Non-life and Life and Health Reserves (Tables)

12 Months Ended

Dec. 31, 2021

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Components of non-life reserves

The Company’s gross liability for non-life reserves at December 31, 2021 and 2020 was as follows (in thousands of U.S. dollars):

	December 31, 2021		December 31, 2020
Case reserves	$	4,881,892	$	4,646,633
ACRs	140,464		171,381
IBNR reserves	7,025,436		6,577,307
Non-life reserves	$	12,047,792	$	11,395,321

Reconciliation of the beginning and ending gross and net liability for non-life reserves

The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 

	2021		2020		2019
Gross liability at beginning of year	$	11,395,321	$	10,363,383	$	9,895,376
Reinsurance recoverable at beginning of year	782,330		754,795		850,946
Net liability at beginning of year	10,612,991		9,608,588		9,044,430
Net incurred losses related to: (1)
Current year	3,637,671		3,945,248		3,716,988
Prior years	(194,426)		71,456		(56,848)
	3,443,245		4,016,704		3,660,140
Net paid losses related to:
Current year	(437,938)		(459,718)		(439,285)
Prior years	(2,535,057)		(2,772,886)		(2,651,385)
	(2,972,995)		(3,232,604)		(3,090,670)
Retroactive reinsurance recoverable	(357,864)		—		(81,013)
Effects of foreign exchange rate changes and other	(210,251)		220,303		75,701
Net liability at end of year	$	10,515,126	$	10,612,991	$	9,608,588
Reinsurance recoverable at end of year	1,532,666		782,330		754,795
Gross liability at end of year	$	12,047,792	$	11,395,321	$	10,363,383

(1) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other as disclosed in Note 18. Non-life reserves allocated to Corporate and Other totaled $6 million at December 31, 2019. There were no incurred losses or non-life reserves allocated to Corporate and Other during 2021 or 2020.

Reconciliation of the beginning and ending gross and net liability for life and health reserves

The reconciliation of the beginning and ending gross and net liability for life and health reserves for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars):

	2021		2020		2019
Gross liability at beginning of period	$	2,704,229	$	2,417,044	$	2,198,080
Reinsurance recoverable at beginning of period	35,662		16,183		11,829
Net liability at beginning of period	$	2,668,567	$	2,400,861	$	2,186,251
Net incurred losses (1)	1,440,739		1,318,196		1,263,016
Net losses paid	(1,413,316)		(1,230,383)		(1,071,487)
Effects of foreign exchange rate changes and other	(78,904)		179,893		23,081
Net liability at end of period	$	2,617,086	$	2,668,567	$	2,400,861
Reinsurance recoverable at end of period	21,000		35,662		16,183
Gross liability at end of period	$	2,638,086	$	2,704,229	$	2,417,044

(1)During 2021 and 2020, certain life and health treaties were recaptured, resulting in total gains upon recapture of $15 million and $28 million respectively, recorded as a reduction to net incurred losses.

Components of losses and loss expenses by segment

Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019 were comprised as follows (in thousands of U.S. dollars): 

	2021		2020		2019
Non-life (1)	$	3,443,245	$	4,016,704	$	3,660,140
Life and Health	1,440,739		1,318,196		1,263,016
Losses and loss expenses	$	4,883,984	$	5,334,900	$	4,923,156

(1) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other as disclosed in Note 18.

Incurred and paid claims development and average annual percentage payout of incurred claims by age, net of reinsurance

The information presented below for incurred and paid claims development for each of the years ended December 31, 2012 through 2020 and the average annual percentage payout of incurred claims by age, net of reinsurance, is presented as supplementary information and is unaudited. The tables below reflect losses incurred and paid losses translated to U.S. dollars at the exchange rate as of the balance sheet date whereas the Losses and loss expenses in the Consolidated Statement of Operations reflect losses incurred at the average exchange rate for the period.

NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE
For the year ended December 31,																							December 31, 2021
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020				2021		Total of IBNR plus expected development on reported claims
2012	$	2,342,553	$	2,627,452	$	2,371,984	$	2,248,510	$	2,495,148	$	2,394,396	$	2,243,436	$	2,209,950	$	2,197,815			$	2,181,218	$	10,086
2013			2,506,489		2,700,371		2,487,494		2,183,344		2,302,089		2,393,344		2,387,407		2,361,827				2,345,255		46,041
2014					2,416,677		2,596,191		2,478,039		2,467,234		2,477,572		2,434,886		2,400,662				2,385,988		65,254
2015							2,355,703		2,557,213		2,494,735		2,522,169		2,495,354		2,449,975				2,429,432		83,536
2016									2,398,444		2,597,779		2,570,484		2,544,389		2,522,270				2,537,312		167,323
2017											2,499,161		2,871,000		2,811,676		2,772,119				2,788,118		235,938
2018													2,548,563		3,093,669		3,120,388				3,130,397		333,906
2019															2,848,949		3,637,558				3,707,336		773,002
2020																	4,051,824				3,867,443		1,728,949
2021																					2,838,039		2,520,673
Total																			$	28,210,538			$	5,964,708
NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE
For the year ended December 31,
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020				2021
2012	$	294,313	$	973,857	$	1,338,878	$	1,497,677	$	1,593,864	$	1,705,320	$	1,754,704	$	1,805,081	$	1,825,434			$	1,840,284
2013			287,566		1,275,211		1,623,541		1,825,345		1,961,269		2,055,408		2,123,294		2,161,355				2,188,318
2014					338,712		1,286,854		1,596,445		1,817,505		1,957,235		2,060,333		2,140,845				2,189,661
2015							335,368		1,191,883		1,603,381		1,842,842		2,004,838		2,114,625				2,191,493
2016									338,124		1,312,013		1,687,477		1,972,139		2,112,088				2,206,804
2017											406,218		1,447,213		1,853,527		2,148,343				2,276,982
2018													278,953		1,350,321		1,933,461				2,253,397
2019															445,090		1,574,942				2,154,188
2020																	455,948				1,446,282
2021																					412,023
Total																			$	19,159,432
Net reserves for accident years and exposures included in the triangles																					$	9,051,106
All outstanding liabilities before accident year 2012, net of reinsurance																					1,102,911
Total outstanding liabilities for unpaid claims																			$	10,154,017
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE
Years	1		2		3		4		5		6		7		8		9				10
Non-life	13%		34%		16%		10%		5%		4%		3%		2%		1%				1%

NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY
For the year ended December 31,																							December 31, 2021
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020				2021		Total of IBNR plus expected development on reported claims
2012	$	691,488	$	658,283	$	551,817	$	533,256	$	517,687	$	518,564	$	513,621	$	502,869	$	502,369			$	494,145	$	1,959
2013			639,026		586,694		546,588		531,833		525,745		517,468		515,376		514,873				512,546		842
2014					465,513		489,871		465,774		461,842		456,086		454,046		451,662				451,833		552
2015							550,216		581,923		557,092		548,666		545,180		541,160				546,732		3,810
2016									684,976		706,630		671,835		651,823		648,266				650,208		13,249
2017											973,654		1,039,936		973,452		945,066				937,829		20,219
2018													826,216		861,674		844,596				820,472		28,467
2019															741,448		849,547				831,461		47,475
2020																	1,212,387				1,163,924		272,042
2021																					809,517		572,794
Total																			$	7,218,667			$	961,409
NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY
For the year ended December 31,
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020				2021
2012	$	99,084	$	345,731	$	438,322	$	472,761	$	484,780	$	494,267	$	498,829	$	505,649	$	505,895			$	508,477
2013			90,889		331,515		436,234		471,381		489,287		492,774		497,604		499,794				499,576
2014					97,352		319,121		393,013		421,164		431,055		436,472		441,065				443,167
2015							101,501		346,869		450,016		483,907		496,634		503,895				513,203
2016									148,109		469,162		567,654		609,863		626,616				637,028
2017											224,987		714,541		829,490		880,073				889,729
2018													80,881		530,024		669,153				710,866
2019															80,621		458,182				589,100
2020																	111,470				537,865
2021																					110,592
Total																			$	5,439,603
Net reserves for accident years and exposures included in the triangles																			$	1,779,064
All outstanding liabilities before accident year 2012, net of reinsurance																					146,308
Total outstanding liabilities for unpaid claims																			$	1,925,372
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY
Years	1		2		3		4		5		6		7		8		9				10
Property	16%		47%		16%		6%		2%		1%		1%		1%		—%				1%

NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY
For the year ended December 31,																					December 31, 2021
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		Total of IBNR plus expected development on reported claims
2012	$	706,442	$	856,769	$	769,092	$	710,862	$	698,668	$	702,358	$	696,110	$	682,054	$	677,161	$	670,767	$	—
2013			748,691		880,676		784,615		763,208		761,477		757,032		747,422		728,645		724,170		39,469
2014					794,186		879,144		850,550		851,144		869,438		832,104		807,750		793,629		46,003
2015							684,702		808,679		788,933		830,644		794,732		775,384		752,036		64,297
2016									646,045		769,492		785,448		766,754		755,605		769,283		118,811
2017											594,988		748,588		738,743		729,083		736,701		154,030
2018													750,120		951,393		955,784		965,966		203,571
2019															949,925		1,245,536		1,301,249		458,841
2020																	1,301,042		1,230,847		896,066
2021																			926,608		1,304,107
Total																			$	8,871,256	$	3,285,195
NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY
For the year ended December 31,
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	58,130	$	136,891	$	205,359	$	280,428	$	333,456	$	385,934	$	416,086	$	440,686	$	455,860	$	469,540
2013			56,952		159,112		263,808		345,291		419,488		481,381		524,709		550,444		576,650
2014					74,189		196,301		300,377		398,606		486,503		556,159		619,160		657,810
2015							78,386		185,508		299,396		393,997		497,220		570,219		620,841
2016									29,216		144,840		252,780		383,788		471,880		539,688
2017											60,390		165,196		259,310		354,594		435,692
2018													60,039		206,791		335,624		446,609
2019															97,723		270,727		423,814
2020																	99,909		269,206
2021																			74,019
Total																			$	4,513,869
Net reserves for accident years and exposures included in the triangles																			$	4,357,387
All outstanding liabilities before accident year 2012, net of reinsurance																			908,806
Total outstanding liabilities for unpaid claims																			$	5,266,193
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY
Years	1		2		3		4		5		6		7		8		9		10
Casualty	8%		14%		13%		13%		11%		9%		6%		4%		3%		2%

NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY
For the year ended December 31,																					December 31, 2021
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		Total of IBNR plus expected development on reported claims
2012	$	944,623	$	1,112,400	$	1,051,075	$	1,004,392	$	1,278,793	$	1,173,474	$	1,033,705	$	1,025,027	$	1,018,285	$	1,016,306	$	8,127
2013			1,118,772		1,233,001		1,156,291		888,303		1,014,867		1,118,844		1,124,609		1,118,309		1,108,539		5,730
2014					1,156,978		1,227,176		1,161,715		1,154,248		1,152,048		1,148,736		1,141,250		1,140,526		18,699
2015							1,120,785		1,166,611		1,148,710		1,142,859		1,155,442		1,133,431		1,130,664		15,429
2016									1,067,423		1,121,657		1,113,201		1,125,812		1,118,399		1,117,821		35,263
2017											930,519		1,082,476		1,099,481		1,097,970		1,113,588		61,689
2018													972,227		1,280,602		1,320,008		1,343,959		101,868
2019															1,157,576		1,542,475		1,574,626		266,686
2020																	1,538,395		1,472,672		560,841
2021																			1,101,914		643,772
Total																			$	12,120,615	$	1,718,104
NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY
For the year ended December 31,
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	137,099	$	491,235	$	695,197	$	744,488	$	775,628	$	825,119	$	839,789	$	858,746	$	863,679	$	862,267
2013			139,725		784,584		923,499		1,008,673		1,052,494		1,081,253		1,100,981		1,111,117		1,112,092
2014					167,171		771,432		903,055		997,735		1,039,677		1,067,702		1,080,620		1,088,684
2015							155,481		659,506		853,969		964,938		1,010,984		1,040,511		1,057,449
2016									160,799		698,011		867,043		978,488		1,013,592		1,030,088
2017											120,841		567,476		764,727		913,676		951,561
2018													138,033		613,506		928,684		1,095,922
2019															266,746		846,033		1,141,274
2020																	244,569		639,211
2021																			227,412
Total																			$	9,205,960
Net reserves for accident years and exposures included in the triangles																			$	2,914,655
All outstanding liabilities before accident year 2012, net of reinsurance																			47,797
Total outstanding liabilities for unpaid claims																			$	2,962,452
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY
Years	1		2		3		4		5		6		7		8		9		10
Specialty	15%		41%		17%		10%		4%		3%		1%		1%		—%		—%

Reconciliation of net incurred and paid claims development to Non-life reserves

The reconciliation of the net incurred and paid claims development information above to the Non-life reserves in the Consolidated Balance Sheet at December 31, 2021 was as follows (in thousands of U.S. dollars):

	December 31, 2021
Total outstanding liability for unpaid claims
Property	$	1,925,372
Casualty	5,266,193
Specialty	2,962,452
Total outstanding liabilities for unpaid claims	$	10,154,017
Unallocated loss expenses	$	187,139
U.S. health net reserves (1)	170,617
Other	3,353
Total other liabilities	$	361,109
Net liability at end of year	$	10,515,126
Reinsurance recoverable on unpaid claims
Property	$	708,008
Casualty	519,597
Specialty	305,061
Reinsurance recoverable at end of year	$	1,532,666
Gross liability at end of year	$	12,047,792

(1) U.S. health business is not meaningful to include in the development tables as the estimated average duration of the health reserves is less than one year and substantially all claims are expected to be paid within two years, based on historical payout patterns.