XML 60 R40.htm IDEA: XBRL DOCUMENT v3.6.0.2
Third Party Reinsurance (Tables)
 12 Months Ended
Dec. 31, 2016
Reinsurance Disclosures [Abstract]  
Reinsurance Retention Policy
The following table summarizes the reinsurance coverage currently in effect as of December 31, 2016:
$ in millions
 
 
 
 
 
 
 
 
 
 
Coverage
 
Contract Type
 
Renewal Date
 
First-Dollar Retention
 
Per Risk Limit Purchased
 
Maximum Retention
Corporate Property Catastrophe - Property and Inland Marine
 
Excess of Loss
 
5/1
 
$
20.0

 
$
110.0

 
$
20.0

Property Per Risk - Property and Inland Marine
 
Excess of Loss
 
5/1
 
3.0

 
100.0

 
3.0

Specialty Property - Excess and Surplus Property Catastrophe
 
Excess of Loss
 
5/1
 
6.0

 
34.0

 
6.0

Medical Excess - HMO/Provider Excess
 
Excess of Loss
 
1/1
 
5.0

 
Unlimited
 
5.0

Ocean and Inland Marine
 
Excess of Loss
 
4/1
 
2.5

 
57.5

 
7.0

Surety
 
Excess of Loss
 
10/1
 
5.0

 
45.0

 
5.0

Film Completion Bonds
 
Excess of Loss
 
6/1
 
2.0

 
38.0

 
2.0

Casualty Clash/Workers Compensation Catastrophe
 
Excess of Loss
 
6/1
 
6.0

 
34.0

 
6.0

Workers Compensation Catastrophe
 
Excess of Loss
 
6/1
 
40.0

 
20.0

 
6.0

Financial Institutions - Professional Liability
 
Quota Share
 
6/1
 
N/A

 
10.0

 
5.0

Combined Healthcare/Casualty 2nd Layer - Various lines
 
Excess of Loss
 
6/1
 
10.0 / 11.0

 
10.0

 
3.0

Casualty Per Policy - Various lines
 
Excess of Loss
 
6/1
 
3.0

 
8.0

 
3.0

Workers Compensation Per Occurrence
 
Excess of Loss
 
6/1
 
2.0

 
8.0

 
2.0

Healthcare Professional Liability
 
Excess of Loss
 
6/1
 
3.0

 
7.0

 
3.0
Schedule of direct assumed and ceded amounts
The effects of reinsurance on White Mountains’s insurance subsidiaries’ written and earned premiums and on losses and LAE were as follows (see Note 10 — “Municipal Bond Guarantee Insurance” for balances related to White Mountains financial guarantee business):
 
 
Year ended December 31, 2016
Millions
 
OneBeacon
 
HG/BAM (1)
 
Other
 
Total
Written premiums:
 
 
 
 
 
 
 
 
Direct
 
$
1,193.3

 
$
38.6

 
$
13.3

 
$
1,245.2

Assumed
 
28.0

 
—

 
—

 
28.0

Gross written premiums
 
1,221.3

 
38.6

 
13.3

 
1,273.2

Ceded
 
(120.6
)
 
—

 
(6.8
)
 
(127.4
)
Net written premiums
 
$
1,100.7

 
$
38.6

 
$
6.5

 
$
1,145.8

Earned premiums:
 
 
 
 
 
 
 
 
Direct
 
$
1,177.0

 
$
5.9

 
$
15.2

 
$
1,198.1

Assumed
 
29.4

 
—

 
—

 
29.4

Gross earned premiums
 
1,206.4

 
5.9

 
15.2

 
1,227.5

Ceded
 
(105.8
)
 
—

 
(7.7
)
 
(113.5
)
Net earned premiums
 
$
1,100.6

 
5.9

 
$
7.5

 
$
1,114.0

Losses and LAE:
 
 
 
 
 
 
 
 
Direct
 
$
679.5

 
$
—

 
$
14.3

 
$
693.8

Assumed
 
21.2

 
—

 
—

 
21.2

Gross losses and LAE
 
700.7

 
—

 
14.3

 
715.0

Ceded
 
(44.7
)
 
—

 
(6.3
)
 
(51.0
)
Net losses and LAE
 
$
656.0

 
$
—

 
$
8.0

 
$
664.0

(1) During 2016, BAM ceded $27.2 in written premiums and $21.0 in earned premiums to HG Global, which have been eliminated within the HG/BAM segment.
 
 
Year ended December 31, 2015
Millions
 
OneBeacon
 
HG/BAM (1)
 
Other
 
Total
Written premiums:
 
 
 
 
 
 
 
 
Direct
 
$
1,279.9

 
$
25.9

 
$
19.9

 
$
1,325.7

Assumed
 
36.0

 
—

 
—

 
36.0

Gross written premiums
 
1,315.9

 
25.9

 
19.9

 
1,361.7

Ceded
 
(179.3
)
(2) 
—

 
(9.8
)
 
(189.1
)
Net written premiums
 
$
1,136.6

 
$
25.9

 
$
10.1

 
$
1,172.6

Earned premiums:
 
 
 


 


 
 
Direct
 
$
1,298.0

 
$
3.3

 
$
20.7

 
$
1,322.0

Assumed
 
45.9

 
—

 
—

 
45.9

Gross earned premiums
 
1,343.9

 
3.3

 
20.7

 
1,367.9

Ceded
 
(167.7
)
(2) 
—

 
(12.0
)
 
(179.7
)
Net earned premiums
 
$
1,176.2

 
3.3

 
$
8.7

 
$
1,188.2

Losses and LAE:
 
 
 


 


 
 
Direct
 
$
783.0

 
$
—

 
$
19.5

 
$
802.5

Assumed
 
55.7

 
—

 
—

 
55.7

Gross losses and LAE
 
838.7

 
—

 
19.5

 
858.2

Ceded
 
(138.0
)
(2) 
—

 
(11.3
)
 
(149.3
)
Net losses and LAE
 
$
700.7

 
$
—

 
$
8.2

 
$
708.9

(1) During 2015, BAM ceded $19.3 in written premiums and $16.0 in earned premiums to HG Global, which have been eliminated within the HG/BAM segment.
(2) During 2015, OneBeacon recorded ceded $33.3 in written premiums, $33.3 in earned premiums and $33.4 in loss and LAE as a result of the exit of the Crop Business due to the 100% quota share reinsurance agreement with AmTrust.

 
 
Year ended December 31, 2014
Millions
 
OneBeacon
 
HG/BAM (1)
 
Other(2)
 
Total
Written premiums:
 
 
 
 
 
 
 
 
Direct
 
$
1,257.5

 
$
16.2

 
$
22.6

 
$
1,296.3

Assumed
 
65.9

 
—

 
—

 
65.9

Gross written premiums
 
1,323.4

 
16.2

 
22.6

 
1,362.2

Ceded
 
(106.5
)
 
—

 
(16.7
)
 
(123.2
)
Net written premiums
 
$
1,216.9

 
$
16.2

 
$
5.9

 
$
1,239.0

Earned premiums:
 
 
 
 
 
 
 
 
Direct
 
$
1,209.1

 
$
1.8

 
$
22.6

 
$
1,233.5

Assumed
 
70.9

 
—

 
—

 
70.9

Gross earned premiums
 
1,280.0

 
1.8

 
22.6

 
1,304.4

Ceded
 
(102.9
)
 
—

 
(16.5
)
 
(119.4
)
Net earned premiums
 
$
1,177.1

 
$
1.8

 
$
6.1

 
$
1,185.0

Losses and LAE:
 
 
 
 
 
 
 
 
Direct
 
$
778.7

 
$
—

 
$
24.1

 
$
802.8

Assumed
 
115.7

 
—

 
—

 
115.7

Gross losses and LAE
 
894.4

 
—

 
24.1

 
918.5

Ceded
 
(79.3
)
 
—

 
(15.2
)
 
(94.5
)
Net losses and LAE
 
$
815.1

 
$
—

 
$
8.9

 
$
824.0

(1) During 2014, BAM ceded $12.3 in written premiums and $1.4 in earned premiums to HG Global, which have been eliminated within the HG/BAM segment.
(2) During 2014, SSIE ceded $16.0 in written premiums, $15.7 in earned premiums, and $16.9 in loss and LAE to OneBeacon, which have been eliminated in consolidation.
Ceded Credit Risk
The following table summarizes A.M. Best Company, Inc. (“A.M. Best”) ratings for OneBeacon’s reinsurers.
A.M. Best’s Rating (1)
 
 
 
 
$ in millions
 
Balance at December 31, 2016
 
% of Total
A+ or better
 
$
73.9

 
41
%
A- to A
 
79.7

 
44
%
B, Not rated and other (2)
 
25.9

 
15
%
Total
 
$
179.5

 
100
%
(1)  A.M. Best’s ratings as detailed above are “A+ or better” (Superior), “A- to A” (Excellent) and “B” (Fair).
(2) Includes