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Losses and Loss Adjustment Expenses (Tables)
 12 Months Ended
Dec. 31, 2015
Total Losses and Loss Adjustment Expense Liabilities
The following table summarizes the liability for losses and LAE by segment as at December 31, 2015 and 2014:
 
2015
 
2014
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
Outstanding losses
$
2,757,774

 
$
68,913

 
$
457,175

 
$
3,283,862

 
$
2,202,187

 
$
73,803

 
$
387,171

 
$
2,663,161

IBNR
1,991,009

 
115,613

 
477,990

 
2,584,612

 
1,406,420

 
113,149

 
477,264

 
1,996,833

Fair value adjustments
(163,329
)
 
16,491

 
(1,487
)
 
(148,325
)
 
(173,597
)
 
25,659

 
(2,635
)
 
(150,573
)
Total
$
4,585,454

 
$
201,017

 
$
933,678

 
$
5,720,149

 
$
3,435,010

 
$
212,611

 
$
861,800

 
$
4,509,421
Reconciliation of Beginning and Ending Reserves for Losses and Loss Adjustment Expenses
The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the years ended December 31, 2015, 2014 and 2013:
 
2015
 
2014
 
2013
Balance as at January 1
$
4,509,421

 
$
4,219,905

 
$
3,650,127

Less: reinsurance reserves recoverable
1,154,196

 
1,146,588

 
876,220

Net balance as at January 1
3,355,225

 
3,073,317

 
2,773,907

Net incurred losses and LAE:
 
 


 

  Current period
476,364

 
327,817

 
93,442

  Prior periods
(372,031
)
 
(318,671
)
 
(257,114
)
  Total net incurred losses and LAE
104,333

 
9,146

 
(163,672
)
Net paid losses:
 
 


 

  Current period
(99,933
)
 
(166,796
)
 
(41,282
)
  Prior periods
(681,956
)
 
(420,715
)
 
(360,214
)
  Total net paid losses
(781,889
)
 
(587,511
)
 
(401,496
)
Effect of exchange rate movement
(65,069
)
 
(69,804
)
 
6,222

Acquired on purchase of subsidiaries
878,815

 
901,447

 
757,850

Assumed business
612,441

 
28,630

 
100,506

Net balance as at December 31
4,103,856

 
3,355,225

 
3,073,317

Plus: reinsurance reserves recoverable
1,360,382

 
1,154,196

 
1,146,588

Plus: deferred charge on retroactive reinsurance
255,911

 
—

 
—

Balance as at December 31
$
5,720,149

 
$
4,509,421

 
$
4,219,905
Net (Reduction) Increase in Ultimate Losses and Loss Adjustment Expense Liabilities
The tables below provide the net incurred losses and LAE in the Non-life Run-off, Atrium and StarStone segments for the years ended December 31, 2015, 2014 and 2013:  
 
Year Ended December 31, 2015
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
Net losses paid
$
517,295

 
$
52,035

 
$
212,559

 
$
781,889

Net change in case and LAE reserves
(355,335
)
 
(709
)
 
77,219

 
(278,825
)
Net change in IBNR reserves
(364,774
)
 
2,844

 
37,904

 
(324,026
)
Increase (reduction) in estimates of net ultimate losses
(202,814
)
 
54,170

 
327,682

 
179,038

Reduction in provisions for bad debt
(25,271
)
 
—

 
—

 
(25,271
)
Increase (reduction) in provisions for unallocated LAE
(62,653
)
 
(83
)
 
3,537

 
(59,199
)
Amortization of fair value adjustments
19,908

 
(6,608
)
 
(3,535
)
 
9,765

Net incurred losses and LAE
$
(270,830
)
 
$
47,479

 
$
327,684

 
$
104,333

 
Year Ended December 31, 2014
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
Net losses paid
$
400,096

 
$
57,611

 
$
129,804

 
$
587,511

Net change in case and LAE reserves
(310,414
)
 
(2,684
)
 
37,604

 
(275,494
)
Net change in IBNR reserves
(301,784
)
 
11,557

 
58,870

 
(231,357
)
Increase (reduction) in estimates of net ultimate losses
(212,102
)
 
66,484

 
226,278

 
80,660

Reduction in provisions for bad debt
(7,700
)
 
—

 
—

 
(7,700
)
Increase (reduction) in provisions for unallocated LAE
(48,891
)
 
9

 
(5,088
)
 
(53,970
)
Amortization of fair value adjustments
3,982

 
(11,065
)
 
(2,761
)
 
(9,844
)
Net incurred losses and LAE
$
(264,711
)
 
$
55,428

 
$
218,429

 
$
9,146

 
Year Ended December 31, 2013
 
Non-life
Run-off
 
Atrium
 
StarStone
 
Total
Net losses paid
$
370,870

 
$
30,626

 
$
—

 
$
401,496

Net change in case and LAE reserves
(280,933
)
 
(9,621
)
 
—

 
(290,554
)
Net change in IBNR reserves
(231,278
)
 
(1,653
)
 
—

 
(232,931
)
Increase (reduction) in estimates of net ultimate losses
(141,341
)
 
19,352

 
—

 
(121,989
)
Increase in provisions for bad debt
1,999

 
—

 
—

 
1,999

Reduction in provisions for unallocated LAE
(49,580
)
 
(49
)
 
—

 
(49,629
)
Amortization of fair value adjustments
5,947

 
—

 
—

 
5,947

Net incurred losses and LAE
$
(182,975
)
 
$
19,303

 
$
—

 
$
(163,672
)
Non-Life Run-Off Segment  
Reconciliation of Beginning and Ending Reserves for Losses and Loss Adjustment Expenses
The table below provides a reconciliation of the beginning and ending reserves for losses and LAE for the years ended December 31, 2015, 2014 and 2013 for the Non-life Run-off segment:
 
2015
 
2014
 
2013
Balance as at January 1
$
3,435,010

 
$
4,004,513

 
$
3,650,127

Less: reinsurance reserves recoverable
800,709

 
1,121,533

 
876,220

Net balance as at January 1
2,634,301

 
2,882,980

 
2,773,907

Net incurred losses and LAE:
 
 
 
 
 
  Current period
39,924

 
24,235

 
74,139

  Prior periods
(310,754
)
 
(288,946
)
 
(257,114
)
  Total net incurred losses and LAE
(270,830
)
 
(264,711
)
 
(182,975
)
Net paid losses:
 
 
 
 
 
  Current period
(16,049
)
 
(87,681
)
 
(10,656
)
  Prior periods
(501,246
)
 
(312,415
)
 
(360,214
)
  Total net paid losses
(517,295
)
 
(400,096
)
 
(370,870
)
Effect of exchange rate movement
(42,636
)
 
(49,267
)
 
4,936

Acquired on purchase of subsidiaries
878,815

 
436,765

 
557,476

Assumed business
612,441

 
28,630

 
100,506

Net balance as at December 31
3,294,796

 
2,634,301

 
2,882,980

Plus: reinsurance reserves recoverable
1,034,747

 
800,709

 
1,121,533

Plus: deferred charge on retroactive reinsurance
255,911

 
—

 
—

Balance as at December 31
$
4,585,454

 
$
3,435,010

 
$
4,004,513
Net (Reduction) Increase in Ultimate Losses and Loss Adjustment Expense Liabilities
et incurred losses and LAE in the Non-life Run-off segment for the years ended December 31, 2015, 2014 and 2013 were as follows:
 
 
2015
 
2014
 
2013
 
Prior
Period
 
Current
Period
 
Total
 
Prior
Period
 
Current
Period
 
Total
 
Prior
Period
 
Current
Period
 
Total
Net losses paid
$
501,246

 
$
16,049

 
$
517,295

 
$
312,415

 
$
87,681

 
$
400,096

 
$
360,214

 
$
10,656

 
$
370,870

Net change in case and LAE reserves
(366,262
)
 
10,927

 
(355,335
)
 
(285,814
)
 
(24,600
)
 
(310,414
)
 
(310,488
)
 
29,555

 
(280,933
)
Net change in IBNR reserves
(377,722
)
 
12,948

 
(364,774
)
 
(262,384
)
 
(39,400
)
 
(301,784
)
 
(265,206
)
 
33,928

 
(231,278
)
Increase (reduction) in estimates of net ultimate losses
(242,738
)
 
39,924

 
(202,814
)
 
(235,783
)
 
23,681

 
(212,102
)
 
(215,480
)
 
74,139

 
(141,341
)
Increase (reduction) in provisions for bad debt
(25,271
)
 
—

 
(25,271
)
 
(7,700
)
 
—

 
(7,700
)
 
1,999

 
—

 
1,999

Increase (reduction) in provisions for unallocated LAE
(62,653
)
 
—

 
(62,653
)
 
(49,445
)
 
554

 
(48,891
)
 
(49,580
)
 
—

 
(49,580
)
Amortization of fair value adjustments
19,908

 
—

 
19,908

 
3,982

 
—

 
3,982

 
5,947

 
—

 
5,947

Net incurred losses and LAE
$
(310,754
)
 
$
39,924

 
$
(270,830
)
 
$
(288,946
)
 
$
24,235

 
$
(264,711
)
 
$
(257,114
)
 
$
74,139

 
$
(182,975
)
Atrium  
Reconciliation of Beginning and Ending Reserves for Losses and Loss Adjustment Expenses
Atrium was acquired in the fourth quarter of 2013. The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the years ended December 31, 2015, 2014 and 2013:
 
2015
 
2014
 
2013
Balance as at January 1
$
212,611

 
$
215,392

 
$
—

Less: reinsurance reserves recoverable
28,278

 
25,055

 
—

Net balance as at January 1
184,333

 
190,337

 
—

Net incurred losses and LAE:
 
 
 
 
 
  Current period
69,400

 
74,094

 
19,303

  Prior periods
(21,921
)
 
(18,666
)
 
—

  Total net incurred losses and LAE
47,479

 
55,428

 
19,303

Net paid losses:
 
 
 
 
 
  Current period
(21,145
)
 
(29,626
)
 
(30,626
)
  Prior periods
(30,890
)
 
(27,985
)
 
—

  Total net paid losses
(52,035
)
 
(57,611
)
 
(30,626
)
Effect of exchange rate movement
(4,612
)
 
(3,821
)
 
1,286

Acquired on purchase of subsidiaries
—

 
—

 
200,374

Net balance as at December 31
175,165

 
184,333

 
190,337

Plus: reinsurance reserves recoverable
25,852

 
28,278

 
25,055

Balance as at December 31
$
201,017

 
$
212,611

 
$
215,392
Net (Reduction) Increase in Ultimate Losses and Loss Adjustment Expense Liabilities
 
 
2015
 
2014
 
2013
 
Prior
Period
 
Current
Period
 
Total
 
Prior
Period
 
Current
Period
 
Total
 
Prior
Period
 
Current
Period
 
Total
Net losses paid
$
30,890

 
$
21,145

 
$
52,035

 
$
27,985

 
$
29,626

 
$
57,611

 
$
—

 
$
30,626

 
$
30,626

Net change in case and LAE reserves
(18,213
)
 
17,504

 
(709
)
 
(16,986
)
 
14,302

 
(2,684
)
 
—

 
(9,621
)
 
(9,621
)
Net change in IBNR reserves
(27,382
)
 
30,226

 
2,844

 
(18,114
)
 
29,671

 
11,557

 
—

 
(1,653
)
 
(1,653
)
Increase (reduction) in estimates of net ultimate losses
(14,705
)
 
68,875

 
54,170

 
(7,115
)
 
73,599

 
66,484

 
—

 
19,352

 
19,352

Increase (reduction) in provisions for unallocated LAE
(608
)
 
525

 
(83
)
 
(486
)
 
495

 
9

 
—

 
(49
)
 
(49
)
Amortization of fair value adjustments
(6,608
)
 
—

 
(6,608
)
 
(11,065
)
 
—

 
(11,065
)
 
—

 
—

 
—

Net incurred losses and LAE
$
(21,921
)
 
$
69,400

 
$
47,479

 
$
(18,666
)
 
$
74,094

 
$
55,428

 
$
—

 
$
19,303

 
$
19,303
StarStone  
Reconciliation of Beginning and Ending Reserves for Losses and Loss Adjustment Expenses
StarStone was acquired in the second quarter of 2014. The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the years ended December 31, 2015 and 2014:
 
2015
 
2014
Balance as at January 1
$
861,800

 
$
—

Less: reinsurance reserves recoverable
325,209

 
—

Net balance as at January 1
536,591

 
—

Net incurred losses and LAE:
 
 
 
  Current period
367,040

 
229,488

  Prior periods
(39,356
)
 
(11,059
)
  Total net incurred losses and LAE
327,684

 
218,429

Net paid losses:
 
 
 
  Current period
(62,739
)
 
(49,489
)
  Prior periods
(149,820
)
 
(80,315
)
  Total net paid losses
(212,559
)
 
(129,804
)
Effect of exchange rate movement
(17,821
)
 
(16,716
)
Acquired on purchase of subsidiaries
—

 
464,682

Assumed business
—

 
—

Net balance as at December 31
633,895

 
536,591

Plus: reinsurance reserves recoverable
299,783

 
325,209

Balance as at December 31
$
933,678

 
$
861,800
Net (Reduction) Increase in Ultimate Losses and Loss Adjustment Expense Liabilities
 
2015
 
2014
 
Prior
Period
 
Current
Period
 
Total
 
Prior
Period
 
Current
Period
 
Total
Net losses paid
$
149,820

 
$
62,739

 
$
212,559

 
$
80,315

 
$
49,489

 
$
129,804

Net change in case and LAE reserves
15,772

 
61,447

 
77,219

 
24,208

 
13,396

 
37,604

Net change in IBNR reserves
(200,730
)
 
238,634

 
37,904

 
(105,177
)
 
164,047

 
58,870

Increase (reduction) in estimates of net ultimate losses
(35,138
)
 
362,820

 
327,682

 
(654
)
 
226,932

 
226,278

Increase (reduction) in provisions for unallocated LAE
(683
)
 
4,220

 
3,537

 
(7,644
)
 
2,556

 
(5,088
)
Amortization of fair value adjustments
(3,535
)
 
—

 
(3,535
)
 
(2,761
)
 
—

 
(2,761
)
Net incurred losses and LAE
$
(39,356
)
 
$
367,040

 
$
327,684

 
$
(11,059
)
 
$
229,488

 
$
218,429