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Reinsurance Ceded (Tables)
 12 Months Ended
Dec. 31, 2020
Insurance [Abstract]  
Reinsurance Recoverables After Allowance for Credit Losses

Amounts recoverable from reinsurers are recognized in a manner consistent with the loss and LAE liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables, and are recorded after an allowance for credit losses. Such balances as of December 31, 2020 and 2019 are presented in the table below:

 

 

 

As of December 31,

 

 

 

2020

 

 

2019

 

 

 

($ in millions)

 

Reinsurance recoverables on paid losses

 

$

85.3

 

 

$

98.1

 

Ceded outstanding loss and LAE

 

 

1,703.7

 

 

 

1,583.9

 

Reinsurance recoverables, before allowance for credit losses

 

 

1,789.0

 

 

 

1,682.0

 

Allowance for credit losses

 

 

(7.9

)

 

 

—

 

Total

 

$

1,781.1

 

 

$

1,682.0

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

The following table presents information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of its reinsurers as of December 31, 2020:

 

Reinsurer(1)

 

Rating(2)

 

Amount

 

 

Percentage

 

 

 

 

 

($ in millions)

 

 

 

 

 

Syndicates at Lloyd's of London

 

A (Excellent)

 

$

151.1

 

 

 

8.4

%

Kane SAC Ltd, Rondout Segregated Account(3)

 

not rated

 

 

124.5

 

 

 

7.0

%

RenaissanceRe Holdings Ltd

 

A+ (Superior)

 

 

119.2

 

 

 

6.7

%

PartnerRe Ltd

 

A (Excellent)

 

 

113.1

 

 

 

6.3

%

Fairfax Financial Holdings Ltd

 

A (Superior)

 

 

106.0

 

 

 

5.9

%

Swiss Reinsurance Company

 

A+ (Superior)

 

 

98.6

 

 

 

5.5

%

Third Point Reinsurance Group

 

A- (Excellent)

 

 

79.1

 

 

 

4.4

%

W.R. Berkley Corporation

 

A+ (Superior)

 

 

73.1

 

 

 

4.1

%

Chubb

 

A++ (Superior)

 

 

68.7

 

 

 

3.8

%

Kane SAC Ltd, Bowery Segregated Account(3)

 

not rated

 

 

62.1

 

 

 

3.5

%

All other reinsurers

 

 

 

 

793.5

 

 

 

44.4

%

Total reinsurance recoverables, before allowance for credit losses(4)

 

 

 

 

1,789.0

 

 

 

100.0

%

Allowance for credit losses

 

 

 

 

(7.9

)

 

 

 

 

Total

 

 

 

$

1,781.1

 

 

 

 

 

Secured reinsurance recoverables(3)

 

 

 

$

632.1

 

 

 

35.5

%

 

(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)

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

(4)

Approximately 71 percent of Alleghany’s reinsurance recoverables balance as of December 31, 2020 was due from reinsurers having an A.M. Best Company, Inc. financial strength rating of A (Excellent) or higher, with a majority of the other reinsurance recoverables being secured by funds held, trust agreements or letters of credit.

Allowance for Credit Losses on Reinsurance Recoverables

The following table presents a rollforward of Alleghany’s allowance for credit losses on reinsurance recoverables for 2020:

 

 

Year Ended December 31,

 

 

 

2020

 

 

 

($ in millions)

 

Allowance for Credit Losses

 

 

 

 

Beginning balance

 

$

—

 

Beginning balance - cumulative effect of an accounting change

 

 

3.3

 

Provision for credit losses

 

 

4.6

 

Charge-offs

 

 

—

 

Recoveries

 

 

—

 

Balance as of December 31, 2020

 

$

7.9

 
Property and Casualty Premiums Written and Earned

The following table presents property and casualty premiums written and earned for 2020, 2019 and 2018:

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

($ in millions)

 

Gross premiums written – direct

 

$

2,214.6

 

 

$

1,800.3

 

 

$

1,537.8

 

Gross premiums written – assumed

 

 

5,114.8

 

 

 

4,856.1

 

 

 

4,357.8

 

Ceded premiums written

 

 

(985.0

)

 

 

(904.7

)

 

 

(847.2

)

Net premiums written

 

$

6,344.4

 

 

$

5,751.7

 

 

$

5,048.4

 

Gross premiums earned – direct

 

$

2,370.4

 

 

$

2,114.1

 

 

$

1,935.3

 

Gross premiums earned – assumed

 

 

4,582.9

 

 

 

4,268.8

 

 

 

3,881.4

 

Ceded premiums earned

 

 

(953.1

)

 

 

(904.8

)

 

 

(840.5

)

Net premiums earned

 

$

6,000.2

 

 

$

5,478.1

 

 

$

4,976.2