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Adoption of Accounting Pronouncement
 12 Months Ended
Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract]  
Adoption of Accounting Pronouncement Adoption of Accounting Pronouncement
The Company adopted the LDTI guidance on January 1, 2023 for its long-duration contracts, using the modified retrospective method for all topics except for market risk benefits, which was adopted using the full retrospective method, with a transition date of January 1, 2021 (Transition Date). The guidance changes how insurers account for long-duration contracts, including recognition, measurement, presentation and disclosure requirements.
The impact of adoption on the Transition Date was a decrease to Accumulated other comprehensive income (AOCI) of $125 million, net of tax, due to the update in the discount rate used to measure the liability for future policy benefits and changes in fair value of the Company's market risk benefits related to GMDB products attributable to changes in the instrument-specific credit risk. Retained earnings decreased by $161 million, net of tax, as of the Transition Date, resulting from valuation impacts to the liability for future policy benefits related to cohorts with a net premium ratio greater than 100% at the Transition Date, partially offset by a favorable movement from the fair value accounting for GMDB products.
Before the adoption of the LDTI guidance, VOBA was amortized consistent with DAC. At transition, the Company has retained its legacy amortization method for VOBA which is based on projected premiums and not adopt a method that amortizes VOBA on a constant level basis that approximates straight-line amortization, as allowed under the guidance. The Company continues to assess VOBA for annual impairment. Refer to Note 2(l) for additional information on intangible assets.
Impact of Adoption
The table below presents the effect of transition adjustments on shareholders’ equity as of January 1, 2021 due to adoption of the LDTI guidance (in thousands of U.S. dollars):
January 1, 2021
 Retained earningsAccumulated other comprehensive lossTotal
Life and health reserves (1)
$(171,047)$(84,001)$(255,048)
Market risk benefits (1)
8,095 (63,474)(55,379)
Tax impact of related LDTI adjustments2,312 22,855 25,167 
Total decrease to shareholders' equity$(160,640)$(124,620)$(285,260)
(1) GMDB reserves of $22 million were included within Life and health reserves on the Consolidated Balance Sheets prior to adoption of LDTI, and were subsequently reclassified to Market risk benefit assets and liabilities upon adoption of the new guidance.
The table below summarizes the balance of and changes in the traditional and limited payment long-duration life and health reserves on January 1, 2021 due to adoption of the LDTI guidance (in thousands of U.S. dollars):
Long-term Protection
Longevity
Balance, beginning of year, January 1, 2021 pre-adoption
$1,243,251 $345,306 
Change in discount rate assumptions
53,027 30,300 
Change in cash flow assumptions and effect of net premiums exceeding gross premiums
178,110 (5,631)
Adjusted balance, beginning of year, January 1, 2021$1,474,388 $369,975 
Less: Reinsurance recoverable
(28,190)(6,222)
Adjusted balance, beginning of year January 1, 2021, net of reinsurance$1,446,198 $363,753 
The table below summarizes the balance of and changes in the net liability position of market risk benefits on January 1, 2021 due to adoption of the LDTI guidance (in thousands of U.S. dollars):
MRB, net liability position
Balance, beginning of year January 1, 2021 pre-adoption (1)
$(22,211)
Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk8,095 
Adjustment for the cumulative effect of changes in the instrument-specific credit risk since issuance(63,474)
Balance, beginning of year January 1, 2021
$(77,590)
(1) GMDB reserves were included within Life and health reserves on the Consolidated Balance Sheets prior to adoption of LDTI, and were subsequently reclassified to Market risk benefit assets and liabilities upon adoption of the new guidance.
The following is a reconciliation of market risk benefit assets (liabilities) to the Consolidated Balance Sheet at January 1, 2021 (in thousands of US dollars):
 GMDB
Market risk benefit assets at fair value$153,070 
Market risk benefit liabilities, at fair value(230,660)
Market risk benefits, net, January 1, 2021$(77,590)
The impact of LDTI adoption on the applicable financial statement lines of the Company's Consolidated Balance Sheet effective as of January 1, 2021 was as follows (in thousands of U.S. dollars):
Pre-adoption, January 1, 2021
LDTI Impact
Post-adoption,
January 1, 2021
Reinsurance recoverable on paid and unpaid losses $901,063 $757 $901,820 
Market risk benefit assets, at fair value— 153,070 153,070 
Net tax assets182,077 492 182,569 
Total assets$26,898,575 $154,319 $27,052,894 
Life and health reserves$2,704,229 $233,594 $2,937,823 
Market risk benefit liabilities, at fair value— 230,660 230,660 
Net tax liabilities131,621 (24,675)106,946 
Total liabilities19,571,578 439,579 20,011,157 
Accumulated other comprehensive loss(96,005)(124,620)(220,625)
Retained earnings5,062,948 (160,640)4,902,308 
Total shareholders’ equity7,326,997 (285,260)7,041,737 
Total liabilities and shareholders’ equity$26,898,575 $154,319 $27,052,894 
Impact to Previously Reported Amounts
The following represents the effects of LDTI adoption on the applicable financial statement lines of the Company's Consolidated Balance Sheet as of December 31, 2022 (in thousands of U.S. dollars):
As of December 31, 2022
As Previously ReportedLDTI ImpactAs Adjusted for LDTI
Reinsurance recoverable on paid and unpaid losses$1,959,652 $(11,866)$1,947,786 
Deferred acquisition costs1,012,850 (783)1,012,067 
Market risk benefit assets— 131,186 131,186 
Net tax assets164,384 (3,750)160,634 
Total assets$27,272,413 $114,787 $27,387,200 
Life and health reserves $2,510,293 $(12,774)$2,497,519 
Market risk benefit liabilities— 9,170 9,170 
Net tax liabilities29,154 9,422 38,576 
Total liabilities20,984,063 5,818 20,989,881 
Accumulated other comprehensive income (loss)
(7,669)78,548 70,879 
Retained earnings4,358,085 30,421 4,388,506 
Total shareholders’ equity6,288,350 108,969 6,397,319 
Total liabilities and shareholders’ equity$27,272,413 $114,787 $27,387,200 
The following represents the effects of LDTI adoption on the applicable financial statement lines of the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, 2022 and 2021 (in thousands of U.S. dollars):
For the Year Ended December 31, 2022
As Previously ReportedLDTI ImpactAs Adjusted for LDTI
Expenses
Losses and loss expenses $4,747,403 $(21,531)$4,725,872 
Market risk benefit gains— (121,211)(121,211)
Acquisition costs1,540,681 (3,468)1,537,213 
Net foreign exchange losses
29,402 (14,628)14,774 
Total expenses6,796,459 (160,838)6,635,621 
(Loss) income before taxes and interest in earnings of equity method investments
(1,069,516)160,838 (908,678)
Income tax expense(31,334)(10,561)(41,895)
Net (loss) income
(1,090,029)150,277 (939,752)
Net (loss) income attributable to common shareholder
$(1,099,779)$150,277 $(949,502)
Comprehensive (loss) income
Net (loss) income$(1,090,029)$150,277 $(939,752)
Change in currency translation adjustment9,464 (3,794)5,670 
Changes in discount rate for liability for future policy benefits, net of tax— 99,250 99,250 
Changes in instrument-specific credit risk for market risk benefits, net of tax— 49,794 49,794 
Comprehensive (loss) income
$(1,067,992)$295,527 $(772,465)
For the Year Ended December 31, 2021
As Previously ReportedLDTI ImpactAs Adjusted for LDTI
Expenses
Losses and loss expenses $4,883,984 $(32,944)$4,851,040 
Market risk benefit gains— (19,873)(19,873)
Acquisition costs1,386,832 4,670 1,391,502 
Net foreign exchange losses30,883 5,615 36,498 
Total expenses6,764,708 (42,532)6,722,176 
Income before taxes and interest in earnings of equity method investments
634,828 42,532 677,360 
Income tax expense(38,219)(1,748)(39,967)
Net income
723,404 40,784 764,188 
Net income attributable to common shareholder
$679,477 $40,784 $720,261 
Comprehensive income
Net income $723,404 $40,784 $764,188 
Change in currency translation adjustment43,120 1,040 44,160 
Changes in discount rate for liability for future policy benefits, net of tax— 53,053 53,053 
Changes in instrument-specific credit risk for market risk benefits, net of tax— 3,825 3,825 
Comprehensive income
$789,703 $98,702 $888,405 
The following represents the effects of LDTI adoption on the applicable financial statement lines of the Company's Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 (in thousands of U.S. dollars):
For the Year Ended December 31, 2022
As Previously ReportedLDTI ImpactAs Adjusted for LDTI
Cash flows from operating activities:
Net loss
$(1,090,029)$150,277 $(939,752)
Adjustments to reconcile net income to net cash provided by operating activities:
Market risk benefit gains— (121,211)(121,211)
Changes in:
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable
(325,409)28,239 (297,170)
Deferred acquisition costs
(131,236)(3,468)(134,704)
Net tax assets and liabilities
(72,452)10,561 (61,891)
Non-life and life and health reserves
1,009,439 (49,770)959,669 
Other net changes in operating assets and liabilities
63,433 (14,628)48,805 
Net cash provided by operating activities
$1,468,409 $— $1,468,409 
For the Year Ended December 31, 2021
As Previously ReportedLDTI ImpactAs Adjusted for LDTI
Cash flows from operating activities:
Net income
$723,404 $40,784 $764,188 
Adjustments to reconcile net income to net cash provided by operating activities:
Market risk benefit gains— (19,873)(19,873)
Changes in:
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable(637,908)(2,706)(640,614)
Deferred acquisition costs(122,739)4,670 (118,069)
Net tax assets and liabilities3,256 1,748 5,004 
Non-life and life and health reserves903,324 (30,239)873,085 
Other net changes in operating assets and liabilities23,801 5,616 29,417 
Net cash provided by operating activities
$1,232,590 $— $1,232,590