Transactions with related parties (Tables)

3 Months Ended

Mar. 31, 2020

ACGL and Subsidiaries | Underwriting fees and expenses

The related AUL and AUI fees and reimbursements incurred in the consolidated statement of income (loss) for the three months ended March 31, 2020 and 2019 were as follows:



	Three Months Ended March 31,
	2020		2019
	($ in thousands)
Consolidated statement of income (loss) items:
Acquisition expenses	$	6,563	$	4,948
General and administrative expenses	988		2,011
Total	$	7,551	$	6,959

ACGL and Subsidiaries | Investment management and performance fees

Summary of related party transactions

The related consolidated statement of income (loss) for the three months ended March 31, 2020 and 2019 were as follows:



	Three Months Ended March 31,
	2020		2019
	($ in thousands)
Consolidated statement of income (loss) items:
Investment management fees - related parties	$	253	$	262

ACGL and Subsidiaries | Quota share business

Summary of related party transactions

The related consolidated statement of income (loss) for the three months ended March 31, 2020 and 2019 for the outward retrocession transactions were as follows:



	Three Months Ended March 31,
	2020			2019
	($ in thousands)
Consolidated statement of income (loss) items:
Gross premiums ceded	$	(19,828	)	$	(16,990	)
Net premiums earned	(19,788		)	(12,940		)
Loss and loss adjustment expenses	(15,815		)	(9,138		)
Acquisition expenses (1)	(4,537		)	(3,104		)

(1) Acquisition expenses relating to the ACGL outward quota share agreements referred to above.

ACGL and Subsidiaries | Arch Capital Group Limited

Summary of related party transactions

The related consolidated balance sheet account balances as of March 31, 2020 and December 31, 2019 were as follows:



	March 31,		December 31,
	2020		2019
	($ in thousands)
Consolidated balance sheet items:
Total investments	$	680,448	$	815,528
Premiums receivable	122,147		106,462
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	88,179		79,597
Prepaid reinsurance premiums	74,696		75,249
Deferred acquisition costs, net	34,760		31,609
Funds held by reinsurers	26,964		29,867
Reserve for losses and loss adjustment expenses	684,802		693,861
Unearned premiums	160,328		143,852
Losses payable	32,146		39,619
Reinsurance balances payable	58,604		62,301
Senior notes	34,497		34,484
Amounts due to affiliates	32,146		4,467
Other liabilities - contingent commissions	3,911		5,516
Contingently redeemable preference shares	3,463		3,462

The related balances presented in the consolidated statement of income (loss) for the three months ended March 31, 2020 and 2019 were as follows:



	Three Months Ended March 31,
	2020		2019
	($ in thousands)
Consolidated statement of income (loss) items:
Interest expense	$	582	$	—
Preference dividends	78		325

ACGL and Subsidiaries | Arch Capital Group Limited | Direct business

Summary of related party transactions

The related consolidated statement of income (loss) for the three months ended March 31, 2020 and 2019 were as follows:



	Three Months Ended March 31,
	2020		2019
	($ in thousands)
Consolidated statement of income (loss) items:
Gross premiums written	$	81,348	$	72,005
Net premiums earned	58,785		61,838
Loss and loss adjustment expenses	46,541		45,370
Acquisition expenses (1)	13,853		19,915

(1) Acquisition expenses relating to the ACGL inward quota share agreements referred to above. For the three months ended March 31, 2020 and 2019, the Company incurred ceding fees to Arch, in aggregate, of $4.0 million and $4.2 million, respectively, under these inward retrocession agreements.

HPS | Investment management and performance fees

Summary of related party transactions

The related consolidated statement of income (loss) for the three months ended March 31, 2020 and 2019, and consolidated balance sheet account balances for HPS management fees and performance fees as of March 31, 2020 and December 31, 2019 were as follows:



	Three Months Ended March 31,
	2020		2019
	($ in thousands)
Consolidated statement of income (loss) items:
Investment management fees - related parties	$	4,099	$	4,147
Investment performance fees - related parties	—		5,800
	$	4,099	$	9,947



	March 31,		December 31,
	2020		2019
	($ in thousands)
Consolidated balance sheet items:
Other investments, at fair value	$	30,682	$	30,461
Investment management and performance fees payable	5,428		17,762

Artex | Insurance management fees

Summary of related party transactions

The table below provides the aggregate fees the Company paid to Artex under the insurance management services agreement for the three months ended March 31, 2020 and 2019.



	Three Months Ended March 31,
	2020		2019
	($ in thousands)
Fees paid to Artex under insurance management services agreement	$	86	$	131