Transactions with related parties (Tables)

6 Months Ended

Jun. 30, 2020

ACGL and Subsidiaries | Underwriting fees and expenses

The related AUL and AUI fees and reimbursements incurred in the consolidated statements of income (loss) for the three and six months ended June 30, 2020 and 2019 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	($ in thousands)
Consolidated statements of income (loss) items:
Acquisition expenses	$	6,942	$	5,861	$	13,505	$	10,809
General and administrative expenses	1,148		2,008		2,136		4,019
Total	$	8,090	$	7,869	$	15,641	$	14,828

ACGL and Subsidiaries | Quota share business

Summary of related party transactions

The related consolidated statements of income (loss) for the three and six months ended June 30, 2020 and 2019 for the outward retrocession transactions were as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	($ in thousands)
Consolidated statements of income (loss) items:
Gross premiums ceded	$	(17,174	)	$	(15,844	)	$	(37,002	)	$	(32,834	)
Net premiums earned	(20,261		)	(14,411		)	(40,049		)	(27,351		)
Losses and loss adjustment expenses	(17,558		)	(15,784		)	(33,373		)	(24,921		)
Acquisition expenses (1)	(3,319		)	(3,584		)	(7,857		)	(6,688		)

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

ACGL and Subsidiaries | Investment management and performance fees

Summary of related party transactions

The related consolidated statements of income (loss) for the three and six months ended June 30, 2020 and 2019 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Consolidated statements of income (loss) items:	($ in thousands)
Investment management fees - related parties	$	223	$	273	$	476	$	535

HPS | Investment management and performance fees

Summary of related party transactions

The related consolidated statements of income (loss) for the three and six months ended June 30, 2020 and 2019, and consolidated balance sheet account balances for HPS management fees and performance fees as of June 30, 2020 and December 31, 2019 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	($ in thousands)
Consolidated statements of income (loss) items:
Investment management fees - related parties	$	4,039	$	4,297	$	8,138	$	8,444
Investment performance fees - related parties	—		1,692		—		7,492
	$	4,039	$	5,989	$	8,138	$	15,936



	June 30,		December 31,
	2020		2019
	($ in thousands)
Consolidated balance sheet items:
Other investments, at fair value	$	34,142	$	30,461
Investment management and performance fees payable	5,511		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 and six months ended June 30, 2020 and 2019.



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	($ in thousands)
Fees paid to Artex under insurance management services agreement	$	166	$	45	$	252	$	176

Arch Capital Group Limited | ACGL and Subsidiaries

Summary of related party transactions

The related balances presented in the consolidated statements of income (loss) for the three and six months ended June 30, 2020 and 2019 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	($ in thousands)
Consolidated statements of income (loss) items:
Interest expense	$	582	$	—	$	1,164	$	—
Preference dividends	73		325		151		650

The related consolidated balance sheet account balances as of June 30, 2020 and December 31, 2019 were as follows:



	June 30,		December 31,
	2020		2019
	($ in thousands)
Consolidated balance sheet items:
Total investments	$	775,016	$	815,528
Premiums receivable	96,475		106,462
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses	101,356		79,597
Prepaid reinsurance premiums	71,578		75,249
Deferred acquisition costs, net	29,894		31,609
Funds held by reinsurers	29,629		29,867
Reserve for losses and loss adjustment expenses	680,444		693,861
Unearned premiums	139,632		143,852
Losses payable	47,812		39,619
Reinsurance balances payable	53,387		62,301
Senior notes	34,511		34,484
Amounts due to affiliates	4,542		4,467
Other liabilities - contingent commissions	4,033		5,516
Contingently redeemable preference shares	3,465		3,462

Arch Capital Group Limited | ACGL and Subsidiaries | Direct business

Summary of related party transactions

The related consolidated statements of income (loss) for the three and six months ended June 30, 2020 and 2019 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	($ in thousands)
Consolidated statements of income (loss) items:
Gross premiums written	$	30,371	$	38,890	$	111,719	$	110,895
Net premiums earned	51,067		66,913		109,853		128,751
Losses and loss adjustment expenses	40,759		54,894		87,300		100,263
Acquisition expenses (1)	13,153		20,890		27,006		40,805

(1) Acquisition expenses relating to the ACGL inward quota share agreements referred to above. For the three months ended June 30, 2020 and 2019, the Company incurred ceding fees to Arch, in aggregate, of $3.8 million and $4.8 million, respectively, under these inward retrocession agreements. For the six months ended June 30, 2020 and 2019, the Company incurred ceding fees to Arch, in aggregate, of $7.8 million and $9.0 million, respectively, under these inward retrocession agreements.