HISTORICAL LOSS AND LAE DEVELOPMENT (Tables)

12 Months Ended

Dec. 31, 2018

HISTORICAL LOSS AND LAE DEVELOPMENT

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

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the years 2018, 2017 and 2016:

(in thousands)	2018		2017		2016
Unpaid losses and LAE at beginning of year:
Gross	$	1,271,503	$	1,139,337	$	1,103,785
Ceded		(301,991)		(288,224)		(297,844)
Net	$	969,512	$	851,113	$	805,941
Increase (decrease) in incurred losses and LAE:
Current accident year	$	478,143	$	440,452	$	391,772
Prior accident years		(49,950)		(38,868)		(41,994)
Total incurred	$	428,193	$	401,584	$	349,778
Loss and LAE payments for claims incurred:
Current accident year	$	(76,050)	$	(73,392)	$	(70,540)
Prior accident year		(225,306)		(209,793)		(234,066)
Total paid	$	(301,356)	$	(283,185)	$	(304,606)
Net unpaid losses and LAE at end of year	$	1,096,349	$	969,512	$	851,113
Unpaid losses and LAE at end of year:
Gross	$	1,461,348	$	1,271,503	$	1,139,337
Ceded		(364,999)		(301,991)		(288,224)
Net	$	1,096,349	$	969,512	$	851,113

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, 2018
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018			Total IBNR	Claims
2009	$	85,476	$	119,957	$	99,765	$	91,441	$	86,888	$	82,651	$	81,138	$	80,518	$	80,350	$	81,445		$	2,202	5,713
2010				87,875		96,582		93,589		88,820		85,034		80,289		78,685		78,991		80,216			2,392	6,117
2011						91,139		98,428		94,145		89,622		86,342		83,181		82,193		82,248			3,180	5,851
2012								91,807		78,406		65,893		61,072		59,028		59,488		60,328			3,502	5,163
2013										80,823		67,297		62,882		60,329		60,162		59,556			6,538	4,287
2014												88,092		79,497		71,592		67,237		66,389			12,492	4,242
2015														94,835		84,975		83,579		78,675			21,351	4,311
2016																101,950		96,753		90,611			38,505	4,148
2017																		119,741		111,391			64,662	4,119
2018																				141,513			109,482	3,773
																		Total	$	852,372
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018
2009	$	1,972	$	9,233	$	24,115	$	43,702	$	58,460	$	65,913	$	70,220	$	74,920	$	75,948	$	77,175
2010				2,587		13,025		29,312		44,051		55,992		61,929		66,399		69,514		73,318
2011						5,924		17,124		32,978		48,822		60,769		67,358		71,413		74,814
2012								5,897		14,539		23,889		33,822		43,276		47,970		51,611
2013										6,334		13,021		22,366		34,786		40,609		45,753
2014												11,436		18,771		29,545		40,270		47,343
2015														10,157		19,902		33,020		45,056
2016																10,142		24,186		35,764
2017																		13,154		25,933
2018																				15,066
	* Presented as unaudited required supplementary information.																	Total	$	491,833
										All outstanding liabilities before 2009, net of reinsurance										11,911
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	372,450
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		9.7	%	12.4	%	16.8	%	18.6	%	13.9	%	8.2	%	5.5	%	4.6	%	3.0	%	1.5	%

Casualty - Excess Occurrence
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2018
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018			Total IBNR	Claims
2009	$	30,267	$	19,719	$	14,981	$	12,893	$	12,966	$	12,459	$	12,601	$	11,982	$	12,055	$	12,072		$	285	567
2010				29,314		24,244		22,111		18,932		20,044		22,044		21,018		20,530		20,527			369	500
2011						26,272		17,148		17,443		18,641		19,160		20,959		21,295		22,032			824	581
2012								29,042		21,558		21,021		21,885		21,231		22,433		23,020			1,386	855
2013										39,984		34,824		26,857		25,425		25,599		24,922			3,488	933
2014												50,889		39,095		35,119		32,274		33,372			8,832	875
2015														53,672		50,857		47,392		42,840			14,320	669
2016																56,341		49,385		37,676			25,675	572
2017																		62,863		55,868			43,891	473
2018																				69,362			63,524	258
																		Total	$	341,691
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018
2009	$	956	$	3,947	$	6,585	$	9,460	$	11,001	$	10,808	$	11,776	$	11,780	$	11,786	$	11,787
2010				7		6,002		10,705		13,282		15,512		17,302		19,175		19,256		19,308
2011						2,169		5,145		6,981		8,793		10,772		16,494		17,769		20,214
2012								1,315		3,573		8,843		15,380		16,879		17,747		19,310
2013										1,060		5,701		10,967		14,545		16,967		17,956
2014												1,899		4,006		11,002		18,852		22,541
2015														2,048		10,127		19,571		23,184
2016																1,068		3,396		7,441
2017																		17		5,679
2018																				2,506
	* Presented as unaudited required supplementary information.																	Total	$	149,926
										All outstanding liabilities before 2009, net of reinsurance										17,918
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	209,683
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		4.5	%	15.3	%	18.9	%	17.0	%	10.0	%	8.2	%	7.4	%	3.8	%	0.2	%	0.0	%

Casualty - Claims Made
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2018
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018			Total IBNR	Claims
2009	$	12,918	$	13,703	$	9,687	$	13,562	$	11,710	$	13,117	$	12,810	$	12,053	$	11,827	$	16,056		$	398	383
2010				13,690		15,556		9,776		10,429		11,689		10,581		9,175		9,024		8,735			219	502
2011						17,416		17,454		12,260		10,619		8,510		7,720		7,852		11,506			640	682
2012								27,576		26,144		20,727		19,590		18,022		17,612		17,569			1,251	803
2013										40,095		41,488		44,054		40,288		38,473		37,959			3,751	1,042
2014												53,929		55,386		58,152		55,350		51,554			7,271	1,304
2015														55,006		47,831		42,206		39,906			10,559	1,335
2016																59,992		67,760		69,493			23,817	1,500
2017																		60,572		62,450			35,365	1,627
2018																				66,128			50,820	1,272
																		Total	$	381,356
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018
2009	$	113	$	442	$	773	$	3,413	$	5,176	$	10,678	$	11,217	$	11,398	$	11,475	$	11,955
2010				259		1,548		2,308		3,626		5,733		5,749		6,956		8,485		8,512
2011						330		1,949		4,508		5,947		5,637		6,209		6,835		7,132
2012								433		4,086		6,898		9,218		10,968		14,378		15,621
2013										792		7,073		18,425		26,121		29,678		32,789
2014												1,705		9,775		27,923		35,755		40,080
2015														2,215		10,738		16,774		20,920
2016																2,060		14,558		27,465
2017																		2,455		11,350
2018																				1,964
	* Presented as unaudited required supplementary information.																	Total	$	177,788
										All outstanding liabilities before 2009, net of reinsurance										933
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	204,501
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		3.0	%	15.3	%	18.5	%	14.7	%	10.0	%	13.4	%	7.4	%	7.1	%	0.4	%	3.0	%

Casualty - Transportation
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2018
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018			Total IBNR	Claims
2009	$	26,349	$	23,366	$	23,174	$	22,929	$	22,613	$	22,340	$	21,958	$	21,969	$	21,926	$	21,911		$	19	2,644
2010				27,239		23,390		24,912		25,593		23,981		23,625		23,701		23,786		23,776			44	2,843
2011						22,957		23,479		25,747		25,272		25,431		25,376		25,167		25,614			52	2,469
2012								21,452		22,203		22,924		23,511		23,689		23,620		23,305			76	2,284
2013										32,742		32,853		32,989		37,673		38,811		39,974			350	2,852
2014												38,361		33,015		36,452		38,590		40,202			911	3,099
2015														38,561		46,258		47,021		46,395			3,824	3,179
2016																50,430		53,519		54,105			7,632	3,920
2017																		55,640		53,641			16,406	3,597
2018																				57,597			16,690	3,154
																		Total	$	386,520
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018
2009	$	5,035	$	8,698	$	14,613	$	19,933	$	21,100	$	21,325	$	21,640	$	21,650	$	21,650	$	21,650
2010				6,296		10,116		15,475		20,045		21,792		23,063		23,488		23,533		23,556
2011						5,295		9,485		14,477		19,443		22,375		23,537		23,941		24,377
2012								4,466		8,533		12,394		17,318		20,931		22,566		22,730
2013										5,306		11,978		19,761		28,220		33,480		35,923
2014												7,125		13,933		19,676		27,457		33,190
2015														6,984		20,709		29,554		37,222
2016																8,923		18,354		30,354
2017																		7,979		17,070
2018																				6,980
	* Presented as unaudited required supplementary information.																	Total	$	253,052
										All outstanding liabilities before 2009, net of reinsurance										90
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	133,558
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		17.9	%	18.2	%	20.1	%	20.2	%	11.2	%	4.8	%	1.4	%	0.6	%	0.0	%	0.0	%

Property
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2018
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018			Total IBNR	Claims
2009	$	59,975	$	55,821	$	52,286	$	49,534	$	48,969	$	48,857	$	48,707	$	49,267	$	49,323	$	48,925		$	13	2,630
2010				63,194		59,145		55,427		53,937		54,153		52,927		52,964		52,952		52,903			29	2,851
2011						70,246		66,924		64,976		63,724		62,770		62,570		62,456		62,875			142	3,028
2012								85,485		80,155		79,181		77,569		79,175		78,125		78,161			167	2,640
2013										63,864		62,090		62,173		62,114		61,914		61,834			273	2,995
2014												56,587		49,441		48,801		48,761		49,217			315	4,560
2015														59,863		56,103		53,958		52,720			680	4,076
2016																62,900		55,594		55,384			2,093	3,369
2017																		90,803		83,273			9,346	2,873
2018																				89,091			23,235	2,030
																		Total	$	634,383
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018
2009	$	25,464	$	40,775	$	43,758	$	46,004	$	48,031	$	48,297	$	48,329	$	49,051	$	49,173	$	48,898
2010				25,274		43,091		47,743		50,055		52,729		52,426		52,719		52,851		52,855
2011						27,676		48,756		55,778		59,099		60,272		61,428		61,834		62,729
2012								39,074		66,509		72,057		73,705		75,640		76,152		77,159
2013										32,208		50,840		57,407		59,259		60,520		61,195
2014												30,550		43,380		46,148		46,528		47,799
2015														32,184		49,348		50,197		51,290
2016																33,134		46,921		51,371
2017																		41,314		66,818
2018																				37,048
	* Presented as unaudited required supplementary information.																	Total	$	557,162
										All outstanding liabilities before 2009, net of reinsurance										17
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	77,238
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		52.0	%	30.9	%	7.4	%	3.2	%	3.0	%	0.7	%	0.6	%	1.0	%	0.1	%	-0.6	%

Surety
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2018
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018			Total IBNR	Claims
2009	$	15,474	$	4,896	$	4,708	$	4,246	$	4,146	$	4,551	$	4,288	$	4,923	$	4,860	$	4,935		$	2	1,665
2010				13,961		8,205		6,630		7,076		6,810		7,136		7,645		6,244		6,580			14	1,540
2011						13,842		17,832		17,792		17,321		16,766		16,695		16,480		18,281			13	1,674
2012								17,114		11,452		8,667		8,180		7,867		7,471		7,099			22	1,469
2013										16,080		7,516		6,170		5,399		5,271		5,231			50	1,400
2014												16,450		8,106		5,225		4,427		4,267			88	1,337
2015														16,958		12,957		11,113		10,456			824	1,201
2016																18,928		11,062		9,351			1,543	1,307
2017																		16,127		8,641			3,630	1,409
2018																				16,765			14,535	654
																		Total	$	91,606
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2009*		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018
2009	$	892	$	1,914	$	2,382	$	2,493	$	3,490	$	4,336	$	3,919	$	3,908	$	4,849	$	4,933
2010				1,724		3,205		5,702		7,092		7,151		7,285		7,822		6,663		6,637
2011						8,160		16,932		17,151		17,403		17,212		17,086		17,086		17,013
2012								1,883		6,680		6,726		7,416		7,536		7,406		7,065
2013										1,116		2,856		4,701		4,911		5,098		5,150
2014												722		4,283		4,166		4,059		4,131
2015														3,192		6,719		7,695		9,436
2016																3,087		5,817		6,299
2017																		979		2,862
2018																				1,835
	* Presented as unaudited required supplementary information.																	Total	$	65,361
										All outstanding liabilities before 2009, net of reinsurance										1,992
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	28,237
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10
		24.0	%	40.0	%	12.0	%	7.5	%	4.5	%	3.5	%	-1.3	%	-6.1	%	9.3	%	1.7	%

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, 2018		December 31, 2017
Net outstanding liabilities:
Casualty - Primary Occurrence	$	372,450	$	325,182
Casualty - Excess Occurrence		209,683		188,963
Casualty - Claims Made		204,501		171,241
Casualty - Transportation		133,558		119,704
Property		77,238		68,867
Surety		28,237		23,375
Unallocated loss adjustment expenses		50,891		48,844
Allowance for uncollectible reinsurance balances recoverable on unpaid losses and settlement expenses		9,793		10,014
Other		9,998		13,322
Liabilities for unpaid loss and settlement expenses, net of reinsurance	$	1,096,349	$	969,512
Reinsurance recoverable on unpaid claims:
Casualty - Primary Occurrence	$	34,742	$	36,158
Casualty - Excess Occurrence		81,072		74,400
Casualty - Claims Made		144,921		117,436
Casualty - Transportation		50,748		46,590
Property		50,495		28,613
Surety		11,834		7,079
Allowance for uncollectible reinsurance balances recoverable on unpaid losses and settlement expenses		(9,793)		(10,014)
Other		980		1,729
Total reinsurance balances recoverable on unpaid losses and settlement expenses	$	364,999	$	301,991
Total gross liability for unpaid loss and settlement expenses	$	1,461,348	$	1,271,503

Schedule of prior accident years' loss reserve development by segment

(FAVORABLE)/UNFAVORABLE RESERVE DEVELOPMENT BY SEGMENT
(in thousands)	2018		2017		2016
Casualty	$	(33,252)	$	(17,462)	$	(32,401)
Property		(10,813)		(12,134)		(4,793)
Surety		(5,885)		(9,272)		(4,800)
Total	$	(49,950)	$	(38,868)	$	(41,994)

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

(in thousands)	2018		2017		2016
Loss and LAE Payments (Cumulative):
Gross	$	136,043	$	132,883	$	130,358
Ceded		(68,638)		(67,507)		(66,644)
Net	$	67,405	$	65,376	$	63,714
Unpaid Losses and LAE at End of Year:
Gross	$	24,262	$	28,042	$	28,815
Ceded		(5,373)		(5,715)		(4,987)
Net	$	18,889	$	22,327	$	23,828