HISTORICAL LOSS AND LAE DEVELOPMENT (Tables)

12 Months Ended

Dec. 31, 2016

HISTORICAL LOSS AND LAE DEVELOPMENT

Schedule of reconciliation of unpaid losses and settlement expenses (LAE)

(in thousands)	2016		2015		2014
Unpaid losses and LAE at beginning of year:
Gross	$	1,103,785	$	1,121,040	$	1,129,433
Ceded		(297,844)		(335,106)		(354,924)
Net	$	805,941	$	785,934	$	774,509
Increase (decrease) in incurred losses and LAE:
Current accident year	$	391,772	$	364,472	$	361,451
Prior accident years		(41,994)		(65,427)		(64,842)
Total incurred	$	349,778	$	299,045	$	296,609
Loss and LAE payments for claims incurred:
Current accident year	$	(70,540)	$	(71,853)	$	(65,308)
Prior accident year		(234,066)		(207,185)		(219,876)
Total paid	$	(304,606)	$	(279,038)	$	(285,184)
Net unpaid losses and LAE at end of year	$	851,113	$	805,941	$	785,934
Unpaid losses and LAE at end of year:
Gross	$	1,139,337	$	1,103,785	$	1,121,040
Ceded		(288,224)		(297,844)		(335,106)
Net	$	851,113	$	805,941	$	785,934

Schedule of incurred and paid claims development

Casualty - Primary Occurrence
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2016
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016			Total IBNR	Claims
2007	$	101,405	$	101,363	$	86,053	$	74,731	$	66,918	$	64,479	$	64,159	$	64,201	$	64,217	$	63,618		$	1,492	5,007
2008				96,829		100,454		91,734		83,367		78,218		74,174		73,859		73,696		74,837			1,764	5,405
2009						85,476		119,957		99,765		91,441		86,888		82,651		81,138		80,518			2,704	5,683
2010								87,875		96,582		93,589		88,820		85,034		80,289		78,685			3,183	6,100
2011										91,139		98,428		94,145		89,622		86,342		83,181			5,150	5,827
2012												91,807		78,406		65,893		61,072		59,028			5,645	5,123
2013														80,823		67,297		62,882		60,329			14,202	4,207
2014																88,092		79,497		71,592			26,967	4,075
2015																		94,835		84,975			47,441	3,997
2016																				101,950			80,004	3,350
																		Total	$	758,713
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016
2007	$	1,928	$	9,811	$	18,944	$	30,716	$	38,732	$	45,616	$	51,619	$	56,167	$	59,093	$	59,060
2008				3,022		9,399		20,539		33,605		48,108		56,288		62,511		64,814		67,572
2009						1,972		9,233		24,115		43,702		58,460		65,913		70,220		74,920
2010								2,587		13,025		29,312		44,051		55,992		61,929		66,399
2011										5,924		17,124		32,978		48,822		60,769		67,358
2012												5,897		14,539		23,889		33,822		43,276
2013														6,334		13,021		22,366		34,786
2014																11,436		18,771		29,545
2015																		10,157		19,902
2016																				10,142
	* Presented as unaudited required supplementary information.																	Total	$	472,960
										All outstanding liabilities before 2007, net of reinsurance										7,503
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	293,256
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		7.8	%	11.6	%	16.7	%	19.4	%	16.0	%	9.3	%	7.2	%	5.4	%	4.1	%	-0.1	%

Casualty - Excess Occurrence
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2016
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016			Total IBNR	Claims
2007	$	36,632	$	28,820	$	26,428	$	23,759	$	21,514	$	20,284	$	20,289	$	19,592	$	19,412	$	19,100		$	253	634
2008				35,209		22,666		17,347		14,472		13,869		13,862		13,816		13,695		13,487			210	633
2009						30,267		19,719		14,981		12,893		12,966		12,459		12,601		11,982			178	566
2010								29,314		24,244		22,111		18,932		20,044		22,044		21,018			598	497
2011										26,272		17,148		17,443		18,641		19,160		20,959			1,342	574
2012												29,042		21,558		21,021		21,885		21,231			2,465	818
2013														39,984		34,824		26,857		25,425			6,158	909
2014																50,889		39,095		35,119			17,141	785
2015																		53,672		50,857			35,131	529
2016																				56,341			52,614	292
																		Total	$	275,519
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016
2007	$	2,463	$	9,289	$	10,176	$	12,610	$	17,010	$	17,366	$	18,473	$	18,524	$	18,841	$	18,845
2008				115		3,224		8,212		11,231		11,755		11,938		12,163		13,166		13,183
2009						956		3,947		6,585		9,460		11,001		10,808		11,776		11,780
2010								7		6,002		10,705		13,282		15,512		17,302		19,175
2011										2,169		5,145		6,981		8,793		10,772		16,494
2012												1,315		3,573		8,843		15,380		16,879
2013														1,060		5,701		10,967		14,545
2014																1,899		4,006		11,002
2015																		2,048		10,127
2016																				1,068
	* Presented as unaudited required supplementary information.																	Total	$	133,098
										All outstanding liabilities before 2007, net of reinsurance										21,380
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	163,801
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		5.4	%	19.7	%	20.0	%	17.8	%	11.1	%	7.5	%	6.1	%	2.6	%	0.9	%	0.0	%

Casualty - Claims Made
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2016
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016			Total IBNR	Claims
2007	$	8,662	$	12,173	$	10,836	$	10,271	$	9,415	$	8,115	$	7,731	$	5,691	$	5,265	$	5,198		$	117	289
2008				11,083		12,754		3,915		3,043		7,811		6,878		5,568		4,848		4,584			156	300
2009						12,918		13,703		9,687		13,562		11,710		13,117		12,810		12,053			589	383
2010								13,690		15,556		9,776		10,429		11,689		10,581		9,175			663	502
2011										17,416		17,454		12,260		10,619		8,510		7,720			887	681
2012												27,576		26,144		20,727		19,590		18,022			2,737	803
2013														40,095		41,488		44,054		40,288			9,509	1,042
2014																53,929		55,386		58,152			22,424	1,300
2015																		55,006		47,831			31,065	1,327
2016																				59,992			46,064	1,377
																		Total	$	263,015
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016
2007	$	64	$	283	$	986	$	1,950	$	3,661	$	3,759	$	5,025	$	5,081	$	5,081	$	5,080
2008				9		227		703		705		707		712		4,380		4,385		4,424
2009						113		442		773		3,413		5,176		10,678		11,217		11,398
2010								259		1,548		2,308		3,626		5,733		5,749		6,956
2011										330		1,949		4,508		5,947		5,637		6,209
2012												433		4,086		6,898		9,218		10,968
2013														792		7,073		18,425		26,121
2014																1,705		9,775		27,923
2015																		2,215		10,738
2016																				2,060
	* Presented as unaudited required supplementary information.																	Total	$	111,877
										All outstanding liabilities before 2007, net of reinsurance										893
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	152,031
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		2.5	%	12.7	%	17.9	%	15.1	%	12.7	%	11.0	%	30.5	%	0.9	%	0.4	%	0.0	%

Casualty - Transportation
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2016
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016			Total IBNR	Claims
2007	$	32,125	$	30,574	$	28,398	$	25,773	$	25,788	$	26,035	$	26,111	$	26,093	$	25,918	$	25,917		$	28	3,614
2008				32,071		27,752		25,520		23,497		24,255		24,110		23,764		23,673		23,690			39	2,834
2009						26,349		23,366		23,174		22,929		22,613		22,340		21,958		21,969			43	2,644
2010								27,239		23,390		24,912		25,593		23,981		23,625		23,701			60	2,842
2011										22,957		23,479		25,747		25,272		25,431		25,376			116	2,467
2012												21,452		22,203		22,924		23,511		23,689			179	2,280
2013														32,742		32,853		32,989		37,673			1,503	2,847
2014																38,361		33,015		36,452			4,276	3,082
2015																		38,561		46,258			10,612	3,135
2016																				50,430			14,029	3,506
																		Total	$	315,155
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016
2007	$	6,322	$	10,690	$	17,077	$	21,359	$	24,068	$	25,489	$	25,669	$	25,815	$	25,827	$	25,829
2008				6,153		10,821		14,489		18,359		21,110		23,293		23,387		23,614		23,616
2009						5,035		8,698		14,613		19,933		21,100		21,325		21,640		21,650
2010								6,296		10,116		15,475		20,045		21,792		23,063		23,488
2011										5,295		9,485		14,477		19,443		22,375		23,537
2012												4,466		8,533		12,394		17,318		20,931
2013														5,306		11,978		19,761		28,220
2014																7,125		13,933		19,676
2015																		6,984		20,709
2016																				8,923
	* Presented as unaudited required supplementary information.																	Total	$	216,579
										All outstanding liabilities before 2007, net of reinsurance										28
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	98,604
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		20.6	%	18.8	%	20.3	%	19.9	%	10.3	%	5.1	%	1.1	%	0.5	%	0.0	%	0.0	%

Property
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2016
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016			Total IBNR	Claims
2007	$	58,505	$	58,044	$	60,522	$	60,439	$	59,510	$	58,986	$	58,432	$	58,186	$	58,029	$	57,895		$	22	1,963
2008				75,951		79,774		78,378		78,946		75,974		76,089		75,281		75,313		75,288			91	2,718
2009						59,975		55,821		52,286		49,534		48,969		48,857		48,707		49,267			80	2,631
2010								63,194		59,145		55,427		53,937		54,153		52,927		52,964			92	2,849
2011										70,246		66,924		64,976		63,724		62,770		62,570			495	3,025
2012												85,485		80,155		79,181		77,569		79,175			1,066	2,637
2013														63,864		62,090		62,173		62,114			927	2,992
2014																56,587		49,441		48,801			939	4,556
2015																		59,863		56,103			4,067	4,059
2016																				62,900			19,132	3,030
																		Total	$	607,077
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016
2007	$	26,412	$	44,890	$	50,789	$	54,280	$	56,435	$	57,629	$	57,937	$	57,909	$	57,904	$	57,870
2008				31,573		59,695		66,028		69,811		71,938		73,619		74,692		74,766		74,827
2009						25,464		40,775		43,758		46,004		48,031		48,297		48,329		49,051
2010								25,274		43,091		47,743		50,055		52,729		52,426		52,719
2011										27,676		48,756		55,778		59,099		60,272		61,428
2012												39,074		66,509		72,057		73,705		75,640
2013														32,208		50,840		57,407		59,259
2014																30,550		43,380		46,148
2015																		32,184		49,348
2016																				33,134
	* Presented as unaudited required supplementary information.																	Total	$	559,424
										All outstanding liabilities before 2007, net of reinsurance										116
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	47,769
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		50.5	%	32.1	%	8.5	%	4.3	%	3.3	%	1.2	%	0.6	%	0.5	%	0.0	%	-0.1	%

Surety
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2016
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016			Total IBNR	Claims
2007	$	9,780	$	2,712	$	3,061	$	3,059	$	2,827	$	2,971	$	3,090	$	3,083	$	3,201	$	3,309		$	3	1,823
2008				8,055		4,045		3,469		3,267		2,832		2,850		2,877		2,856		2,939			10	2,079
2009						15,474		4,896		4,708		4,246		4,146		4,551		4,288		4,923			17	1,657
2010								13,961		8,205		6,630		7,076		6,810		7,136		7,645			279	1,524
2011										13,842		17,832		17,792		17,321		16,766		16,695			259	1,663
2012												17,114		11,452		8,667		8,180		7,867			176	1,447
2013														16,080		7,516		6,170		5,399			401	1,373
2014																16,450		8,106		5,225			996	1,283
2015																		16,958		12,957			3,571	1,053
2016																				18,928			13,892	713
																		Total	$	85,887
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2007*		2008*		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016
2007	$	562	$	990	$	1,452	$	2,101	$	2,183	$	2,308	$	2,451	$	2,474	$	3,176	$	3,287
2008				643		2,110		2,722		2,665		2,731		2,745		2,816		2,803		2,919
2009						892		1,914		2,382		2,493		3,490		4,336		3,919		3,908
2010								1,724		3,205		5,702		7,092		7,151		7,285		7,822
2011										8,160		16,932		17,151		17,403		17,212		17,086
2012												1,883		6,680		6,726		7,416		7,536
2013														1,116		2,856		4,701		4,911
2014																722		4,283		4,166
2015																		3,192		6,719
2016																				3,087
	* Presented as unaudited required supplementary information.																	Total	$	61,441
										All outstanding liabilities before 2007, net of reinsurance										(58)
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	24,388
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		22.8	%	38.2	%	13.8	%	7.5	%	4.4	%	4.5	%	1.3	%	0.0	%	12.6	%	3.4	%

Schedule of reconciliation of the net incurred and paid loss development tables to the liability for unpaid losses and settlement expenses in the consolidated balance sheet

Reconciliation of the Disclosure of Incurred and Paid Loss Development to the Liability for Unpaid Losses and Settlement Expenses
(in thousands)	December 31, 2016		December 31, 2015
Net outstanding liabilities
Casualty - Primary Occurrence	$	293,256	$	292,906
Casualty - Excess Occurrence		163,801		151,535
Casualty - Claims Made		152,031		145,778
Casualty - Transportation		98,604		74,750
Property		47,769		46,542
Surety		24,388		20,299
Unallocated loss adjustment expenses		46,286		42,222
Allowance for uncollectible reinsurance balances recoverable on unpaid losses and settlement expenses		10,699		11,885
Other		14,279		20,024
Liabilities for unpaid loss and settlement expenses, net of reinsurance	$	851,113	$	805,941
Reinsurance recoverable on unpaid claims
Casualty - Primary Occurrence	$	43,662	$	47,186
Casualty - Excess Occurrence		69,858		80,813
Casualty - Claims Made		113,891		130,701
Casualty - Transportation		41,173		25,006
Property		17,548		14,469
Surety		10,606		8,863
Allowance for uncollectible reinsurance balances recoverable on unpaid losses and settlement expenses		(10,699)		(11,885)
Other		2,185		2,691
Total reinsurance balances recoverable on unpaid losses and settlement expenses	$	288,224	$	297,844
Total gross liability for unpaid loss and settlement expenses	$	1,139,337	$	1,103,785

Schedule of prior accident years' loss reserve development by segment

(FAVORABLE)/UNFAVORABLE RESERVE DEVELOPMENT BY SEGMENT
(in thousands)	2016		2015		2014
Casualty	$	(32,401)	$	(45,654)	$	(52,825)
Property		(4,793)		(11,848)		(1,123)
Surety		(4,800)		(7,925)		(10,894)
Total	$	(41,994)	$	(65,427)	$	(64,842)

Schedule of paid and unpaid environmental, asbestos and mass tort claims data (including incurred but not reported losses)

(in thousands)	2016		2015		2014
Loss and LAE Payments (Cumulative)
Gross	$	130,358	$	119,632	$	112,819
Ceded		(66,644)		(62,463)		(59,376)
Net	$	63,714	$	57,169	$	53,443
Unpaid Losses and LAE at End of Year
Gross	$	28,815	$	41,062	$	39,064
Ceded		(4,987)		(12,559)		(11,879)
Net	$	23,828	$	28,503	$	27,185