiums. For retrospectively rated contracts as well as those whose written premium amounts are recorded based on premium estimates at inception, accrued premiums arising from changes to these estimates are included in premium balances receivable where appropriate. Premium balances receivable are reported net of an allowance for expected credit losses as appropriate. The allowance is based upon our ongoing review of amounts outstanding, historical loss data, including delinquencies and write-offs, current and forecasted economic conditions and other relevant factors. However, the credit risk on our premiums receivable balances is substantially reduced where we have the ability to cancel the underlying policy if the policyholder does not pay the related premium.
|
New Accounting Standards Adopted in 2020 and Recently Issued Accounting Pronouncements Not Yet Adopted | New Accounting Standards Adopted in 2020 ASU 2020-04 – Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04 – Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which is codified in Accounting Standards Codification ("ASC") 848 and which provides entities with temporary optional expedients and exceptions to the existing US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Inter-bank Offered Rate ("LIBOR") and other inter-bank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate ("SOFR"). Under the provisions of this guidance, entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients for hedging relationships affected by reference rate reform, if certain criteria are met. In addition, entities can make a one-time election to sell, transfer or both sell and transfer debt securities classified as held-to-maturity (“HTM”) that refer to a rate affected by reference rate reform, to AFS or to trading. However, such debt securities must have been classified as HTM before January 1, 2020. Once elected, the amendments in this guidance must be applied prospectively for all eligible contract modifications. The ASU was effective upon issuance and can be applied through to December 31, 2022. We adopted the ASU upon its issuance and as we transition from LIBOR to alternative reference rates, we will elect the temporary optional expedients and exceptions to the existing US GAAP guidance on contract modifications and hedge accounting permitted by the ASU, as appropriate. The adoption of this standard did not have any impact on our consolidated financial statements and disclosures. ASU 2020-03 – Codification Improvements to Financial Instruments In March 2020, the FASB issued ASU 2020-03, which makes narrow-scope improvements to various topics within the codification relating to financial instruments, including the new credit losses standard. The amendments related to certain specific issues covered by the ASU were effective immediately upon the issuance of the ASU, while certain specific issues covered by the ASU and affecting the credit losses standard in ASU 2016-13 are effective in 2020 for those entities that have already adopted ASU 2016-13. We adopted the amendments in this ASU upon its issuance and that adoption did not have a material impact on our consolidated financial statements and the related disclosures. ASUs 2016-13, 2018-19, 2019-04, 2019-05, 2019-10 and 2019-11, Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, which is codified in ASC 326 - Financial Instruments - Credit Losses, amending the guidance on the impairment of financial instruments and significantly changing how entities measure credit losses for most financial assets and certain other financial instruments, including reinsurance balances recoverable on paid and unpaid losses that are not measured at fair value through net earnings. The ASU replaced the “incurred loss” approach that was previously applied to determine credit losses with an “expected loss” model for financial instruments measured at amortized cost. Under the "expected loss" model, the estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses and subsequent adjustments to such losses are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. ASU 2016-13 also amends the other-than-temporary impairment ("OTTI") model that was previously applicable to AFS debt securities, with the new approach now requiring the recognition of impairments relating to credit losses through an allowance account and limiting the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. This revised approach records the full effect of reversals of any credit losses in current period earnings, compared to previous guidance where this reversal was amortized over the lifetime of the security. Under this revised approach, the length of time a security has been in an unrealized loss position will no longer be considered in determining whether to record a credit loss. In addition, the historical and implied volatility of the fair value of a security and recoveries or declines in fair value after the balance sheet date will no longer be considered when making a determination of whether a credit loss exists. We adopted and all the related amendments on January 1, 2020 using the modified retrospective approach for our financial instruments carried at amortized cost, and prospectively for our AFS debt securities as required by the standard, resulting in an overall reduction in retained earnings of $6.1 million as summarized below: •A cumulative effect adjustment of $3.0 million relating to our financial instruments carried at amortized cost, which primarily relates to our insurance balances recoverable on paid and unpaid losses. We already carried significant specific allowances for credit losses of $147.6 million on our reinsurance balances recoverable on paid and unpaid losses, relating primarily to our Non-life Run-off segment and therefore the adoption of this standard did not have a material impact on our balance sheet; and •$3.1 million related to our AFS debt securities whose fair values were less than their amortized cost basis. Recently Issued Accounting Pronouncements Not Yet Adopted Note 2 - "Significant Accounting Policies" to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019 describes accounting pronouncements that were not adopted as of December 31, 2019. Those pronouncements have not yet been adopted unless discussed above in "New Accounting Standards Adopted in 2020." In addition, we are yet to adopt the following accounting pronouncements that the FASB issued during and subsequent to the nine months ended September 30, 2020. ASU 2020-09 – Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 In October 2020, the FASB issued ASU 2020-09, which amends and supersedes various SEC paragraphs in ASC 270, ASC 460, ASC 470 and ASC 505 pursuant to the issuance of the SEC's Release No. 33-10762. Through Release No. 33-10762, the SEC made amendments to the financial disclosure requirements in Regulation S-X for guarantors and issuers of guaranteed securities registered or being registered, and issuers’ affiliates whose securities collateralize securities registered or being registered, to improve those requirements for both investors and registrants. The changes made by the SEC are intended to provide investors with material information given the specific facts and circumstances, make the disclosures easier to understand, and reduce the costs and burdens to registrants. In addition, by reducing the costs and burdens of compliance, issuers may be encouraged to offer guaranteed or collateralized securities on a registered basis, thereby affording investors protection they may not be provided in offerings conducted on an unregistered basis. Finally, by making it less burdensome and less costly for issuers to include guarantees or pledges of affiliate securities as collateral when they structure debt offerings, the revisions may increase the number of registered offerings that include these credit enhancements, which could result in a lower cost of capital and an increased level of investor protection. The amended rules in Release No. 33-10762 are effective on January 4, 2021 although early compliance is permitted, hence we elected early compliance with the new rules. Because the amendments made by the FASB in this ASU are to ensure alignment of the relevant SEC paragraphs in ASC 270, ASC 460, ASC 470 and ASC 505 with the amended rules in Release No. 33-10762, the amendments made by the FASB to these SEC paragraphs will not have a material impact on our disclosures, since we already elected early compliance with the amended rules in Release No. 33-10762. ASU 2020-08 – Codification Improvements to Subtopic 310-20 - Receivables - Nonrefundable Fees and Other Costs In October 2020, the FASB issued ASU 2020-08 to clarify that an entity should re-evaluate whether a callable debt security is within the scope of ASC 310-20-35-33 during each reporting period. All entities are required to apply the amendments in this ASU on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The amendments in this ASU are effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is not permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and the related disclosures. ASU 2020-06 – Accounting for Convertible Instruments and Contracts in an Entity's Own Equity In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. For convertible instruments, the ASU eliminates two of the three accounting models in ASC 470-20 that require separate accounting for embedded conversion features. The ASU also simplifies an issuer's application of the derivatives scope exception in ASC 815-40 for contracts in its own equity and removes some of the conditions that preclude a freestanding contract from being classified in equity, thereby allowing more of such contracts to qualify for equity classification. The amendments in this ASU are effective for interim and annual reporting periods beginning after December 15, 2021 and, although early adoption is permitted, the amendments may not be adopted earlier than during interim and annual reporting periods beginning after December 15, 2020. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and the related disclosures.
|
Divestitures, Held-For-Sale Businesses and Discontinued Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information of Held-For-Sale Business | We have classified the assets and liabilities of Northshore as held-for-sale as of September 30, 2020. The impending disposal of Enstar's majority equity interest in Northshore does not represent a strategic shift that will have a major effect on our operations and financial results, and therefore the disposal is not reported as a discontinued operation during the current or prior periods. The following table summarizes the components of Northshore's assets and liabilities held-for-sale on our consolidated balance sheets as of September 30, 2020:
(1) In accordance with U.S. GAAP, the assets and liabilities of StarStone U.S. as of December 31, 2019 have been reclassified to held-for-sale as a result of the business qualifying as a discontinued operation. The following table summarizes the components of net earnings (loss) from discontinued operations, net of income taxes, related to StarStone U.S., on the consolidated statements of earnings for the three and nine months ended September 30, 2020 and 2019:
The following table presents the cash flows of StarStone U.S. for the nine months ended September 30, 2020 and 2019:
The table below presents a summary of the total income and expenses recognized in continuing operations for the three and nine months ended September 30, 2020 and 2019, relating to intercompany transactions, primarily intragroup reinsurances, between StarStone U.S. and our other subsidiaries:
The following table provides a reconciliation of the assets and liabilities of Northshore and StarStone U.S. held-for-sale on our consolidated balance sheet:
|
Investments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | The fair values of the underlying asset categories comprising our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity | The contractual maturities of our short-term and fixed maturity investments, classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Ratings Company's Fixed Maturity and Short-Term Investments Available-for-Sale | The following table sets forth the credit ratings of our short-term and fixed maturity investments classified as trading and AFS and the fixed maturity investments included within our funds held - directly managed balance as of September 30, 2020:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Values of Company's Fixed Maturity and Short-Term Investments Classified as Available-for-Sale | The amortized cost, unrealized gains and losses, allowance for credit losses and fair values of our short-term and fixed maturity investments classified as AFS as of September 30, 2020 were as follows:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. The amortized cost, unrealized gains and losses and fair values of our short-term and fixed maturity investments classified as AFS as of December 31, 2019 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Investments Classified as Available-for-Sale in Unrealized Loss Position as Well as Aggregate Fair Value and Gross Unrealized Loss by Length of Time | The following table summarizes our short-term and fixed maturity investments classified as AFS that were in a gross unrealized loss position, for which an allowance for credit losses has not been recorded, as of September 30, 2020, aggregated by major security type and length of time in continuous unrealized loss position:
The following table summarizes our short-term and fixed maturity investments classified as AFS that are in a gross unrealized loss position as of December 31, 2019, aggregated by major security type and length of time in continuous unrealized loss position:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Allowance for Credit Losses | The following tables provide a reconciliation of the beginning and ending allowance for credit losses on our AFS debt securities:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Securities | The following table summarizes our equity investments classified as trading:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Investments | The following table summarizes our other investments carried at fair value:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | The following table summarizes our equity method investments:
(1) We own 20.0% of the common shares in Monument Re as well as different classes of preferred shares which have fixed dividend yields.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Held, Directly Managed, Carrying Values of Assets | The following table summarizes the components of the funds held - directly managed:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funds Held, Directly Managed, Fair Value to Amortized Cost | The following table summarizes the fixed maturity investment components of funds held - directly managed:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Categories of Net Investment Income | Major categories of net investment income are summarized as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Gain (Loss) on Investments | Components of net realized and unrealized gains were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | Components of net realized and unrealized gains were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation to Comprehensive Income | The following table provides a reconciliation of the gross realized gains and losses and credit recoveries (losses) on our AFS fixed maturity debt securities that arose during the three and nine months ended September 30, 2020 within our continuing and discontinued operations and the offsetting reclassification adjustments included within our consolidated statements of comprehensive income:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Assets | The carrying value of our restricted assets, including restricted cash of $556.7 million and $346.9 million, as of September 30, 2020 and December 31, 2019, respectively, was as follows:
|
Derivative and Hedging Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value and Unrealized Gains (Losses) on Derivative Instruments | The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our qualifying foreign currency forward exchange rate contracts:
The following table presents the net gains and losses deferred in the cumulative translation adjustment ("CTA") account, which is a component of AOCI, in shareholders' equity, relating to our foreign currency forward exchange rate contracts:
The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our non-qualifying foreign currency forward exchange rate hedging relationships:
The following table presents the net gains (losses) included in earnings related to our non-qualifying foreign currency forward contracts:
The following table presents the gross notional amounts and estimated fair values recorded within other assets and other liabilities related to our credit default swaps, government bond futures contracts and currency forward contracts:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | The following table presents the amounts of the net gains included in earnings related to our credit default swaps, government bond futures contracts and currency forward contracts:
|
Reinsurance Balances Recoverable on Paid and Unpaid Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Reinsurance Reserves Recoverable and Uncollectible Reinsurance Balances Recoverable | The following tables provide the total reinsurance balances recoverable on paid and unpaid losses:
The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Non-life Run-off segment.
The following table provides a summary of premiums written and earned by segment and for our other activities:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Balances Recoverable by Reinsurer |
(1) The reinsurance balances recoverable from the two non-rated top 10 reinsurers was comprised of: •$183.4 million and $190.8 million as of September 30, 2020 and December 31, 2019 respectively, due from a US state backed reinsurer that is supported by assessments on active auto writers operating within the state; and •$78.8 million and $81.4 million as of September 30, 2020 and December 31, 2019 respectively, due from a reinsurer who has provided us with security in the form of pledged assets in trust for the full amount of the recoverable balance. (2) Hannover Ruck SE is rated AA- by Standard & Poor’s and A+ by A.M. Best. The transaction described in Note 3 - "Significant New Business" had the effect of moving this reinsurer to be less than 10%. (3) Lloyd's Syndicates are rated A+ by Standard & Poor's and A by A.M. Best.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation for Reinsurance Recoverable, Allowance for Credit Loss | The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible reinsurance balances for the three and nine months ended September 30, 2020:
|
Deferred Charge Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | The following table presents a reconciliation of the deferred charge assets:
|
Losses and Loss Adjustment Expenses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Losses and Loss Adjustment Expense Liabilities, and Reconciliation of Beginning and Ending Balances | The following tables summarize the liability for losses and LAE by segment and for our other activities:
The table below provides a consolidated reconciliation of the beginning and ending liability for losses and LAE:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. This amount excludes $0.4 million related to the adoption impact of on StarStone U.S., which has been classified as a discontinued operation with the related assets and liabilities disclosed as held-for-sale on our consolidated balance sheets. (2) Net of allowance for estimated uncollectible reinsurance. The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the Non-life Run-off segment:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. (2) Net of allowance for estimated uncollectible reinsurance. The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the Atrium segment:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. (2) Net of allowance for estimated uncollectible reinsurance. The table below provides a reconciliation of the beginning and ending liability for losses and LAE for our StarStone segment:
(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. This amount excludes $0.4 million related to the adoption impact of on StarStone U.S., which has been classified as a discontinued operation with the related assets and liabilities disclosed as held-for-sale on our consolidated balance sheets. (2) Net of allowance for estimated uncollectible reinsurance.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Incurred Losses | The tables below provide the components of net incurred losses and LAE by segment and for our other activities:
Net incurred losses and LAE in the Non-life Run-off segment were as follows:
Net incurred losses and LAE in the Atrium segment were as follows:
Net incurred losses and LAE in the StarStone segment were as follows:
|
Defendant Asbestos and Environmental Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Asbestos and Environmental Claims [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Asbestos and Liability Claims | The carrying value of the asbestos and environmental liabilities, insurance recoveries, future estimated expenses and the fair value adjustments related to DCo and Morse TEC as of September 30, 2020 and December 31, 2019 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Asbestos and Environmental Liabilities | The table below provides a consolidated reconciliation of the beginning and ending liability for defendant asbestos and environmental exposures for the three and nine months ended September 30, 2020 and 2019:
(1) The Company adopted and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details. (2) Net of allowance for estimated uncollectible insurance balances.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Allowance for Estimated Uncollectible Insurance Balances | The table below provides a reconciliation of the beginning and ending allowance for estimated uncollectible insurance balances related to our defendant asbestos liabilities, for the three and nine months ended September 30, 2020:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Categorized Investments Recorded at Fair Value among Levels | We have categorized our assets and liabilities that are recorded at fair value on a recurring basis among levels based on the observability of inputs, or at fair value using NAV per share (or its equivalent) as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation for Assets Measured at Fair Value on a Recurring Basis | The following tables present a reconciliation of the beginning and ending balances for all investments measured at fair value on a recurring basis using Level 3 inputs:
The following table presents a reconciliation of the beginning and ending balances for all insurance contracts measured at fair value on a recurring basis using Level 3 inputs:
The net assumed business of $182.5 million in the current period relates to the Hannover Re novation transaction disclosed in Note 3 - "Significant New Business." Changes in fair value in the table above are included in net incurred losses and LAE in our consolidated statements of earnings. The following table presents the components of the net change in fair value:
Changes in fair value in the table above are included in net incurred losses and LAE in our consolidated statements of earnings. The following table presents the components of the net change in fair value:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Inputs and Techniques | The table below presents the quantitative information related to the fair value measurements for our privately held equity investments measured at fair value on a recurring basis using Level 3 inputs:
(1) The average represents the arithmetic average of the inputs and is not weighted by the relative fair value.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation for Liabilities Measured at Fair Value on a Recurring Basis | The following table presents a reconciliation of the beginning and ending balances for all insurance contracts measured at fair value on a recurring basis using Level 3 inputs:
The net assumed business of $182.5 million in the current period relates to the Hannover Re novation transaction disclosed in Note 3 - "Significant New Business." Changes in fair value in the table above are included in net incurred losses and LAE in our consolidated statements of earnings. The following table presents the components of the net change in fair value:
Changes in fair value in the table above are included in net incurred losses and LAE in our consolidated statements of earnings. The following table presents the components of the net change in fair value:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information | Below is a summary of the quantitative information regarding the significant observable and unobservable inputs used in the internal model to determine fair value on a recurring basis:
|
Premiums Written and Earned (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Premiums Written and Earned | The following tables provide the total reinsurance balances recoverable on paid and unpaid losses:
The following tables show our gross and net balances recoverable from our reinsurers as well as the related allowance for estimated uncollectible reinsurance broken down by the credit ratings of our reinsurers. The majority of the allowance for estimated uncollectible reinsurance relates to the Non-life Run-off segment.
The following table provides a summary of premiums written and earned by segment and for our other activities:
|
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | The following table presents a reconciliation of the beginning and ending goodwill and intangible assets for the nine months ended September 30, 2020:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the goodwill by segment were as follows for the nine months ended September 30, 2020:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Indefinite-Lived Intangible Assets | The gross carrying value, accumulated amortization and net carrying value of intangible assets by segment and by type as of September 30, 2020 and December 31, 2019 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The gross carrying value, accumulated amortization and net carrying value of intangible assets by segment and by type as of September 30, 2020 and December 31, 2019 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets Amortization | Atrium As described above, the assets and liabilities related to the Atrium segment have been classified as held-for-sale as of September 30, 2020. The following table presents the amortization recorded on the intangible assets prior to the reclassification to held-for-sale:
|
Debt Obligations and Credit Facilities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts of Loans Payable Outstanding, and Accrued Interest | Our debt obligations were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | The table below provides a summary of the total interest expense:
|
Noncontrolling Interests (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount of Equity Attributable to Noncontrolling Interest | The following is a reconciliation of the beginning and ending carrying amount of the equity attributable to the RNCI:
(1) The Company adopted and the related amendments on January 1, 2020. Refer to Note 1 - "Significant Accounting Policies" for further details.
|
Share Capital (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared | The following table details the dividends that have been declared and paid on our Series D and E Preferred Shares for the period from January 1, 2020 to November 6, 2020:
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparison of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted net earnings per ordinary share:
(1) Net earnings (loss) from continuing operations attributable to Enstar ordinary shareholders equals net earnings (loss) from continuing operations, plus net loss (earnings) from continuing operations attributable to noncontrolling interest, less dividends on preferred shares. (2) Net earnings (loss) from discontinued operations attributable to Enstar ordinary shareholders equals net earnings (loss) from discontinued operations, net of income taxes, plus net loss (earnings) from discontinued operations attributable to noncontrolling interest; refer to Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations" for a breakdown by period. (3) Weighted-average ordinary shares for basic earnings per share includes ordinary shares (voting and non-voting) but excludes ordinary shares held in the EB Trust in respect of JSOP awards. (4) Share-based dilutive securities include restricted shares, restricted share units, and performance share units. Certain share-based compensation awards, including the ordinary shares held in the EB Trust in respect of JSOP awards, were excluded from the calculation for the three and nine months ended September 30, 2020 because they were anti-dilutive.
|
Share-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost for Share-based Compensation Plans | The table below provides a summary of the compensation costs for all of our share-based compensation plans:
|
Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The RNCI on our balance sheet relating to these Trident co-investment transactions was as follows:
The following table presents the amounts included in our consolidated balance sheet related to our related party transactions with Stone Point and its affiliated entities:
The following table presents the amounts included in net earnings related to our related party transactions with Stone Point and its affiliated entities:
Our consolidated balance sheet included the following balances related to transactions with Hillhouse Capital and AnglePoint (as applicable):
Our investment in the common and preferred shares of Monument Re, which is included in equity method investments on our consolidated balance sheet, was as follows:
Our investment in the common shares of Clear Spring which is included in equity method investments on our consolidated balance sheet, was as follows:
Our consolidated balance sheet included the following balances between us and Clear Spring:
Our consolidated statement of earnings included the following amounts between us and Clear Spring:
Our indirect investment in the shares of AmTrust, carried in equities on our consolidated balance sheet was as follows:
The following table presents the amounts included in net earnings related to our related party transactions with AmTrust:
Our indirect investment in the shares of Citco, which is included in equity method investments on our consolidated balance sheet, was as follows:
Our investment in the common shares of Enhanzed Re, which is included in equity method investments on our consolidated balance sheet, was as follows:
Our consolidated balance sheet included the following balances between us and Enhanzed Re:
Our consolidated statement of earnings included the following amounts between us and Enhanzed Re:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost and Other Lease Information | The table below provides the lease cost and other information relating to our operating leases:
(1) Leases with an initial lease term of twelve months or less are not recognized within our consolidated balance sheets. (2) Sub-lease income consists of rental income received from third parties to whom we have sub-leased some of our leased office spaces and is included within other income in our consolidated statements of earnings.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities, Lessee | The table below provides a summary of the operating leases recorded on our consolidated balance sheets:
(1) Following our decision to put the StarStone International operations into orderly run-off effective June 10, 2020, we recorded total impairment charges of $3.5 million on the right-of-use assets relating to certain StarStone International operating leases as of September 30, 2020. (2) The right-of-use assets and the total lease liability balances exclude balances of $1.5 million and $1.0 million respectively, related to Atrium which have been reclassified to held-for-sale balances on our consolidated balance sheet as of September 30, 2020.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Lease, Liability, Maturity | The table below provides a summary of the contractual maturities of our operating lease liabilities:
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Operations by Segment | The following tables set forth selected and unaudited condensed consolidated statement of earnings results by segment and for our other activities:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's Assets by Segment | Invested assets are managed on a subsidiary basis, and investment income and realized and unrealized gains (losses) on investments are recognized in each segment as earned. Our total assets by segment and for our other activities were as follows:
(1) The total assets within the Non-life Run-off segment include assets of $12.4 million related to Arden's operations that have been included within Northshore's held-for-sale assets in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations." (2) The total assets within the Atrium segment are all included within Northshore's held-for-sale assets in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations." (3) The total assets within the StarStone segment include assets of $1.5 billion related to StarStone U.S. which are disclosed as held-for-sale assets in Note 4 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations."
|
Significant Accounting Policies (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2020 |
Jun. 30, 2020 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | ||
Decrease to retained earnings | $ 2,887,892 | $ 3,816,548 | ||
Reinsurance recoverable, allowance for credit loss | 147,639 | 135,117 | $ 143,653 | |
Allowance for credit losses | 0 | $ 912 | 3,673 | |
Cumulative effect of change in accounting principle | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to retained earnings | (6,100) | |||
Financial instruments, allowance for credit loss | 3,000 | |||
Reinsurance recoverable, allowance for credit loss | (195) | 0 | ||
Allowance for credit losses | $ 3,059 | $ 0 |
Investments - Other Than Temporary Impairment (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Other than temporary impairment losses, available-for-sale securities | $ 0 | $ 0 | |
Available-for-sale Securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Credit losses | $ 0 |
Investments - Equities - Equity Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | $ 653,159 | $ 726,721 |
Publicly traded equity investments in common and preferred stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 303,932 | 327,875 |
Exchange-traded funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 78,182 | 133,047 |
Privately held equity investments in common and preferred stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equities, at fair value | 271,045 | 265,799 |
AmTrust Financial Services, Inc. | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value of indirect investment | $ 245,400 | $ 240,100 |
Investments - Funds Held Directly Managed Components (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Schedule of Funds Held, Directly Managed [Line Items] | ||
Funds held - directly managed | $ 1,066,639 | $ 1,187,552 |
Funds held - directly managed | ||
Schedule of Funds Held, Directly Managed [Line Items] | ||
Debt securities, trading | 1,054,201 | 1,173,345 |
Cash and cash equivalents | 6,432 | 10,296 |
Funds held - directly managed, other assets | 6,006 | 3,911 |
Funds held - directly managed | $ 1,066,639 | $ 1,187,552 |
Investments - Funds Held Directly Managed Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Jun. 01, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Business Acquisition [Line Items] | |||
Funds held by reinsured companies | $ 657,490 | $ 475,732 | |
Aspen | |||
Business Acquisition [Line Items] | |||
Reinsurance premium consideration | $ 770,000 | ||
AXA Group | |||
Business Acquisition [Line Items] | |||
Reinsurance premium consideration | $ 24,500 | $ 204,200 |
Investments - Reconciliation to Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Debt Securities, Available-for-sale [Line Items] | ||||
Gross realized gains on fixed maturity securities, AFS | $ 9,871 | $ 44 | $ 19,995 | $ 4,493 |
Gross realized gains on fixed maturity securities, AFS | (786) | (10) | (7,379) | (302) |
Total reclassification adjustment | 9,488 | 34 | 13,498 | 4,191 |
Credit recoveries (losses) on fixed maturity securities, AFS | 2,379 | 0 | (71) | 0 |
Continuing Operations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Credit recoveries (losses) on fixed maturity securities, AFS | 2,248 | 0 | (389) | 0 |
Discontinued Operations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Gross realized gains on fixed maturity securities, AFS | 489 | 12 | 1,025 | 12 |
Gross realized gains on fixed maturity securities, AFS | (86) | (12) | (143) | (12) |
Credit recoveries (losses) on fixed maturity securities, AFS | $ 131 | $ 0 | $ 318 | $ 0 |
Investments - Restricted Assets (Details) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2020
USD ($)
Segment
|
Dec. 31, 2019
USD ($)
|
Sep. 30, 2019
USD ($)
|
|
Line of Credit Facility [Line Items] | |||
Restricted cash and cash equivalents | $ 556,721 | $ 346,877 | $ 497,315 |
Collateral in trust for third party agreements | 5,189,537 | 4,103,847 | |
Assets on deposit with regulatory authorities | 276,941 | 309,659 | |
Funds at Lloyd's | 546,996 | 639,316 | |
Restricted assets, total | $ 6,135,174 | 5,185,492 | |
Number of syndicates | Segment | 3 | ||
Asset Pledged as Collateral | |||
Line of Credit Facility [Line Items] | |||
Collateral for secured letter of credit facilities | $ 121,700 | $ 132,670 |
Derivative and Hedging Instruments - Summary of Derivative Instruments (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Credit Risk, Government Bond Future, Foreign Currency Forward Contracts | |
Derivative [Line Items] | |
Gross Notional Amount | $ 22,287 |
Assets | 112 |
Liabilities | 283 |
Credit default swaps | |
Derivative [Line Items] | |
Gross Notional Amount | 7,865 |
Assets | 0 |
Liabilities | 169 |
Futures contracts | Long positions | |
Derivative [Line Items] | |
Gross Notional Amount | 48,051 |
Assets | 100 |
Liabilities | 0 |
Futures contracts | Short positions | |
Derivative [Line Items] | |
Gross Notional Amount | (33,318) |
Assets | 0 |
Liabilities | 85 |
Currency forward contracts | Long positions | |
Derivative [Line Items] | |
Gross Notional Amount | 1,508 |
Assets | 12 |
Liabilities | 0 |
Currency forward contracts | Short positions | |
Derivative [Line Items] | |
Gross Notional Amount | (1,819) |
Assets | 0 |
Liabilities | $ 29 |
Derivative and Hedging Instruments - Net Gains (Losses) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Derivative [Line Items] | ||
Total net gains | $ 57 | $ 186 |
Credit default swaps | ||
Derivative [Line Items] | ||
Total net gains | 106 | 106 |
Futures contracts | ||
Derivative [Line Items] | ||
Total net gains | (6) | (43) |
Currency forward contracts | ||
Derivative [Line Items] | ||
Total net gains | $ (43) | $ 123 |
Derivative and Hedging Instruments - Investments in Call Options on Equities (Details) - Derivatives not qualifying as hedges - Call options on equity - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Derivative [Line Items] | ||||||
Unrealized gain (loss) on equity securities (less than) | $ 0 | $ 100,000 | $ 100,000 | $ 1,300,000 | ||
Cost | $ 10,000,000.0 | |||||
Fair value of derivatives (less than) | $ 100,000 |
Derivative and Hedging Instruments - Forward Interest Rate Swaps (Details) - Interest Rate Swap $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
|
Apr. 07, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Oct. 31, 2019
AUD ($)
|
|
Derivative [Line Items] | |||||
Notional amount of derivative | $ 120.0 | ||||
Unrealized gain on equity securities (less than) | $ 0 | $ 800,000 | |||
Gain on derivative | $ 500,000 | ||||
Carrying Value | |||||
Derivative [Line Items] | |||||
Liabilities | $ 300,000 |
Reinsurance Balances Recoverable on Paid and Unpaid Losses - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
Jun. 30, 2020 |
|
Effects of Reinsurance [Line Items] | |||||
Reinsurance balances recoverable | $ 1,881,656 | $ 2,181,134 | |||
Increase (decrease) in reinsurance recoverable | (266,289) | $ 207,579 | |||
Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||
Allowance for estimated uncollectible reinsurance | 135,117 | $ 147,639 | $ 143,653 | ||
Non-Life Run-Off and StarStone Segment | |||||
Effects of Reinsurance [Line Items] | |||||
Increase (decrease) in reinsurance recoverable | $ (299,500) | ||||
Cumulative effect of change in accounting principle | |||||
Effects of Reinsurance [Line Items] | |||||
Allowance for estimated uncollectible reinsurance | $ (195) | $ 0 |
Reinsurance Balances Recoverable on Paid and Unpaid Losses Reinsurance Balances Recoverable on Paid and Unpaid Losses - Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for estimated uncollectible reinsurance, beginning of period | $ 143,653 | $ 147,639 |
Effect of exchange rate movement | 745 | (701) |
Current period change in the allowance | 815 | (718) |
Write-offs charged against the allowance | (9,625) | (10,225) |
Recoveries collected | (471) | (683) |
Allowance for estimated uncollectible reinsurance, end of period | 135,117 | 135,117 |
Cumulative effect of change in accounting principle | ||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for estimated uncollectible reinsurance, beginning of period | $ 0 | $ (195) |
Deferred Charge Assets (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Beginning carrying value | $ 258,516,000 | $ 99,094,000 | $ 272,462,000 | $ 86,585,000 |
Recorded during the period | 0 | 85,183,000 | 11,746,000 | 108,689,000 |
Amortization | (10,316,000) | (17,009,000) | (36,008,000) | (28,006,000) |
Ending carrying value | $ 248,200,000 | $ 167,268,000 | 248,200,000 | $ 167,268,000 |
Impairment loss of deferred charge assets | $ 0 |
Defendant Asbestos and Environmental Liabilities Defendant Asbestos and Environmental Liabilities - Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Liability For Asbestos And Environmental Claims, Allowance for Credit Loss [Roll Forward] | ||
Allowance for estimated uncollectible insurance balances, beginning of period | $ 8,346 | $ 3,818 |
Current period change in the allowance | (2,439) | (1,078) |
Allowance for estimated uncollectible insurance balances, end of period | 5,907 | 5,907 |
Cumulative effect of change in accounting principle | ||
Liability For Asbestos And Environmental Claims, Allowance for Credit Loss [Roll Forward] | ||
Allowance for estimated uncollectible insurance balances, beginning of period | $ 0 | $ 3,167 |
Fair Value Measurements - Valuation Techniques (Details) - Private equity funds - Level 3 $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments | $ 271.0 |
Transactional value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments | 245.4 |
Cost as approximation of fair value | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments | $ 25.6 |
Minimum | Transactional value | Measurement Input, Quoted Price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 13.50 |
Maximum | Transactional value | Measurement Input, Quoted Price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other investments, measurement input | 13.85 |
Fair Value Measurements - Insurance Contracts (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Reinsurance balances recoverable | ||||
Beginning fair value | $ 271,314 | $ 312,163 | $ 353,668 | $ 321,973 |
Assumed business | 10,000 | 26,392 | 48,484 | 38,477 |
Incurred losses and LAE: | ||||
Change in fair value | 45 | (8,364) | (36,514) | (7,717) |
Ending fair value | 281,359 | 317,220 | 281,359 | 317,220 |
Net | ||||
Beginning fair value | 1,783,155 | 2,029,197 | 1,925,604 | 2,134,464 |
Assumed business | 182,498 | 0 | 182,498 | 0 |
Incurred losses and LAE: | ||||
Reduction in estimates of ultimate losses | (82,297) | (9,740) | (109,689) | (24,401) |
Reduction in unallocated LAE | (4,641) | (6,724) | (14,353) | (15,076) |
Change in fair value | 21,042 | 41,374 | 96,848 | 135,377 |
Total incurred losses and LAE | (65,896) | 24,910 | (27,194) | 95,900 |
Paid losses | (75,553) | (78,838) | (180,560) | (250,128) |
Effect of exchange rate movements | 55,313 | (48,529) | (20,831) | (53,496) |
Ending fair value | 1,879,517 | 1,926,740 | 1,879,517 | 1,926,740 |
Liability for losses and LAE | ||||
Liability for losses and LAE | ||||
Beginning fair value | 2,454,539 | 2,772,501 | 2,621,122 | 2,874,055 |
Assumed business | 1,526 | 0 | 1,526 | 0 |
Incurred losses and LAE: | ||||
Reduction in estimates of ultimate losses | (25,595) | (7,386) | (61,109) | (20,342) |
Reduction in unallocated LAE | (4,641) | (6,724) | (14,353) | (15,076) |
Change in fair value | 19,092 | 57,743 | 130,075 | 189,422 |
Total incurred losses and LAE | (11,144) | 43,633 | 54,613 | 154,004 |
Paid losses | (86,745) | (100,654) | (230,187) | (308,267) |
Effect of exchange rate movements | 64,502 | (56,836) | (24,396) | (61,148) |
Ending fair value | 2,422,678 | 2,658,644 | 2,422,678 | 2,658,644 |
Reinsurance balances recoverable | ||||
Reinsurance balances recoverable | ||||
Beginning fair value | 671,384 | 743,304 | 695,518 | 739,591 |
Assumed business | (180,972) | 0 | (180,972) | 0 |
Incurred losses and LAE: | ||||
Reduction in estimates of ultimate losses | 56,702 | 2,354 | 48,580 | 4,059 |
Reduction in unallocated LAE | 0 | 0 | 0 | 0 |
Change in fair value | (1,950) | 16,369 | 33,227 | 54,045 |
Total incurred losses and LAE | 54,752 | 18,723 | 81,807 | 58,104 |
Paid losses | (11,192) | (21,816) | (49,627) | (58,139) |
Effect of exchange rate movements | 9,189 | (8,307) | (3,565) | (7,652) |
Ending fair value | 543,161 | 731,904 | 543,161 | 731,904 |
Duration | ||||
Incurred losses and LAE: | ||||
Change in fair value | 11,767 | 3,850 | 19,617 | 18,736 |
Corporate bond yield | ||||
Incurred losses and LAE: | ||||
Change in fair value | $ 9,275 | $ 37,524 | 75,524 | 116,641 |
Weighted cost of capital | ||||
Incurred losses and LAE: | ||||
Change in fair value | (5,048) | 0 | ||
Risk cost of capital | ||||
Incurred losses and LAE: | ||||
Change in fair value | $ 6,755 | $ 0 |
Fair Value Measurements - Observable and Unobservable Inputs (Details) - Internal Model - Recurring |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Liability for losses and LAE | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average cost of capital | 8.25% | 8.50% |
Duration | 7 years 11 months 1 day | 7 years 9 months 25 days |
Reinsurance balances recoverable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk cost of capital | 5.10% | 5.10% |
Duration | 7 years 8 months 15 days | 8 years 8 months 4 days |
Measurement Input, Entity Credit Risk | Liability for losses and LAE | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit spread for non-performance risk | 0.20% | 0.20% |
Premiums Written and Earned - Schedule of Net Premiums Written and Earned (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Effects of Reinsurance [Line Items] | ||||
Gross, premiums written | $ 111,477 | $ 157,135 | $ 460,630 | $ 483,912 |
Ceded, premiums written | (17,918) | (43,641) | (91,836) | (93,175) |
Net, premiums written | 93,559 | 113,494 | 368,794 | 390,737 |
Gross, premiums earned | 198,634 | 231,763 | 575,385 | 726,476 |
Ceded premium earned | (36,910) | (55,961) | (111,439) | (107,765) |
Net, premiums earned | 161,724 | 175,802 | 463,946 | 618,711 |
Operating Segments | Non-life Run-off | ||||
Effects of Reinsurance [Line Items] | ||||
Gross, premiums written | 3,535 | 301 | 1,707 | (24,785) |
Ceded, premiums written | (111) | (4,109) | 690 | (1,610) |
Net, premiums written | 3,424 | (3,808) | 2,397 | (26,395) |
Gross, premiums earned | 20,426 | 27,190 | 52,899 | 166,707 |
Ceded premium earned | (2,950) | (10,353) | (8,876) | (24,726) |
Net, premiums earned | 17,476 | 16,837 | 44,023 | 141,981 |
Operating Segments | Atrium | ||||
Effects of Reinsurance [Line Items] | ||||
Gross, premiums written | 49,083 | 48,746 | 155,551 | 146,519 |
Ceded, premiums written | (2,580) | (4,961) | (19,458) | (19,273) |
Net, premiums written | 46,503 | 43,785 | 136,093 | 127,246 |
Gross, premiums earned | 48,690 | 48,340 | 144,675 | 133,610 |
Ceded premium earned | (6,264) | (5,427) | (16,492) | (13,745) |
Net, premiums earned | 42,426 | 42,913 | 128,183 | 119,865 |
Operating Segments | StarStone | ||||
Effects of Reinsurance [Line Items] | ||||
Gross, premiums written | 58,566 | 110,586 | 300,135 | 363,352 |
Ceded, premiums written | (15,228) | (34,566) | (73,069) | (72,269) |
Net, premiums written | 43,338 | 76,020 | 227,066 | 291,083 |
Gross, premiums earned | 123,813 | 151,895 | 362,638 | 409,135 |
Ceded premium earned | (27,697) | (40,146) | (86,072) | (69,142) |
Net, premiums earned | 96,116 | 111,749 | 276,566 | 339,993 |
Other | ||||
Effects of Reinsurance [Line Items] | ||||
Gross, premiums written | 293 | (2,498) | 3,237 | (1,174) |
Ceded, premiums written | 1 | (5) | 1 | (23) |
Net, premiums written | 294 | (2,503) | 3,238 | (1,197) |
Gross, premiums earned | 5,705 | 4,338 | 15,173 | 17,024 |
Ceded premium earned | 1 | (35) | 1 | (152) |
Net, premiums earned | $ 5,706 | $ 4,303 | $ 15,174 | $ 16,872 |
Premiums Written and Earned - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Gross, premiums written | $ 111,477 | $ 157,135 | $ 460,630 | $ 483,912 |
Increase (decrease) in gross premiums written | (45,700) | (23,300) | ||
Starstone | ||||
Segment Reporting Information [Line Items] | ||||
Increase (decrease) in gross premiums written | (52,000) | (63,200) | ||
Non-life Run-off | ||||
Segment Reporting Information [Line Items] | ||||
Increase (decrease) in gross premiums written | $ 3,200 | 26,500 | ||
Atrium | ||||
Segment Reporting Information [Line Items] | ||||
Increase (decrease) in gross premiums written | $ 9,000 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Goodwill [Line Items] | ||
Impairment loss | $ (8,000,000) | |
Indefinite-lived intangible asset, impairment loss | (4,000,000) | |
StarStone | ||
Goodwill [Line Items] | ||
Impairment loss | $ 0 | (8,000,000.0) |
StarStone | Lloyd’s syndicate capacity | ||
Goodwill [Line Items] | ||
Indefinite-lived intangible asset, impairment loss | $ 0 | $ (4,000,000.0) |
Goodwill and Intangible Assets - Intangible Asset Amortization (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization | $ 508 | $ 546 | $ 1,524 | $ 1,676 |
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Noncontrolling Interest [Line Items] | |||||
Net earnings (losses) attributable to RNCI | $ 20,997 | $ (190) | $ (31,102) | $ (5,651) | |
Change in redemption value of RNCI | (11,431) | $ (622) | (38,059) | $ (6,607) | |
Noncontrolling interest | $ 14,468 | $ 14,468 | $ 14,168 | ||
North Bay | Trident | |||||
Noncontrolling Interest [Line Items] | |||||
Interest owned by an entity (percent) | 39.30% | 39.30% | |||
North Bay | Dowling | |||||
Noncontrolling Interest [Line Items] | |||||
Interest owned by an entity (percent) | 1.70% | 1.70% | |||
North Bay | Subsidiaries | Trident | |||||
Noncontrolling Interest [Line Items] | |||||
Interest owned by an entity (percent) | 39.30% | 39.30% | 39.30% | ||
North Bay | Subsidiaries | Dowling | |||||
Noncontrolling Interest [Line Items] | |||||
Interest owned by an entity (percent) | 1.70% | 1.70% | 1.70% |
Noncontrolling Interests - Carrying Amount of Equity Attributable to Noncontrolling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Increase (Decrease) in Redeemable Noncontrolling Interest [Roll Forward] | ||||||
Balance at beginning of period | $ 366,533 | $ 438,791 | $ 435,696 | $ 438,791 | $ 458,543 | $ 458,543 |
Dividends paid | 0 | 0 | 0 | (11,556) | ||
Net earnings (losses) attributable to RNCI | 20,997 | (190) | (31,102) | (5,651) | ||
Accumulated other comprehensive earnings attributable to RNCI | 1,220 | (97) | 7,593 | 58 | ||
Foreign currency translation adjustments | (588) | 0 | (753) | 0 | ||
Change in redemption value of RNCI | (11,431) | (622) | (38,059) | (6,607) | ||
Cumulative effect of change in accounting principle attributable to RNCI | 0 | 0 | 261 | 0 | ||
Balance at end of period | $ 376,731 | $ 434,787 | $ 376,731 | $ 434,787 | $ 438,791 | |
Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member |
Income Taxation (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||||
Effective tax rate expense (benefit) | 2.10% | 10.20% | 2.80% | 3.40% | |
Statutory rate | 0.00% | ||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Related Party Transactions - Citco (Details) - USD ($) $ in Thousands |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Related Party Transaction [Line Items] | ||||
Indirect investment acquired | $ 812,586 | $ 731,588 | ||
Other investments | $ 3,704,870 | $ 2,518,031 | ||
Trident | Citco | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Indirect investment acquired | $ 50,000 | |||
Ownership percentage | 3.40% | |||
Citco | ||||
Related Party Transaction [Line Items] | ||||
Other investments | $ 51,946 | $ 51,742 |
Commitments and Contingencies - Leases - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease cost | $ 3,036 | $ 4,010 | $ 9,560 | $ 10,696 |
Short-term lease cost | 63 | 0 | 182 | 0 |
Total lease cost | 3,099 | 4,010 | 9,742 | 10,696 |
Sublease income | (139) | (183) | (415) | (451) |
Total net lease cost | 2,960 | 3,827 | 9,327 | 10,245 |
Operating cash paid for amounts included in the measurement of lease liabilities | 2,856 | 2,945 | 10,184 | 9,138 |
Non-cash activity: right-of-use assets relating to leases | $ (179) | $ 1,353 | $ 84 | $ 53,581 |
Weighted-average remaining lease term | 6 years 1 month 6 days | 6 years 4 months 24 days | 6 years 1 month 6 days | 6 years 4 months 24 days |
Weighted-average discount rate | 6.40% | 6.20% | 6.40% | 6.20% |
Commitments and Contingencies - Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 33,224 | $ 46,747 |
Current lease liabilities | 7,955 | 11,403 |
Non-current lease liabilities | 28,126 | $ 34,785 |
StarStone International | ||
Lessee, Lease, Description [Line Items] | ||
Impairment loss | 3,500 | |
Atrium | Disposal group, held-for-sale | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | 1,500 | |
Lease liability | $ 1,000 |
Commitments and Contingencies - Leases - Operating Lease Liabilities (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 2,938 |
2021 | 9,347 |
2022 | 7,829 |
2023 | 7,032 |
2024 | 5,328 |
2025 and beyond | 12,579 |
Total lease payments | 45,053 |
Less: Imputed interest | (8,972) |
Present value of lease liabilities | $ 36,081 |
Segment Information - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
7D9CJY1/!J>GM]=3F>P9M/X^OQS<4$3;],)K,I.D;?II?H[9MWZ U*
M,C1;YILRSA;EV4D%&O1()_/F\SYM/X\,?-Y4K=\C&HP0"4C@>/S"__BEFL/C
M6#^.H^[C)^#YSGVR ]=L)-L_LZM.STZ@M_F!R<<-+P\/ 5#'P!
M:>DH+PG!+C77=Q!J_:IJ$"O)8M.TL68U.-?;"O]ECT;O3Z_>CAX+TY@_8$;_
MZWN5TUYUB-([3F4P( [?W"FI788*5!+1Y=5 Z7O);,XD_PW+DU9+AV\R_F/-4WD<9+Y>W>OZJZB4]AE7H!6X]F#Y_
M.LIJ>5.F_ 'NP&^G1*S85&O^N *CT35=@-_I97W^#YH@O*[TS?\!4$L#!!0
M ( ,(R9E$
!@G(.39S% -89P)P&W&S+
MQ0KZHQ_1FF%>YY1&_26((7D8^+YOR9RTHV7*G7I?-Y&2%_EIDQS36JUQ9;GI
M8B\405]3!.9[D6U]="Q/A3/%#U=)_@C.37-78J8=E5(WE\X4)+9MF>0+!6UM
MIG^KACB>@ KN=9+.R29)E\V2W.;-9594E64F35YCOL_"J.\=A/^8%\@@LOBG
M8T#J.^T9;Z'?(2N5-816[JR#! [\OTERVP+T$74H-:JC,08484B%1>V.(*F;
M(3\U+FV3Z5177C!W-_%L
WY!
MWPTI\CRF[\:[4];=\+M#WY^3\E&?K\G4 [S*>QO 4BQWYZAW-W6Q:4[,WA=U
M7:R;RY5*EJK4 /C_0U'4SS?Z!?O3[.?_!5!+ P04 " #",F91 4XVO;T:
M "Z5 & 'AL+W=ON52_MWAI;R*LR=#ZB4<:P_%/&N2?[DM1
M#!M[,$&&KA,54",1KB2U55R)5;S;>]&30*;DWVL);"A40-?;8+4%X:LP]Q%3
MJ^=_3<6WX6(HXBK2:,4H6K9>A@>5,M3$/%HIO099BJ1ZGP9^X"4!5B;S:TZ"
MT9;CHC@Z[6S6&CXG^4;\P M),0TAAVE
/.+
MO+A&D18_\ECO'O)4_:#@W^"8)\.>X )1UE$$A'= 7VWU%'R#Q#0. ]\CNN^]
MD"L#[I.D!S7XKN
:G LLP5
M\T-V_[6HUT5[[_B*12] +F)D@%R85RP(#/O)Y^JZAHC,"BSG\]FL6=<$(<['
M9E'153H1;KQ:M[+T\[(OJ@6P[2/E_.\GRML!F2U)?K[GP8<)[#X]\%!Q##/H
M\RP31,)E#@.US+@= +AL@8W8]8BPL\"*Q8$+\VWARR*P5$*3@Q5H L51R2_2]D&?;4W6\'*XY
M"RNQLS\,&>,J'"H00OPC>[H%-\B9UMD-(?I^Q!E7=@!5O:^TOMA;!2+AI3!!
M9.[<5^6"8.)OS_S-=HS58A)7K;<[G1>1JK4VOP6E)ID%OLW.#Q' /J&Y<-Z(
MUOD3@]H26+"+[X#;&=XQ904E_@6@+R&"F2X-P!W2MM3[8Y8?I8RL2/\=/3)9
M!WTT>,G=Z+G9)=)M2GR.WD$UKXK6;#GJA AYFY5GK=%=WF\-1R5XJ^17HM#1
M#=K8KY'