Reserve for Claims and Claim Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Liability for Unpaid Claims and Claim Expenses




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 following tables 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,	2019
	(Favorable) adverse development
Catastrophe net claims and claim expenses
Large catastrophe events
2017 Large Loss Events	$	(101,572	)
New Zealand Earthquake (2011)	(7,497		)
Tohoku Earthquake and Tsunami (2011)	(5,198		)
New Zealand Earthquake (2010)	47,071
2018 Large Loss Events	81,555
Other	(31,916		)
Total large catastrophe events	(17,557		)
Small catastrophe events and attritional loss movements
Other small catastrophe events and attritional loss movements	5,379
Total small catastrophe events and attritional loss movements	5,379
Total catastrophe and attritional net claims and claim expenses	(12,178		)
Actuarial assumption changes	9,245
Total net favorable development of prior accident years net claims and claim expenses	$	(2,933	)




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 Company’s prior year development by segment of its liability for unpaid claims and claim expenses:




Year ended December 31,	2019			2018			2017
	(Favorable) adverse development			(Favorable) adverse development			(Favorable) adverse development
Property	$	(2,933	)	$	(221,290	)	$	(45,596	)
Casualty and Specialty	(23,882		)	(49,262		)	6,183
Other	(40		)	(197		)	(1,583		)
Total net favorable development of prior accident years net claims and claim expenses	$	(26,855	)	$	(270,749	)	$	(40,996	)

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,	2019			2018			2017
	(Favorable) adverse development			(Favorable) adverse development			(Favorable) adverse development
Actuarial methods - actual reported claims less than expected claims	$	(52,796	)	$	(41,476	)	$	(24,836	)
Ogden Rate change	—			—			33,481
Actuarial assumption changes	28,914			(7,786		)	(2,462		)
Total net (favorable) adverse development of prior accident years net claims and claim expenses	$	(23,882	)	$	(49,262	)	$	6,183

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, 2019
Net reserve for claims and claim expenses
Property	$	2,288,762
Casualty and Specialty	4,304,061
Other	229
Total net reserve for claims and claim expenses	6,593,052

Reinsurance recoverable
Property	$	1,785,088
Casualty and Specialty	1,005,998
Other	211
Total reinsurance recoverable	2,791,297
Total gross reserve for claims and claim expenses	$	9,384,349

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, 2019	Case Reserves		Additional Case Reserves		IBNR		Total
Property	$	1,253,406	$	1,631,223	$	1,189,221	$	4,073,850
Casualty and Specialty	1,596,426		129,720		3,583,913		5,310,059
Other	440		—		—		440
Total	$	2,850,272	$	1,760,943	$	4,773,134	$	9,384,349

At December 31, 2018
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

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




Year ended December 31,	2019			2018			2017
Net reserves as of beginning of period	$	3,704,050		$	3,493,778		$	2,568,730
Net incurred related to:
Current year	2,123,876			1,390,767			1,902,424
Prior years	(26,855		)	(270,749		)	(40,996		)
Total net incurred	2,097,021			1,120,018			1,861,428
Net paid related to:
Current year	265,649			391,061			450,527
Prior years	832,405			503,708			524,298
Total net paid	1,098,054			894,769			974,825
Amounts acquired (1)	1,858,775			—			—
Foreign exchange (2)	31,260			(14,977		)	38,445
Net reserves as of end of period	6,593,052			3,704,050			3,493,778
Reinsurance recoverable as of end of period	2,791,297			2,372,221			1,586,630
Gross reserves as of end of period	$	9,384,349		$	6,076,271		$	5,080,408


(1)	Represents the fair value of TMR's reserves for claims and claim expenses, net of reinsurance recoverables, acquired at March 22, 2019. Refer to “Note 3. Acquisition of Tokio Millennium Re” for additional information related to the acquisition of TMR.

(2)

Reflects the impact of the foreign exchange revaluation of net reserves denominated in non-U.S. dollars as at the balance sheet date.

Schedule of Short-duration Insurance Contracts, Claims Development

The following table details the Company’s consolidated incurred claims and claim expenses and cumulative paid claims and claim expenses as of December 31, 2019, 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, 2019
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019			IBNR and ACR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2010	$	1,131,892	$	1,105,041	$	1,048,747	$	1,033,341	$	1,045,727	$	1,037,725	$	1,045,490	$	1,043,565	$	1,015,540	$	1,052,931		$	60,342
2011	—		1,989,024		1,926,506		1,827,258		1,768,793		1,738,452		1,698,378		1,683,614		1,678,015		1,664,869			55,191
2012	—		—		1,138,018		1,021,668		958,139		927,438		891,981		894,168		901,049		907,212			48,297
2013	—		—		—		912,545		861,093		810,934		761,033		737,158		718,563		699,767			43,792
2014	—		—		—		—		1,024,813		997,906		990,050		966,802		948,264		953,904			114,985
2015	—		—		—		—		—		1,171,023		1,156,856		1,175,927		1,145,983		1,133,632			131,005
2016	—		—		—		—		—		—		1,401,451		1,458,767		1,432,001		1,426,575			251,952
2017	—		—		—		—		—		—		—		2,940,713		2,724,795		2,632,396			731,975
2018	—		—		—		—		—		—		—		—		2,198,980		2,338,291			940,346
2019	—		—		—		—		—		—		—		—		—		2,280,044			1,764,899
Total																			$	15,089,621		$	4,142,784

	Cumulative paid claims and claim expenses, net of reinsurance
	For the year ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2010	$	146,890	$	334,347	$	518,162	$	603,060	$	670,935	$	746,454	$	859,745	$	892,480	$	912,776	$	928,552
2011	—		311,906		728,464		1,143,829		1,330,492		1,449,060		1,493,174		1,530,030		1,550,195		1,565,359
2012	—		—		267,764		416,808		522,264		596,634		647,618		721,942		752,614		783,106
2013	—		—		—		131,829		340,652		434,508		496,380		554,686		587,978		615,463
2014	—		—		—		—		230,826		432,761		554,398		630,417		691,774		741,844
2015	—		—		—		—		—		262,085		495,119		662,001		781,622		879,950
2016	—		—		—		—		—		—		286,317		623,440		826,502		971,424
2017	—		—		—		—		—		—		—		745,098		1,067,481		1,371,477
2018	—		—		—		—		—		—		—		—		587,619		804,566
2019	—		—		—		—		—		—		—		—		—		284,842
Total																			$	8,946,583
Outstanding liabilities from accident year 2009 and prior, net of reinsurance																			270,317
Claims and claim expenses, net of reinsurance, from the Company's former Bermuda-based insurance operations																			229
Adjustment for unallocated claim expenses																			51,876
Unamortized fair value adjustments recorded in connection with acquisitions																			(69,219		)
Liability for claims and claim expense, net of reinsurance, associated with RenaissanceRe UK																			196,811
Liability for claims and claim expenses, net of reinsurance																			$	6,593,052

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, 2019, 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, 2019
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019			IBNR and ACR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2010	$	411,733	$	423,754	$	411,785	$	375,622	$	354,254	$	340,881	$	339,232	$	335,222	$	334,105	$	321,752		$	9,920
2011	—		429,955		434,736		404,599		375,683		368,885		360,191		349,632		356,878		362,728			30,856
2012	—		—		578,072		592,243		562,936		552,340		535,671		549,633		564,330		575,347			35,946
2013	—		—		—		595,287		573,399		545,364		520,088		508,536		493,815		476,828			42,700
2014	—		—		—		—		718,082		714,298		719,432		700,982		683,510		688,675			110,431
2015	—		—		—		—		—		802,257		822,284		858,062		838,895		831,899			119,333
2016	—		—		—		—		—		—		955,919		1,000,242		988,866		994,306			197,962
2017	—		—		—		—		—		—		—		1,300,584		1,278,229		1,284,136			436,765
2018	—		—		—		—		—		—		—		—		1,253,151		1,283,407			666,869
2019	—		—		—		—		—		—		—		—		—		1,279,854			1,045,052
Total																			$	8,098,932		$	2,695,834

	Cumulative paid claims and claim expenses, net of reinsurance
	For the year ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2010	$	42,031	$	103,795	$	172,588	$	201,083	$	220,311	$	264,965	$	278,585	$	297,349	$	300,763	$	305,321
2011	—		48,919		138,118		178,161		209,118		241,924		262,671		277,826		292,679		300,945
2012	—		—		101,914		211,241		268,565		316,439		356,591		416,315		443,792		469,130
2013	—		—		—		51,746		185,193		243,327		290,004		341,335		371,802		396,232
2014	—		—		—		—		124,208		248,621		331,889		396,273		450,635		494,181
2015	—		—		—		—		—		135,254		279,985		412,819		513,077		600,785
2016	—		—		—		—		—		—		166,409		365,085		502,206		620,778
2017	—		—		—		—		—		—		—		211,001		406,990		547,034
2018	—		—		—		—		—		—		—		—		155,418		354,441
2019	—		—		—		—		—		—		—		—		—		125,257
Total																			$	4,214,104
Outstanding liabilities from accident year 2009 and prior, net of reinsurance																			266,034
Adjustment for unallocated claim expenses																			32,537
Unamortized fair value adjustments recorded in connection with acquisitions																			(58,613		)
Liability for claims and claim expense, net of reinsurance, associated with RenaissanceRe UK																			179,275
Liability for claims and claim expenses, net of reinsurance																			$	4,304,061

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, 2019, 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, 2019
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019			IBNR and ACR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2010	$	720,159	$	681,287	$	636,962	$	657,719	$	691,473	$	696,844	$	706,258	$	708,343	$	681,435	$	731,179		$	50,422
2011	—		1,559,069		1,491,770		1,422,659		1,393,110		1,369,567		1,338,187		1,333,982		1,321,137		1,302,141			24,335
2012	—		—		559,946		429,425		395,203		375,098		356,310		344,535		336,719		331,865			12,351
2013	—		—		—		317,258		287,694		265,570		240,945		228,622		224,748		222,939			1,092
2014	—		—		—		—		306,731		283,608		270,618		265,820		264,754		265,229			4,554
2015	—		—		—		—		—		368,766		334,572		317,865		307,088		301,733			11,672
2016	—		—		—		—		—		—		445,532		458,525		443,135		432,269			53,990
2017	—		—		—		—		—		—		—		1,640,129		1,446,566		1,348,260			295,210
2018	—		—		—		—		—		—		—		—		945,829		1,054,884			273,477
2019	—		—		—		—		—		—		—		—		—		1,000,190			719,847
Total																			$	6,990,689		$	1,446,950

	Cumulative paid claims and claim expenses, net of reinsurance
	For the year ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2010	$	104,859	$	230,552	$	345,574	$	401,977	$	450,624	$	481,489	$	581,160	$	595,131	$	612,013	$	623,231
2011	—		262,987		590,346		965,668		1,121,374		1,207,136		1,230,503		1,252,204		1,257,516		1,264,414
2012	—		—		165,850		205,567		253,699		280,195		291,027		305,627		308,822		313,976
2013	—		—		—		80,083		155,459		191,181		206,376		213,351		216,176		219,231
2014	—		—		—		—		106,618		184,140		222,509		234,144		241,139		247,663
2015	—		—		—		—		—		126,831		215,134		249,182		268,545		279,165
2016	—		—		—		—		—		—		119,908		258,355		324,296		350,646
2017	—		—		—		—		—		—		—		534,097		660,491		824,443
2018	—		—		—		—		—		—		—		—		432,201		450,125
2019	—		—		—		—		—		—		—		—		—		159,585
Total																			$	4,732,479
Outstanding liabilities from accident year 2009 and prior, net of reinsurance																			4,283
Adjustment for unallocated claim expenses																			19,339
Unamortized fair value adjustments recorded in connection with acquisitions																			(10,606		)
Liability for claims and claim expense, net of reinsurance, associated with RenaissanceRe UK																			17,536
Liability for claims and claim expenses, net of reinsurance																			$	2,288,762

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, 2019
	Cumulative number of reported claims
Accident Year	Property	Casualty and Specialty
2010	835	1,215
2011	1,388	1,964
2012	922	2,263
2013	799	2,712
2014	744	3,421
2015	758	3,783
2016	1,089	4,135
2017	2,215	3,294
2018	2,050	2,148
2019	861	816

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, 2019	1		2		3		4		5		6		7		8		9		10
Property	29.9	%	17.0	%	17.8	%	8.7	%	5.4	%	2.7	%	4.9	%	1.0	%	1.2	%	1.5	%
Casualty and Specialty	14.3	%	18.4	%	13.0	%	10.3	%	8.8	%	8.2	%	4.6	%	4.7	%	1.7	%	1.4	%