Non-life and Life and Health Reserves (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022 and 2021 was as follows (in thousands of U.S. dollars):

	December 31, 2022		December 31, 2021
Case reserves	$	5,110,575	$	4,881,892
ACRs	159,821		140,464
IBNR reserves	7,455,235		7,025,436
Non-life reserves	$	12,725,631	$	12,047,792

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, 2022, 2021 and 2020 was as follows (in thousands of U.S. dollars): 

	2022		2021		2020
Gross liability at beginning of year	$	12,047,792	$	11,395,321	$	10,363,383
Reinsurance recoverable at beginning of year	1,532,666		782,330		754,795
Net liability at beginning of year	10,515,126		10,612,991		9,608,588
Net incurred losses related to:
Current year	3,533,087		3,637,671		3,945,248
Prior years	(219,853)		(194,426)		71,456
	3,313,234		3,443,245		4,016,704
Net paid losses related to:
Current year	(419,633)		(437,938)		(459,718)
Prior years	(2,238,503)		(2,535,057)		(2,772,886)
	(2,658,136)		(2,972,995)		(3,232,604)
Retroactive reinsurance recoverable adjustment	(35,695)		(357,864)		—
Effects of foreign exchange rate changes and other	(260,709)		(210,251)		220,303
Net liability at end of year	10,873,820		10,515,126		10,612,991
Reinsurance recoverable at end of year	1,851,811		1,532,666		782,330
Gross liability at end of year	$	12,725,631	$	12,047,792	$	11,395,321

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, 2022, 2021 and 2020 was as follows (in thousands of U.S. dollars):

	2022		2021		2020
Gross liability at beginning of period	$	2,638,086	$	2,704,229	$	2,417,044
Reinsurance recoverable at beginning of period	21,000		35,662		16,183
Net liability at beginning of period	$	2,617,086	$	2,668,567	$	2,400,861
Net incurred losses (1)	1,434,169		1,440,739		1,318,196
Net losses paid	(1,390,848)		(1,413,316)		(1,230,383)
Effects of foreign exchange rate changes and other	(181,789)		(78,904)		179,893
Net liability at end of period	$	2,478,618	$	2,617,086	$	2,668,567
Reinsurance recoverable at end of period	31,675		21,000		35,662
Gross liability at end of period	$	2,510,293	$	2,638,086	$	2,704,229

(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, 2022, 2021 and 2020 were comprised as follows (in thousands of U.S. dollars): 

	2022		2021		2020
Non-life	$	3,313,234	$	3,443,245	$	4,016,704
Life and Health	1,434,169		1,440,739		1,318,196
Losses and loss expenses	$	4,747,403	$	4,883,984	$	5,334,900

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

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, 2022
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		2021				2022		Total of IBNR plus expected development on reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	2,664,745	$	2,722,788	$	2,400,977	$	3,277,749	$	2,787,608	$	2,313,004	$	2,301,835	$	2,276,767	$	2,262,098			$	2,242,254	$	23,890
2014			2,481,720		2,514,200		2,368,967		2,349,869		2,353,759		2,315,021		2,277,135		2,262,546				2,232,454		35,019
2015					2,502,854		2,611,184		2,527,784		2,550,830		2,520,182		2,475,960		2,451,141				2,432,324		89,338
2016							2,451,204		2,559,851		2,516,126		2,486,199		2,467,920		2,484,069				2,476,383		130,477
2017									2,549,737		2,801,179		2,698,916		2,651,730		2,663,904				2,658,571		179,473
2018											2,596,552		2,974,243		2,969,810		2,972,766				3,009,359		387,763
2019													2,931,280		3,519,556		3,510,991				3,523,443		681,501
2020															4,186,395		3,586,462				3,499,097		976,332
2021																	2,880,141				2,829,876		1,580,019
2022																					3,410,844		2,119,500
Total																			$	28,314,605			$	6,203,312
NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE
For the year ended December 31,
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		2021				2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	267,413	$	1,237,315	$	1,577,293	$	1,771,134	$	1,900,282	$	1,997,543	$	2,061,865	$	2,097,390	$	2,121,980			$	2,146,574
2014			336,270		1,291,273		1,594,146		1,810,171		1,946,054		2,044,804		2,118,939		2,164,676				2,196,720
2015					306,562		1,159,655		1,564,173		1,798,537		1,959,722		2,067,935		2,142,234				2,198,481
2016							321,351		1,272,443		1,627,697		1,893,694		2,030,728		2,123,169				2,211,977
2017									394,394		1,421,140		1,804,959		2,072,838		2,195,236				2,314,529
2018											271,827		1,276,542		1,811,055		2,093,543				2,283,931
2019													462,939		1,438,793		1,961,928				2,341,116
2020															480,122		1,277,034				1,805,063
2021																	373,191				1,088,143
2022																					394,598
Total																			$	18,981,132
Net reserves for accident years and exposures included in the triangles																					$	9,333,473
All outstanding liabilities before accident year 2013, net of reinsurance																					1,239,090
Total outstanding liabilities for unpaid claims																			$	10,572,563
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE (unaudited)
Years	1		2		3		4		5		6		7		8		9				10
Non-life	13%		33%		15%		10%		6%		4%		3%		2%		1%				1%

NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY
For the year ended December 31,																					December 31, 2022
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		Total of IBNR plus expected development on reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	622,984	$	560,072	$	519,883	$	505,636	$	500,527	$	492,673	$	490,699	$	489,268	$	487,571	$	485,091	$	421
2014			469,568		488,446		463,409		458,609		452,907		450,487		447,816		447,894		444,808		588
2015					537,193		565,816		537,792		528,106		524,147		519,568		525,203		523,475		1,175
2016							663,490		681,050		644,349		625,873		622,562		624,375		623,593		2,622
2017									971,607		1,022,186		952,613		923,025		915,166		910,105		3,934
2018											805,960		820,675		799,735		778,867		766,591		10,844
2019													703,097		782,453		720,079		711,928		45,376
2020															1,252,575		1,070,935		1,061,772		134,726
2021																	919,517		918,629		202,188
2022																			944,920		557,288
Total																			$	7,390,912	$	959,162
NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY
For the year ended December 31,
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	90,086	$	320,510	$	419,541	$	453,191	$	469,346	$	472,517	$	477,180	$	479,094	$	479,023	$	479,578
2014			95,013		323,309		395,102		423,339		432,567		438,152		442,581		444,798		445,375
2015					85,015		330,876		435,539		469,036		481,879		489,195		498,557		501,524
2016							132,914		446,804		538,988		579,381		595,159		604,980		609,257
2017									214,026		694,240		805,627		853,945		862,942		870,638
2018											81,830		494,608		628,458		666,919		687,439
2019													78,527		426,566		545,163		586,587
2020															115,165		515,030		681,851
2021																	121,453		491,546
2022																			103,876
Total																			$	5,457,671
Net reserves for accident years and exposures included in the triangles																			$	1,933,241
All outstanding liabilities before accident year 2013, net of reinsurance																			122,792
Total outstanding liabilities for unpaid claims																			$	2,056,033
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Property	15%		47%		16%		6%		2%		1%		1%		—%		—%		—%

NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY
For the year ended December 31,																					December 31, 2022
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		Total of IBNR plus expected development on reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	747,448	$	853,023	$	757,402	$	734,732	$	732,716	$	726,420	$	714,114	$	695,346	$	691,195	$	678,905	$	19,235
2014			804,571		848,698		814,622		810,349		826,000		791,768		766,415		753,383		739,605		28,354
2015					699,327		783,275		761,091		803,497		770,242		751,652		726,451		714,608		76,827
2016							670,767		756,954		767,366		747,814		740,047		750,268		747,402		103,979
2017									621,095		743,114		720,966		709,881		716,862		720,732		136,389
2018											767,559		905,491		895,978		903,353		920,169		258,229
2019													999,955		1,226,210		1,272,980		1,273,687		519,757
2020															1,344,430		1,115,751		1,094,890		624,521
2021																	1,013,896		967,726		920,590
2022																			1,495,131		1,043,559
Total																			$	9,352,855	$	3,731,440
NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY
For the year ended December 31,
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	49,468	$	152,575	$	260,249	$	339,320	$	410,241	$	470,029	$	510,855	$	533,983	$	558,218	$	578,496
2014			69,119		189,458		292,152		387,182		470,964		536,883		594,035		631,367		654,893
2015					73,252		184,520		303,213		398,790		505,067		577,907		627,964		667,748
2016							28,304		140,081		244,560		369,651		455,982		520,069		586,050
2017									55,617		157,792		246,615		334,296		411,806		488,164
2018											59,105		201,190		323,510		425,887		532,717
2019													100,639		274,821		430,192		580,304
2020															112,281		176,740		304,592
2021																	80,434		225,846
2022																			120,660
Total																			$	4,739,470
Net reserves for accident years and exposures included in the triangles																			$	4,613,385
All outstanding liabilities before accident year 2013, net of reinsurance																			1,023,715
Total outstanding liabilities for unpaid claims																			$	5,637,100
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Casualty	8%		14%		13%		13%		12%		9%		7%		5%		3%		3%

NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY
For the year ended December 31,																					December 31, 2022
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		Total of IBNR plus expected development on reported claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	1,294,313	$	1,309,693	$	1,123,692	$	2,037,381	$	1,554,365	$	1,093,911	$	1,097,022	$	1,092,153	$	1,083,332	$	1,078,258	$	4,234
2014			1,207,581		1,177,056		1,090,936		1,080,911		1,074,852		1,072,766		1,062,904		1,061,269		1,048,041		6,077
2015					1,266,334		1,262,093		1,228,901		1,219,227		1,225,793		1,204,740		1,199,487		1,194,241		11,336
2016							1,116,947		1,121,847		1,104,411		1,112,512		1,105,311		1,109,426		1,105,388		23,876
2017									957,035		1,035,879		1,025,337		1,018,824		1,031,876		1,027,734		39,150
2018											1,023,033		1,248,077		1,274,097		1,290,546		1,322,599		118,690
2019													1,228,228		1,510,893		1,517,932		1,537,828		116,368
2020															1,589,390		1,399,776		1,342,435		217,085
2021																	946,728		943,521		457,241
2022																			970,793		518,653
Total																			$	11,570,838	$	1,512,710
NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY
For the year ended December 31,
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	127,859	$	764,230	$	897,503	$	978,623	$	1,020,695	$	1,054,997	$	1,073,830	$	1,084,313	$	1,084,739	$	1,088,500
2014			172,138		778,506		906,892		999,650		1,042,523		1,069,769		1,082,323		1,088,511		1,096,452
2015					148,295		644,259		825,421		930,711		972,776		1,000,833		1,015,713		1,029,209
2016							160,133		685,558		844,149		944,662		979,587		998,120		1,016,670
2017									124,751		569,108		752,717		884,597		920,488		955,727
2018											130,892		580,744		859,087		1,000,737		1,063,775
2019													283,773		737,406		986,573		1,174,225
2020															252,676		585,264		818,620
2021																	171,304		370,751
2022																			170,062
Total																			$	8,783,991
Net reserves for accident years and exposures included in the triangles																			$	2,786,847
All outstanding liabilities before accident year 2013, net of reinsurance																			92,583
Total outstanding liabilities for unpaid claims																			$	2,879,430
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Specialty	15%		39%		16%		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, 2022 was as follows (in thousands of U.S. dollars):

	December 31, 2022
Total outstanding liability for unpaid claims
Property	$	2,056,033
Casualty	5,637,100
Specialty	2,879,430
Total outstanding liabilities for unpaid claims	$	10,572,563
Unallocated loss expenses	$	119,274
U.S. health net reserves (1)	168,146
Other	13,837
Total other liabilities	$	301,257
Net liability at end of year	$	10,873,820
Reinsurance recoverable on unpaid claims
Property	$	922,141
Casualty	585,737
Specialty	343,933
Reinsurance recoverable at end of year	$	1,851,811
Gross liability at end of year	$	12,725,631

(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.