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Related Party Transactions and Major Customers
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Related Party Transactions and Major Customers RELATED PARTY TRANSACTIONS AND MAJOR CUSTOMERS
Tower Hill
The Company has entered into reinsurance and other arrangements with certain subsidiaries and affiliates of Tower Hill and has also entered into reinsurance arrangements with respect to business produced by the Tower Hill Companies.
During 2022, the Company recorded $82.0 million (2021 - $69.8 million, 2020 - $55.5 million) of gross premiums written assumed from the Tower Hill Companies and its subsidiaries and affiliates. Gross premiums earned totaled $80.0 million (2021 - $63.0 million, 2020 - $51.4 million) and expenses incurred were $15.8 million (2021 - $11.3 million, 2020 - $7.9 million) for 2022. The Company had a net related outstanding receivable balance of $19.1 million as of December 31, 2022 (2021 - receivable of $21.7 million). During 2022, the Company assumed net claims and claim expenses of $68.6 million (2021 - assumed net claims and claim expenses of $28.5 million, 2020 - assumed net claims and claim expenses of $13.2 million) and, as of December 31, 2022, had a net reserve for claims and claim expenses of $89.8 million (2021 - $68.0 million).
In addition, the Company received distributions of $10.5 million from the Tower Hill Companies during 2022 (2021 - $15.0 million, 2020 - $9.5 million).
Top Layer
During 2022, the Company received distributions from Top Layer of $8.7 million (2021 - $9.3 million, 2020 - $18.0 million), and recorded a management fee of $2.4 million (2021 - $2.5 million, 2020 - $2.4 million). The management fee reimburses the Company for services it provides to Top Layer.
Broker Concentration
During 2022, the Company received 82.2% of its gross premiums written (2021 - 78.0%, 2020 - 79.6%) from three brokers. Subsidiaries and affiliates of Aon plc, Marsh & McLennan Companies, Inc. and Arthur J. Gallagher accounted for 35.4%, 33.3% and 13.5%, respectively, of gross premiums written in 2022.
On December 1, 2021, Arthur J. Gallagher completed its acquisition of Willis Re, a subsidiary of Willis Towers Watson Public Limited Company. The percentage of gross premiums written for Arthur J. Gallagher in 2021 includes gross premiums written which were generated through Willis Re, a subsidiary of Willis Towers Watson Public Limited Company. Subsidiaries and affiliates of Aon plc, Marsh & McLennan Companies, Inc. and Willis Towers Watson Public Limited Company accounted for 35.8%, 30.0% and 12.2%, respectively, of gross premiums written in 2021 and 42.8%, 24.5% and 12.3%, respectively, of gross premiums written in 2020.