XML 50 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loss and Loss Adjustment Expense Reserves (Tables)
 9 Months Ended
Sep. 30, 2013
Insurance Loss Reserves [Abstract]  
Loss and loss adjustment expense ("LAE") reserve activities
The following table summarizes the loss and loss adjustment expense (“LAE”) reserve activities of White Mountains’ insurance and reinsurance subsidiaries for the three and nine months ended September 30, 2013 and 2012:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
Millions
 
2013
 
2012
 
2013
 
2012
Gross beginning balance
 
$
3,057.9

 
$
5,329.8

 
$
3,168.9

 
$
5,702.3

Less beginning reinsurance recoverable on unpaid losses
 
(388.6
)
 
(2,369.4
)
 
(429.1
)
 
(2,507.3
)
Net loss and LAE reserves
 
2,669.3

 
2,960.4

 
2,739.8

 
3,195.0

 
 
 
 
 
 
 
 
 
Less:  Beginning net loss and LAE reserves for
     OneBeacon’s runoff business (1)
 
—

 
(296.0
)
 
—

 
(384.1
)
 
 
 
 
 
 
 
 
 
Loss and LAE reserves acquired - American Fuji
 
—

 
—

 
21.3

 
—

 
 
 
 
 
 
 
 
 
Loss and LAE incurred relating to:
 
 
 
 
 
 

 
 

Current year losses
 
289.9

 
318.2

 
822.8

 
842.9

Prior year losses
 
(11.6
)
 
(10.1
)
 
(25.6
)
 
(21.2
)
Total incurred losses and LAE
 
278.3

 
308.1

 
797.2

 
821.7

 
 
 
 
 
 
 
 
 
Accretion of fair value adjustment to loss and LAE reserves
 
.2

 
1.1

 
1.5

 
9.4

Foreign currency translation adjustment to loss and LAE reserves
 
12.3

 
12.0

 
(1.9
)
 
11.7

 
 
 
 
 
 
 
 
 
Loss and LAE paid relating to:
 
 
 
 
 
 

 
 

Current year losses
 
(90.0
)
 
(101.1
)
 
(209.9
)
 
(223.9
)
Prior year losses
 
(178.0
)
 
(181.5
)
 
(655.9
)
 
(726.8
)
Total loss and LAE payments
 
(268.0
)
 
(282.6
)
 
(865.8
)
 
(950.7
)
 
 
 
 
 
 
 
 
 
Net ending balance
 
2,692.1

 
2,703.0

 
2,692.1

 
2,703.0

Plus ending reinsurance recoverable on unpaid losses
 
416.0

 
356.8

 
416.0

 
356.8

Gross ending balance
 
$
3,108.1

 
$
3,059.8

 
$
3,108.1

 
$
3,059.8

(1) Loss and LAE reserve balances for OneBeacon’s run-off business prior to September 30, 2012 were not classified as held for sale.  Adjustment is to present loss and LAE reserve activities from continuing operations.