XML 19 R39.htm IDEA: XBRL DOCUMENT v2.4.0.8
Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables)
 12 Months Ended
Dec. 31, 2013
Insurance Loss Reserves [Abstract]  
Loss and LAE reserve activities
The following table summarizes the loss and LAE reserve activities of White Mountains’ insurance and reinsurance subsidiaries for the years ended December 31, 2013, 2012 and 2011:
 
 
Year Ended December 31,
Millions
 
2013
 
2012
 
2011
Gross beginning balance
 
$
3,168.9

 
$
5,702.3

 
$
5,736.8

Less beginning reinsurance recoverable on unpaid losses
 
(429.1
)
 
(2,507.3
)
 
(2,344.0
)
Net loss and LAE reserves
 
2,739.8

 
3,195.0

 
3,392.8

 
 
 
 
 
 
 
Less: Beginning net loss and LAE reserves for AutoOne and
          the Runoff Transaction(1)
 
—

 
(383.3
)
 
(619.6
)
 
 
 
 
 
 
 
Loss and LAE reserves acquired(2)
 
37.7

 
17.0

 
21.0

 
 
 
 
 
 
 
Losses and LAE incurred relating to:
 
 
 
 
 
 
Current year losses
 
1,088.9

 
1,235.8

 
1,251.0

Prior year losses
 
(48.4
)
 
(41.9
)
 
(76.7
)
Total incurred losses and LAE
 
1,040.5

 
1,193.9

 
1,174.3

 
 
 
 
 
 
 
Accretion of fair value adjustment to net loss and LAE reserves
 
1.7

 
10.6

 
8.3

Foreign currency translation adjustment to net loss and LAE reserves
 
.3

 
12.9

 
.1

 
 
 
 
 
 
 
Loss and LAE paid relating to:
 
 

 
 

 
 

Current year losses
 
(336.2
)
 
(404.7
)
 
(387.9
)
Prior year losses
 
(832.6
)
 
(901.6
)
 
(777.3
)
Total loss and LAE payments
 
(1,168.8
)
 
(1,306.3
)
 
(1,165.2
)
 
 
 
 
 
 
 
Plus: Ending net loss and LAE reserves for AutoOne and
the Runoff Transaction(1)
 
—

 
—

 
383.3

 
 
 
 
 
 
 
Net ending balance
 
2,651.2

 
2,739.8

 
3,195.0

Plus ending reinsurance recoverable on unpaid losses
 
428.1

 
429.1

 
2,507.3

Gross ending balance
 
$
3,079.3

 
$
3,168.9

 
$
5,702.3

(1) 
Loss and LAE reserve balances from OneBeacon’s Runoff Business prior to December 31, 2012 and AutoOne prior to December 31, 2011 were not classified as held for sale. Adjustment is to present loss and LAE reserve activities for continuing operations.
(2) 
Loss and LAE reserves acquired relate to WM Solutions purchases of Empire and Ashmere in 2013, PICO, Citation, Woodridge and Oakwood in 2012 and Old Lyme in 2011.
Schedule of asbestos and environmental loss and LAE reserve activities
Sirius Group
Net A&E Loss Reserve Activity
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Millions
 
Gross
 
Net
 
Gross
 
Net
 
Gross
 
Net
Asbestos:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
208.2

 
$
174.2

 
$
185.1

 
$
146.2

 
$
191.9

 
$
151.5

Losses and LAE acquired
 
13.0

 
13.0

 
11.0

 
11.0

 
—

 
—

Incurred losses and LAE
 
12.1

 
11.8

 
46.8

 
46.4

 
13.6

 
10.3

Paid losses and LAE
 
(25.9
)
 
(20.3
)
 
(34.7
)
 
(29.4
)
 
(20.4
)
 
(15.6
)
Ending balance
 
207.4

 
178.7

 
208.2

 
174.2

 
185.1

 
146.2

Environmental:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
20.4

 
15.2

 
22.1

 
16.5

 
22.4

 
18.1

Losses and LAE acquired
 
1.0

 
1.0

 
.7

 
.7

 
—

 
—

Incurred losses and LAE
 
.8

 
.8

 
(.1
)
 
(.5
)
 
2.9

 
2.0

Paid losses and LAE
 
(1.8
)
 
(1.8
)
 
(2.3
)
 
(1.5
)
 
(3.2
)
 
(3.6
)
Ending balance
 
20.4

 
15.2

 
20.4

 
15.2

 
22.1

 
16.5

Total asbestos and environmental:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
228.6

 
189.4

 
207.2

 
162.7

 
214.3

 
169.6

Losses and LAE acquired
 
14.0

 
14.0

 
11.7

 
11.7

 
—

 
—

Incurred losses and LAE
 
12.9

 
12.6

 
46.7

 
45.9

 
16.5

 
12.3

Paid losses and LAE
 
(27.7
)
 
(22.1
)
 
(37.0
)
 
(30.9
)
 
(23.6
)
 
(19.2
)
Ending balance
 
$
227.8

 
$
193.9

 
$
228.6

 
$
189.4

 
$
207.2

 
$
162.7

The following tables summarize reported A&E loss and LAE reserve activities (gross and net of reinsurance) for OneBeacon for the years ended December 31, 2013, 2012 and 2011, respectively.
Net A&E Loss 
 
Year Ended December 31,
Reserve Activity
 
2013
 
2012
 
2011
 
 
 
 
Pre-NICO
 
 
 
 
 
Pre-NICO
 
 
 
 
 
Pre-NICO
 
 
Millions
 
Gross
 
Net(1)
 
Net(2)
 
Gross
 
Net(1)
 
Net(2)
 
Gross
 
Net(1)
 
Net(2)
Asbestos:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
929.4

 
$
602.5

 
$
2.4

 
$
1,074.3

 
$
681.2

 
$
2.2

 
$
904.0

 
$
647.3

 
$
6.4

Incurred losses and LAE
 
—

 
—

 
—

 
(.3
)
 
(.5
)
 
(.5
)
 
256.8

 
32.2

 
(4.0
)
Paid losses and LAE
 
(84.3
)
 
(79.3
)
 
(.5
)
 
(144.6
)
 
(78.2
)
 
.7

 
(86.5
)
 
1.7

 
(.2
)
Ending balance
 
845.1

 
523.2

 
1.9

 
929.4

 
602.5

 
2.4

 
1,074.3

 
681.2

 
2.2

Environmental:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
233.0

 
125.4

 
6.4

 
279.8

 
151.6

 
9.0

 
119.0

 
93.8

 
9.2

Incurred losses and LAE
 
—

 
—

 
—

 
(.9
)
 
(.5
)
 
(.5
)
 
231.8

 
62.2

 
10.0

Paid losses and LAE
 
(64.3
)
 
(33.0
)
 
(2.6
)
 
(45.9
)
 
(25.7
)
 
(2.1
)
 
(71.0
)
 
(4.4
)
 
(10.2
)
Ending balance
 
168.7

 
92.4

 
3.8

 
233.0

 
125.4

 
6.4

 
279.8

 
151.6

 
9.0

Total asbestos and environmental:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
1,162.4

 
727.9

 
8.8

 
1,354.1

 
832.8

 
11.2

 
1,023.0

 
741.1

 
15.6

Incurred losses and LAE
 
—

 
—

 
—

 
(1.2
)
 
(1.0
)
 
(1.0
)
 
488.6

 
94.4

 
6.0

Paid losses and LAE
 
(148.6
)
 
(112.3
)
 
(3.1
)
 
(190.5
)
 
(103.9
)
 
(1.4
)
 
(157.5
)
 
(2.7
)
 
(10.4
)
Ending balance
 
$
1,013.8

 
$
615.6

 
$
5.7

 
$
1,162.4

 
$
727.9

 
$
8.8

 
$
1,354.1

 
$
832.8

 
$
11.2

(1) 
Represents A&E reserve activity, net of third-party reinsurance, but prior to the NICO Cover.
(2) 
Includes NICO cover