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Insurance Contract Liabilities (Tables)
 12 Months Ended
Dec. 31, 2018
Insurance Contracts [Abstract]  
Disclosure of amounts arising from insurance contracts
The estimated fair value of the company's insurance and reinsurance contracts is as follows:
 
December 31, 2018
 
December 31, 2017
 
Fair
value

 
Carrying
value

 
Fair
value

 
Carrying
value

Insurance contracts
34,560.2

 
35,353.9

 
33,807.2

 
34,562.5

Ceded reinsurance contracts
7,276.2

 
7,749.9

 
6,948.7

 
7,358.7

Changes in the provision for losses and loss adjustment expenses for the years ended December 31 were as follows: 
 
2018

 
2017

Provision for losses and loss adjustment expenses – January 1
28,610.8

 
19,481.8

Decrease in estimated losses and expenses for claims occurring in the prior years
(462.7
)
 
(218.8
)
Losses and expenses for claims occurring in the current year(1)
11,165.8

 
9,736.5

Paid on claims occurring during:
 
 
 
the current year
(2,474.6
)
 
(2,263.9
)
the prior years
(7,566.3
)
 
(5,526.0
)
Acquisitions of subsidiaries and reinsurance transactions(2)
564.6

 
7,377.6

Divestiture of subsidiary (note 23)
—

 
(546.6
)
Foreign exchange effect and other
(755.9
)
 
570.2

Provision for losses and loss adjustment expenses – December 31
29,081.7

 
28,610.8


(1)
Excludes a gain of $103.7 related to the Part VII transfer component of the RiverStone (UK) acquisition transactions in 2018 (described in the subsequent paragraph).
(2)
Comprised primarily of gross insurance contract liabilities assumed of $553.2 related to the Part VII transfer component of the RiverStone (UK) acquisition transactions in 2018 (described in the subsequent paragraph) and the acquisition of Allied World in 2017 (note 23).
The loss development table which follows shows the provision for losses and loss adjustment expenses at the end of each calendar year, the cumulative payments made in respect of those reserves in subsequent years and the re-estimated amount of each calendar year's provision for losses and loss adjustment expenses as at December 31, 2018.
 
Calendar year
 
2009

 
2010

 
2011

 
2012

 
2013

 
2014

 
2015

 
2016

 
2017

 
2018

Provision for losses and loss adjustment expenses
14,504.8

 
16,049.3

 
17,232.2

 
19,648.8

 
19,212.8

 
17,749.1

 
19,816.4

 
19,481.8

 
28,610.8

 
29,081.7

Less: CTR Life(1)
27.6

 
25.3

 
24.2

 
20.6

 
17.9

 
15.2

 
14.2

 
12.8

 
8.7

 
8.0

 
14,477.2

 
16,024.0

 
17,208.0

 
19,628.2

 
19,194.9

 
17,733.9

 
19,802.2

 
19,469.0

 
28,602.1

 
29,073.7

Cumulative payments as of:
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
One year later
3,126.6

 
3,355.9

 
3,627.6

 
4,323.5

 
4,081.1

 
3,801.6

 
4,441.4

 
4,608.0

 
7,564.0

 
 
Two years later
5,307.6

 
5,441.4

 
6,076.7

 
7,153.1

 
6,787.6

 
6,364.5

 
7,283.6

 
7,631.4

 
 
 
 
Three years later
6,846.3

 
7,063.1

 
7,920.3

 
9,148.0

 
8,775.5

 
8,172.7

 
9,466.5

 
 
 
 
 
 
Four years later
7,932.7

 
8,333.3

 
9,333.4

 
10,702.8

 
10,212.4

 
9,561.8

 
 
 
 
 
 
 
 
Five years later
8,936.9

 
9,327.0

 
10,458.7

 
11,783.3

 
11,354.4

 
 
 
 
 
 
 
 
 
 
Six years later
9,721.1

 
10,202.6

 
11,263.6

 
12,729.6

 
 
 
 
 
 
 
 
 
 
 
 
Seven years later
10,456.1

 
10,823.4

 
12,030.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eight years later
10,975.6

 
11,442.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine years later
11,515.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserves re-estimated as of:
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
One year later
14,616.0

 
15,893.8

 
17,316.4

 
19,021.2

 
18,375.6

 
16,696.4

 
19,169.3

 
19,343.1

 
27,580.6

 
 
Two years later
14,726.6

 
15,959.7

 
17,013.6

 
18,529.4

 
17,475.0

 
16,269.2

 
18,973.6

 
18,804.8

 
 
 
 
Three years later
14,921.6

 
15,705.6

 
16,721.0

 
17,820.5

 
17,307.9

 
16,114.0

 
18,502.5

 
 
 
 
 
 
Four years later
14,828.9

 
15,430.4

 
16,233.9

 
17,735.5

 
17,287.2

 
15,938.9

 
 
 
 
 
 
 
 
Five years later
14,663.1

 
15,036.2

 
16,269.6

 
17,830.5

 
17,203.5

 
 
 
 
 
 
 
 
 
 
Six years later
14,433.0

 
15,099.0

 
16,331.8

 
17,791.8

 
 
 
 
 
 
 
 
 
 
 
 
Seven years later
14,551.5

 
15,252.1

 
16,340.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eight years later
14,744.2

 
15,279.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine years later
14,800.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Favourable (unfavourable) development
(322.8
)
 
744.3

 
867.4

 
1,836.4

 
1,991.4

 
1,795.0

 
1,299.7

 
664.2

 
1,021.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comprised of favourable (unfavourable):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of foreign currency translation
116.7

 
303.3

 
320.1

 
635.8

 
544.1

 
329.2

 
(137.0
)
 
(113.0
)
 
558.8

 
 
Loss reserve development
(439.5
)
 
441.0

 
547.3

 
1,200.6

 
1,447.3

 
1,465.8

 
1,436.7

 
777.2

 
462.7

 
 
 
(322.8
)
 
744.3

 
867.4

 
1,836.4

 
1,991.4

 
1,795.0

 
1,299.7

 
664.2

 
1,021.5

 
 
(1)
Guaranteed minimum death benefit retrocessional business written by Compagnie Transcontinentale de Réassurance ("CTR Life"), a wholly owned subsidiary of the company that was transferred to Wentworth and placed into run-off in 2002.
The following is an analysis of the changes which have occurred in the company's provision for losses and loss adjustment expenses related to U.S. asbestos exposure on a gross and net basis for the years ended December 31:
 
2018
 
2017
 
Gross

 
Net

 
Gross

 
Net

Provision for asbestos claims and loss adjustment expenses - January 1
1,292.1

 
1,033.3

 
1,347.7

 
1,065.5

Losses and loss adjustment expenses incurred
138.6

 
114.3

 
153.0

 
141.8

Losses and loss adjustment expenses paid
(233.2
)
 
(170.1
)
 
(208.6
)
 
(174.0
)
Provisions for asbestos claims assumed during the year, at December 31(1)
20.4

 
17.8

 
—

 
—

Provision for asbestos claims and loss adjustment expenses - December 31
1,217.9

 
995.3

 
1,292.1

 
1,033.3

 
 

 
 

 
 

 
 

(1)
Comprised primarily of the reinsurance component of the RiverStone (UK) acquisition transactions.
 
December 31, 2018
 
December 31, 2017
 
 
Gross
Ceded
Net
Gross
Ceded
Net
Provision for unearned premiums
6,272.2

 
1,290.8

 
4,981.4

 
5,951.7

 
1,169.0

 
4,782.7

 
Provision for losses and loss adjustment expenses
29,081.7

 
6,459.1

 
22,622.6

 
28,610.8

 
6,189.7

 
22,421.1

 
Total insurance contract liabilities
35,353.9

 
7,749.9

 
27,604.0

 
34,562.5

 
7,358.7

 
27,203.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
14,086.5

 
3,489.5

 
10,597.0

 
13,405.0

 
2,975.9

 
10,429.1

 
Non-current
21,267.4

 
4,260.4

 
17,007.0

 
21,157.5

 
4,382.8

 
16,774.7

 
 
35,353.9

 
7,749.9

 
27,604.0

 
34,562.5

 
7,358.7

 
27,203.8

 
Changes in the provision for unearned premiums for the years ended December 31 were as follows:
 
2018

 
2017

Provision for unearned premiums – January 1
5,951.7

 
3,740.4

Gross premiums written
15,528.3

 
12,207.5

Less: gross premiums earned
(15,001.4
)
 
(11,822.0
)
Acquisitions of subsidiaries (note 23)
5.9

 
1,906.2

Divestiture of subsidiary (note 23)
—

 
(157.9
)
Foreign exchange effect and other
(212.3
)
 
77.5

Provision for unearned premiums - December 31
6,272.2

 
5,951.7
Disclosure of sensitivity to insurance risk
The table that follows illustrates the potential impact of interest rate fluctuations on the fair value of the company's insurance and reinsurance contracts:
 
December 31, 2018
 
December 31, 2017
Change in interest rates
Fair value of
insurance
contracts

 
Fair value of
reinsurance
contracts

 
Fair value of
insurance
contracts

 
Fair value of
reinsurance
contracts

100 basis point increase
33,539.0

 
7,074.1

 
32,820.7

 
6,764.1

100 basis point decrease
35,686.3

 
7,494.8

 
34,877.5

 
7,147.6