Reinsurance Ceded (Tables)

12 Months Ended

Dec. 31, 2017

Reinsurance Recoverables

Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables. Such balances as of December 31, 2017 and 2016 are presented in the table below:

	As of December 31,
	2017		2016
	($ in millions)
Reinsurance recoverables on paid losses	$	96.4	$	36.0
Ceded outstanding loss and LAE		1,650.1		1,236.2
Total	$	1,746.5	$	1,272.2

Information Regarding Concentration of Reinsurance Recoverables and Ratings Profile of its Reinsurers

The following table presents information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of its reinsurers as of December 31, 2017:

Reinsurer(1)	Rating(2)	Amount		Percentage
		($ in millions)
Swiss Reinsurance Company	A+ (Superior)	$	154.2		8.8%
Syndicates at Lloyd’s of London	A (Excellent)		133.8		7.7%
PartnerRe Ltd	A (Excellent)		119.4		6.8%
Fairfax Financial Holdings Ltd(3)	A (Excellent)		101.5		5.8%
RenaissanceRe Holdings Ltd	A+ (Superior)		97.3		5.6%
W.R. Berkley Corporation	A+ (Superior)		88.2		5.1%
Chubb Corporation	A++ (Superior)		86.0		4.9%
Kane SAC Ltd(4)	not rated		75.5		4.3%
Liberty Mutual	A (Excellent)		74.0		4.2%
Hannover Ruck SE	A+ (Superior)		55.4		3.2%
All other reinsurers			761.2		43.6%
Total reinsurance recoverables(5)		$	1,746.5		100.0%
Secured reinsurance recoverables(4)		$	525.7		30.1%

(1) Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company.

(2) Represents the A.M. Best Company, Inc. financial strength rating for the applicable reinsurance subsidiary or subsidiaries from which the reinsurance recoverable is due.

(3) In July 2017, Fairfax Financial Holdings Ltd acquired Allied World Assurance Company Holdings, AG.

(4) Represents reinsurance recoverables secured by funds held, trust agreements or letters of credit.

(5) Approximately 78 percent of Alleghany’s reinsurance recoverables balance as of December 31, 2017 was due from reinsurers having an A.M. Best Company, Inc. financial strength rating of A (Excellent) or higher.

Property and Casualty Premiums Written and Earned

The following table presents property and casualty premiums written and earned for 2017, 2016 and 2015:

	Year Ended December 31,
	2017		2016		2015
	($ in millions)
Gross premiums written – direct	$	1,528.7	$	1,490.3	$	1,505.6
Gross premiums written – assumed		4,168.2		4,276.8		3,616.6
Ceded premiums written		(731.0)		(675.3)		(633.0)
Net premiums written	$	4,965.9	$	5,091.8	$	4,489.2
Gross premiums earned – direct	$	1,932.0	$	1,871.1	$	1,515.9
Gross premiums earned – assumed		3,790.3		3,833.9		3,403.3
Ceded premiums earned		(767.3)		(729.2)		(688.9)
Net premiums earned	$	4,955.0	$	4,975.8	$	4,230.3