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Loss and loss adjustment expense reserves
 12 Months Ended
Dec. 31, 2021
Insurance [Abstract]  
Loss and loss adjustment expense reserves
13. Loss and loss adjustment expense reserves
As of December 31, 2021 and 2020, loss and loss adjustment expense reserves in the consolidated balance sheets was comprised of the following:
20212020
Case loss and loss adjustment expense reserves$1,916.8 $265.6 
Incurred but not reported loss and loss adjustment expense reserves2,868.2 1,043.5 
Unallocated loss adjustment expense reserves55.8 — 
Deferred gains on retroactive reinsurance contracts0.6 1.0 
$4,841.4 $1,310.1 
Reserving methodologies
The Company establishes loss and loss adjustment expense reserves that are estimates of future amounts needed to pay claims and related expenses for events that have already occurred. The Company also obtains reinsurance whereby another reinsurer contractually agrees to indemnify the Company for all or a portion of the insurance or reinsurance risks underwritten by the Company. The Company establishes estimates of amounts recoverable from the reinsurer in a manner consistent with the loss and loss adjustment expense liability associated with the original policies issued, net of an allowance for uncollectible amounts. Net reinsurance loss reserves represent loss and loss adjustment expense reserves reduced by reinsurance recoverable on unpaid losses.
The process of estimating reserves involves a considerable degree of judgment by management and, as of any given date, is inherently uncertain. Based on the above, such uncertainty may be larger relative to the reserves for reinsurance compared to insurance, and certainty may take a longer time to emerge. Upon notification of a loss from an insured (either a ceding company or a primary insured), the Company establishes case reserves, including loss adjustment expense reserves, based upon the Company’s share of the amount of reserves reported by the insured and the Company's independent evaluation of the loss.
Generally, initial actuarial estimates of IBNR reserves not related to a specific event are based on the expected loss ratio method applied to each class of business. The Company regularly reviews the adequacy of its recorded reserves by using a variety of generally accepted actuarial methods, including incurred and paid loss development methods and Bornhuetter-Ferguson paid and incurred loss methods. Use of these methods involves key assumptions, including expected loss ratios and paid and incurred loss development factors. Key to the projection of ultimate losses are the selection and weighting of the actuarial methods. Estimates of the initial expected ultimate losses involve management judgment and are based on historical information for that class of business, which includes loss ratios, market conditions, changes in pricing and conditions, underwriting changes, changes in claims emergence and other factors that may influence expected ultimate losses. If actual loss activity differs substantially from expectations, an adjustment to recorded reserves may be warranted. The uncertainties that could lead to these substantial differences are primarily due to the lapse of time to receive the reporting of the claims and the ultimate settlement of the claims; the diversity of development patterns among different lines of business; and the reliance on cedents, managing general underwriters, and brokers for information regarding claims. As time passes, loss reserve estimates for a given year will rely more on actual loss activity and historical patterns than on initial loss ratio assumptions.
Catastrophe event estimates
Some of the Company’s contracts are exposed to losses from catastrophes (either natural catastrophes or man-made catastrophes). Given the high-severity, low-frequency nature of these events, the losses typically generated from catastrophe events do not lend themselves to traditional actuarial reserving methods, such as those described above. Therefore, our reserving approach for these types of coverages is to estimate the ultimate cost associated with a single loss event rather than analyzing the historical development patterns of past losses for estimating ultimate losses for an entire contract. We estimate our reserves for these catastrophe events on a contract-by-contract basis by means of a review of policies with known or potential exposure to a particular loss event. We consider the following information when making these contract-by-contract estimates of catastrophe event losses: information provided by cedents and brokers; industry loss estimates; our estimated market share; catastrophe model output; and the terms and conditions of the contracts with exposure to those events. Initial estimates are established in the period that a catastrophe event occurs and are then monitored each subsequent quarter, considering the latest information available.
Roll forward of loss and loss adjustment expense reserves
The following table represents the activity in the loss and loss adjustment expense reserves for the years ended December 31, 2021, 2020 and 2019:
202120202019
Gross reserves for loss and loss adjustment expenses, beginning of year$1,310.1 $1,111.7 $937.2 
Less: loss and loss adjustment expenses recoverable, beginning of year(14.4)(5.5)(2.0)
Less: deferred charges on retroactive reinsurance contracts(6.0)(6.7)(3.8)
Net reserves for loss and loss adjustment expenses, beginning of year1,289.7 1,099.5 931.4 
Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in:
     Current year (1)
1,369.1 431.5 490.0 
     Prior years (42.6)33.8 (86.5)
Total incurred loss and loss adjustment expenses1,326.5 465.3 403.5 
Net loss and loss adjustment expenses paid in respect of losses occurring in:
     Current year(271.2)(73.6)(63.6)
     Prior years(1,178.9)(209.5)(188.4)
Total net paid losses(1,450.1)(283.1)(252.0)
Foreign currency translation(9.2)8.0 16.6 
Amounts acquired as a result of Sirius Group acquisition (2)
2,467.8 — — 
Net reserves for loss and loss adjustment expenses, end of year3,624.7 1,289.7 1,099.5 
Plus: loss and loss adjustment expenses recoverable, end of year1,215.3 14.4 5.5 
Plus: deferred charges on retroactive reinsurance contracts (3)
1.4 6.0 6.7 
Gross reserves for loss and loss adjustment expenses, end of year$4,841.4 $1,310.1 $1,111.7 
(1)Includes $15.0 million of amortization associated with the fair value adjustment to acquired Sirius Group loss reserves.
(2)Represents the fair value of Sirius Group’s reserves for claims and claim expenses, net of reinsurance recoverables, acquired at February 26, 2021. See Note 3 for additional information related to the acquisition of Sirius Group.
(3)Deferred charges on retroactive contracts are recorded in other assets on the Company’s consolidated balance sheets.
The Company's prior year reserve development arises from changes to estimates of losses and loss adjustment expenses related to loss events that occurred in previous calendar years.
For the year ended December 31, 2021, the Company recorded $42.6 million of net favorable prior year loss reserve development. The change from the prior period was driven by:
•$18.6 million of net favorable prior year reserve development in the Reinsurance segment as a result of better than expected loss reserve emergence on historical property events relating to multiple accident years and better than expected attritional loss experience;
•$13.5 million of net favorable prior year reserve development in the Insurance & Services segment as a result of better than expected loss experience in A&H for recent accident years; and
•$10.5 million of net favorable prior year reserve development in Corporate as a result of better than expected loss experience on property and contingency classes moved to runoff in 2021.
The Company underwrites reinsurance contracts that have sliding scale or profit commissions whereby loss reserve development could be offset by changes in acquisition costs that vary inversely with loss experience, which are not reflected in these loss reserve-related amounts.
For the year ended December 31, 2020, the Company recorded $33.8 million of net adverse prior year loss reserve development. The $33.8 million net increase in prior years’ reserves for the year ended December 31, 2020 includes $18.8 million increase in loss reserves resulting from increases in premium earnings estimates on certain contracts and $15.0 million of net adverse reserve development related to increases in loss reserve estimates. In total, the change in net underwriting loss for prior periods due to loss reserve development and adjustments to premium earnings estimates, after the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions, resulted in a $30.5 million increase in the net underwriting loss for the year ended December 31, 2020. The adverse underwriting loss
development was a result of accumulated loss experience and cedent reserving increases, indicating that underlying casualty loss trends were higher than initial pricing and reserving.
For the year ended December 31, 2019, the Company recorded $86.5 million of net favorable prior years loss reserve development, which includes $98.5 million of net favorable reserve development related to decreases in loss reserve estimates, partially offset by a $12.0 million increase in loss reserves resulting from increases in premium earnings estimates on certain contracts. In total, the change in net underwriting loss for prior periods due to loss reserve development and adjustments to premium earnings estimates, after the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions, resulted in a $3.7 million improvement in the net underwriting results for the year ended December 31, 2019.
Incurred and paid development tables by accident year
The Company manages its business on the basis of two operating segments, Reinsurance and Insurance & Services. The Company has disaggregated its loss information presented in the tables below by line of business in each segment. The Company has presented the below development tables for all accident years shown using exchange rates as at December 31, 2021. All accident years prior to the current year have been restated and presented using the current year exchange rate.
The Company’s loss reserve analysis is based primarily on underwriting year data. The preparation of accident year development tables requires an allocation of underwriting year data to the corresponding accident years. For instance, a contract written in one particular underwriting year may have exposure to losses from two or more accident years. These allocations are done using accident year loss payment and reporting patterns, along with premium earnings patterns. These patterns are derived from either company-specific or industry historical loss data, depending on availability and applicability. The Company believes that its allocations are reasonable; however, to the extent that the Company’s allocation procedure for loss and loss adjustment expenses incurred differs from actual historical development, the actual loss development may differ materially from the loss development presented.
As described in the roll forward of loss and loss adjustment expense reserves section above, changes in the Company’s loss and loss adjustment expense reserves result from both re-estimating loss reserves as well as changes in premium estimates.
Reinsurance
The following tables provide a breakdown of the Company’s loss and allocated loss adjustment expenses incurred, net and net loss and allocated loss adjustment expenses paid by accident year by line of business for the Company’s Reinsurance segment for the year ended December 31, 2021. The information related to loss and allocated loss adjustment expenses incurred, net and net loss and allocated loss adjustment expenses paid for the years ended December 31, 2012 through 2020 is presented as supplementary information and is unaudited:
Aviation & Space
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$34.7 $33.5 $29.3 $27.3 $27.5 $28.6 $28.7 $27.7 $28.0 $27.9 $(0.2)
2013— 38.7 34.7 31.6 30.3 31.2 31.3 31.4 31.1 31.8 (0.3)
2014— — 32.3 34.9 31.5 30.5 30.3 28.8 30.4 29.7 (2.8)
2015— — — 35.1 31.4 35.4 34.4 33.7 33.9 34.8 1.2 
2016— — — — 32.0 32.3 33.3 35.7 35.3 35.5 (0.6)
2017— — — — — 33.9 43.0 44.3 45.8 46.2 (0.1)
2018— — — — — — 48.0 50.6 58.6 61.1 3.3 
2019— — — — — — — 60.7 72.2 76.4 6.9 
2020— — — — — — — — 39.9 41.8 9.5 
2021— — — — — — — — 42.0 28.9 
Total$427.2 $45.8 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$7.0 $17.6 $21.8 $23.7 $26.4 $27.3 $27.8 $27.5 $27.9 $28.1 
2013— 12.5 18.4 22.4 25.0 26.7 27.4 28.8 28.9 29.8 
2014— — 6.3 14.6 20.1 22.4 24.0 24.7 26.2 25.8 
2015— — — 9.0 18.5 24.5 30.9 32.4 33.2 33.8 
2016— — — — 7.7 19.5 26.6 29.0 32.4 33.6 
2017— — — — — 9.0 23.7 32.6 35.9 39.5 
2018— — — — — — 14.3 27.5 36.9 42.6 
2019— — — — — — — 8.4 22.7 32.8 
2020— — — — — — — — 10.9 22.3 
2021— — — — — — — — — 6.5 
Total$294.8 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 2021132.4 
Net reserves for loss and allocated loss adjustment expenses prior to 20120.4 
Aviation & Space - net reserves for loss and allocated loss adjustment expenses, end of year$132.8 
Casualty
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$17.6 $17.1 $17.3 $17.8 $17.7 $17.6 $17.8 $17.8 $17.9 $17.7 $— 
2013— 72.1 53.4 57.9 57.9 57.9 57.8 57.4 57.6 57.0 — 
2014— — 178.7 178.6 182.8 172.1 173.3 172.4 173.0 172.4 1.9 
2015— — — 225.2 258.8 239.9 240.5 240.8 243.3 243.3 8.9 
2016— — — — 272.8 270.0 268.5 265.3 268.2 268.8 18.2 
2017— — — — — 248.7 256.3 258.1 262.6 265.7 39.2 
2018— — — — — — 318.6 341.9 348.9 351.8 92.1 
2019— — — — — — — 390.1 425.3 443.2 193.4 
2020— — — — — — — — 379.5 418.6 286.7 
2021— — — — — — — — — 354.2 292.0 
Total$2,592.7 $932.4 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$5.7 $10.7 $14.5 $16.0 $16.6 $16.3 $16.7 $17.1 $17.4 $17.4 
2013— 11.3 27.8 40.4 46.8 51.4 53.6 55.0 55.4 56.0 
2014— — 51.1 128.5 148.6 154.1 161.8 165.0 166.9 167.9 
2015— — — 76.4 161.4 187.1 204.2 213.9 221.9 226.7 
2016— — — — 73.6 173.9 199.7 216.2 227.9 236.1 
2017— — — — — 83.8 138.9 160.7 184.1 202.9 
2018— — — — — — 58.1 112.3 152.7 213.5 
2019— — — — — — — 46.0 117.0 182.5 
2020— — — — — — — — 38.1 66.1 
2021— — — — — — — — — 30.6 
Total$1,399.7 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 20211,193.0 
Net reserves for loss and allocated loss adjustment expenses prior to 201221.5 
Casualty - net reserves for loss and allocated loss adjustment expenses, end of year$1,214.5 
Contingency
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$0.3 $0.2 $0.1 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.1 $— 
2013— 0.1 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.1 
2014— — — — — — — — — — — 
2015— — — — — — — — — — — 
2016— — — — — — — — — — — 
2017— — — — — 0.7 0.7 1.3 1.0 1.0 0.1 
2018— — — — — — 1.6 2.0 1.7 1.8 0.2 
2019— — — — — — — 2.0 2.0 2.0 0.2 
2020— — — — — — — — 21.3 20.1 3.8 
2021— — — — — — — — — 9.7 5.9 
Total$35.1 $10.3 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— 
2013— — 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
2014— — — — — — — — — — 
2015— — — — — — — — — — 
2016— — — — — — — — — — 
2017— — — — — — 0.3 0.6 0.8 0.8 
2018— — — — — — — 0.9 1.5 1.6 
2019— — — — — — — (0.1)1.2 1.3 
2020— — — — — — — — 7.2 10.3 
2021— — — — — — — — — 4.3 
Total$18.5 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 202116.6 
Net reserves for loss and allocated loss adjustment expenses prior to 20121.8 
Contingency - net reserves for loss and allocated loss adjustment expenses, end of year$18.4 
Credit & Bond
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$34.9 $35.1 $33.3 $33.4 $32.9 $32.8 $32.5 $32.1 $31.9 $32.0 $0.1 
2013— 30.6 29.3 28.2 27.8 28.7 28.3 28.5 28.6 29.1 0.6 
2014— — 26.3 25.8 26.3 24.2 23.2 22.9 22.8 23.1 (2.1)
2015— — — 24.7 24.2 23.2 21.5 20.5 19.9 19.9 0.4 
2016— — — — 20.2 18.5 18.0 17.1 16.7 17.0 0.8 
2017— — — — — 25.1 25.6 24.4 22.9 22.8 4.5 
2018— — — — — — 31.7 32.1 31.1 31.2 3.5 
2019— — — — — — — 41.9 39.9 39.0 6.6 
2020— — — — — — — — 45.6 41.6 14.5 
2021— — — — — — — — — 23.3 14.2 
Total$279.0 $43.1 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$14.8 $26.9 $31.1 $31.9 $32.2 $32.1 $32.1 $32.1 $32.0 $31.8 
2013— 11.6 19.9 23.0 24.2 24.9 25.1 25.2 25.3 25.5 
2014— — 7.9 14.1 18.6 20.6 21.3 21.6 21.6 21.7 
2015— — — 4.8 13.1 17.4 18.7 18.7 18.7 18.6 
2016— — — — 5.5 10.7 13.6 14.7 15.1 15.4 
2017— — — — — 4.0 10.4 14.7 15.8 16.2 
2018— — — — — — 8.3 17.8 23.3 24.6 
2019— — — — — — — 10.1 21.4 27.5 
2020— — — — — — — — 18.8 20.9 
2021— — — — — — — — — 4.5 
Total$206.7 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 202172.3 
Net reserves for loss and allocated loss adjustment expenses prior to 20124.6 
Credit & Bond - net reserves for loss and allocated loss adjustment expenses, end of year$76.9 
Marine & Energy
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$15.3 $17.0 $18.2 $18.9 $19.2 $19.2 $19.1 $18.9 $18.9 $18.9 $0.7 
2013— 21.0 18.7 17.5 16.7 16.3 16.3 16.4 16.5 16.1 0.5 
2014— — 22.4 21.1 19.4 18.1 17.5 18.2 18.2 18.2 (0.2)
2015— — — 27.8 30.0 27.8 27.3 27.1 27.5 27.5 (0.1)
2016— — — — 30.5 28.9 25.2 25.0 25.1 25.0 0.1 
2017— — — — — 35.0 30.8 29.9 32.3 31.9 1.3 
2018— — — — — — 19.5 21.2 21.1 20.9 1.4 
2019— — — — — — — 19.0 19.4 19.7 3.9 
2020— — — — — — — — 20.5 18.6 6.2 
2021— — — — — — — — — 25.2 16.8 
Total$222.0 $30.6 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$3.7 $8.5 $12.5 $14.2 $15.3 $16.6 $17.2 $18.0 $18.0 $18.0 
2013— 2.7 8.6 11.6 13.0 13.2 13.4 13.7 13.7 13.7 
2014— — 4.0 10.2 13.8 15.1 15.7 15.7 16.7 16.7 
2015— — — 3.1 10.4 20.3 24.7 25.8 26.5 26.6 
2016— — — — 6.1 14.6 18.0 20.6 22.6 23.6 
2017— — — — — 5.0 13.4 19.7 24.0 25.7 
2018— — — — — — 3.0 9.2 15.0 15.8 
2019— — — — — — — 2.6 7.6 10.6 
2020— — — — — — — — 2.1 6.6 
2021— — — — — — — — — 2.0 
Total$159.3 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 202162.7 
Net reserves for loss and allocated loss adjustment expenses prior to 20122.1 
Marine & Energy - net reserves for loss and allocated loss adjustment expenses, end of year$64.8 
Mortgage
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— $— 
2013— 0.3 0.3 0.1 0.1 0.1 0.1 0.1 0.1 0.1 — 
2014— — 3.5 0.6 0.6 0.6 0.6 0.6 0.6 0.6 — 
2015— — — 1.6 1.6 1.6 1.7 0.8 0.8 0.8 — 
2016— — — — 5.8 5.5 5.8 1.4 2.2 1.9 — 
2017— — — — — 7.9 8.3 2.1 3.0 2.6 0.5 
2018— — — — — — 11.1 4.2 5.4 4.9 1.3 
2019— — — — — — — 6.9 8.7 8.0 2.5 
2020— — — — — — — — 11.9 11.8 5.8 
2021— — — — — — — — — 11.1 6.9 
Total$41.8 $17.0 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— 
2013— — — 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
2014— — — 0.6 0.6 0.6 0.6 0.6 0.6 0.6 
2015— — — 0.3 0.5 0.7 0.7 0.8 0.8 0.8 
2016— — — — 0.1 0.5 0.8 1.0 1.0 1.0 
2017— — — — — 0.1 0.7 1.0 1.1 1.0 
2018— — — — — — 0.3 1.2 1.3 1.4 
2019— — — — — — — 0.8 1.6 1.8 
2020— — — — — — — — 1.4 1.5 
2021— — — — — — — — — 1.1 
Total$9.3 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 202132.5 
Net reserves for loss and allocated loss adjustment expenses prior to 2012(0.1)
Mortgage - net reserves for loss and allocated loss adjustment expenses, end of year$32.4 
Property
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$314.1 $300.8 $289.8 $283.0 $280.2 $275.2 $275.4 $276.2 $276.9 $276.0 $1.1 
2013— 232.6 256.7 245.5 242.2 240.8 240.5 239.8 240.2 239.5 0.6 
2014— — 206.7 211.6 209.4 213.7 213.9 213.6 213.1 213.4 1.7 
2015— — — 217.2 214.6 218.4 218.9 217.5 217.3 217.5 2.5 
2016— — — — 294.3 295.0 296.9 297.1 295.0 294.2 3.3 
2017— — — — — 462.9 506.2 516.2 521.9 521.5 19.0 
2018— — — — — — 474.7 535.5 542.8 535.8 18.5 
2019— — — — — — — 542.5 526.8 525.1 37.7 
2020— — — — — — — — 577.4 569.9 188.3 
2021— — — — — — — — — 602.7 285.3 
Total$3,995.6 $558.0 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$46.6 $207.7 $241.1 $253.5 $259.1 $263.2 $265.2 $268.4 $268.9 $270.5 
2013— 56.7 171.6 212.0 224.8 229.5 231.3 233.0 234.3 234.3 
2014— — 50.4 141.5 177.1 194.5 201.0 205.1 206.0 206.9 
2015— — — 53.1 147.2 181.7 198.0 206.6 208.9 211.0 
2016— — — — 63.8 191.7 244.9 268.8 280.2 284.2 
2017— — — — — 88.0 315.9 404.3 460.3 472.7 
2018— — — — — — 69.3 330.7 428.4 461.1 
2019— — — — — — — 68.4 305.8 400.4 
2020— — — — — — — — 77.7 225.5 
2021— — — — — — — — — 66.3 
Total$2,832.9 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 20211,162.7 
Net reserves for loss and allocated loss adjustment expenses prior to 201233.0 
Property - net reserves for loss and allocated loss adjustment expenses, end of year$1,195.7 
Insurance & Services
The following tables provide a breakdown of the Company’s loss and allocated loss adjustment expenses incurred, net and net loss and allocated loss adjustment expenses paid by accident year by line of business for the Company’s Insurance & Services segment for the year ended December 31, 2021. The information related to loss and allocated loss adjustment expenses incurred, net and net loss and allocated loss adjustment expenses paid for the years ended December 31, 2012 through 2020 is presented as supplementary information and is unaudited:
A&H
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$164.2 $161.0 $148.7 $148.0 $147.7 $147.6 $147.5 $147.3 $147.3 $147.3 $(0.1)
2013— 126.3 124.2 119.7 119.2 118.5 117.7 117.6 117.4 117.5 — 
2014— — 131.4 132.5 130.9 130.8 129.9 129.9 129.8 129.9 0.1 
2015— — — 153.9 149.7 146.3 145.0 144.6 144.6 144.7 0.3 
2016— — — — 174.8 174.4 170.3 168.8 168.6 168.1 2.3 
2017— — — — — 178.4 174.6 168.0 165.7 165.5 (0.5)
2018— — — — — — 202.3 209.9 207.7 205.9 (1.2)
2019— — — — — — — 277.1 272.1 263.2 0.8 
2020— — — — — — — — 313.2 307.3 56.4 
2021— — — — — — — — — 224.3 85.1 
Total$1,873.7 $143.2 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$72.5 $136.9 $147.0 $147.3 $147.5 $147.5 $147.5 $147.5 $147.5 $147.5 
2013— 54.7 104.5 115.0 116.4 117.7 117.1 117.1 117.1 117.1 
2014— — 59.4 111.6 125.1 126.8 126.8 127.5 127.6 127.7 
2015— — — 75.8 130.4 141.9 143.6 143.9 144.0 144.0 
2016— — — — 99.0 151.5 163.3 165.2 165.7 165.4 
2017— — — — — 58.8 149.8 162.6 163.5 163.8 
2018— — — — — — 89.4 189.4 206.3 207.4 
2019— — — — — — — 129.8 237.6 254.6 
2020— — — — — — — — 105.4 247.7 
2021— — — — — — — — — 121.2 
Total$1,696.4 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 2021177.3 
Net reserves for loss and allocated loss adjustment expenses prior to 2012(0.5)
A&H - net reserves for loss and allocated loss adjustment expenses, end of year$176.8 
Environmental
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— $— 
2013— — — — — — — — — — — 
2014— — — — — — — — — — — 
2015— — — — — — — — — — — 
2016— — — — — — — — — — — 
2017— — — — — — — — — — — 
2018— — — — — — 0.4 0.1 0.1 0.1 — 
2019— — — — — — — 4.5 4.6 2.7 (1.9)
2020— — — — — — — — 3.6 3.2 2.8 
2021— — — — — — — — — 4.7 3.6 
Total$10.7 $4.5 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— 
2013— — — — — — — — — — 
2014— — — — — — — — — — 
2015— — — — — — — — — — 
2016— — — — — — — — — — 
2017— — — — — — — — — — 
2018— — — — — — — — 0.1 0.1 
2019— — — — — — — — 0.9 1.8 
2020— — — — — — — — — 0.3 
2021— — — — — — — — — — 
Total$2.2 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 20218.5 
Net reserves for loss and allocated loss adjustment expenses prior to 2012— 
Environmental - net reserves for loss and allocated loss adjustment expenses, end of year$8.5 
Workers’ Compensation
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— $— 
2013— — — — — — — — — — — 
2014— — — — — — — — — — — 
2015— — — — — — — — — — — 
2016— — — — — — — — — — — 
2017— — — — — — — — — — — 
2018— — — — — — 1.5 1.5 1.1 1.2 0.6 
2019— — — — — — — 18.6 16.6 15.7 2.8 
2020— — — — — — — — 45.8 46.9 11.3 
2021— — — — — — — — — 94.9 61.3 
Total$158.7 $76.0 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— 
2013— — — — — — — — — — 
2014— — — — — — — — — — 
2015— — — — — — — — — — 
2016— — — — — — — — — — 
2017— — — — — — — — — — 
2018— — — — — — — 0.2 0.3 0.4 
2019— — — — — — — 1.3 6.8 10.0 
2020— — — — — — — — 4.2 19.7 
2021— — — — — — — — — 10.4 
Total$40.5 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 2021118.2 
Net reserves for loss and allocated loss adjustment expenses prior to 2012— 
Workers’ Compensation - net reserves for loss and allocated loss adjustment expenses, end of year$118.2 
Other
Loss and allocated loss adjustment expenses incurred, net
Accident year 2012201320142015201620172018201920202021IBNR loss and ALAE reserves, net
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— $— 
2013— — — — — — — — — — — 
2014— — — — — — — — — — — 
2015— — — — — — — — — — — 
2016— — — — — — — — — — — 
2017— — — — — — — — — — — 
2018— — — — — — — — — — — 
2019— — — — — — — — — — — 
2020— — — — — — — — 2.6 2.3 1.4 
2021— — — — — — — — — 62.5 59.9 
Total$64.8 $61.3 
Cumulative net losses and allocated loss adjustment expenses paid
Accident year 2012201320142015201620172018201920202021
<--------------------------------------------------- Unaudited --------------------------------------------------->
2012$— $— $— $— $— $— $— $— $— $— 
2013— — — — — — — — — — 
2014— — — — — — — — — — 
2015— — — — — — — — — — 
2016— — — — — — — — — — 
2017— — — — — — — — — — 
2018— — — — — — — — — — 
2019— — — — — — — — — — 
2020— — — — — — — — 0.4 0.8 
2021— — — — — — — — — 1.5 
Total$2.3 
Net reserves for loss and allocated loss adjustment expenses from 2012 to 202162.5 
Net reserves for loss and allocated loss adjustment expenses prior to 2012— 
Other - net reserves for loss and allocated loss adjustment expenses, end of year$62.5 
Reconciliation of loss development information to loss and loss adjustment expense reserves
The following table provides a reconciliation of the Company's loss and loss adjustment expense reserves as of December 31, 2021:
2021
Net reserves for loss and allocated loss adjustment expenses
Reinsurance
Aviation & Space$132.8 
Casualty1,214.5 
Contingency18.4 
Credit & Bond76.9 
Marine & Energy64.8 
Mortgage32.4 
Property1,195.7 
Insurance & Services
A&H176.8 
Environmental8.5 
Workers’ Compensation118.2 
Other62.5 
Corporate (1)
402.1 
Net reserves for loss and allocated loss adjustment expenses, end of year3,503.6 
Loss and allocated loss adjustment expenses recoverable
Reinsurance
Aviation & Space42.1 
Casualty10.1 
Credit & Bond9.9 
Marine & Energy8.3 
Mortgage2.8 
Property547.3 
Insurance & Services
A&H64.4 
Environmental6.8 
Workers’ Compensation10.2 
Other44.5 
Corporate468.9 
Total loss and allocated loss adjustment expenses recoverable1,215.3 
Unallocated loss adjustment expense reserves55.8 
Other items, net (2)
65.3
Deferred charges on retroactive reinsurance contracts1.4 
Gross reserves for loss and loss adjustment expenses, end of year$4,841.4 
(1)Corporate includes the results of all runoff business and is not presented in the loss development tables.
(2)Includes fair value adjustments associated with the acquisition of Sirius Group.
Cumulative claims frequency
The reporting of cumulative claims frequency for the reserve classes within the Reinsurance and Insurance & Services segments are deemed to be impracticable as the information necessary to provide cumulative claims frequency for these reserve classes is not available to the Company. The underlying claim count is not provided for most reinsurance contracts written on a quote share or aggregate loss basis, and certain MGAs report data to the Company in an aggregate format and therefore the information necessary to provide cumulative claims is not available.
Claims duration
The following table is presented as supplementary information and presents the Company’s historical average annual percentage payout of loss and loss adjustment expenses incurred, net by age, as of December 31, 2021:
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
(Unaudited)
Reinsurance
Aviation & Space21.5 %25.8 %16.1 %9.2 %7.1 %2.7 %3.2 %(0.8)%2.2 %1.0 %
Casualty18.3 %22.0 %11.9 %9.5 %5.2 %2.8 %1.7 %0.7 %1.4 %(0.3)%
Contingency32.3 %22.6 %20.6 %8.7 %4.0 %0.6 %2.0 %— %1.0 %— %
Credit & Bond32.3 %27.2 %16.3 %5.0 %1.8 %0.5 %0.1 %0.1 %0.3 %(0.5)%
Marine & Energy15.5 %28.9 %21.9 %10.4 %5.0 %3.0 %2.5 %1.6 %0.2 %(0.1)%
Mortgage10.2 %11.4 %5.7 %3.5 %— %(0.6)%(0.1)%(0.1)%— %— %
Property16.0 %43.1 %16.9 %7.5 %2.8 %1.3 %0.7 %0.8 %0.1 %0.6 %
Insurance & Services
A&H46.2 %43.3 %7.7 %0.8 %0.3 %— %— %— %— %— %
Environmental1.0 %19.9 %35.1 %3.6 %— %— %— %— %— %— %
Workers’ Compensation10.0 %33.2 %19.8 %6.9 %— %— %— %— %— %— %
Other2.9 %16.3 %2.0 %— %— %— %— %— %— %— %