Reserve for Claims and Claim Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Liability for Unpaid Claims and Claim Expenses

The following table details the development of the Company’s liability for unpaid claims and claim expenses for its Casualty and Specialty segment:




Year ended December 31,	2018			2017			2016
	(Favorable) adverse development			(Favorable) adverse development			(Favorable) adverse development
Actuarial methods - actual reported claims less than expected claims	$	(41,476	)	$	(24,836	)	$	(52,601	)
Ogden Rate change	—			33,481			—
Actuarial assumption changes	(7,786		)	(2,462		)	(5,539		)
Total (favorable) adverse development of prior accident years net claims and claim expenses	$	(49,262	)	$	6,183		$	(58,140	)

The following tables and discussion detail the development of the Company’s liability for unpaid claims and claim expenses for its Property segment, allocated between large and small catastrophe net claims and claim expenses and attritional net claims and claim expenses, included in the other line item:




Year ended December 31,	2018
	(Favorable) adverse development
Catastrophe net claims and claim expenses
Large catastrophe events
2017 Large Loss Events	$	(172,512	)
Other	(9,517		)
Total large catastrophe events	(182,029		)
Small catastrophe events and attritional loss movements
Other small catastrophe events and attritional loss movements	(33,579		)
Total small catastrophe events and attritional loss movements	(33,579		)
Total catastrophe and attritional net claims and claim expenses	(215,608		)
Actuarial assumption changes	(5,682		)
Total net favorable development of prior accident years net claims and claim expenses	$	(221,290	)

The reconciliation of the net incurred and paid claims development tables to the reserve for claims and claim expenses in the consolidated balance sheet is as follows:




At December 31, 2018
Net reserve for claims and claim expenses
Property	$	1,373,125
Casualty and Specialty	2,330,557
Other	368
Total net reserve for claims and claim expenses	3,704,050

Reinsurance recoverable
Property	$	1,713,129
Casualty and Specialty	654,836
Other	4,256
Total reinsurance recoverable	2,372,221
Total gross reserve for claims and claim expenses	$	6,076,271




Year ended December 31,	2016
	(Favorable) adverse development
Catastrophe net claims and claim expenses
Large catastrophe events
Thailand Floods (2011)	$	(15,131	)
Storm Sandy (2012)	(10,849		)
Tohoku Earthquake and Tsunami (2011)	(7,314		)
New Zealand Earthquake (2011)	1,987
New Zealand Earthquake (2010)	6,904
Other	(9,523		)
Total large catastrophe events	(33,926		)
Small catastrophe events and attritional loss movements
Tianjin Explosion (2015)	(5,686		)
Other small catastrophe events and attritional loss movements	(65,264		)
Total small catastrophe events and attritional loss movements	(70,950		)
Total catastrophe and attritional net claims and claim expenses	(104,876		)
Total net favorable development of prior accident years net claims and claim expenses	$	(104,876	)




Year ended December 31,	2017
	(Favorable) adverse development
Catastrophe net claims and claim expenses
Large catastrophe events
Storm Sandy (2012)	$	(4,395	)
April and May U.S. Tornadoes (2011)	(4,177		)
New Zealand Earthquake (2010)	4,061
New Zealand Earthquake (2011)	5,807
Other	(8,936		)
Total large catastrophe events	(7,640		)
Small catastrophe events and attritional loss movements
Tianjin Explosion (2015)	(8,002		)
Fort McMurray Wildfire (2016)	(6,364		)
Other small catastrophe events and attritional loss movements	(24,432		)
Total small catastrophe events and attritional loss movements	(38,798		)
Total catastrophe and attritional net claims and claim expenses	(46,438		)
Actuarial assumption changes	842
Total net favorable development of prior accident years net claims and claim expenses	$	(45,596	)

The following table details the development of the Company’s liability for unpaid claims and claim expenses for its Other category:




Year ended December 31,	2018			2017			2016
	(Favorable) adverse development			(Favorable) adverse development			(Favorable) adverse development
Other	$	(197	)	$	(1,583	)	$	(1,110	)

The following table details the Company’s prior year development by segment of its liability for unpaid claims and claim expenses:




Year ended December 31,	2018			2017			2016
	(Favorable) adverse development			(Favorable) adverse development			(Favorable) adverse development
Property	$	(221,290	)	$	(45,596	)	$	(104,876	)
Casualty and Specialty	(49,262		)	6,183			(58,140		)
Other	(197		)	(1,583		)	(1,110		)
Total favorable development of prior accident years net claims and claim expenses	$	(270,749	)	$	(40,996	)	$	(164,126	)

The following table summarizes the Company’s claims and claim expense reserves by segment, allocated between case reserves, additional case reserves and IBNR:




At December 31, 2018	Case Reserves		Additional Case Reserves		IBNR		Total
Property	$	690,718	$	1,308,307	$	1,087,229	$	3,086,254
Casualty and Specialty	771,537		116,877		2,096,979		2,985,393
Other	1,458		—		3,166		4,624
Total	$	1,463,713	$	1,425,184	$	3,187,374	$	6,076,271

At December 31, 2017
Property	$	696,285	$	896,522	$	893,583	$	2,486,390
Casualty and Specialty	689,962		124,923		1,760,607		2,575,492
Other	6,605		—		11,921		18,526
Total	$	1,392,852	$	1,021,445	$	2,666,111	$	5,080,408

Activity in the liability for unpaid claims and claim expenses is summarized as follows:




Year ended December 31,	2018			2017			2016
Net reserves as of January 1	$	3,493,778		$	2,568,730		$	2,632,519
Net incurred related to:
Current year	1,390,767			1,902,424			694,957
Prior years	(270,749		)	(40,996		)	(164,126		)
Total net incurred	1,120,018			1,861,428			530,831
Net paid related to:
Current year	391,061			450,527			83,015
Prior years	503,708			524,298			506,279
Total net paid	894,769			974,825			589,294
Foreign exchange	(14,977		)	38,445			(5,326		)
Net reserves as of December 31	3,704,050			3,493,778			2,568,730
Reinsurance recoverable as of December 31	2,372,221			1,586,630			279,564
Gross reserves as of December 31	$	6,076,271		$	5,080,408		$	2,848,294

Schedule of Short-duration Insurance Contracts, Claims Development

The following table details the Company's cumulative number of reported claims for its excess of loss reinsurance contracts allocated by segment:




	At December 31, 2018
	Cumulative number of reported claims
Accident Year	Property	Casualty and Specialty
2009	743	1,132
2010	787	1,081
2011	1,186	1,411
2012	679	1,448
2013	629	1,557
2014	553	2,040
2015	606	1,992
2016	845	1,650
2017	1,812	1,028
2018	1,014	277

The following table details the Company’s Casualty and Specialty segment incurred claims and claim expenses and cumulative paid claims and claim expenses as of December 31, 2018, net of reinsurance, as well as IBNR plus ACR included within the net incurred claims amounts.




	Incurred claims and claim expenses, net of reinsurance
	For the year ended December 31,																				At December 31, 2018
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR and ACR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2009	$	479,421	$	470,031	$	471,808	$	438,538	$	417,569	$	395,631	$	387,184	$	382,077	$	385,230	$	386,863	$	17,436
2010	—		382,996		389,460		375,980		340,465		318,979		305,784		304,096		300,054		299,490		19,146
2011	—		—		382,194		381,062		351,692		321,471		313,955		307,899		297,405		303,844		29,575
2012	—		—		—		427,341		425,617		395,823		387,532		377,527		391,350		409,458		36,381
2013	—		—		—		—		392,146		362,017		338,054		319,555		305,114		295,703		44,079
2014	—		—		—		—		—		477,587		459,317		454,589		439,609		416,162		112,665
2015	—		—		—		—		—		—		413,112		432,538		453,052		422,675		116,981
2016	—		—		—		—		—		—		—		427,483		430,606		425,157		177,802
2017	—		—		—		—		—		—		—		—		553,215		564,282		374,420
2018	—		—		—		—		—		—		—		—		—		649,147		587,894
Total																			$	4,172,781	$	1,516,379

	Cumulative paid claims and claim expenses, net of reinsurance
	For the year ended December 31,
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2009	$	40,320	$	168,590	$	206,047	$	242,450	$	269,248	$	303,482	$	324,150	$	329,523	$	336,950	$	345,303
2010	—		34,853		98,853		136,319		163,914		182,753		227,403		241,012		257,891		261,215
2011	—		—		48,067		113,484		145,642		175,274		206,266		224,112		237,694		251,188
2012	—		—		—		66,507		121,882		168,622		208,975		242,397		294,897		318,199
2013	—		—		—		—		37,966		86,668		125,902		160,513		193,985		214,392
2014	—		—		—		—		—		55,977		104,756		150,103		194,111		230,997
2015	—		—		—		—		—		—		33,693		85,286		160,013		224,136
2016	—		—		—		—		—		—		—		32,086		98,486		168,307
2017	—		—		—		—		—		—		—		—		38,073		105,489
2018	—		—		—		—		—		—		—		—		—		34,876
Total																			$	2,154,102
Outstanding liabilities from accident year 2008 and prior, net of reinsurance																			282,641
Adjustment for unallocated claim expenses																			24,928
Unamortized fair value adjustments recorded in connection with the acquisition of Platinum																			4,309
Liability for claims and claim expenses, net of reinsurance																			$	2,330,557

The following table details the Company’s consolidated incurred claims and claim expenses and cumulative paid claims and claim expenses as of December 31, 2018, net of reinsurance, as well as IBNR plus ACR included within the net incurred claims amounts.




	Incurred claims and claim expenses, net of reinsurance
	For the year ended December 31,																				At December 31, 2018
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR and ACR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2009	$	699,400	$	634,400	$	617,015	$	577,285	$	552,059	$	530,876	$	521,723	$	516,888	$	519,585	$	521,739	$	17,510
2010	—		992,376		950,984		902,908		871,664		869,959		860,517		868,441		866,529		855,132		52,575
2011	—		—		1,646,568		1,573,930		1,493,095		1,412,886		1,384,912		1,348,620		1,334,068		1,337,445		76,002
2012	—		—		—		865,281		770,104		707,471		681,405		653,437		655,882		666,704		52,680
2013	—		—		—		—		619,414		558,746		512,389		472,270		446,311		433,363		46,050
2014	—		—		—		—		—		660,836		613,786		601,727		582,473		558,619		117,354
2015	—		—		—		—		—		—		639,151		627,702		629,211		590,591		136,328
2016	—		—		—		—		—		—		—		680,039		684,757		666,453		241,938
2017	—		—		—		—		—		—		—		—		1,895,376		1,731,295		828,815
2018	—		—		—		—		—		—		—		—		—		1,367,413		923,976
Total																			$	8,728,754	$	2,493,228

	Cumulative paid claims and claim expenses, net of reinsurance
	For the year ended December 31,
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2009	$	96,462	$	269,714	$	321,506	$	365,731	$	398,452	$	437,232	$	458,920	$	465,244	$	472,679	$	481,632
2010	—		128,276		315,357		431,562		500,974		555,252		626,094		715,191		741,629		758,762
2011	—		—		260,326		540,985		889,387		1,043,763		1,133,013		1,176,892		1,203,998		1,222,512
2012	—		—		—		166,564		266,980		357,821		417,628		461,035		525,736		551,846
2013	—		—		—		—		86,998		179,709		243,544		289,144		326,807		348,436
2014	—		—		—		—		—		111,067		200,830		268,871		317,901		357,894
2015	—		—		—		—		—		—		95,862		193,965		287,522		362,419
2016	—		—		—		—		—		—		—		79,577		217,746		324,224
2017	—		—		—		—		—		—		—		—		450,034		548,619
2018	—		—		—		—		—		—		—		—		—		389,492
Total																			$	5,345,836
Outstanding liabilities from accident year 2008 and prior, net of reinsurance																			286,863
Claims and claim expenses, net of reinsurance, from the Company's former Bermuda-based insurance operations																			368
Adjustment for unallocated claim expenses																			28,956
Unamortized fair value adjustments recorded in connection with the acquisition of Platinum																			4,945
Liability for claims and claim expenses, net of reinsurance																			$	3,704,050

The following table details the Company’s Property segment incurred claims and claim expenses and cumulative paid claims and claim expenses as of December 31, 2018, net of reinsurance, as well as IBNR plus ACR included within the net incurred claims amounts.




	Incurred claims and claim expenses, net of reinsurance
	For the year ended December 31,																				At December 31, 2018
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		IBNR and ACR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2009	$	219,979	$	164,369	$	145,207	$	138,747	$	134,490	$	135,245	$	134,539	$	134,811	$	134,355	$	134,876	$	74
2010	—		609,380		561,524		526,928		531,199		550,980		554,733		564,345		566,475		555,642		33,429
2011	—		—		1,264,374		1,192,868		1,141,403		1,091,415		1,070,957		1,040,721		1,036,663		1,033,601		46,427
2012	—		—		—		437,940		344,487		311,648		293,873		275,910		264,532		257,246		16,299
2013	—		—		—		—		227,268		196,729		174,335		152,715		141,197		137,660		1,971
2014	—		—		—		—		—		183,249		154,469		147,138		142,864		142,457		4,689
2015	—		—		—		—		—		—		226,039		195,164		176,159		167,916		19,347
2016	—		—		—		—		—		—		—		252,556		254,151		241,296		64,136
2017	—		—		—		—		—		—		—		—		1,342,161		1,167,013		454,395
2018	—		—		—		—		—		—		—		—		—		718,266		336,082
Total																			$	4,555,973	$	976,849

	Cumulative paid claims and claim expenses, net of reinsurance
	For the year ended December 31,
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2009	$	56,142	$	101,124	$	115,459	$	123,281	$	129,204	$	133,750	$	134,770	$	135,721	$	135,729	$	136,329
2010	—		93,423		216,504		295,243		337,060		372,499		398,691		474,179		483,738		497,547
2011	—		—		212,259		427,501		743,745		868,489		926,747		952,780		966,304		971,324
2012	—		—		—		100,057		145,098		189,199		208,653		218,638		230,839		233,647
2013	—		—		—		—		49,032		93,041		117,642		128,631		132,822		134,044
2014	—		—		—		—		—		55,090		96,074		118,768		123,790		126,897
2015	—		—		—		—		—		—		62,169		108,679		127,509		138,283
2016	—		—		—		—		—		—		—		47,491		119,260		155,917
2017	—		—		—		—		—		—		—		—		411,961		443,130
2018	—		—		—		—		—		—		—		—		—		354,616
Total																			$	3,191,734
Outstanding liabilities from accident year 2008 and prior, net of reinsurance																			4,222
Adjustment for unallocated claim expenses																			4,028
Unamortized fair value adjustments recorded in connection with the acquisition of Platinum																			636
Liability for claims and claim expenses, net of reinsurance																			$	1,373,125

Schedule of Short-duration Insurance Contracts, Schedule of Historical Claims Duration

The following is unaudited supplementary information about average historical claims duration by segment:




	Average annual percentage payout of incurred claims by age, net of reinsurance (number of years)
At December 31, 2018	1		2		3		4		5		6		7		8		9		10
Property	31.7	%	17.3	%	20.8	%	9.1	%	5.2	%	3.3	%	4.7	%	0.9	%	2.0	%	0.4	%
Casualty and Specialty	10.1	%	16.9	%	12.9	%	10.9	%	8.5	%	10.0	%	5.1	%	3.6	%	1.6	%	2.2	%